P+C Idaho Exam Review Questions with Correct Answers
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P+C Idaho
Institution
P+C Idaho
If I want Replacement Cost coverage on my $200,000 home, I need to purchase how much insurance?
a.$60,000
b.$100,000
c.$160,000
d.$200,000 Correct Answer 80% of $200,000 is $160,000. The HO only provides Replacement Cost coverage on the structures if they are insured to 80% of value.
The cor...
P+C Idaho Exam Review Questions with
Correct Answers
If I want Replacement Cost coverage on my $200,000 home, I need to purchase how
much insurance?
a.$60,000
b.$100,000
c.$160,000
d.$200,000 Correct Answer 80% of $200,000 is $160,000. The HO only provides
Replacement Cost coverage on the structures if they are insured to 80% of value.
The correct answer is: $160,000
Water damage to a building resulting from fire fighting efforts is:
a.a direct loss
b.an indirect loss Correct Answer direct loss
A car is destroyed by a hurricane. This is:
Select one:
a.an occurrence
b.an accident Correct Answer accident
A document outlining the coverage with evidence that coverage is in effect is known as
a/an?
Select one:
a.endorsement
b.certificate of insurance Correct Answer certificate of insurance
Which policy is purchased by a business to cover completed operations and products
liability?
Select one:
a.Commercial Liability
b.Errors and Omissions
c.Homeowner Policy
d.Dwelling Policy Correct Answer The correct answer is: Commercial Liability
A, B and C as partners own a business. They have a CGL providing a $100,000
occurrence limit. An injured customer sued after an accident and obtained three
judgments; one against A for $50,000, a second against B for $50,000 and a third
against C for $50,000. The CGL will pay:
Select one:
a.only $100,000.
b.all three judgments in full because neither exceeds the occurrence limit. Correct
Answer The correct answer is: only $100,000.
,Which of the following is an example of vicarious liability?
Select one:
a.A store owner is held liable for carelessly dropping a box on a customer's foot.
b.A store owner is held liable when a store employee carelessly drops a box on a
customer's foot. Correct Answer A store owner is held liable when a store employee
carelessly drops a box on a customer's foot.
Which of the following is covered by a Commercial Package Policy (CPP)?
Select one:
a.Aircraft
b.Ships
c.Partners' Accounting
d.Crime Correct Answer The correct answer is: Crime
The Insured's sworn statement made to the Insurer regarding the time and cause of the
loss is known as:
Select one:
a.proof of loss
b.certification Correct Answer The correct answer is: proof of loss
The Boiler Policy provides coverage for new locations for:
Select one:
a.30 days
b.60 days
c.90 days
d.120 days Correct Answer 90 days
Under the pair or set rule:
Select one:
a. Both items in the pair or set must be insured for full replacement or actual cash value.
b.In no event will the loss of one item in the pair or set be considered to be the loss of
all items in the pair or set. Correct Answer In no event will the loss of one item in the
pair or set be considered to be the loss of all items in the pair or set.
A Broad Form policy covers:
Select one:
a.earthquake
b.inherent vice
c.sewer backup
d.volcano Correct Answer The "sneakiest" question in this area is that Basic, Broad,
and Special Causes of Loss forms all cover volcanoes.
Chapter 4: Typical Property Policy
The correct answer is: volcano
Liability for the destruction of property is covered by:
Payment based on the fact that the Insured owns the property involved is:
Select one:
a.Actual cash value
b.Indemnity
c.Replacement cost
d.Insurable interest Correct Answer The correct answer is: Insurable interest
If my building has been vacant for more than 60 days, my Building and Personal
Property Policy will cover:
Select one:
a.fire.
b.sprinkler leakage.
c.glass breakage.
d.vandalism. Correct Answer The correct answer is: fire.
The Fair Credit Reporting Act:
Select one:
a.allows an insurer to obtain consumer investigative reports without notifying the
consumers.
b.prohibits insurers from obtaining credit reports without consent of the consumer.
c.allows consumers to insert corrective statements in their consumer reports.
d.requires insurers to provide applicants with copies of all investigative reports. Correct
Answer The correct answer is: allows consumers to insert corrective statements in their
consumer reports.
Fidelity Bonds cover acts of:
Select one:
a.employees
b.customers Correct Answer The correct answer is: employees
The deductible under an earthquake policy is:
Select one:
a.$100.
b.$250.
c.$500.
d.a percentage. Correct Answer : a percentage.
A Performance Bond is an example of a ________ bond.
Select one:
a.surety
b.bail
c.bid
, d.judicial Correct Answer surety
Which coverage applies under an Ocean Marine policy when cargo is jettisoned to save
the ship?
Select one:
a.particular average
b.total loss
c.sue and labor expense
d.general average Correct Answer general average
Which section of the policy specifies the Insured's responsibilities?
Select one:
a.Insuring Agreements
b.Exclusions
c.Conditions
d.Declaration Correct Answer Conditions
Personal Articles Floaters cover which of the following?
Select one:
a.Flood
b.Intentional or expected loss
c.War
d.Inherent Vice Correct Answer Other than the Flood Policy, the only policies on our
exam that will cover flood are the Personal Articles Floaters and the auto policies. flood
The owner of a new office building is unable to move in for 80 days. Which provision will
restrict coverage?
Select one:
a.coinsurance
b.abandonment
c.vacancy
d.indemnity Correct Answer vacancy
If a criminal hides in the business storeroom until closing, then steals merchandise and
leaves through a fire door, this is an example of:
Select one:
a.burglary
b.robbery
c.mysterious disappearance
d.theft Correct Answer There is no sign of damage from breaking in, or breaking out, so
this would be an example of theft. theft
A lawnmower manufacturer is liable if a blade flies off the mower. This is an example of:
Select one:
a.absolute liability.
b.professional liability.
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