IDAHO PROPERTY INSURANCE EXAM Questions with Complete Solutions 2024
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IDAHO PROPERTY INSURANCE
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IDAHO PROPERTY INSURANCE
IDAHO PROPERTY INSURANCE EXAM Questions with Complete Solutions 2024
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
Insu...
Idaho Insurance Licensing Property and Casualty
Exam Study Guide with Complete Solutions 100%
Verified 2024
Insurance - Correct Answer Is a contract win which one party agrees to indemnify the insured party against loss,damage, or liabilty.
Insurance Transfers - Correct Answer The risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals.
Insurance Transaction - Correct Answer Includes solicitation, negotiations, sale, and advising etc
Risk - Correct Answer the uncertainty or chance of loss
Pure risk - Correct Answer Refers to situations that can only result in a loss or no change. Always accepting in companies.
Speculative Risk - Correct Answer involves the opportunity for either loss or gain. Not Insurable.
Hazard - Correct Answer are conditions or situations that increase the probability of an insured loss occurring.
Physical Hazard - Correct Answer Are individual characteristics that increase the chances of the cause of loss. Exist because of physical conditions like medical history, birth conditions, or blindness
Moral Hazard - Correct Answer Tendencies towards increased risks based on character and reputation. Refers to applicants who lie on applications or have fraudulent insurance claims
Morale Hazard - Correct Answer Hazard arising out of an insured's indifference to loss because of the existence of insurance.
Perils - Correct Answer are the causes of loss insured against in an insurance policy. Loss - Correct Answer Is defined as the reduction, decrease, or disappearance of value of the person or property. Insured in a policy, caused by a named peril.
Sharing - Correct Answer Is a method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss to share the losses that occur within each group
transfer - Correct Answer Most effective way to handle risk so loss is borne by another party
Avoidance - Correct Answer Eliminating exposure to a loss
Retention - Correct Answer Planned assumption of risk by an insured through deductibles, co-pays, or self insurance. Accepting responsibility before insurance company pays
Reduction - Correct Answer Attempt to lessen the possibility of severity of a loss. Examples installing smoke detectors or having an annual physical
Who is an Agent/Producer - Correct Answer Is an individual licensed to sell,solicit, or negotiate insurance
contracts on behalf of the principal (insurer).
Law of Agency - Correct Answer Defines relationship between the principal and the agent/producer: the acts of the agent/producer within the scope of authority are deemed to be the acts of the insurer
Implied Authority - Correct Answer The authority that is not expressed or written into the contract, but which agent is assumed to have in order to transact bussiness
Express Authority - Correct Answer The authority granted to an agent by means of the agent's written contract.
Apparent Authority - Correct Answer Is the appearance or assumption of authority based on the actions,
words, or deeds of the principal.
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