IDAHO INSURANCE CASUALTY &PROPERTY EXAM2024/2025
NEWEST !!! COMPLETE ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS ) ALREADY
GRADED A+.
Which is true regarding insurance companies?
:a.Stock companies are managed by the policy owners
.b.Mutuals are owned by the policy holders, have the management
members chosen by the policy holders, and pay dividends to the
policy holders.
c.Stock companies and mutuals both pay dividends to the policy
holders.
d.Stock companies are owned by the policy holders but mutuals are
owned by the stock holders. - ANSWER-b
For a business, Extra Expense would cover: a.payment
of normal payroll
b.rebuilding the structure
c.lost business income
d.rental of substitute space - ANSWER-d
The Building and Personal Property policy covers: a.outdoor
furniture
b.pets c autos held for
resale
d.money, stocks and bonds - ANSWER-a
,The maximum amount payable for all losses resulting from one event
is known as the:
a.occurrence limit
b.aggregate limit - ANSWER-a
A Broad Form policy covers: a.earthquake
b.volcano
c.inherent vice
d.sewer backup - ANSWER-b
The HO's Personal Liability section covers: a.Damage
to the insured's home.
b.Medical expenses of the Insured's children.
c.Damage to the property of other persons.
d.A tenant's suit for wrongful eviction. - ANSWER-c
Which of the following is an example of vicarious liability?
a.A store owner is held liable when a store employee carelessly drops
a box on a customer's foot.
b.A store owner is held liable for carelessly dropping a box on a
customer's foot. - ANSWER-a
What is vicarious liability? - ANSWER-Vicarious liability refers to
liability for the acts of another. An employer has vicarious liability for
the acts of its employees.
,If I have a $100,000 HO policy, my personal property is covered to:
a.$100,000 on an actual cash value basis.
b.$50,000 on an actual cash value basis.
c.$100,000 on a replacement cost basis.
d.$50,000 on a replacement cost basis. - ANSWER-b
Self-insurers must comply with work comp regulations by: a.requiring
the workers to pay for their work comp
b.having a letter signed by the management team indicating solvency
c.complying with state regulations
d.having at least $10,000,000 in cash to pay claims - ANSWER-c
A liability policy will pay which of the following ONLY if the insured is
liable?
a.medical payments
b.supplementary
c.bodily injury
d.bonds - ANSWER-c
Liability for the destruction of property is covered by: a.Physical
Damage Coverage
b.Property Damage Coverage - ANSWER-b
Restoring the Insured to the financial condition prior to a loss is:
a.illegal
b.direct loss
c.peril
, d.indemnification - ANSWER-d
What is indemnification? - ANSWER-Indemnification is making whole
but not coming out ahead. Another way of saying that is that the
Insured is being restored to the financial condition that existed prior
to the loss occurring.
Important sources of insurability information used by an underwriter
may include each of the following EXCEPT: a.a physical inspection.
b.the applicant's marital status .c.the
application.
d.credit reports. - ANSWER-b
Auto med pay:
a.is required by both federal and state law
b.pays medical and funeral expenses for the Insured and any
passengers in the Insured's auto
c.covers any pedestrians hit by the Insured's auto
d.pays regardless of coverages in other policies - ANSWER-b
what is med pay with auto insurance? - ANSWER-With auto
insurance, Med Pay covers the Insured and passengers in the
Insured's auto. This is a bit weird because most Casualty Policies
cover the "other guy" with Med Pay. Not so with the auto policy.
However, Med pay won't allow stacking policy coverages to come out
ahead. Med Pay is (in most states) an optional coverage.
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