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Idaho Property and Casualty Insurance Exam Questions and Answers Updated Latest (Verified Answers) 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
ANS: 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 1 / 4
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ANS: 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
ANS: 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 2 / 4
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D It does not include breach of contract
ANS: B
5.All of the following are Optional Coverages under the
Businessowners Policy, except: 3 / 4
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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-
ANS: 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
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