ID Property & Casualty study guide
ID Property & Casualty · Work through your exam, one topic at a time.
The Idaho Property & Casualty Insurance Producer License is a state-issued credential that allows an individual to sell, solicit, and negotiate property and casualty insurance products in Idaho. It is intended for people entering or advancing in the insurance industry - new agents, agency staff, customer service representatives moving into sales, and professionals adding a lines-of-authority credential to their resume. The ID Property & Casualty study guide has 6 sections and about 2,086 words.
01Insurance Regulation and Licensing
Insurance is regulated primarily by the states, a division of labor preserved by the McCarran-Ferguson Act; the federal role is largely limited to antitrust enforcement to the extent the states do not regulate. In Idaho, the Department of Insurance, headed by a Director appointed by the Governor, enforces the Idaho Insurance Code (Title 41).
351 words, about 2 min02General Insurance Principles and Concepts
Risk is uncertainty about loss. Insurance transfers pure risk (loss or no loss) and never speculative risk (chance of gain or loss).
334 words, about 2 min03Property Insurance Coverages and Policy Provisions
Property coverage responds to direct physical damage to covered property at a described location. Know which part of the policy controls: declarations (who, what, where, how much), insuring agreement, conditions, exclusions and definitions.
343 words, about 2 min04Casualty Insurance Coverages and Policy Provisions
Casualty coverage pays sums the insured is legally obligated to pay as damages because of bodily injury or property damage, plus defense costs. The occurrence form covers injury or damage that takes place during the policy period, no matter when the claim is reported.
375 words, about 2 min05Insurance Laws, Rules, and Regulations
Idaho's unfair trade practice statutes target the conduct questions love: misrepresentation and false advertising of policy terms; twisting (inducing a replacement through misrepresentation); rebating (offering anything of value not specified in the policy as an inducement to buy) - prohibited, with only narrow exceptions such as nominal-value promotional items; unfair discrimination in rates or availability; boycott, coercion and intimidation; and unfair claim settlement practices, including failure to acknowledge or act promptly, denial without a reasonable investigation, and failure to explain a denial. Insurance fraud, both in applications and in claims, is separately actionable.
354 words, about 2 min06Contract Law and Policy Structure
A contract needs offer, acceptance, consideration, legal purpose and competent parties. In insurance, the application is usually the offer, the policy the acceptance, and consideration runs both ways - premium for the insurer's promise to pay.
329 words, about 2 min