Utah Property & Casualty Insurance Producer Practice Exam

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