Idaho Property and Casualty Practice Exam 2025 - Free Practice Questions and Study Guide

The correct choice is named perils insurance, which provides coverage specifically for losses that are explicitly listed in the policy. This type of insurance outlines certain perils—such as fire, theft, or windstorms—that are covered, and if a loss occurs due to a peril that is not named in the policy, the individual will not receive any coverage for that loss.

This focused nature of named perils insurance allows policyholders to understand exactly what risks are covered, making it easier for them to manage their insurance needs and understand their exposure to various risks. In contrast, comprehensive insurance typically covers a broader range of risks and is not confined to specific named perils, while liability insurance protects against legal liabilities rather than losses directly affecting the insured's property. Universal insurance, on the other hand, often relates to life insurance policies with flexible premiums and benefits, and does not apply to property losses at all.