IDAHO PROPERTY AND
CASUALTY EXAM PREP
2023/2024 GRADED A+.
1. Which of the following statements is false with respect to requirements for
rates?
A) Rates may not be inadequate
B) A purpose of the rate regulation is to diminish competition between insurers
C) Rates may not be unfairly discrim...
,1. Which of the following statements is false with respect to requirements for
rates?
A) Rates may not be inadequate
B) A purpose of the rate regulation is to diminish competition between insur-
ers
C) Rates may not be unfairly discriminatory
D) A purpose of the rate regulation is to regulate cooperative action among
insurers: B
2. The Businessowners Coverage Form to the Businessowners Policy pro-
vides coverage on which of the following basis?
A) Modified Perils
B) Simplified Perils
C) Broad Perils
D) Open Perils: D
3. Which of the following describes the coverage of the Extra Expense Cover-
age Form?
A
It covers the loss of business income during the period of restoration
B
It covers the expense of disposing of spoiled merchandise caused by a power
outage
C
It covers the necessary additional expenses incurred during the period of
restoration which would not otherwise have been incurred in the absence of
a direct loss
D
It covers the expense of removing the debris of a covered direct loss: C
4. All of the following are true of negligence, except:
A
It is the failure to use ordinary care
B
It does not require a duty to be owed
C
It is a type of tort
D
It does not include breach of contract: B
5. All of the following are Optional Coverages under the Businessowners
Policy, except:
, Idaho Property & Casualty Exam Prep
A
Money and securities
B
Employee dishonesty
C
Outdoor signs
D
Personal property of others that is in the insured's care, custody and control-
:D
6. Policyholder S has an HO-5 policy with a $250,000 Coverage A limit. After
a strong wind blows a mailbox into S's front picture window, causing $2,500
damage, S immediately buys $250 of wood and plastic sheeting to cover the
damaged window and prevent further damage. How much will S's policy pay?
A
$2,250
B
$2,750
C
$250
D
$500: B
7. The Collision or Running Down Clause in Ocean Marine Insurance covers:
A
Collision damage to another vessel when the shipper is liable
B
Collision damage to the insured vessel when it collides with a pier or fixed
object
C
Damage to the insured vessel caused by running aground
D
Collision damage to the insured vessel when it collides with another vessel: A
8. Which Ocean Marine insurance provision protects against direct damage
caused by bursting of boilers?
A
Boiler & Machinery Clause
B
, Idaho Property & Casualty Exam Prep
Inchmaree Clause
C
Mechanical Failure Clause
D
Running Down Clause: B
9. Bodily Injury may include which of the following?
A
Loss of Earnings
B
Slander
C
Invasion of Privacy
D
False Arrest: A
10. Which of the following covers an employee in a position of private trust
and protects an employer against loss caused by the employee's dishonesty.
A
Performance bond
B
Fidelity bond
C
Lender's bond
D
License bond: B
11. Which of the following is correct regarding products liability under the
CGL?
A
Coverage applies to the bodily injury (BI) and property damage (PD) the
product causes, but not to the product itself
B
Products liability coverage commences immediately upon sale of the product,
before the purchaser leaves the insured's premises
C
Products liability coverage includes dram shop liability insurance
D
Coverage applies to BI and PD caused by the product, and to damage to the
product itself once in the purchaser's care, custody and control: A
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