Utah Property & Casualty Insurance Producer Practice Exam

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• An insurance producer may add the Surplus Lines of authority to their insurance license if he or she has how many years of related experience?
• Which two coverages are automatically included in a homeowners policy but not in a dwelling policy?
• When does the insurer's duty to settle or defend come to an end?
• What concept describes the mutual trust required between insurer and insured regarding integrity and honesty?
• What term best describes an insured, partner or employer while having care and custody of property inside the premises in a Commercial Crime policy?
• What does the term "actual cash value" refer to in insurance claims?
• How many days after appointing a producer must an insurer notify the commissioner?
• What type of agreement allows a non-resident licensed producer to obtain a Utah license without taking the Utah insurance exam?
• Which type of coverage in a personal auto policy includes damages from theft, flood, and riots?
• What doctrine holds businesses liable for their products and completed operations?
• Which type of individual rating method involves making a list of a commercial building's characteristics and adjusting the premium accordingly?
• Which coverage is required for a commercial auto insured that rents or borrows vehicles from others?
• Which of the following is not covered by a DP-2 (Broad Form Policy)?
• Status as a public adjuster is obtained primarily by which of the following?
• Which coverage addresses consequential (indirect) losses in a dwelling policy?
• Which loss would be covered under section 2 of a homeowners policy?
• Which form of CGL insurance has a coverage trigger based on when the event that caused a loss happened?
• What are some reasons that a license would be disciplined?
• In selling insurance policies and charging premiums, discrimination within the same _______ is illegal.
• What type of insurance covers operational losses that could occur due to a covered hazard in a business?
• Which homeowners policy form is designed for insureds who are renters?
• What is the educational requirement to obtain a licensed insurance producer in Utah?
• What federal law regulates the sharing of nonpublic personal information to third parties?
• Which of the following best describes the principle of indemnity in insurance?
• What service does a licensed insurance producer provide?
• What is the minimum liability insurance requirement for a hauler of explosives, gas, or radioactive material?
• What is the impact of a tornado on Tom's duplex in terms of insurance claims?
• What is typically the basis for calculating workers compensation insurance premiums?
• After 9/11, what role does the federal government play for insurance companies under the Terrorism Risk Insurance Act?
• As a fiduciary for the insurer, a producer must forward any premiums received directly to the insurer or deposit the money into what?
• Investigative consumer reports differ from consumer reports in that they gather information how?
• How many continuing education credits must be earned in a classroom setting during each license period?
• What is the main distinction between a representation and a warranty in insurance contracts?
• What is the primary risk-handling technique used in insurance?
• What is a characteristic of specific insurance?
• Coverage C of a CGL will only cover medical expenses if they have been incurred and reported within what time frame after the occurrence?
• In a legal contract, what is the term for the value exchanged between parties?
• An insurer is classified as a foreign company if it is headquartered in which location?
• In a homeowners policy, what is the automatic limit of insurance for Coverage B (Other Structures)?
• If a commercial policy's named insured dies, to whom are the rights of the insured transferred?
• Which of the following is not a participant in sharing commissions legally?
• Which part of a policy contains addendums and amendments that change the policy?
• Which type of damages refers to pain and suffering in tort cases?
• What does an interline endorsement of a commercial package policy do?
• What distinguishes an "accident" from an "occurrence" in insurance terms?
• Which type of loss would likely be covered under Tom's homeowner's insurance?
• What do we call a person who represents an insurance company to negotiate agreements?
• What is the formula for determining actual cash value (ACV)?
• In a homeowners policy, which two coverages are included under liability insurance?
• What must a licensed producer do after receiving premium payments?
• Which of the following is a condition that must be met for the policyholder's assignment to be valid?
• Which coverage reimburses for loss of rental income due to property being uninhabitable?
• What is the primary difference between a vacant building and an unoccupied building?
• In which situation would coverage not apply under a homeowners policy?
• What is required before a licensee can use an assumed name for their business?
• After terminating a producer appointment, how long does an insurer have to notify the commissioner?
• What are the four essential elements of a legal contract?
• What dictates the amount of compensation in a liability insurance claim?
• Which of the following risks is NOT covered by a standard flood policy?
• What is express authority in the context of insurance?
• What is the name of the coverage under the commercial property coverage form that compensates for revenue loss due to business interruption?
• If someone has been convicted of a crime involving dishonesty, what must they obtain from the Utah insurance department to sell insurance?
• How long do producers have to apply for a Utah license after establishing residency to waive the exam?
• What is typically covered under Property Coverage B in a homeowners policy?
• What type of coverage does the Personal Auto Policy provide for damages caused by theft or vandalism?
• In a Commercial Package Policy, what is the insurer's obligation regarding inspections?
• Which of the following falls under Coverage A of property insurance?
• In a Split Limits liability policy, what are the minimum limits required by Utah law?
• If one party is more than half at fault, what is this defense against negligence called?
• What does it mean when a person uses a tactic of assumption of risk in a negligence case?
• Which of the following best describes a fiduciary duty?
• Under crime coverage, which term is used for the point in time when the insured first becomes aware that a loss occurred?
• Under which condition can a policyholder claim for an indirect loss?
• What is the maximum allowable payment or gift to a customer, conditional on obtaining a quote or purchasing a policy, without being considered illegal rebating?
• Which Inland marine coverage pays for loss to a customer’s property in the care of the insured?
• When two or more coverage parts are written together in commercial insurance, what is this called?
• Which coverage would be needed to protect personal property in a rental dwelling?
• What type of damages can be awarded for outrageous or intentional acts?
• What type of coverage is provided under DP1 - Basic Form?
• Which of the following is not included in Coverage E (Farm Personal Property)?
• If one of the seven coverage parts of commercial insurance is written alone, what is it called?
• Who is responsible for approving the appointment of the state insurance commissioner?
• Which crime coverage can pay for losses due to the illegal acts of employees, managers, trustees, and representatives?
• What are the three dwelling policy forms?
• What are the three separate coverages of Split Limits Liability on an auto policy?
• What is the difference between burglary, theft, and robbery? Which has the broadest legal definition?
• What does misrepresentation in an insurance context typically involve?
• If buildings at multiple locations are insured under one limit of insurance, it is known as what type of insurance?
• What does the limit of liability represent in a Split Limits liability policy?
• Which defense against a claim of negligence attempts to show that enough time has passed since the event that the claim is now irrelevant?
• Which covered auto symbol indicates "Nonowned Autos only"?
• Liability insurance pays damages to a third party as a result of what action of the first party?
• Which covered auto symbol of the business auto coverage form represents "Owned Autos only"?
• Regarding the DP-2 policy, what types of personal property would generally be covered?
• What are the four elements of a negligent act?
• What does an underwriter do?
• Which coverage would typically exclude business property in a residential insurance policy?
• What is Morale hazard in the context of insurance?
• What does an insurer adjuster do?
• Which type of homeowners policy offers the most comprehensive coverage?
• In the event of overlapping coverage, what is the term for the policy that pays first?
• Which type of insurance typically utilizes the occurrence form?
• Which policy is suitable for a homeowner who does not occupy the dwelling?
• In a commercial property policy, which of the following covers loss to valuable papers?
• How quickly must a licensee report an action taken against them to the commissioner?
• Which action is considered illegal for an insurance producer?
• How can theft of personal property be covered in a dwelling policy?
• What is the term for the event that must occur for a policy to respond and pay a claim?
• What is the primary limitation of an insurance policy's deductibles?
• Which coverage helps mitigate costs associated with ordinance or law compliance during a rebuild?
• What is the main purpose of crime coverage within an insurance policy?
• Wallace received a letter from the insurer informing him they will not offer coverage beyond the expiration date of his current policy. This means the insurer decided to do what?
• Which type of insurance company issues policies primarily for the benefit of its policyholders?
• Which type of insurance coverage would typically cover damages resulting from negligence?
• What are the minimum requirements to obtain a Utah insurance license?
• Which type of insurance is characterized by a contract that promises to indemnify the insured after loss?
• What does the term "underwriting" refer to in the context of insurance?
• What does strict liability pertain to?
• The rating method known as Loss Costs includes which of the following?
• Under a commercial property earthquake endorsement, what defines a single earthquake or volcanic eruption?
• What is the title of the Chief Officer of the Utah Insurance Department?
• What type of insurance document testifies to losses suffered in an event such as a fire?
• What endorsement must be attached to policies for all motor carriers under the Motor Carrier Act of 1980?
• Which type of construction has a rating of two hours or more and has the most favorable fire rating?
• What is the primary purpose of a claims-made form in insurance?
• In farm coverage under a commercial property package, which type of poultry is typically excluded from Coverage E?
• In insurance terminology, what does the term "peril" refer to?
• What is the primary function of a carrier in transportation insurance?
• What coverage under Garage coverage insures customers' vehicles left in the insured's care, custody, or control?
• Who must pay the cost of the commissioner's inspection of an insurer?
• What must a producer do if they change their email address?
• What unit is used to measure the amount of risk in an insurance context?
• The insurance department (commissioner) does NOT perform which of the following functions?
• Insurance that protects insurance companies against having too much risk is known as what?
• What distinguishes binding authority for property and casualty producers from that of life and health producers?
• Libel, slander, and false arrest are classified as what type of injuries?
• In a homeowners policy, what is the automatic limit of insurance for Coverage C (Personal Property)?
• What behavior could exemplify a morale hazard concerning driving practices?
• Which office ensures that insurers operating within Utah are solvent?
• For most rates, each rate filing shall be effective __________ after the rates and supplementary information are filed.
• What is a common example of a peril in homeowners insurance?
• Which type of exposure covered under Coverage A of a CGL refers to work completed away from the insured's premises?
• Which two homeowners policy forms provide open peril coverage for Coverage A (dwelling)?
• What section of an insurance policy lists what is not covered?
• What does moral hazard refer to?
• According to the Loss Payment condition of a Homeowners policy, losses will be payable within how many days after the insurer receives proof of a loss?
• What is an indirect loss and what is another term for it?
• What limit applies to commercial vehicles carrying hazardous materials as mandated by the Motor Carrier Act?
• If a licensed producer from another state moved to Utah, how many days does he or she have to apply for an insurance product license to waive the examination requirement?
• Who does an independent adjuster typically represent?
• If an insurance license becomes inactive, how long does the license have the option to be reinstated?
• Why is an insurance contract considered aleatory?
• What type of insurance coverage would compensate for vandalism and fire damage to an insured vehicle?
• Which of the following is an example of liability coverage under homeowners insurance?
• Which endorsement can change coverage on personal property from Actual Cash Value to Replacement Cost?
• How long must insurance companies maintain accurate records of the forms they use?
• What is the primary function of the standard mortgage clause in a property policy?
• The peak season limit of insurance endorsement allows a business to increase its _________ for a certain period of time.
• What is a company adjuster and what type of license do they need?
• What additional coverage is required in a dwelling policy for theft?
• An insurance license is not required to take continuing education if it was first licensed before what date?
• Which term describes an insurance policy that does not cover any losses incurred while the insured was committing illegal acts?
• What is essential when defining the duties of an independent insurance adjuster?
• What type of license is necessary for an agent who only sells limited coverage in Utah?
• Which covered auto symbol refers to "Hired autos only"?
• What information is found on the common declarations package policy?
• Allison was required to sign a document for the insurance company which testified as to what had been damaged in the fire. What is the document called?
• What type of license does an individual need to sell insurance in Utah if they already have a producer license in another state?
• What type of coverage does a dry cleaner need for items in their care?
• Who is responsible for making insurance laws in Utah?
• Which peril is typically excluded from coverage by a dwelling policy?
• What does the Peak season endorsement of a commercial property coverage form do?
• Under business income coverage, when does the period of restoration begin?
• Which of the following would NOT be covered by Inland Marine?
• What type of insurance can cover an employer’s negligence in failing to provide promised employee benefits?
• The Crime coverage part can be included in a policy that combines multiple lines of insurance. What is the name of this policy?
• What is the name of the program in which private insurers can write flood insurance policies on a no risk-bearing basis?
• In insurance terminology, what is the risk that only involves the possibility of loss and no chance of gain called?
• Under the doctrine of vicarious liability, who is liable for the actions of employees?
• Which type of insurance company is owned by shareholders?
• How can the solvency of an insurer be assessed?
• Which item would be covered by Coverage C on Tom's HO-3 policy after his duplex is destroyed by a tornado?
• What are the five defenses against negligence?
• How are ethics credits counted in Utah’s insurance continuing education program?
• What does indemnity refer to in insurance terms?
• A license will expire on which specific date if not renewed?
• A producer accepting a late payment after the grace period is an example of what type of authority?
• Which Personal Auto Policy coverage will pay for the insured's injuries if injured by an at-fault third party with insufficient liability insurance?
• Which of the following is NOT covered under Coverage B of Commercial General Liability?
• What type of losses does Coverage A in a dwelling policy cover?
• Which farm property coverage specifies types of personal property covered along with their limit of insurance?
• It is illegal for a producer to __________ funds collected from premiums with their own personal funds.
• Which coverage would apply if an insured's property was damaged due to a falling tree?
• Which of the following causes of loss would not be covered by the Equipment Breakdown coverage part?
• The term "negligence" in legal contexts often refers to what?
• Up to what amount of payment or gift to a customer is allowable without being considered illegal rebating?
• Michael sold an auto insurance policy to Marion. He gave her a gift card as a thank you. What is Michael guilty of?
• Whom does an insurance producer represent?
• What must an endorsement include to alter a policy effectively?
• What is the purpose of the coinsurance requirement in a property policy?
• Which of the following is considered a personal injury in liability insurance?
• Which event does NOT result in coverage under a personal auto policy?
• What is the term for a situation that increases the chance of a loss?
• What should be reported to an insurance company as part of a medical expense claim under Coverage C?
• What type of coverage is provided by HO-2 homeowners policy?
• What additional coverage can help pay for extra costs due to a new fire sprinkler requirement in Patty's building permit?
• What is required for two producers to share commission from an insurance transaction?
• What are the two types of Physical Damage coverages on a Personal Auto Policy?
• What are the three levels of producer authority?
• Which of the following is NOT one of the types of licenses available to Utah residents?
• How is Susan's ownership of three restaurant buildings, each with a separate limit of insurance, best described?
• Under the motor carrier act of 1980, what is the minimum liability insurance requirement for a hauler of oil or certain categories of hazardous waste?
• For which type of insurance does controlled business typically apply?
• Why is it important to keep accurate records of insurance forms?
• Under a homeowners policy, what can the insurer do in case of loss to a pair or set?
• For how long may the commissioner place a license under probation?
• How many continuing education credits in ethics training are required for insurance agents during each license period?
• Which of the following actions does the insurance commissioner NOT take?
• In which scenario do property and casualty producers typically act differently than life and health producers?
• Which commercial property coverage form covers buildings under construction?
• What is not a characteristic of punitive damages?
• Which component of a commercial general liability policy would cover bodily injury claims?
• Which of the following is not a right of the mortgagee under a standard mortgage clause on a property insurance policy?
• An insurer is considered to be solvent if it is able to do what?
• Who does a public adjuster represent?
• Whom does a consultant primarily represent in insurance matters?
• What is the definition of flood in the context of insurance?
• Which of the following is true regarding the coverage provided under DP2 - Broad Form?
• What term describes an insured or employee who has care of property outside the premises under a Crime policy?
• Purchasing an insurance policy is an example of which method of handling risk?
• What coverage is needed by a commercial auto insured with employees using their own vehicles for work?
• What type of insurance clause protects the financial interest of lenders, particularly in property policies?
• What is the loss valuation method in which the insurer and insured agree on the insurance limit?
• What is the primary purpose of underwriting in insurance?
• If the injured party contributed to their own injuries, this defense against negligence is called what?
• What type of insurance company is owned by its policyholders?
• Under what condition is receiving commission for controlled business legal?
• What type of losses typically requires the proof of loss document in insurance claims?
• What is the maximum penalty the commissioner may impose for violations of insurance statutes?
• The Fair Credit Reporting Act applies to which group?
• What is the examination requirement status for a producer moving from Idaho to Utah after 5 months?
• Valuable Papers and Records coverage does NOT include what type of item?
• How many years of related experience is required to become a Consultant?
• In which scenario would a business be compensated under employee theft coverage?
• The Terrorism Risk Insurance Act has been extended to the end of which year?
• What is one of the requirements for competence to obtain a Utah insurance license?
• What is the name of the coverage part in a commercial property package that covers property damage due to machinery failure?
• In a Personal Auto Policy, damages from crashing into a stationary object would be covered under which coverage?
• In a Commercial Package Policy, who can cancel the policy anytime for any reason with written notice?
• What situation illustrates a peril in an insurance context?
• An independent adjuster is best described as someone who?
• What is the main responsibility of a public adjuster?
• A party in an insurance contract has engaged in concealment if he or she has done what?
• What should an insurance producer do if they receive a gift from an insurance company worth more than the allowable limit?
• What is the purpose of the covered auto symbols in a Business Auto Coverage Form?
• What is commonly true about the crime coverage for business owners?
• In general, what is the goal of risk management in insurance practices?
• What is a major requirement for maintaining a valid producer license in Utah?
• Which of the following is considered false advertising?
• An insurance policy's "Declarations" typically includes which of the following sections?
• Which type of damages covers medical bills and loss of wages in tort cases?
• Which policy form is primarily designed to cover tenants living in rented apartments?
• What is the minimum liability insurance requirement for a hauler of nonhazardous property under the Motor Carrier Act of 1980?
• Which statement is true regarding public and independent adjusters?
• What is the definition of a fiduciary in the context of insurance?
• When must rate filings be submitted to the commissioner in relation to their effective date?
• What is misinterpretation or any deceptive or misleading statements in advertisements called?
• What legal concept requires both parties in an insurance contract to act honestly and faithfully?
• Who does an insurance consultant represent?
• To appoint a person, an insurer shall submit the electronic appointment to the commissioner by when?
• The rates that are used to determine premiums cannot be what?
• For what maximum period can the Commissioner suspend an insurance license?
• Which of the following is an example of a breach of duty?
• What does a fiduciary responsibility imply for an insurance producer concerning premiums?
• Why is risk assessment crucial in underwriting?
• How long does someone have to live in Utah before he or she can become a resident producer?
• Engagement in misrepresentation in an insurance contract means doing what?
• What are the three types of insurance licenses available for Utah residents?
• Which scenario is most suited for surplus lines insurance?
• When a guest in a home is injured by a banana peel, what term describes this incident?
• Which statement is true regarding "exclusions" in an insurance policy?
• Which type of insurer offers group insurance for members of a non-profit or charitable organization?
• What factor is least likely to affect an insurance premium?
• What is typically the main focus of the insurance department's regulatory authority?
• Under which coverage in a dwelling policy would a detached garage be insured?
• A company that is domiciled in another country is classified as which type of insurance company?
• Regarding Inland Marine Transportation coverage, the trucker who is transporting the goods is the?
• What is the role of an insurance producer in relation to clients?
• Licensees must notify the commissioner within how many days after a change of address, email address, or phone number?
• For how long must insurance transaction records be available for the Commissioner to inspect?
• Which coverage of a dwelling policy includes direct losses?
• How often does the commissioner examine insurers that operate within one state?
• What must be done promptly when an insurance producer's appointment is terminated?
• Which form of CGI insurance has a coverage trigger based on when the claim for a loss was filed?
• Which insurance policy provision dictates that two policies on a single risk will share losses equally?
• How many total continuing education credits must a licensee take during each license period to renew their license?
• Which coverage parts can be included in a commercial package policy?
• Which federal procedure ensures that consumer information is accurate, relevant, and properly used?
• What does covered auto symbol 1 represent in the business auto coverage form?
• If a rate filing is returned to an insurer as not filed and not available for use, after how many days may the insurer not use the filing for policies issued or renewed?
• Amy has an HO-6 policy with a $50,000 limit on coverage C. Which of the following would be fully covered under her policy?
• Having a deductible, not buying insurance, and being self-insured are examples of which risk management method?
• What is an assignment in terms of insurance policy rights?
• Who has the authority to fill the position of the commissioner when it is vacant?
• What is controlled business?
• What is the purpose of the other insurance policy provision?
• For a workers compensation policy, what is the premium basis?
• What type of insurer is an insurance company owned by investors called shareholders?
• Which part of an insurance policy outlines the obligations of both the insurer and insured?
• Which type of insurance policy typically includes coverage for liability protection and property coverage?