Property & Casualty Idaho Study Guide Questions And Correct Answers

Which insurance principle states that if a policy allows for greater compensation in the financial loss incurred the insured may only receive benefits for the amount lost {Ans: Indemnity}Which of the following does the term proximate cause refer to? {Ans: Negligence that leads to an injury Proximate cause is the reasonably foreseeable act or event that results in an injury or damage negligence me often be the proximate cause of the damage without it the accident would not have happened this is also called direct liability}An individual was involved in a head on collision while driving home one day his injuries were not serious and he recovered however he decided that in order to never be involved in another accident he would not drive or ride in a car ever again which method of risk management does this describe {Ans: Avoidance is a method of risk management by which a person tries to illuminate risk of loss by avoiding any exposure to an event that could give rise to such loss risk avoidance is effective but seldom practical}What's NOT a supplemental payment found in liability policies? {Ans: Costs the insured occurs in hiring an attorney}Which of