Idaho Property and Casualty Practice Exam 2026 - Free Practice Questions and Study Guide

The statement regarding the claim payment for a collision loss under the Personal Auto Policy (PAP) that indicates if the insurer recovers and returns stolen property to the insured, no further payment is due, is accurate. When a vehicle is stolen and subsequently recovered, the insurer typically does not owe any additional payment beyond the return of the recovered vehicle. This principle is rooted in the concept of reimbursement and restoration of the covered property.

In the case where a car is stolen and later found, the insurance company has fulfilled its obligation by returning the vehicle to the insured. Therefore, no further compensation for the losses incurred during the time the vehicle was missing is rendered, as the insured is already back in possession of the originally covered asset.

The other statements are true and reflect the operational guidelines under the PAP. For example, an insurer's ability to choose to keep or return a recovered stolen car demonstrates their discretion in handling policy claims and managing recovered items. The inclusion of any applicable sales tax in a claim payment acknowledges that insured parties are entitled to full compensation, accounting for taxes incurred upon the replacement of the vehicle. Lastly, the insurer’s option to address the claim by paying cash, replacing, or repairing the vehicle showcases their flexibility in meeting the contractual obligations to the