Idaho Personal Lines Insurance License Exam — All Questions

What are the minimum motor vehicle liability limits an Idaho auto policy must provide to meet the state's proof of financial responsibility?

• a.$15,000 per person / $30,000 per accident bodily injury and $10,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $15,000 property damage✓
• c.$50,000 per person / $100,000 per accident bodily injury and $25,000 property damage
• d.$30,000 per person / $60,000 per accident bodily injury and $20,000 property damage

Idaho Code sec. 49-117 sets minimum limits of $25,000 for bodily injury to one person, $50,000 for bodily injury per accident, and $15,000 for property damage (25/50/15). Producers should offer higher limits to better protect the insured's assets. Source: Idaho Code sec. 49-117 / 49-1229 (legislature.idaho.gov); verify current figures with the Idaho Department of Insurance (https://doi.idaho.gov/).

Which body writes and enforces the insurance regulations that govern personal lines policies sold in Idaho?

• a.A private trade association of insurers with no government authority
• b.The county recorder where the policy is delivered
• c.The Idaho Department of Insurance, a state agency led by a Director✓
• d.The United States Department of Insurance in Washington, D.C.

Insurance is regulated state by state; in Idaho the Idaho Department of Insurance supervises the market, licenses producers, and enforces rating, cancellation, and coverage rules. No federal department of insurance exists. Source: Idaho Department of Insurance (https://doi.idaho.gov/).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Idaho?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Idaho Department of Insurance✓

Idaho, like other states, restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line, so verify current Idaho notice periods with the Idaho Department of Insurance.

Regarding uninsured/underinsured motorist (UM/UIM) coverage on an Idaho personal auto policy, which is generally true?

• a.UM/UIM is prohibited in Idaho
• b.UM/UIM automatically replaces the policy's liability coverage
• c.Insurers generally must make UM/UIM coverage available; the insured may typically accept, reject, or adjust it in writing✓
• d.UM/UIM is available only to commercial fleets

State auto laws generally require insurers to offer uninsured/underinsured motorist coverage; the applicant may accept it or reject/adjust it, often with a signed election. UM/UIM protects the insured when the responsible driver has no or insufficient coverage. Confirm the current Idaho UM/UIM rules with the Idaho Department of Insurance (https://doi.idaho.gov/).

A producer explaining how at-fault liability works to an Idaho auto client should rely on which principle?

• a.Every state uses an identical no-fault system, so the explanation is the same nationwide
• b.Whether a state uses an at-fault (tort) or no-fault system is set by that state's law, so the producer should confirm Idaho's current framework and any UM/UIM and medical-payments rules with the Idaho Department of Insurance✓
• c.Fault is decided by the insured's employer, not by state law
• d.Idaho has abolished all liability claims between drivers

How an auto claim is handled depends on whether the state follows a traditional at-fault (tort) framework or a no-fault/PIP framework, and this is fixed by state statute. Rather than assume, a producer should confirm Idaho's current system and related coverages with the Idaho Department of Insurance (https://doi.idaho.gov/).