Free practice exam · no signup needed

Idaho Casualty Practice Exam

20 exam-style questions drawn from the same bank as our full Idaho Casualty course (Idaho Insurance Producer - Casualty - Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. A claims-made professional liability policy has a retroactive date of 1/1/2020. An insured event occurred in 2019 but the claim was not made until 2024 while the policy was in force. Is there coverage?
Yes, because the claim was first made during the policy period, which is all a claims-made form requires for coverage.No, the event occurred before the retroactive date, so coverage is excluded even though the claim is timely.Yes, because events up to two years before the retroactive date are covered automatically under a claims-made form.No, because the claim was made more than three years after the event, which exceeds the claims-made reporting window.
2. What is the consequence of failing to comply with Idaho Code 41-1841?
A fine of ten thousand dollarsThe Director must approve them anywayThe cancellations are null and voidA one year suspension of the licence
3. What triggers the insured's duty to notify the company under the standard casualty conditions?
Receipt of a demand letter from a claimantThe insured's decision that the matter is seriousService of a summons on the insuredThe occurrence or offence, not the claim or the lawsuit
4. Commercial crime policies typically offer coverage on one of two triggers, 'discovery' or 'loss sustained.' The DISCOVERY trigger means:
The policy responds only to losses discovered by law enforcement.The policy responds to losses sustained during the policy period, regardless of when they are discovered.The policy responds to losses DISCOVERED during the policy period (or ERP), regardless of when the underlying acts occurred.The policy requires a DA's indictment for coverage to apply.
5. A 7-year-old commercial auto with a replacement cost of $30,000 and an estimated useful life of 12 years is destroyed in a covered loss. Using the straight-line depreciation approach to ACV, what is the ACV?
$17,500$12,500$30,000$20,000
6. What does an insurance score derived from credit history predict?
Expected insurance loss experienceCreditworthiness for a mortgageLikelihood of an early lapseAbility to pay the premium
7. Under Idaho Code 41-1021, what must a producer report to the Director?
Every consumer complaint the producer receivesCriminal prosecutions and other-state actionsAny change to the producer commission rateEach new insurer appointment the producer takes
8. Which of the following is a method of risk MANAGEMENT, not risk transfer?
Buying ordinary commercial insurance at the primary layerLloyd's of London marine cover at the syndicate levelA pro-rata or excess-of-loss reinsurance treatyRisk retention through self-insurance or a captive
9. A roofing contractor installs shingles improperly. Two years later the shingles begin leaking, water damages the homeowner's drywall and a leather sofa, and the homeowner sues for $18,000. The CGL 'your work' exclusion under Coverage A applies to which portion of the loss?
Only the cost to tear off and replace the defective shingles themselves, damage to the drywall and sofa remains coveredNothing, the policy expired before the leak appeared and the late-manifestation rule shifts liability entirely to the current homeowner's HO policyThe entire loss, because faulty workmanship is excluded in full under the absolute-workmanship-bar rule applied to all contractor CGL formsOnly the sofa, because personal property is excluded from the contractor's own-work carveout under the standard CGL exclusion l language
10. A personal UMBRELLA policy may DROP DOWN and pay a loss if:
The underlying policy has a lapse and the insured did not reinstate it.The insured refused to buy underlying insurance.The underlying auto/homeowners liability limits are exhausted for a covered loss.The underlying policy's coverage trigger never occurred.
11. A landscaping company's Business Auto Policy lists only Symbol 7 (specifically described autos) for liability. An employee rents a pickup for a week to haul equipment and injures a pedestrian. Why is the rental not a covered auto for liability?
Rental vehicles are excluded from every Business Auto Policy regardless of the symbols shownSymbol 7 covers only autos listed on the schedule, and a rental needs Symbol 8 (hired autos) to qualifySymbol 7 covers only autos owned for more than 30 days, and the rental was held for one weekLiability for rented vehicles is only ever covered under the renter's personal auto policy
12. A delivery driver runs a red light. A witness films it and reports the driver to police, but no vehicle or pedestrian is struck and no property is damaged. A bystander sues the driver's employer for negligence. Which element of a negligence claim is MISSING?
Causation, the breach did not cause the specific harm allegedDuty, the driver owed no duty to other road usersBreach, running the light was not a breach of the duty of reasonable careDamages, no actual injury or loss resulted from the breach
13. The 'Employee Theft' insuring agreement on a commercial crime policy covers:
Loss caused by employee theft only when the employee has been criminally convicted of the theft.Loss of money or securities stolen by any outside party from the insured's premises, but only when there is visible evidence of forced entry.Loss of money resulting from an employee's honest mistakes in handling cash, deposits, and payroll records.Loss of money, securities, or other property resulting from theft by an employee acting alone or in collusion.
14. A general contractor's CGL has a $1,000,000 each-occurrence limit, a $2,000,000 general aggregate, and a $2,000,000 products-completed operations aggregate. The contractor has paid out $800,000 in premises slip-and-fall claims this year. How much remains for a $1,000,000 ongoing-operations claim at a different job site?
$0, the aggregate is exhausted by the prior premises claims under the dual-occurrence depletion rule$1,000,000, the each-occurrence limit applies, and $1.2M of general aggregate remains$1,000,000 from the products-completed operations aggregate because operations claims draw from the products aggregate$200,000, only the unused portion of the general aggregate remains after the prior premises claims totaling $800K
15. Unlike insurance, if a surety pays a claim on a bond, the surety has the right to:
Raise the bond premium at renewal, but not seek any reimbursement of the loss paid.Seek INDEMNIFICATION (reimbursement) from the principal, who has signed an indemnity agreement.Subrogate against the obligee for any portion of the loss that the obligee caused.Cancel the bond retroactively and recover the premium previously paid by the obligee.
16. Under 41-1329, an insurer makes claim payments with no statement of the coverage relied on. Is that prohibited?
Only if the insured asks firstYes, it is an enumerated practiceOnly for commercial claimsNo, only denials need explaining
17. A warehouse worker is seriously injured on the job and collects statutory workers' compensation benefits from his employer's WC policy. His spouse then files a separate loss-of-consortium lawsuit against the employer. Which part of the standard Workers' Compensation and Employers Liability policy responds to the spouse's suit, if any?
Part Two, Employers Liability, because consortium claims by a spouse are one of the gaps EL is designed to cover.Part One, Workers Compensation Insurance, because the spouse's claim arises from the same injury.Part Three, Other States Insurance, because it expands coverage to third parties.Neither part responds; exclusive remedy bars every claim arising out of the injury.
18. An insured is stopped at a red light when a hit-and-run driver rear-ends her. She suffers $18,000 in medical bills and $6,000 in damage to her vehicle. Her PAP has Part A 30/60/25, Part B Medical Payments $5,000, Part C UM 30/60, and Part D collision with a $500 deductible. Which parts of her PAP respond to her medical bills?
Part B (Medical Payments) and Part C (Uninsured Motorists), Part B pays first-dollar regardless of fault up to its limit, and Part C responds because the at-fault driver is uninsured.Part A (Liability) only, because liability coverage pays the insured's own injuries whenever another driver causes the accident and cannot be found afterward.Part D (Damage to Your Auto) and Part B, because Part D extends to occupant injuries in a collision once the $500 deductible has been satisfied by the insured.Part C (Uninsured Motorists) only, because Part B Medical Payments is excluded whenever another driver is at fault and UM coverage is available to pay the full loss.
19. The 'exclusive remedy' doctrine in workers' compensation means:
Workers' comp benefits are the worker's only remedy against the employer for AOE/COE injuries (with narrow exceptions)The injured worker can sue the employer in tort for the workplace injury and also collect statutory workers' comp benefits in parallel under both legal theoriesOnly the employer (not the injured worker) is permitted to file suit relating to the workplace injury, an inversion of the actual exclusive remedy frameworkStatutory workers' comp benefits are payable to the injured worker in addition to unlimited common-law tort damages, a stacking that exclusive remedy actually forbids
20. Which of the following BEST explains why a large personal auto insurer can confidently charge a filed rate for liability coverage on a given territory and vehicle class?
Because the law of large numbers makes aggregate loss outcomes across a huge, homogeneous pool of drivers statistically predictableBecause each individual driver's losses can be predicted with certainty once the insurer reviews that driver's motor vehicle recordBecause the insurer's filed rate is guaranteed by the state, which reimburses the insurer for any losses that exceed the rate it chargedBecause liability losses are spread evenly across every territory, so the insurer can charge the same rate to all drivers statewide

Want a different set? Refresh the page for 20 new questions — the full course has 500+, each with a complete explanation, plus full-length timed exam simulations and an AI tutor.