An insurer issues a brand-new private passenger auto policy to an Idaho resident; it is the insured's first policy with this insurer. Forty days after the policy takes effect, the insurer mails a notice canceling it for a reason outside the statutory list of cancellation grounds. Which statement is correct under Idaho law?

The statutory cancellation rules do not yet reach this policy, because it has been in force fewer than 60 days.

For purposes of Idaho's property and casualty rating chapter, a coverage is undefined as inland marine insurance by any statute or by any interpretation of a statute. What may still establish that the coverage is inland marine insurance?

A ruling by the director, or what the general custom of the insurance business establishes

A domestic reciprocal insurer in Idaho writes only workers' compensation insurance and covers solely the hazards of its subscribers in a single industry. It then begins insuring workers' compensation hazards in other industries. How does Idaho's workers' compensation rating chapter apply to it?

The chapter applies to the insurance it writes on the new hazards outside its single industry

An insurer licensed in Idaho writes several kinds of direct insurance and later becomes insolvent. Which of its lines is excluded from the application of the Idaho insurance guaranty association act?

Mortgage guaranty insurance on residential loans

Under Idaho's resident agent and countersignature law, the resident agent who countersigns a policy must keep a record showing the risk undertaken and the full premium. What purpose does the statute itself give for this requirement?

To ensure the state collects the taxes due on premiums for Idaho risks

An Idaho insurer decides to cancel a private passenger auto policy that has been in force for two years because an insured violated the policy's terms and conditions. The premium is fully paid. What is the minimum advance notice the insurer must mail or deliver to the named insured?

20 days before the effective date of cancellation

An Idaho insurer that operated on a plan with assessment liability becomes insolvent. The Idaho insurance guaranty association pays a policyholder's covered claim, but the policyholder still owes assessments levied before the insolvency. Under Idaho law, what effect does the association's claim payment have on those unpaid assessments?

None; the policyholder still owes those assessments to the receiver, liquidator, or statutory successor

An insurer writes several lines of business on risks located in Idaho. Which of these lines falls within the scope of Idaho's rate regulation chapter, Title 41, Chapter 14?

Inland marine insurance on goods located in Idaho

An employer believes an insurer that makes its own workers' compensation rates misapplied its rating system to the employer's policy, and sends the insurer a written request to be heard on the matter. Thirty days pass without the insurer either granting or rejecting the request. Under Idaho law, what is the employer's position?

The employer may proceed in the same way as if the insurer had rejected the request

Under Idaho's rate standards, which finding must the director make, after a hearing on reasonable notice, before holding a rate to be excessive?

The rate is unreasonably high and Idaho lacks reasonable competition for that class

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1.An insurer issues a brand-new private passenger auto policy to an Idaho resident; it is the insured's first policy with this insurer. Forty days after the policy takes effect, the insurer mails a notice canceling it for a reason outside the statutory list of cancellation grounds. Which statement is correct under Idaho law?
Answer: B. The statutory cancellation rules do not yet reach this policy, because it has been in force fewer than 60 days.
Idaho Code Sec. 41-2506(2) provides that sections 41-2506 through 41-2512, a range that includes the list of permitted grounds and the notice requirements, do not apply to a policy that has been in effect less than 60 days when the insurer mails or delivers the cancellation notice, unless the policy is a renewal. This policy is new and the notice went out on day 40, so those sections do not govern the cancellation. The choice saying every cancellation must rest on a listed ground fails because the grounds section is one of the sections the 60-day rule switches off. The choice requiring the director's consent fails because the 60-day rule conditions nothing on the director's approval. The choice requiring 30 days of notice fails because the notice rules do not apply here, and 30 days is the period for a notice of intention not to renew rather than for a cancellation.
Source
Idaho Code Sec. 41-2506(2) (Cancellation of policies, definitions)
Choose an answer to see the explanation.
2.For purposes of Idaho's property and casualty rating chapter, a coverage is undefined as inland marine insurance by any statute or by any interpretation of a statute. What may still establish that the coverage is inland marine insurance?
Answer: C. A ruling by the director, or what the general custom of the insurance business establishes
Idaho Code Sec. 41-1401(2) treats as inland marine any insurance defined that way by statute or by interpretation of a statute and, where neither exists, by a ruling of the director or by the general custom of the business. A new statute is one route but not the only one, and the section gives no defining role to an insurer's own filing choice or to a rating organization's definition.
Source
Idaho Code Sec. 41-1401(2) (Scope of chapter)
Choose an answer to see the explanation.
3.A domestic reciprocal insurer in Idaho writes only workers' compensation insurance and covers solely the hazards of its subscribers in a single industry. It then begins insuring workers' compensation hazards in other industries. How does Idaho's workers' compensation rating chapter apply to it?
Answer: C. The chapter applies to the insurance it writes on the new hazards outside its single industry
Idaho Code Sec. 41-1601(2) exempts a domestic reciprocal that transacts only workers' compensation insurance and insures solely its subscribers' hazards tied to one industry. If that reciprocal chooses to insure hazards outside the single industry, the insurance written on those different hazards becomes subject to the chapter. The statute subjects the new-hazard insurance to the chapter; it does not say the single-industry coverage loses its exemption, so the choice sweeping in the whole book overstates the rule. Being a domestic reciprocal does not by itself keep the new business exempt, because the exemption depends on insuring a single industry. Surety guaranty of employer obligations is a separate category that subsection (1) brings within the chapter; it is not a condition for applying the chapter to the new hazards.
Source
Idaho Code Sec. 41-1601(2) (Scope of chapter)
Choose an answer to see the explanation.
4.An insurer licensed in Idaho writes several kinds of direct insurance and later becomes insolvent. Which of its lines is excluded from the application of the Idaho insurance guaranty association act?
Answer: A. Mortgage guaranty insurance on residential loans
Idaho Code Sec. 41-3603 applies the act to all kinds of direct insurance but lists exceptions, and subsection (2) excludes residual value, mortgage guaranty, financial guaranty and other insurance protecting against investment risks. Mortgage guaranty insurance is therefore outside the act. Homeowners, auto liability and general liability insurance appear nowhere on the section's list of exceptions.
Source
Idaho Code Sec. 41-3603(2) (Application of act)
Choose an answer to see the explanation.
5.Under Idaho's resident agent and countersignature law, the resident agent who countersigns a policy must keep a record showing the risk undertaken and the full premium. What purpose does the statute itself give for this requirement?
Answer: B. To ensure the state collects the taxes due on premiums for Idaho risks
Idaho Code Sec. 41-337(1) requires an authorized insurer to write Idaho policies through its licensed resident agents, who countersign those policies and keep a record of the risk and the full premium. The section states its own reason: so that the state may receive the taxes the law requires on premiums for insurance on property or undertakings in Idaho. The record requirement says nothing about the director setting rate levels, about guaranty association claims, or about an agent's continuing education; the tax purpose is the only one the section states.
Source
Idaho Code Sec. 41-337(1) (Resident agent, countersignature law)
Choose an answer to see the explanation.
6.An Idaho insurer decides to cancel a private passenger auto policy that has been in force for two years because an insured violated the policy's terms and conditions. The premium is fully paid. What is the minimum advance notice the insurer must mail or deliver to the named insured?
Answer: B. 20 days before the effective date of cancellation
Idaho Code Sec. 41-2508(1) requires an insurer canceling a covered auto policy to mail or deliver notice to the named insured at least 20 days before the cancellation takes effect. The shorter 10-day period applies only when the cancellation is for nonpayment of premium, and that notice must include the reason. Thirty days is the advance notice subsection (2) requires for a notice of intention not to renew, which is a different action from cancellation. Forty-five days appears nowhere in the section.
Source
Idaho Code Sec. 41-2508(1) (Notice of cancellation or intention not to renew)
Choose an answer to see the explanation.
7.An Idaho insurer that operated on a plan with assessment liability becomes insolvent. The Idaho insurance guaranty association pays a policyholder's covered claim, but the policyholder still owes assessments levied before the insolvency. Under Idaho law, what effect does the association's claim payment have on those unpaid assessments?
Answer: A. None; the policyholder still owes those assessments to the receiver, liquidator, or statutory successor
Idaho Code Sec. 41-3611(1) addresses this case directly: when the insolvent insurer operated on a plan with assessment liability, the association's payment of claims does not reduce what insureds owe the receiver, liquidator, or statutory successor for unpaid assessments. The policyholder's assessment debt is therefore untouched by the claim payment. A dollar-for-dollar offset, a full cancellation, and a split with the association each treat the claim payment as reducing that debt, which the statute says it does not do.
Source
Idaho Code Sec. 41-3611(1) (Subrogation of association to rights of claimants)
Choose an answer to see the explanation.
8.An insurer writes several lines of business on risks located in Idaho. Which of these lines falls within the scope of Idaho's rate regulation chapter, Title 41, Chapter 14?
Answer: A. Inland marine insurance on goods located in Idaho
Idaho Code Sec. 41-1401(1) makes the rate chapter apply to property, marine and transportation, inland marine, casualty and surety insurance on risks located or operations performed in Idaho. Inland marine is named on that list. Casualty is included only to the extent it is something other than workers' compensation coverage, so the workers' compensation line is carved out. Life insurance and disability insurance are not among the kinds of insurance the subsection lists.
Source
Idaho Code Sec. 41-1401(1) (Scope of chapter)
Choose an answer to see the explanation.
9.An employer believes an insurer that makes its own workers' compensation rates misapplied its rating system to the employer's policy, and sends the insurer a written request to be heard on the matter. Thirty days pass without the insurer either granting or rejecting the request. Under Idaho law, what is the employer's position?
Answer: C. The employer may proceed in the same way as if the insurer had rejected the request
Idaho Code Sec. 41-1622(2) requires an insurer that makes its own rates to provide reasonable means within Idaho for an aggrieved person to be heard, on written request, about how its rating system was applied. If the insurer neither grants nor rejects the request within 30 days after it is made, the applicant may proceed as though the request had been rejected. Silence is therefore not treated as a grant, the statute does not make the employer wait indefinitely for written notice of action, and it does not require a new request to restart the clock. A party affected by the insurer's action on a request may appeal to the director within 30 days after written notice of that action.
Source
Idaho Code Sec. 41-1622(2) (Information to insureds; review of insured's complaint)
Choose an answer to see the explanation.
10.Under Idaho's rate standards, which finding must the director make, after a hearing on reasonable notice, before holding a rate to be excessive?
Answer: C. The rate is unreasonably high and Idaho lacks reasonable competition for that class
Idaho Code Sec. 41-1405(2) allows a rate to be held excessive only when the director finds both that it is unreasonably high for the insurance provided and that a reasonable degree of competition does not exist in Idaho for the rate's classification. Subsection (4) requires a hearing on reasonable notice before that finding is made. An unreasonably high rate alone is not enough, because the competition element must also be found. Comparison with other insurers' average rates is not the test the section states. Destroying competition or creating a monopoly is part of the test for an inadequate rate under subsection (3), which concerns rates that are unreasonably low.
Source
Idaho Code Sec. 41-1405(2) (Rate standards)
Choose an answer to see the explanation.

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2.For purposes of Idaho's property and casualty rating chapter, a coverage is undefined as inland marine insurance by any statute or by any interpretation of a statute. What may still establish that the coverage is inland marine insurance?

3.A domestic reciprocal insurer in Idaho writes only workers' compensation insurance and covers solely the hazards of its subscribers in a single industry. It then begins insuring workers' compensation hazards in other industries. How does Idaho's workers' compensation rating chapter apply to it?

4.An insurer licensed in Idaho writes several kinds of direct insurance and later becomes insolvent. Which of its lines is excluded from the application of the Idaho insurance guaranty association act?

5.Under Idaho's resident agent and countersignature law, the resident agent who countersigns a policy must keep a record showing the risk undertaken and the full premium. What purpose does the statute itself give for this requirement?

6.An Idaho insurer decides to cancel a private passenger auto policy that has been in force for two years because an insured violated the policy's terms and conditions. The premium is fully paid. What is the minimum advance notice the insurer must mail or deliver to the named insured?

8.An insurer writes several lines of business on risks located in Idaho. Which of these lines falls within the scope of Idaho's rate regulation chapter, Title 41, Chapter 14?

10.Under Idaho's rate standards, which finding must the director make, after a hearing on reasonable notice, before holding a rate to be excessive?

The other 206 questions are $29.