IDAHO PROPERTY INSURANCE EXAM UPDATED ACTUAL Questions and CORRECT Answers
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Course
IDAHO PROPERTY INSURANCE
Institution
IDAHO PROPERTY INSURANCE
IDAHO PROPERTY INSURANCE EXAM
UPDATED ACTUAL Questions and
CORRECT Answers
The term flood refers to all of the following EXCEPT
A. an overflow of inland tidal waters
B. collapse of land as a result of excessive erosion due to flood
C. mudslides
D. sewer backup - CORRECT ANSWER- Sewer backup
IDAHO PROPERTY INSURANCE EXAM
UPDATED ACTUAL Questions and
CORRECT Answers
The term flood refers to all of the following EXCEPT
A. an overflow of inland tidal waters
B. collapse of land as a result of excessive erosion due to flood
C. mudslides
D. sewer backup - CORRECT ANSWER✔✔- Sewer backup
Insurers may be classified according to their financial strength. This includes all of the
following factors EXCEPT...
A. Number of clients
B. Loss experience
C. Investment performance
D. Operating expenses - CORRECT ANSWER✔✔- Number of clients
An individual applied for auto insurance and obtained coverage from ABC IC. Who is the 1st
party in the contract?
A. The insured (customer)
B. The insurer (IC)
C. The agent
D. The insured and agent - CORRECT ANSWER✔✔- A. The insured (customer)
If a fire causes damage to a building, the fire is...
A. A Hazard
B. A Peril
C. A Risk
,D. An Exposure - CORRECT ANSWER✔✔- B. A Peril
Wearing a seatbelt in a car is an ex of which method of managing risk?
A. Retain
B. Avoid
C. Reduce
D. Transfer - CORRECT ANSWER✔✔- C. Reduce
Tiffany leaves her car unlocked when she goes shopping. She figures her car and its contents
are insured, so there is no reason to worry. Which type of hazard is this an example of?
A. Physical
B. Morale
C. Careless
D. Moral - CORRECT ANSWER✔✔- Morale
A flood is an example of....
A. A peril
B. A moral hazard
C. A speculative risk
D. a physical hazard - CORRECT ANSWER✔✔- A peril
An insurance company incorporated in Wisconsin and conducting business in Wisconsin is
known as a domestic company. What kind of company are they considered if they do
business in Minnesota?
A. Alien
B. Domestic
C. Foreign
D. Nonadmitted - CORRECT ANSWER✔✔- Foreign
All of the following statements about a stock insurance company are true EXCEPT
,A. A stock co pays dividends to stockholders
B. A stock co is a participating co
C. A Stock co is a nonparticipating co
D. a stock co has shareholders - CORRECT ANSWER✔✔- A stock company is a
participating company
What do IC's use to help predict how many losses will occur in a group or class of
individuals?
A. The law of Large Numbers
B. Standard and Poor's Insurance Rating Service
C. Risk retention groups
D. Adverse Selection - CORRECT ANSWER✔✔- The law of Large Numbers
State require companies to have a license to sell insurance in the state. The license is called...
A. A certificate of authority
B. A reinsurance license
C. A producer's license
D. An admittance license - CORRECT ANSWER✔✔- A certificate of authority
All of the following are requirements of an insurance pure risk EXCEPT...
A. premiums must be calculable
B. premium must be affordable
C. the risk must be catastrophic for the insurance company
D. The loss must have been accidental - CORRECT ANSWER✔✔- the risk must be
catastrophic for the insurance company
Carl hands out a business card with his company's logo to all new prospects that he meets at a
golf outing. This is an example of...
, A. express authority
B. implied authority
C. Apparent authority
D. Agent Authority - CORRECT ANSWER✔✔- implied authority
Agency is a relationship in which one person is authorized to represent and act for another
person or a corporation. In insurance, the insurance agent acts on behalf of...
A. The principal
B. The insured
C. The claimant
D. The adjuster - CORRECT ANSWER✔✔- The principal
Which of the following types of advertising does not involves an agent and is conducted
through the mail, by advertisements in newspapers and magazines, on television and radio or
through the internet?
A. Direct writing
B. Captive agency system
C. Direct response
D. Cold calling - CORRECT ANSWER✔✔- Direct writing
Which of the following individuals represent only on insurance company?
A. An Independent Agent
B. A general Agent
C. A Captive Agent
D. A Managing General Agent - CORRECT ANSWER✔✔- A Captive Agent
Which of the following terms describes a legal agreement between two competent parties that
promises a certain performance in exchange for a certain consideration?
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