Guarantee ExamFX, Idaho Personal Lines Simulation Exam
In the last 72 hours, there were 3 instances of volcanic eruptions that damaged a property covered by a dwelling policy. How many deductibles will the insured have to pay before the policy covers the damages caused by the eruptions? 1. Zero 2. One 3. Two 4. Three
one
Negligence is defined as a) Conduct which is so hazardous that the individual engaging in it will be held fully responsible for any resulting injury or damage. b) Failure to do what a reasonable prudent person would do under given circumstances. c) An intentional act which results in bodily injury to another person or property damage. d) An unbroken chain of events which results in bodily injury or property damage.
Failure to do what a reasonable prudent person would do under given circumstances.
An insured is injured while driving his own car. Which of the following coverages will pay for the loss? 1. Part A-Liability 2. Part B - Medical Payments 3. Part C - Uninsured Motorist 4. Part D-Damage to Your Auto
Part B - Medical Payments
Marine insurance risks may include all of the following, EXCEPT 1. Precious metals. 2. Automobiles. 3. Bridges. 4. Workers Compensation.
Workers Compensation.
GX An insured has a personal umbrella with a $2,000 self-insured retention (SIR). Assuming no other policy is involved, how much would the umbrella pay after a $12,000 personal injury liability claim? 1. $1.000 2. $10,000 3. $12.000 4. $2.000
$10,000
What is the maximum penalty the Director may impose on someone who transacts insurance in Idaho without a license? 1. $5,000 2. $10,000 3. $15,000 4. $20,000
$15,000 In addition to license denial or revocation, each conviction for violating the Insurance Code can result in a fine of up to $1,000, imprisonment for up to 6 months, or both. The Director may impose an administrative penalty of up to $15,000 upon anyone who transacts insurance in Idaho without a license.
What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement?
$25
An insured has a special form dwelling policy written for $100,000 on a dwelling. The dwelling's replacement cost is $115,000. Fire causes $75,000 in damage to the dwelling, $15,000 damage to a separate garage, and kills 10 trees valued at $600 each. How much will the policy pay for the trees? 1. $5,000 2. $10,000 3. $60,000 4. $75,000
$5,000
IDAHO What is the minimum required per-occurrence limit for auto insurance policies issued in this state? 1. $15,000 2.$25,000 3. $50,000 4. $100,000
$50,000
If an applicant for an insurance producer license has been denied licensing, how long must the applicant wait to reapply to a license? 1. 6 months 2. 1 year 3. 2 years 4. 5 years.
1 year
IDAHO Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to 1. 3 years. 2. 5 years. 3. 10 years. 4. 12 years.
10 years.
IDAHO How much notice to the insured is required when nonrenewing an auto policy? 1. 20 days 2. 10 days 3. 30 days 4. 15 days
30 days
IDAHO Domestic insurers must be examined at least once every (Choose from the following options) 01.2 years. 02.3 years. 3.4 years. 4.5 years.
5 years.
Term for of loss retained by the insured in LIABILITY
= Self-retention
*Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses? 1. Exclusions 2. Declarations 3. Insuring agreement 4. Additional coverage
Additional coverage
Which of the following types of valuation works best for property whose value does not fluctuate much? 1. Stated amount 2. Inflation guard 3. Agreed value 4. Market value
Agreed value
**According to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss? 30 days 60 days 90 days 120 days
All losses will be paid within 60 days of receiving the proof of loss.
How much is covered for debris removal under the HO property additional coverages? 1. All reasonable costs 2. 90% of the total cost of clean-up 3. Everything after a $200 deductible 4. Nothing, unless added by an endorsement
All reasonable costs
If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's 1. Prior insurance. 2. Ancestry. 3. Credit history. 4. Habits.
Ancestry.
With respect to the business of insurance, a hazard is a) The basic reason for an insured to purchase insurance. b) Any condition or exposure that increases the possibility of loss. c) The risk taken when performing something dangerous. d) The tendency of poorer risks to seek insurance more often than better risks
Any condition or exposure that increases the possibility of loss.
In order to get a nonresident license in this state a producer must 1. Apply and pay a fee to a nonresident state that reciprocates. 2. Pass the nonresident state exam and satisfy continuing education requirements. 3. Represent an agency located in this state. 4. Surrender their license in the state of residence.
Apply and pay a fee to a nonresident state that reciprocates.
A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT 1. Homeowners Section Il coverage. 2. Auto liability coverage. 3. Comprehensive personal liability. 4. Auto collision coverage.
Auto collision coverage.
A personal umbrella policy may act as excess over any of the following insurance coverage policies EXCEPT 1. Auto collision coverage. 2. Homeowners Section Il coverage. 3. Auto liability coverage. 4. Comprehensive personal liability.
Auto collision coverage.
In order to receive a commission, a person is required to 1. Be licensed as an insurance producer. 2. Sell, solicit, or negotiate insurance. 3. Defer a portion of the commissions to the insurer. 4. Serve in a fiduciary capacity.
Be licensed as an insurance producer.
*In a DP-1, if the insured elects to apply Coverage B to a detached garage, Coverage A will 1. Only be applicable if the insured pays a higher deductible. 2. Only be applicable if the insured pays an additional premium. 3. Be increased by 10%. 4. Be reduced by 10%.
Be reduced by 10%.
Binders can last for up to 1. 365 days. 2. 60 days. 3. 90 days. 4. 180 days.
Binders can last no longer than 90 days without the Director's written approval. If the actual policy is issued before 90 days, the binder will end at that time.
A policy that insures all property at multiple locations for a single amount is referred to as 1. Reporting. 2. Special. 3. Specific. 4. Blanket.
Blanket.
* Which of the following other coverages is NOT included in the basic form dwelling policy? a)Breakage of glass b)Removal coverage c)Personal property temporarily away from the insured premises d)Tenant's improvements, alterations, and additions
Breakage of glass is included in the DP-2 and DP-3 only.
*Homeowners policies provide coverage for 1. The land under the residence. 2. Property of tenants, roomers, or boarders not related to any insured. 3. Business property while on the residence premises. 4. Losses caused by off-premises power failure.
Business property while on the residence premises.
*IDAHO If an entity would like to transact insurance business in Idaho, which of the following will be required? 1. Director's Approval Statement 2. Insurer's Certificate 3. Certificate of Authority 4. Decree of Power
Certificate of Authority The Director of Insurance issues licenses and certificates of authority to transact insurance business in Idaho.
An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile? 1. Comprehensive coverage 2. Collision 3. Other-than-collision 4. Property damage liability coverage
Collision
GX In order to receive transportation expenses under the personal auto policy following damage to your auto caused by collision, you must have 1. Supplementary payments. 2. Other-than-collision coverage. 3. Collision coverage. 4. Uninsured motorist property damage.
Collision coverage
A person qualifying for the mature driver discount will receive a reduced premium rate on all of the following coverages EXCEPT 1. Comprehensive coverage. 2. Collision coverage. 3. Bodily injury liability 4. Property damage liability
Comprehensive covers those losses caused by "acts of God and are not included in the discounted rate coverages.
Because an insurance policy is a legal contract, it must conform to the laws governing contracts which require all of the following elements EXCEPT a) Offer and acceptance. b) Conditions. c) Legal purpose. d) Consideration.
Conditions
Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss? 1. Coverage B 2. Coverage C 3. Coverage D 4. Coverage A
Coverage D
Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis? 1. DP-1 2. DP-2 3. DP-3 4. All DP forms
DP-1
?IDAHO Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? 1. Undercutting 2. Twisting 3. Slandering 4. Defamation
Defamation
XXIDAHO An insurer decides to change its premium rates. Which of the following entities must approve this change before it can go into effect? 1. Federal Board of Insurers 2. No one. As long as an insurer has a Certificate of Authority, it can change its rates without approval from any other authority. 3. Director of Insurance 4. State Insurance Board
Director of Insurance
Officers who manage stock insurance companies are 1. Appointed by the Department of Insurance. 2. Elected by the stockholders. 3. Hired through an application process. 4. Appointed by other company officials.
Elected by the stockholders.
Which of the following is covered under a dwelling policy? 1. Structures used for commercial manufacturing 2. Fire caused by an earthquake 3. Freezing plumbing systems 4. Flood or surface water
Fire caused by an earthquake
Which of the following would be named on the Declarations page of a property or liability policy? a) All insureds b) Additional insureds c) First named insured d) Beneficiaries
First named insured
After qualifying for a mature driver discount, how long does the discount apply?
For 3 years after completion of an approved motor vehicle accident prevention course.
IDAHO Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license? 1. Trespassing through a neighbor's yard 2. Public drunkenness 3. Forgery 4. Speeding in an automobile
Forgery
PROMISE AND PERILS ARE IN The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the..
INSURING AGREEMENT
*Extended nonowned coverage endorsement in a PAP broadens which of the following coverages? 1. Physical damage 2. Liability and medical payments 3. Transportation expenses 4. Uninsured motorists
Liability and medical payments
IDAHO Which line of insurance restricts the authority of a license compared to those associated with major lines? 01. Personal lines 2. Single lines 3. Defined lines 4. Limited lines
Limited lines
!!!!!!!** Under the dwelling policy, Coverage C - Personal Property is 1. A prohibited coverage in the dwelling form. 2. Limited to 50% of the amount of insurance that is written as Coverage A. 3. Limited to covering a servant's property while at the insured location. 4. Automatically provided as 50% of Coverage A.
Limited to covering a servant's property while at the insured location. Dwelling Coverage C is limited to covering property owned by a guest or servant while the property is at the insured location. Under a homeowners policy, the property would be covered the same while on or off the premises.
Which of the following is the basis for a claim against an insurance policy? 1. Misrepresentation 2. Loss 3. Material change 4. Hazard
Loss
The term "functional replacement cost" refers to a) Deductibles. b) Loss valuation. c) Endorsements. d) Property provisions.
Loss valuation.
* IDAHO An example of an alien insurer doing business in this state is one formed under the laws of 1. Arizona. 2. Puerto Rico. 3. Mexico. 4. District of Columbia.
Mexico. An alien insurer is a company chartered outside the United States. Insurance companies incorporated in territorial possessions, such as Puerto Rico, are considered foreign.
**IDAHO Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report 1. Must be informed of the source of the report. 2. Are entitled to obtain a copy of the report from the party who ordered it. 3. Must be advised that a copy of the report is available to anyone who requests it. 4. May sue the reporting agency in order to get inaccurate data corrected.
Must be informed of the source of the report. Under the Fair Credit Reporting Act, if an insurance policy is declined or modified because of information contained in a consumer report, the consumer must be advised and provided with the name and address of the reporting agency.
Which of the following types of insurance companies is an incorporated insurer without capital stock or shares? 1. Reciprocal Insurer 2. Stock Insurer 3. Mutual Insurer 4. Fraternal Insurer
Mutual Insurer
Which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis? 1. Primary and excess 2. Pro rata 3. Contribution by equal shares 4. Nonconcurrency
Nonconcurrency
??IDAHO Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance? 1. Only written statements can be considered fraud. 2. Omissions of material fact on insurance application are fraud. 3. False statements about financial condition of an insurer are unlawful. 4. Statements made with the intent to deceive are unlawful.
Only written statements can be considered fraud.
What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? 1. Primary and excess 2. Other insurance 3. Valid insurance 4. Nonconcurrency
Other insurance
The deductible under earthquake coverage is stated as what? 1. Percentage of the policy premium 2. Half of the policy premium 3. Percentage of loss 4. Flat dollar amount
Percentage of loss
An insured has a personal auto policy with the following limits: 50/100/25. The number 25 refers to 1. Property damage coverage. 2. Collision coverage. 3. Medical payment coverage. 4. Bodily injury liability coverage.
Property damage coverage.
All of the following are considered parts of the policy structure EXCEPT 1. Provisions. 2. Exclusions. 3. Insuring clause. 4. Conditions.
Provisions
The risk of loss may be classified as a) Certain risk and uncertain risk. b) Named risk and un-named risk. c) High risk and low risk. d) Pure risk and speculative risk.
Pure risk and speculative risk.
ACV vs replacement cost (RC)
RC = full at TODAY's cost ACV = RC - depreciation
If an insured purchases an insurance policy with a large deductible, what risk management technique is the insured exercising? 1. Retention 2. Transfer only 3. Avoidance 4. Sharing
Retention
XX? IDAHO All of the following are considered unfair trade practices in the business of insurance EXCEPT 1. Sharing commissions. 2. Boycott. 3. Rebating. 4. Defamation.
Sharing commissions.
Which of the following is included under the physical damage coverage of a personal auto policy? 1. Custom furnishings or equipment in a pickup or van 2. Sound reproduction equipment permanently installed in the covered auto 3. A covered auto that is seized and destroyed by a government authority 4. A cellular phone located in a locked vehicle
Sound reproduction equipment permanently installed in the covered auto
**An insured owns several buildings, each at a different location and insured on a separate policy. What type of coverage does the insured have? 1. Specific 2. Schedule 3. Blanket 4. Special
Specific
Within how many days are insurers required to notify the Director that a producer's employment has been terminated? 1. 10 days 2. 15 days 3. 30 days 4. 60 days
The Director must be notified within 30 days following the effective date of the termination.
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? 1. Consumer Privacy Act 2. The Fair Credit Reporting Act 3. Unfair Trade Practices Law 4. The Guaranty Association
The Fair Credit Reporting Act
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays 1. A percentage of the loss as described on the declarations. 2. The excess over the self-insured retention. 3. The amount specified in the policy under the additional coverage provisions. 4. The amount in excess of the policy's limits of liability.
The excess over the self-insured retention.
?Which of the following losses would be covered under the property damage liability coverage of a personal auto policy? 1. A temporary substitute vehicle is damaged while the insured is driving it. 2. The insured's vehicle is damaged when it collides with a deer. 3. A passenger in the insured's vehicle is injured following an accident caused by the insured. 4. The insured damages a rented garage when he failed to stop in time.
The insured damages a rented garage when he failed to stop in time.
*Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy? 1. The insured is injured while driving his motorcycle on his resident premises. 2. The insured's friend is injured in an accident while riding as a passenger in the insured's car. 3. The insured's mother is injured while exiting from the insured vehicle. 4. The insured is struck by another vehicle while crossing the street.
The insured is injured while driving his motorcycle on his resident premises.
If a producer's appointment with an insurer is terminated, who must notify the Director? The insurer's CEO No one The producer The insurer
The insurer must notify the Director w/n 30 days following the effective date of the termination.
??IDAHO Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? 1. False advertising 2. Rebating 3. Twisting 4. Switching
Twisting
IDAHO The coverage that protects an insured against financial loss resulting from bodily injury caused by an at-fault motorist who has insurance, but whose limits of coverage are less than the amount of bodily injury incurred by the insured, is called 1. Bodily injury liability insurance. 2. Uninsured Motorist coverage. 3. Underinsured Motorist coverage. 4. Financial responsibility insurance.
Underinsured Motorist coverage
The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as 1. Reasonable expectations. 2. A warranty. 3. Implied warranty. 4. Utmost good faith.
Utmost good faith
A type of policy that is used to provide a specific amount of replacement cost for a given risk after an insured property has been destroyed is called a(n) 1. Pro-forma appraisal policy. 2. Equitable sum policy. 3. Specific risk policy. 4. Valued policy.
Valued policy
agreed value vs stated amount
agreed is EXACT amount to be paid no matter what, policy will pay what the agreed amount was when POLICY WAS WRITTEN. stated amount is the stated MAX coverage that policy will pay, but may change AT TIME OF LOSS
Most property coverages include a ___________; most liability policies DO NOT include ___________.
deductible; self-retention
Each of the following involves pure risk EXCEPT: -bodily injury -drought -loss in the stock market -flood
loss in the stock market
Chance of a windstorm causing a loss to one's property is: -risk -uninsurable -hazard -peril
risk
The Other Insurance Clause: -prohibits other insurance on the same property. -upholds the principle of indemnity. -allows coverage for catastrophic losses. -allows more than one person to be insured under the policy.
upholds the principle of indemnity.
All of the following would be considered an insurance transaction EXCEPT 1. Obtaining an insurance license. 2. Soliciting a policy. 3. Advising a policyholder regarding a claim. 4. Negotiating coverage.
Obtaining an insurance license.
Where is the policy period stated? 1. On the definitions page of the policy 2. On an endorsement attached to the policy 3. On the declarations page of the policy 4. On the conditions page of the policy
On the declarations page of the policy
All of the following are additional coverages under a homeowners policy EXCEPT 1. Payment for reasonable repairs and debris removal following a covered loss. 2. Outbuildings. 3. Fire department service charge. 4. Coverage for trees, shrubs, and other plants.
Outbuildings.
*In reference to insurable interest, which of the following is NOT an element of insurable risk? 1. Personal 2. Blood 3. Financial 4. Business
Personal For any person or property covered under an insurance policy, insurable interest must exist. Insurable interest is broken into three categories which include financial (a monetary interest), blood (a relative), and business (a business partner).
What does HO personal property coverage NOT cover? 1. The resident's son's personal property 2. Personal property of roomers not related to the insured 3. The spouse's personal property 4. The insured's personal property in another country
Personal property of roomers not related to the insured
59. Which of the following best describes a rebate? (Choose from the following options) 01. A producer returning part of her commission to her client, as an inducement to buy 2. A producer misrepresenting policy provisions or coverages at issue 3. A producer requiring an insured to buy insurance from her as a condition to a loan O4. A producer selling insurance primarily to himself, his family and his friends
A producer returning part of her commission to her client, as an inducement to buy
Which of the following risks would be eligible for coverage under a dwelling policy form? 1. A single-family dwelling that is located on farm premises 2. A duplex that is occupied by two families, each of which have a bedroom rented to a boarder 3. A single-family dwelling occupied by a single person who operates a business of buying and selling firearms in the basement 4. A single-family dwelling that contains a beauty shop that employs three full-time operators
A duplex that is occupied by two families, each of which have a bedroom rented to a boarder
*Which of the following would be added for coverage under a property policy by an endorsement? 1. First named insured 2. Additional insureds 3. All insureds 4. Named insured
Additional insureds Additional insureds are individuals or businesses that are not named as insureds on the declaration page, but are protected by the policy, usually in regard to a specific interest. Additional insureds usually are added to the policy by an endorsement.
* Under Coverage B - Other Structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage? 1. A detached garage may be covered if rented to others as a private garage. 2. Other structures may not be used to store business property of others, even though business is not conducted from the structure. 3. Any loss paid under Coverage B reduces the Coverage A limit of liability. 4. Other structures covered under Coverage B must be set apart from the dwelling by clear space.
Any loss paid under Coverage B reduces the Coverage A limit of liability. The automatic limit for Coverage B is 10% of the limit of liability that applies to Coverage A. Use of this coverage does not reduce the Coverage A limit of liability.
An insured believes that his insurer is not properly fulfilling its obligations regarding his policy. What section of the policy will give the insured more information about specific duties of the insurer? 1. Obligations 2. Conditions 3. Endorsements 4. Definitions
Conditions
Which section of an insurance policy indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy? a) Conditions b) Insuring agreement c) Declarations d) Endorsements
Conditions
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? 1. Representation 2. Adhesion 3. Consideration 4. Good faith
Consideration
Alan has a Personal Auto Policy with limits of $100/$300 Underinsured Motorist. Alan is injured by Ben who has liability limits of $50/$100. The police determine that Ben is at fault for the accident and Alan's $125,000 of medical expense. How much will Alan's Part C--UM/UIM pay? 1. $25,000 2. $125,000 3. $75,000 4. $50,000
$50,000. Underinsured Motorist coverage acts as excess over the at-fault motorist's coverage. The policy will pay the amount necessary to bring payment up to the per person limit of Alan's Underinsured Motorist coverage. (Alan's $100 UM BI limit - Ben's liability limit of $50 = $50--insurance only pay the diff btwn your UM limit and the at-faults limits)
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT 1. $1,000 on silverware. 2. $200 on money. 3. $1,500 on securities. 4. $1,500 on jewelry.
$1,000 on silverware. (silverware is 2,500)
An individual owns 5 personal vehicles and chooses to post an indemnity bond instead of purchasing auto liability insurance for each vehicle. The bond must be in the amount of at least 1. $15,000. 2. $50,000. 3. $120,000. 4. $250,000.
$120,000
An insured has an automobile policy with limits of 100/300/50 and a deductible of $1,000. He is involved in an auto accident and crashes into another driver's auto. The other driver is awarded $125,000 for his injuries and $25,000 for the damage to his car. The insured's vehicle has damage in the amount of $1,200. The total payment made under the insured's policy is 1. $126,200. 2. $100,200. 3.$150,200. 4.$125,200.
$125,200.
An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage? 1. $5,000 minus the policy deductible 2. $14,000 3. $15,000 4. $5,000 maximum for the accident
$14,000
An insured has a standard HO-4 policy with a $30,000 limit of coverage for personal property. While he was traveling, a fire in his hotel destroys clothes and luggage with a replacement value of $10,000 and jewelry with a replacement value of $10,000. Disregarding any deductible, and assuming a depreciation of 20% has occurred in both properties, what amount is the insurer obligated to pay?
$16,000
*IDAHO What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? 1. Revocation of license 2. $2,500 3. $1,000 4. $100 per violation
$2,500
A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss? 1. $20,000 2. $30,000 3. $40,000 4. $60,000
$30,000 (did/should) x loss = payment (60/80) x 40 = 30
? The insured's home is covered by an HO-3 (special). Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A (dwelling) does the insured need to qualify for replacement cost coverage? 1. $46,400 2. $48,000 3. $58,000 4. $60,000
$48,000
* What is the minimum amount of coverage that should be carried on an HO-2 (BROAD) on a home that was purchased four years ago for $75,000, which today has a replacement value of $100,000? 1. $100,000 2. $60,000 3. $75,000 4. $80,000
$80,000. A homeowner, at the time of loss, must be insured for at least 80% of replacement cost in order to collect the full replacement cost of a partial loss.
*Which of the following is the correct formula for computing a loss ratio? 1. (Incurred expenses + loss adjusting expenses)/earned premium 2. (Incurred losses - loss adjusting expense)/earned premium 3. Loss adjusting expenses - incurred expenses 4. (Incurred losses + loss adjusting expense)/earned premium
(Incurred losses + loss adjusting expense)/earned premium
Coinsurance SIMPLE
(did/should) x loss = payout
*If an insured covered under a Mobile Homeowners Policy moves the mobile home to protect it from a covered peril, the policy will pay up to 1. $350. 2. $500. 3. $750. 4. $1,000.
*A Mobile Homeowners Policy will pay up to $500 if the insured moves the mobile home to a safer area to protect it from loss by a covered peril.
XX*A policyowner provides a check to the producer for her initial premium. How soon from receiving the check must the producer remit it to the insurer? 1. Within 3 days 2. Within 7 days 3. Within 14 days 4. Within 21 days
*Fiduciary funds payable to the insurer must be remitted no later than 21 days of receipt.
All insurance policies written in the state must be countersigned by licensed agents. In these instances, the agent may grant the power of attorney to individuals over the age of 1. 17. 2. 21. 3. 18. 4. 25.
21
Fiduciary funds payable to the insurer must be remitted no later than 21 days of receipt.
21 days of receipt
*IDAHO How many continuing education credits of insurance law and/or ethics is a licensee required to take every 2 years? 1. 3 2. 24 3. 4 4. 2
3 As a condition for continuation of their licenses, all licensees except for limited lines and temporary licensees, must complete at least 24 hours of continuing education credits during each 2 year licensing period. At least 3 of those hours must be in insurance law and/or ethics. Any hours in excess of the requirement cannot be carried over to the next licensing period.
Each violation of the Insurance Code can result in fines up to $1,000 or imprisonment for 1. 3 months. 2. 6 months. 3. 9 months. 4. 12 months.
6 months
xxIDAHO An insured was issued a binder for Property coverage 30 days ago. How much longer will the binder last? 1. 150 more days 2. Indefinitely, until the policy is issued 3. Today is the last day. 4. 60 more days
60 more days
Term for loss retained by the insured in P&C
= deductible
An insured runs a day care in her home. She has purchased the home day care endorsement under her homeowners policy. Which of the following losses would her coverage cover? 1. A child has bruises on her legs from receiving a spanking from the insured and must be seen by her pediatrician. 2. A child riding the insured's horse falls off, breaking his collar bone. 3. A child trips over a toy in the driveway, cuts her knee, and requires stitches. 4. A child is playing in the insured's car, puts it in drive, and backs into the neighbor's mail box.
A child trips over a toy in the driveway, cuts her knee, and requires stitches.
How many hours of specialized training is required for a producer to sell flood insurance?
A one-time 3-hour continuing education course
?? * Coverage F (medical payments) under a homeowners policy would cover 1. The insured for injuries sustained while working at home. 2. A residence employee who is injured on the job. 3. A tenant who is injured while on the premises. 4. A family member who is injured while residing in the insured premises.
A residence employee who is injured on the job.
**Assuming the insurer and the insured agree to the amount payable for a loss covered under a dwelling policy, how soon after the insurer has received proof of loss must it make payment? 1. 30 days 2. 45 days 3. 60 days 4. 90 days
After insurer receives proof of loss, it has 60 days to pay for the loss.
Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur? Which of the following policies does NOT contain an automatic reinstatement provision?
Aggregate limit of liability General liability written with an aggregate limit
IDAHO Which of the following would be considered causes for flood conditions covered by the National Flood Insurance Program? 1. Overflow of inland or tidal waters 2. Unusual and rapid accumulation or runoff of surface waters from any source 3. A mudflow 4. All of the above could be considered flood sources
All of the above could be considered flood sources
? IDAHO All of the following would be considered rebating EXCEPT 1. An agent offers the use of his lake house to a client as an inducement to buy an insurance policy from him. 2. An agent offers to share his commission with a policyholder. 3. An agent offers tickets to a baseball game as an inducement to buy insurance. 4. An agent misrepresents policy benefits to convince a policyowner to replace policies.
An agent misrepresents policy benefits to convince a policyowner to replace policies.
IDAHO The insured must be given written notice 10 days in advance of the cancellation for nonpayment of premium or 20 days for 1. Revocation of the insured's driver's license. 2. Conviction of a felony. 3. Any other reason for cancellation. 4. Misrepresentation on the original application for insurance.
Any other reason for cancellation.
** Bob's home is insured for $100,000 under a DP. Yesterday his home suffered $20,000 damage from a fire. Today the home was struck by lightning, starting another fire that completely destroyed the structure. Bob's policy will pay 1. $20,000. 2. $120,000. 3. $100,000. 4. $80,000.
Bob's policy will pay $100,000. If the repairs had been made ($20) AND THEN the home destroyed, the policy would have paid $120,000 as two separate losses. Due to the unrepaired damage, the total amount of coverage is only the face amount of the policy.
*Under the HO-4 and HO-6 homeowners policy forms, property is insured against 1. Comprehensive form perils. 2. Broad form perils. 3. Basic form perils. 4. Special form perils.
Broad form perils.
? An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have? 1. Combined single 2. Split 3. Aggregate 4. Per occurrence
Combined single
The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay? 1. Company A will pay $20,000; Company B will pay $4,000. 2. Company A will pay $12,000; Company B will pay $12,000. 3. Company A will pay $24,000; Company B will pay $0. 4. Company A will pay $16,000; Company B will pay $8,000.
Company A will pay $16,000; Company B will pay $8,000.
In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the 1. Applicant. 2. Insured. 3. Company. 4. Beneficiary
Company.
In tort actions where the injury or damage may be, in part, due to the actions or lack of action by each party, and awards are based on the degree of action or inaction by each party, this is called 1. Comparative negligence. 2. Contributory negligence. 3. Negligence per se. 4. Share and share-alike.
Comparative negligence bases the award on the degree of negligence of each party.
* Additional coverages in the liability section of a homeowners policy cover all of the following EXCEPT 1. Expenses the insured incurs rendering first aid for bodily injury to third parties. 2. Damage to the property of others. 3. Damage to a third-party property for which the insured is legally liable. 4. Claims expense.
Damage to a third-party property for which the insured is legally liable. Legal liability coverage is a primary liability coverage, not an additional coverage.
* In property and casualty insurance, what is the term for the amount of a loss that the insured must cover out of pocket, and the insurer will only pay for the additional amount of the loss above this limit? a. Deductible b. Self-insured retention
Deductible
? What term includes damage where the insured peril was the proximate cause of loss? 1. Negligent loss 2. Direct loss 3. Indirect loss 4. Consequential loss
Direct loss
A person who is convicted of failure to comply with the financial responsibility law more than once within a 5 year period may be punished by 1. Either a fine not exceeding $1,000 or imprisonment in the county jail not exceed 6 months, or both. 2. Both a fine not exceeding $5,000 and imprisonment in the county jail for up to 3 years. 3. A fine not exceeding $1,000. 4. Imprisonment in the county jail not exceeding 6 months.
Either a fine not exceeding $1,000 or imprisonment in the county jail not exceed 6 months, or both.
Which of the following is true of dwelling policy coverage? 1. Special forms only have special exclusions. 2. Exclusions apply to all three policy forms. 3. Exclusions only apply to broad policy forms. 4. There are no exclusions in basic forms.
Exclusions apply to all three policy forms.
Compared with other drivers in his age group, a driver has had more minor accidents and traffic violations. Which of the following rating types would most accurately reflect the driver's true insurance risk? 1. Class 2. Special 3. Schedule 4. Experience
Experience
*Which homeowners form provides open peril coverage for dwelling (Coverage A) and contents (Coverage C)? 1. HO-2 2. HO-3 3. HO-5 4. HO-8
HO-5 HO-2 form is named peril (broad form perils) coverage for both dwelling and contents. HO-3 form is open peril for dwelling and named peril for contents. HO-5 is open peril for both dwelling and contents. HO-8 is named peril (basic perils) coverage for both.
The main difference between an HO-4 and an HO-6 is -HO-4 does not cover additional living expenses. -HO-6 does not cover additional living expenses. -HO-4 provides limited dwelling coverage as well as contents coverage. -HO-6 provides limited dwelling coverage as well as contents coverage.
HO-6 provides limited dwelling coverage as well as contents coverage. HO-4 provides no dwelling coverage because a tenant does not own the dwelling: the condo owner does own the condo and is provided with coverage for improvements. Both HO-4 and HO-6 cover theft and additional living expenses.
Slippery floors, reckless driving, or providing false information are examples of 1. Hazards. 2. Pure risks. 3. Causes of loss. 4. Perils.
Hazards.
All of the following are factors in the determination of actual cash value EXCEPT 1. Insurance premium paid. 2. Type and quality of property. 3. Age of the property. 4. Replacement cost.
Insurance premium paid.
Which of the following would be covered under the Broad Form (DP-2) policy's falling object peril? 1. Exterior pavement and patio damage 2. Interior building damage if the exterior was damaged first 3. Damage to the building's awnings 4. Damage to outdoor television antennas if there is no interior damage
Interior building damage if the exterior was damaged first
Uninsured Motorist coverage pays all compensatory damages that an insured 1. Is legally entitled to recover as a result of injury or damage for bodily injury caused by an uninsured motorist. 2. Incurs which exceed the limits of bodily injury liability of the at-fault motorist's auto insurance policy. 3. Subrogates to the at-fault motorist's insurance company. 4. Feels they are morally entitled to as the results of the action of an uninsured motorist
Is legally entitled to recover as a result of injury or damage for bodily injury caused by an uninsured motorist.
In a dwelling policy, which of the following is true regarding personal liability coverage? 1. It does not cover medical payments to others. 2. It is included in all dwelling policies. 3. It is the same as in homeowners policies. 4. It must be added as a supplement or written as a separate policy.
It must be added as a supplement or written as a separate policy.
Which of the following endorsements is used to insure Coverage C (personal property) for values beyond the limitations of the homeowners policy? 1. Personal property replacement cost endorsement 2. Blue skies endorsement 3. Personal property injury endorsement 4. Scheduled personal property endorsement
Items that are scheduled and insured under a scheduled personal property endorsement are covered on a valued basis.
Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy? 1. It pays for the loss of rent you would have collected less any expenses that would not have continued. 2. Coverage continues until repairs are completed. 3. The period of time to repair or replace is not limited by the expiration date of the policy. 4. Loss or expense caused by the cancellation of a lease is covered.
Loss or expense caused by the cancellation of a lease is covered.
Which of the following covers the interest of a secured lender in personal property? 1. Fair value clause 2. Third-party clause 3. Indemnity clause 4. Loss payable clause
Loss payable clause
*The process of determining the premium charged and how much insurance is required for a particular loss is called 1. Agreed value. 2. Loss payment. 3. Coinsurance. 4. Loss valuation.
Loss valuation.
**If a person is using an auto with the belief that he is entitled to do so, subrogation rights under a personal auto policy would apply to all coverages EXCEPT 1. Uninsured motorist. 2. No-fault medical payments. 3. Liability. 4. Physical damage.
Physical damage. Subrogation rights do not apply to physical damage coverage if the damage is caused by a person using the auto with a reasonable belief that they were entitled to do so.
The amount of loss the insured is willing to absorb without insurance protection is known as 1. Self-insured retention. 2. Maximum deductible. 3. Stop loss. 4. Limit of liability.
Self-insured retention.
? A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method? 1. Reproduction cost 2. Stated amount 3. Actual cash value 4. Replacement cost
Stated amount
Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?
The Insurance Contract(
Replacement cost coverage is provided in both the broad and special form dwelling policies when 1. The dwelling is insured for 100% of its replacement cost at the time of a loss. 2. The amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss. 3. The amount of insurance on both the dwelling and personal property is at least 80% of its replacement cost when the policy is written.
The amount of insurance on the dwelling is at least 80% of its replacement cost at the time of loss.
IDAHO Which of the following is a characteristic of a Reciprocal Insurance Exchange? 1. Stock holders share in any profits 2. Issues nonassessable policies 3. The chief administrator of the insurer is called an "attorney-in-fact". 4. Normally write all lines of insurance
The chief administrator of the insurer is called an "attorney-in-fact".
All of the following statements concerning coinsurance are true EXCEPT 1. The insured agrees to maintain insurance equal to some specified percentage of the value of the property. 2. If the insurance carried is less than required, the insurance may not cover the whole loss. 3. The coinsurance formula will also be applied to total losses. 4. It is used to help adequacy and equity in rates.
The coinsurance formula will also be applied to total losses.
If a producer's appointment with an insurer is terminated, who must notify the Director? 1. The insurer's CEO 2. No one 3. The producer 4. The insurer
The insurer
XXIDAHO An insurer may cancel an auto policy in all of the following situations EXCEPT 1. The named insured was convicted of robbery 24 months ago 2. One of the insured operators' license was suspended 6 months ago. 3. The named insured was convicted of driving under the influence of alcohol 42 months earlier 4. The named insured is using the insured vehicle as a taxi cab
The named insured was convicted of driving under the influence of alcohol 42 months earlier 36?
Rates for earthquake coverage in property policies are generally determined by which of the following? 1. The number of liens on the property 2. The age of the dwelling 3. The type of construction 4. County property taxes
The type of construction
**Which of the following best expresses the purpose of a stated value contract? 1. To pre-establish the amount of coverage available for property items that are difficult to value 2. To ensure that the principle of indemnification applies 3. To establish the value of property subject to loss by theft or robbery 4. To provide a maximum limit for which the insurance company may become liable in casualty losses
To pre-establish the amount of coverage available for property items that are difficult to value. The value of the insured items is determined at the time the policy is written, not at the time of loss.
??IDAHO Which of the following is NOT a responsibility of an insurance agent? 1. Underwriting the contract 2. Delivering the contract 3. Explaining policy provisions 4. Submitting the application to the insurer
Underwriting the contract
** In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for 1. Towing coverage. 2. Comprehensive (other-than-collision) coverage. 3. Collision coverage. 4. Uninsured motorist coverage.
Uninsured motorist coverage. Trailers, while being towed by an insured auto, are covered automatically for bodily injury (BI), property damage (PD) and uninsured motorist (U/M) under Part A of a personal auto policy.
Because an insured owns a lot of expensive jewelry, her insurance agent has advised her to purchase a scheduled personal property endorsement. If the insured adds this endorsement to her homeowners policy, which of the following statements would be correct? The amount of coverage will be doubled. The endorsement becomes excess coverage. The endorsement becomes primary coverage and the HO contract is secondary. Coverage C limits will no longer apply to the jewelry insured by the endorsement.
When items are scheduled, they are excluded from Coverage C as insured items, and are covered only under the scheduled personal property endorsement.
A policyowner provides a check to the producer for her initial premium. How soon from receiving the check must the producer remit it to the insurer? Within 3 days Within 7 days Within 14 days Within 21 days
Within 21 days
IDAHO Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce 1. Without receiving written consent from an insurance regulatory authority. 2. Under any circumstances. 3. Unless they have served an appropriate prison sentence. 4. Without receiving written consent from a Federal Judge.
Without receiving written consent from an insurance regulatory authority.
If a car is stolen and left in a snow bank, causing the radiator to freeze and sustain heavy damage, is the damage covered by the auto policy? 1. Yes, there is no exclusion for freezing. 2. No, freezing is never covered. 3. No, theft is never covered. 4. Yes, freezing exclusion is removed if the car is stolen.
Yes, freezing exclusion is removed if the car is stolen.
Underinsured Motorist coverage pays the difference between the coverage limit you select and the other driver's bodily injury liability coverage limit.
Your UM coverage limit - Other person's BI liability coverage limit = how much you get
*Which of the following losses would NOT be covered by a homeowners policy? 1. coin collection valued at $500 lost in a fire 2. $550 utility trailer blown away by a tornado 3. stolen silver tea set worth $2,000 4. $800 outboard motor destroyed by hail
coin collection valued at $500 lost in a fire (ONLY 200 FOR COIN)
Loss Payee Clause
simililar to morgatgee clause
stated amount
the amount stated is the maximum on the policy. but AT TIME OF LOSS they may pay LESS than stated amount if depreciated, etc.
IDAHO Financial responsibility must be proven for bodily injury or death to an individual in an accident in which of the following amounts? 1. $15,000 2. $25,000 3. $50,000 4.$75,000
$25,000
A home is insured for $200,000 under an HO-3. Last week, the owner purchased a new home and began to move his personal property to the new residence. Last night, vandals did $8,000 of damage to the property that had been moved to his new residence. Disregarding any deductible, how much will the HO-3 pay? 1. $0 2. $1,000 3. $4,000 4. $8,000
$8,000 under coverage c any property left at another premises is limited to 10% of the 8,000. but in the process of moving its fully covered
In a personal auto policy, the medical payments coverage is similar to 1. Accident insurance, because it pays medical expenses regardless of fault. 2. Accident insurance, because it has the same limits. 3. Bodily injury coverage, because it pays the insured's doctor bills. 4. Bodily injury coverage, because it provides legal protection if the insured causes injuries to others.
Accident insurance, because it pays medical expenses regardless of fault.
An insured condominium unit owner wants to purchase fire and extended coverage for personal property and liability coverage for himself and his family members. He should purchase
HO-6
functional replacement cost is only used on
HO-8
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as a) Stated amount. b) Replacement cost. c) Actual Cash Value d) Specific insurance.
Stated amount.
When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as 1. Replacement cost. 2. Actual cash value. 3. Specific insurance. 4. Stated amount.
Stated amount.
When the Director conducts an examination of alien insurers, what is the typical extent of the examination? 1. Transactions occurring in the U.S. only 2. Transactions occurring in both the insurer's home country and the U.S. 3. All transactions from the last year only 4. Transactions occurring in alien's home country
Transactions occurring in the U.S. only
Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section? 1. Up to $2,500 per occurrence 2. Up to $10,000 aggregate for the policy period 3. Up to $5,000 aggregate for the policy period 4. Up to $1,000 per occurrence
Up to $1,000 per occurrence Section II - Loss Assessment Coverage - applies to assessments against the insured by a condominium association or other cooperative body of property owners. Coverage is limited to $1,000, but an increased limit of coverage is available by endorsement.
Each of the following may be insured under an HO-3 homeowners policy EXCEPT 1. The owner-occupant of a condominium unit. 2. An occupant of a dwelling under a life estate arrangement when dwelling coverage is at least 80% of the current replacement cost. 3. One co-owner when each distinct portion of a two-family dwelling is occupied by co-owners. 4. The intended owner-occupant of a dwelling under construction.
The owner-occupant of a condominium unit.
On a DP-3 Dwelling Property Special Form policy, the coverage provided for personal property is 1. The same as provided on the DP-1 Basic Form. 2. The same as provided on the DP-2 Broad Form. 3. All risk. 4. Open peril
The same as provided on the DP-2 Broad Form.
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? a) Consideration b) Legal purpose c) Warranty d) Contract of adhesion
Consideration
An insured has $5,000 of medical coverage under a personal auto policy at the time of a covered accident. The insured and 3 passengers are injured. The insured's medical expenses are $8,000. The first passenger's total $4,000; the second passenger's total $6,500; and the third passenger's total $1,200. How much will the policy pay under the medical payments coverage? 1. $5,000 2. $8,000 3. $15,200 4. $19,700
$15,200
When a producer changes address of their residence or office, the Insurance Department must be notified within 1. 10 days. 2. 15 days. 3. 30 days. 4. 60 days.
30 days
When insurance is written on a dwelling form, which of the following types of property would be insured under Coverage B (Other Structures)? 1. Building equipment and outdoor equipment 2. A garage separated from the dwelling 3. Materials and supplies used for construction or repair of the dwelling 4. A laundry room attached to the dwelling
A garage separated from the dwelling
IDAHO All are true regarding producer appointments EXCEPT (Choose from the following options) 1. A producer may only hold an appointment with one insurer. O2. Insurers may appoint either individual producers or agencies. 03. A producer must hold at least one appointment. O4. A producer must be appointed at the time business is placed with an insurer.
A producer may only hold an appointment with one insurer.
Concerning insurance, the definition of a fiduciary is 1. A retail clerk. 2. A producer who handles insurer funds in a trust capacity. 3. A person who handles assets or money belonging to others. 4. All of the above.
A producer who handles insurer funds in a trust capacity.
In a personal auto policy (PAP), a covered auto includes all of the following EXCEPT 1. A trailer owned by the insured. 2. A farm implement being towed behind the insured's pickup. 3. A nonowned temporary substitute vehicle. 4. A van used in the delivery business.
A van used in the delivery business.
The difference in the contents coverage on an HO-3 and HO-5 is which of the following? 1. Contents are covered for replacement cost on HO-5, and ACV on HO-3. 2. Contents are covered for replacement cost on HO-3, and ACV on HO-5. 3. Contents are covered open peril on HO-5, and named peril on HO-3. 4. Contents are covered open peril on HO-3, and named peril on HO-5.
Contents are covered open peril on HO-5, and named peril on HO-3.
Which of the following property coverages would provide protection to contents damaged by fire? 1. Coverage D 2. Coverage A 3. Coverage B 4. Coverage C
Coverage C
Which of the following best describes the aleatory nature of an contract a) Ambiguities are interpreted in favor of the insured b) Exchange of unequal values b) Only one of the parties being legally bound by the contract c) Policies are submitted to the insurer on a "take it or leave it" basis
Exchange of unequal values
IDAHO 72. An important fact about the financial status of an insurer was deliberately withheld. Which of the following terms best describes this action? (Choose from the following options) 01. Defamation O2. Twisting 3. Loading 4. False financial statement
False financial statement
* IDAHO 60. A structure may be eligible for coverage under the National Flood Insurance Program if it meets all of the following requirements EXCEPT (Choose from the following options) 01. Is principally above ground. 2. Is entirely over water. 3. Is not located within the Coastal Barrier Resource System. O4. Has 2 solid walls and a roof.
Is entirely over water. An eligible structure must have 2 solid walls and a roof, be principally above ground, and not entirely over water. Certain restrictions also apply to properties if located within areas defined by the federal government as part of the Coastal Barrier Resource System or as an Otherwise Protected Area.
The declarations section in a homeowners policy provides all of the following information EXCEPT 1. Basic underwriting information. 2. Amount of deductible applied to a loss. 3. Insured locations. 4. Policy exclusions.
Policy exclusions.
Which of the following is the correct formula for computing a loss ratio? a) Incurred expenses + loss adjusting expenses/interest rate b) Incurred losses + loss adjusting expense/earned premium c) Loss adjusting expenses - incurred expenses d) Incurred losses - loss adjusting expense/earned premium
(Incurred losses + loss adjusting expense)/earned premium (loss adjusting expense is how much it cost them to pay the claims, overhead, payroll, etc.) it's output/input you need an adjuster to figure out the loss adjusting expense
**IDAHO An insurer has evidence that one of its insureds has submitted a fraudulent claim. To avoid penalties for not reporting fraud, the insurer must notify the Director no later than within 1. 10 days. 2. 15 days. 3. 30 days. 4. 60 days.
**60 days.
*An uninsured motor vehicle includes all of the following EXCEPT 1. The vehicle has no liability bond or insurance in force. 2. A vehicle being used for public livery. 3. The accident was a hit-and-run. 4. The insurance company denies coverage.
*A vehicle being used for public livery is a standard exclusion in uninsured motorist coverage, not a category or type of uninsured motor vehicle.
*All of the following are exclusions that apply in all three types of Dwelling Policies EXCEPT 1. Water damage 2. Earth movement 3. Fire or lightning 4. Government action
*Fire and lightning --is covered in all policy forms. All the other answer choices are exclusions.
*Replacement cost is defined as 1. The market value of property of like kind and quality. 2. Full replacement of property with like kind and quality, less an allowance for physical deterioration and depreciation. 3. Payment of the full policy limits in the event of a total loss. 4. Full replacement of property at its current cost, new and without reduction for depreciation.
*Full replacement of property at its current cost, new and without reduction for depreciation. Replacement cost policies do not consider depreciation if the proper amount of insurance is maintained. Policies that provide replacement cost coverage require that the amount of insurance written be 80% or more of the replacement cost of the property at the time of loss.
*An individual currently licensed in South Carolina just moved to Idaho. In order to avoid a prelicensing examination, how soon after establishing legal residence should she apply for a resident license? 1. Immediately 2. 90 days 3. 60 days 4. 30 days
*In this case, the individual has 90 days to apply for a resident license.
*All of the following may be covered by the miscellaneous type vehicle endorsement EXCEPT 1. Rented recreational vehicles 2. Golf carts 3. Dune buggies 4. Motorcycles
*Rented recreational vehicles The miscellaneous type vehicle endorsement is used to expand the definition of a covered auto to include motorized vehicles such as motorcycles, motor homes, golf carts, dune buggies, and other recreational vehicles. --Coverage is not provided for vehicles borrowed or rented unless a temporary substitute to a miscellaneous vehicle listed in the endorsement.
**Under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss? 1. 10 days 2. 30 days 3. 45 days 4. 60 days
*The insurer has 30 days to tell the insured that it has chosen to repair or replace the covered property.
*All of the following are conditions commonly found in the insurance policy EXCEPT 1. Appraisal. 2. Insuring agreement. 3. Cancellation and nonrenewal. 4. Subrogation.
*The insuring agreement provides information on the policy's coverages --Conditions state the legal obligations and duties of the parties to the contract.
*An insured's building has an ACV of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? 1. $0 2. $30,000 3. $32,000 4. $40,000
*This insured only carried 75% of the amount of insurance he had agreed to carry ($120,000 of the agreed $160,000), so the insurer will pay only 75% of the loss, or $30,000. If the insured had carried the required amount of insurance, partial losses would be paid in full. In the event of a total loss, the face of the policy would be paid. If the full amount is not carried, divide the actual amount carried by the amount that should be carried (the coinsurance amount), and multiply it by the loss.
A driver is convicted of failing to maintain auto insurance. He must now provide and maintain proof of financial responsibility for at least what time period? 1. 3 months 2. 6 months 3. 12 months 4. 18 months
12 months. Those who are convicted of failing to maintain insurance will be required to file proof of financial responsibility for 1 year.
* IDAHO When the Director requests a hearing, written notice must be submitted how many days in advance? 1. 15 2. 20 3. 30 4. 14
14 days. The Director must give written notice of a hearing at least 14 days in advance
IDAHO If a producer receives a large sum of money (over $2,000) in the form of cash that is not payable to the insurer or the policyowner, within what time period must the producer deposit the money into a fiduciary fund account? 1. 3 business days 2. 7 days 3. 14 days 4. 21 days
3 business days
*An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request? 1. 3 days 2. 5 days 3. 10 days 4.30 days
3 days If a consumer report is requested, the insurer must notify the consumer at least 3 days following the initial request.
? IDAHO The Director issues an order to an insurer and immediately receives a request for the charges to be reviewed in court. Within what number of days must the hearing be held? 1. 15 days 2. 30 days 3. 45 days 4. 60 days
30 days
Producers are required to report to the Director any administrative action taken against them in another jurisdiction or by another governmental agency within how many days of the final disposition? 10 days 15 days 30 days 60 days
30 days
IDAHO If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? 1. 5 days 2. 7 days 3. 10 days 4. 3 days
5 days
*IDAHO If a producer's license has been revoked, what is the maximum amount of time the producer may be prohibited from reapplying for a new license? 1. 1 year 2. 2 years 3. 5 years 4. 7 years
5 years If a producer's license has been revoked or nonrenewed, a new license may be denied for a period of 1 to 5 years.
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is 1. 50% of the amount provided as Coverage A. 2. Equal to the amount provided as Coverage B. 3. Equal to the amount provided as Coverage A. 4. 50% of the amount provided as Coverage B.
50% of the amount provided as Coverage A.
An insured couple owns a pontoon boat. Which situation would NOT be covered by their watercraft endorsement under their homeowners policy? 1. One of the insureds is taking the boat out and injures her grandson. 2. A friend rents their boat and runs it into a neighbor's dock. 3. The insured's granddaughter slips on the boat and needs stitches. 4. A friend borrows the boat and has an accident with another boater.
A friend rents their boat and runs it into a neighbor's dock.
* IDAHO 81. Generally, policies of property and casualty insurance covering a risk in a particular state may not be issued unless they are countersigned by (Choose from the following options) 1. An executive officer of the insurer. 2. A resident producer. 3. An adjuster. 4. The insured.
A resident producer. Most state have countersignature laws that apply primarily to standard types of property and casualty coverages. These laws do not apply to life, ocean marine, travel or health insurance.
**An insured works outside the home. The insured's sister lives with him and cares for his four children. When the insured's home is severely damaged by fire, the family moves into an apartment while repairs are being made. The largest apartment available in the area has two bedrooms, so the insured's sister has to stay at a motel. How much will the HO-3 form pay for these additional living expense? 1. The cost of renting an apartment, but not the cost of the motel room 2. The cost of renting an apartment, and 50% of the cost of the motel 3. Nothing 4. All of the expense up to the Coverage D limit
All of the expense up to the Coverage D limit. Coverage D will pay the expenses incurred to maintain the same lifestyle as before the loss.
Which of the following would NOT be covered as a loss under Coverage D of a homeowners policy? 1. An insured has an apartment in his home. The tenant's negligence started a fire, and the apartment was not fit to live in for 4 months while repairs were being completed. 2. After a fire in a building next to the insured's home, the insured could not occupy his home, and had to stay at a motel for one week. 3. An insured's home is damaged by fire. The insured incurs expenses for living in a motel and having meals in a restaurant while repairs are made. 4. An insured leased a dwelling for 5 years. Two years later, the property owner died, and the new property owners wanted to make the property their principal residence, so the lease was canceled.
An insured leased a dwelling for 5 years. Two years later, the property owner died, and the new property owners wanted to make the property their principal residence, so the lease was canceled.
The insured's mother-in-law broke her leg falling down the front steps of the insured's premises. The insured's homeowners medical payments coverage will 1. Pay as excess over the mother-in-law's health insurance. 2. Pay only if the mother-in-law has no health insurance of her own. 3. Share equally in the cost with the mother-in-law's health insurance. 4. Apply to injuries of any guests or visitors.
Apply to injuries of any guests or visitors.
** The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT 1. All business pursuits. 2. Business liability. 3. Insured's activities. 4. Business pursuits that occur away from the premises.
Business liability. By endorsement, an insured may extend the Section II liability coverage to certain business pursuits that occur away from the premises. It would cover the activities of the insured, but would not cover the liability of a business owned by an insured. NO BUSINESS LIABILITY!
Which section of an insurance policy contains basic underwriting information, such as the insured's name, address, amount of coverage and premiums, and a description of insured locations? a) Endorsements b) Declarations c) Conditions d) Insuring agreement
Declarations
The part of a property policy that shows the amount of insurance, premium, and policy term is the 1. Endorsements. 2. Declarations. 3. Insuring clause. 4. Conditions.
Declarations. Who, what, when, where, and how much insurance and premium all are stated in the policy Declarations.
IDAHO If there is a complaint regarding an insurer and the matter can be cleared by looking at a record of a particular transaction, which of the following authorities would most likely conduct the investigation? 1. FBI 2. CPA 3. State insurance board 4. Director
Director
?Which of the following is considered to be a morale hazard? 1. Smoking 2. Working as a firefighter 3. Engaging in illegal activities 4. Driving recklessly
Driving recklessly
Which of the following is true regarding the Difference in Conditions (DIC) policies? 1. Each DIC policy is an individually written contract that contains provisions unique to the particular risk that it covers. 2. The DIC policy is a stand-alone contract; all perils are covered within it, and no further policies are needed. 3. They must conform to the NAIC model. 4. All DIC policies from a particular company must be identical to prevent unfair discrimination.
Each DIC policy is an individually written contract that contains provisions unique to the particular risk that it covers.
*The loss ratio compares 1. Premiums to interest rates. 2. Earned premium to company expenses. 3. Earned premium to losses. 4. Losses to interest rates.
Earned premium to losses.
**All of the following are other coverages under the dwelling policy EXCEPT 1. Debris removal. 2. Improvements, alterations, and additions. 3. Earth movement. 4. Other structures.
Earth movement Earth movement is not included in the other coverages of the dwelling policy.
All of the following violations may result in an agent's imprisonment EXCEPT 1. Engaging in the business of insurance after being convicted of breach of trust. 2. Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction. 3. Embezzling funds from the insurer. 4. Knowingly obtaining information about a consumer under false pretenses.
Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.
IDAHO An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? 1. Consumer Privacy Act 2. Conditional receipt 3. Disclosure rule 4. Fair Credit Reporting Act
Fair Credit Reporting Act
? IDAHO An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? 1. False advertising 2. Unfair claims 3. Twisting 4. Defamation
False advertising
*IDAHO An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? 1. Unfair discrimination 2. Errors and omissions 3. Fraud 4. Defamation
Fraud
*Events or conditions that increase the chances of an insured loss occurring are referred to as 1. Risks. 2. Perils. 3. Hazards. 4. Exposures.
Hazards. Conditions such as lifestyle and existing health, or activities such as scuba diving are hazards and may increase the chance of a loss occurring.
Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment? 1. Insurance Solvency Association 2. Consumer Protection Agency 3. Insurance Guaranty Association 4. Insurance Consumer Protectorate
Insurance Guaranty Association
All of the following are conditions commonly found in the insurance policy EXCEPT...
Insuring agreement
What part of the insurance contract describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured? 1. Conditions 2. Insuring agreement 3. Exclusions 4. Declarations
Insuring agreement
What kind of insurance is NOT subject to establishment of and reporting of rates to the Director?
Marine insurance
Indemnity bond in lieu of insurance must guarantee payment in an amount
No less than $50,000 for any one accident, of which $15,000 is for property damage, for each vehicle registered up to a maximum of $120,000 for 5 or more vehicles.
All of the following are additional liability coverages automatically provided in a homeowners policy EXCEPT 1. Loss assessment coverage. 2. Personal injury. 3. Claims expenses. 4. Damage to the property of others.
Personal injury.
The other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called 1. Proportionate. 2. Excess. 3. Pro rata liability. 4. Contributing.
Pro rata liability.
*While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store? 1. Property damage liability 2. Collision coverage 3. Other-than-collision coverage 4. This loss would not be covered.
Property damage liability The auto policy provides liability coverage to a trailer being towed by a covered auto.
Which of the following insurance options would be considered a risk-sharing arrangement? 1. Surplus lines 2. Reciprocal 3. Stock 4. Mutual
Reciprocal
The Federal Fair Credit Reporting Act 1. Regulates telemarketing. 2. Prevents money laundering. 3. Regulates consumer reports. 4. Protects customer privacy.
Regulates consumer reports.
** What type of information would be found in a policy's insuring agreement? 1. Insurer's address 2. Renewal dates 3. Location of premises 4. Policy limits
Renewal dates An Insuring Agreement establishes the obligation of the insurance company to provide the insurance coverages as stated in the policy. The insuring agreement lists the parties to the contract, effective and renewal dates, the description of coverage provided, and perils (among other things). Location of premises, policy limits, supplemental representations, and insurer's name and address can all be found in the Declarations.
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must 1. Send an actual certified copy of the entire report to the consumer. 2. Respond to the consumer's complaint. 3. Defend the report if the agency feels it is accurate. 4. Change the report.
Respond to the consumer's complaint.
What is the deductible of a personal liability umbrella policy called? 1. The PIL 2. The CGL 3. The CPP 4. The SIR
SIR
* If the insured owns a watch valued at $10,000, full coverage can be provided on a homeowners policy by purchasing the 1. Special limits of liability endorsement. 2. Personal property replacement cost endorsement. 3. Blanket personal property endorsement. 4. Scheduled personal property endorsement.
Scheduled personal property endorsement would provide all-risk coverage without the limitations for theft that are found in Coverage C (personal property). The amount of coverage purchased is usually based upon a recent appraisal, or the purchase price if newly purchased.
The amount of loss the insured is willing to absorb without insurance protection is known as 1. Maximum deductible. 2. Stop loss. 3. Limit of liability. 4. Self-insured retention.
Self-insured retention.
IDAHO The McCarran Act stated that the federal government would not regulate insurance as long as an adequate job of regulating the industry was done by the 1. Insurers in a state. 2. States. 3. Counties. 4. Federal Government.
States.
*Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called 1. Specific coverage. 2. Schedule coverage. 3. Blanket coverage. 4. Described coverage.
THEY ARE BOTH A PROPERTY. NOT PROPERTY AND LIABILITY. Specific coverage. One location is insured for a specific amount of insurance on the structure and contents.
*The amount an insurer will pay under Coverage D (Loss of Use) depends on 1. The amount of coverage on the dwelling. 2. How long a dwelling has been occupied. 3. If the dwelling is owner-occupied or rented out. 4. The length of time the dwelling is uninhabitable.
The amount of coverage on the dwelling. The amount of D is 30% of A Loss of use is usually limited to a percentage of the overall dwelling or personal property coverage (when dealing with HO-4 and HO-6).
?IDAHO In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? 1. They provide information about a customer's character and reputation. 2. The customer has no knowledge of this action. 3. The customer's associates, friends, and neighbors provide the report's data. 4. They provide additional information from an outside source about a particular risk.
The customer's associates, friends, and neighbors provide the report's data.
What will happen if a house covered by a standard mortgage clause is a total loss? 1. The mortgagee receives the full benefit and passes the insured's share to the insured. 2. The insurer pays the mortgagee according to the mortgagee's interest in the property. 3. The mortgagee retains no rights to any contracts involving the policy. 4. The insured receives the full benefit and passes the mortgagee's share to the mortgagee.
The insurer pays the mortgagee according to the mortgagee's interest in the property.
How is it determined whether an insurer is allowed to write business in a state? 1. The insurer's domicile or location of incorporation will determine whether a company is domestic, foreign, or alien. 2. The insurer's domicile will determine whether an insurance company is domestic, foreign, or alien. 3. The insurer's location of incorporation will determine whether a company is domestic, foreign, or alien. 4. The insurer's net income will determine whether a company will be allowed to write business in a state.
The insurer's domicile or location of incorporation will determine whether a company is domestic, foreign, or alien.
In personal auto policies, the term "you" refers to 1. Any person injured in a covered accident. 2. Any person reading the policy. 3. The insurer. 4. The named insured.
The named insured
An insurer may cancel an auto policy in all of the following situations EXCEPT 1. The named insured was convicted of robbery 24 months ago 2. One of the insured operators' license was suspended 6 months ago. 3. The named insured was convicted of driving under the influence of alcohol 42 months earlier 4. The named insured is using the insured vehicle as a taxi cab
The named insured was convicted of driving under the influence of alcohol 42 months earlier
An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen? 1. The policy will be voided. 2. The insurer will sue the insured for committing fraud. 3. Because the insured is currently not a drug user, his policy will not be affected. 4. The policy will not be affected.
The policy will not be affected.
Which of the following is an example of a producer's fiduciary duty? 1. The trust that a client places in the producer in regard to handling premiums. 2. An obligation to state every known fact about the policy the producer is selling. 3. A duty to base all transactions upon the principle of Utmost Good Faith. 4. The obligation to tell the truth to the best of one's knowledge
The trust that a client places in the producer in regard to handling premiums.
*What is the purpose of the miscellaneous type vehicle endorsement in personal auto policies? 1. To extend coverage to motorized vehicles rented for recreation 2. To expand the definition of a covered auto to include various motorized vehicles 3. To limit coverage to various motorized vehicles only 4. To provide coverage for hit-and-run accidents
To expand the definition of a covered auto to include various motorized vehicles
Which of the following is NOT a goal of risk retention? 1. To fund losses that cannot be insured 2. To minimize the insured's level of liability in the event of loss 3. To reduce expenses and improve cash flow 4. To increase control of claim reserving and claims settlements
To minimize the insured's level of liability in the event of loss
The deductible does each of these EXCEPT: -reduce loss costs. -lower premium costs. -indemnify the insured. -excludes payment for small claims.
indemnify the insured.
Which would not be covered by an insureds uninsured motorist coverage? A-The insureds car is hit by someone whose auto insurer is insolvent B-the insureds son is struck by a hit and run driver C-the insured causes a head on collision with the car of an uninsured D-insureds neighbor borrowed the insureds car and was hit by an uninsured motorist
the insured causes a head on collision with the car of an uninsured
Agreed Value
you're buying a specific amount of cov. cuz you agree on that amount. IT'S DETERMINED AT TIME IT'S WRITTEN, NOT TIME OF LOSS. doesn't matter if it's appreciated or depreciated.
*A trucking company has a $1 million umbrella policy in place. The businessowner agrees to maintain a 200/500/100 limit on auto liability, and a personal liability of $400,000. After a car accident, the business is sued. Injuries are awarded to a single injured party in the amount of $300,000. It turned out that the business actually carried only 100/250/50 auto liability limits. What is the total amount the umbrella policy will pay? 1. $100,000 2. $50,000 3. $200,000 4. $300,000
$100,000
* If a fire erupts in the kitchen and spreads to the upstairs bedroom, resulting in the destruction of furniture, what type of loss has occurred? 1. Direct 2. Indirect 3. Consequential 4. Proximate
Direct loss refers to any direct physical damage to buildings and personal property. Considering the fire was the initial cause of loss and spread to the bedroom, damages would be considered a direct loss of the fire.
All of the following are true of Coverage B - Other Structures EXCEPT 1. The amount of coverage provided by Coverage B is an amount equal to 10% of Coverage A. 2. Land where the other structures are located is not covered. 3. It must be added by endorsement to a homeowners policy. 4. This coverage is not applicable on the HO-4 policy form.
It must be added by endorsement to a homeowners policy.
*Insurance rates developed by the underwriter based on his skill and experience instead of actuarial analysis are known as 1. Experience rates. 2. Manual rates. 3. Judgment rates. 4. Merit rates.
Judgment rates. Underwriters develop judgment rates based on their skill and experience.
The causes of loss insured against in an insurance policy are known a) Losses b) Risks c) Hazards d) Perils
Perils
Which of the following perils is covered by the HO-2 and HO-3? 1. Loss due to power interruption that occurs off the premises 2. Flood 3. War 4. Sudden and accidental rupture of a heating system
Sudden and accidental rupture of a heating system
An insured has decided to never drive another vehicle and wants to transfer his auto insurance policy to his wife. What does the insured need to transfer the policy? 1. The written consent of all other insureds covered by the policy 2. The written consent of the insurer 3. An auto policy cannot be transferred. 4. Nothing, because the wife is automatically included as an insured
The written consent of the insurer
If an insurance policy has the additional coverage provision, how does it affect the policy premium? 1. Premium will be calculated on a pro rata basis based on the amount of additional coverage. 2. There is no additional premium. 3. Premium will be recalculated when a specific loss covered by this provision occurs. 4. Additional premium will be assessed.
There is no additional premium.
Which of the following is NOT an example of the company's location of incorporation? a) Foreign b) Alien c) Authorized d) Domestic
c
* IDAHO To obtain an Idaho producer's license as a nonresident, an individual must 1. Pass the Idaho exam. 2. Have a part-time residence in this state. 3. Agree to complete Idaho's continuing education requirements every 2 years. 4. Have a similar license in his or her home state.
Have a similar license in his or her home state. Although producers may have only one resident license, they may have as many as 49 nonresident licenses that allow them to transact business in states where they not reside or have a principal office. Idaho nonresident licenses are issued without exam, based upon reciprocal agreements between states. Nonresident producers must comply with the CE requirements of their home state.
IDAHO If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover losses, which of the following would be true? (Choose from the following options) 01. The insurer must cover the loss out of its surplus. 2. The insurer must apply for disaster relief funds. O 3. Federal Insurance Administration will remove the insurer from the NFIP. 4. The insurer will be reimbursed for the excess costs by the NFIP.
The insurer will be reimbursed for the excess costs by the NFIP.
IDAHO The Underinsured Motorist coverage limit is capped by 1. The limit of coverage the insured selects for Underinsured Motorist coverage, plus the limit of liability of the at fault motorist's auto insurance policy. 2. The limit of coverage the insured selects for Underinsured Motorist coverage, less the limits required by financial responsibility laws. 3. The limit of coverage the insured selects for Underinsured Motorist coverage, plus the limits selected for Uninsured Motorist coverage. 4. The limit of coverage the insured selects for Underinsured Motorist coverage.
The limit of coverage the insured selects for Underinsured Motorist coverage. Underinsured Motorist coverage makes available limits equal to the limit selected, either from an at fault motorist's policy or the Underinsured Motorist coverage, whichever is greater.
Which of the following would be a proper choice of policy for a company that transports goods that are irreplaceable in nature? 1. Excess liabilities floater 2. Replacement cost rider 3. Lloyd's policy 4. Valued policy
Valued policy
The part of the insurance contract that describes the covered perils, and the nature of coverage of the contractual agreement between the insurer and the insured is called the a) Exclusions. b) Declarations. c) Insuring agreement. d) Conditions.
Insuring agreement.
An insurance policy form that lists specific covered perils provides 1. Special peril coverage. 2. Blanket coverage. 3. Named peril coverage. 4. Open peril coverage.
Named peril coverage.
Which of the following lists specific perils covered under an insurance policy? a) Open perils b) Specified perils c) Named perils d) Indexed perils
Named perils
"Proof of Financial Responsibility" means the ability to 1. Prove that any payment on an auto that is financed through a lender is current. 2. Prove that an owner/operator can pay for their medical expenses in the event of injury in an auto accident. 3. Prove that an owner/operator can pay for medical expenses and/or property damage of others that arise from an auto accident in which such person is judged to be at fault. 4. Prove the financial ability of the owner/operator to pay property taxes on a vehicle driven on public roads.
Prove that an owner/operator can pay for medical expenses and/or property damage of others that arise from an auto accident in which such person is judged to be at fault.
What type of insurer uses a formal sharing agreement? 1. Stock insurers 2. Mutual insurers 3. Fraternal Benefit Societies 4. Reciprocal insurers
Reciprocal insurers
IDAHO High-risk drivers who cannot obtain the required auto insurance from a private insurer because of underwriting reasons may be eligible for coverage through 01. The Idaho Property and Casualty Insurance Guaranty Association. 2. The Second Injury Fund. 3. The Idaho Property Insurance Plan. 4. The Idaho Auto Insurance Plan.
The Idaho Auto Insurance Plan.
An insured is at fault in an auto accident, damaging the insured's own car. The damage to the car is covered by 1. The other driver's liability coverage. 2. The insured's comprehensive coverage. 3. Uninsured motorist coverage. 4. The insured's collision coverage.
The insured's collision coverage.
All of the following are true regarding physical damage coverage EXCEPT 1. The policy will pay up to $20 per day up to a maximum of $600 for rental transportation. 2. The insurer will pay for direct and accidental loss to a covered auto minus any applicable deductible. 3. The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle. 4. Losses to nonowned autos will be covered the same as the broadest coverage available for any covered auto, except nonowned trailers are limited to $1,500.
The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.
*Under Coverage C, and at the request of an insured, personal property of a guest or residence employee is covered 1. While it is in any residence premises occupied by an insured. 2. While it is in any residence premises occupied by a named insured. 3. Anywhere in the world. 4. Only while on a residence premises.
While it is in any residence premises occupied by an insured. At the request of an insured, personal property of a guest or residence employee may be covered while it is in any residence occupied by an insured.
*What is the main distinction between a hired auto and a nonowned auto? 1. Whether a payment is made for the use of the auto 2. Who owns the auto 3. The length of time the insured uses the auto 4. The amount of premium
Who owns the auto The distinction between hired and nonowned auto does not depend on whether payment is made for the use of the auto, but rather on whether employee.
