Utah Property and Casualty Insurance Exam Questions With 100% Verified Answers.
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Course
Utah Real Estate
Institution
Utah Real Estate
Utah Property and Casualty Insurance Exam
Questions With 100% Verified Answers.
Abandonment - answerThe abdication of insured property into the hands of another, or into the
possession of no one in particular.
Absolute Liability - answerA type of liability that occurs due to extremely dangerous...
Utah Property and Casualty Insurance Exam
Questions With 100% Verified Answers.
Abandonment - answer✔The abdication of insured property into the hands of another, or into the
possession of no one in particular.
Absolute Liability - answer✔A type of liability that occurs due to extremely dangerous
operations, such as the use of explosives or working at extreme heights.
Accident - answer✔An unplanned, unforeseen event which occurs suddenly and at a specific
place.
Actual Cash Value (ACV) - answer✔The required amount to pay damages or for property loss,
which is calculated based on the property's current replacement value minus depreciation.
Additional Coverage - answer✔A provision in an insurance policy that allows for more coverage
for a specific loss expense without increase in premium.
Additional Insureds - answer✔Individuals or business that are not named as insured on the
declaration page, but are protected by the policy, usually in regard to a specific interest.
Adhesion - answer✔A contact offered on a "take-it-or-leave-it" basis by an insurer, in which the
insured's only option is to accept or reject the contract. Any ambiguities in the contract will be
settled in favor of the insured.
Admitted Insurer - answer✔An insurance company authorized and licensed to transact business
in a particular state.
Adverse Selection - answer✔The tendency of risks with higher probability of loss to purchase
and maintain insurance more often than the risks who present lower probability.
Agent - answer✔An individual who is licensed to sell, negotiate, or effect insurance contracts on
behalf of an insurer.
Aggregate Limit - answer✔The maximum limit of coverage available to under a liability policy
during a policy year regardless of the number of claims that may be made or the number of
accidents that may occur.
Agreed Value - answer✔A property policy with a provision agreed upon by the insurer and
insured as to the amount of insurance that represents a fair valuation for the property at the time
the insurance is written.
Aleatory - answer✔A contract in which the participating parties agree to exchange unequal
amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is
unequal to the amount the insurer will pay in the event of a loss.
Alien Insurer - answer✔An insurance company that is incorporated outside the United States.
Apparent Authority - answer✔The appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the principal created.
Appraisal - answer✔An assessment of property to determine either the correct amount of
insurance to be written or the amount of loss to be paid.
Arbitration - answer✔Method of claim settlement used when the insured and insurer cannot
agree upon the amount of the loss.
Assignment - answer✔The transfer of a legal right or interest in an insurance policy. In property
and casualty insurance, assignments of policies are usually valid only with the prior written
consent of the insurer.
Authorized Insurer - answer✔An insurance company that has qualified and received a Certificate
of Authority from the Department of Insurance to transact insurance in the state.
Auto - answer✔A land motor vehicle, trailer or semi-trailer designed for use on public roads,
including attached machinery or equipment, auto does not include mobile equipment.
Avoidance - answer✔A method of dealing with risk by deliberately keeping away from it (e.g. if
a person wanted to avoid risk of being killed in a airplane crash, he/she might choose to never
ply in a plane).
Bailee - answer✔A person or entity that has possession of personal property entrusted to him/her
by the owner. For example, a television repair person that has possession of a customer's
television would be a bailee.
Beneficiary - answer✔The person who receives the proceeds from the insurance policy.
Binder - answer✔A temporary contract that puts an insurance policy into force before the
premium has been paid.
Blanket Bond - answer✔A type of bond that covers losses caused by dishonest employees.
Blanket Insurance - answer✔A single property insurance policy that provides coverage for
multiple classes of property at one location, or provides coverage for one or more classes of
property at multiple locations.
Bodily Injury Liability - answer✔Legal liability arising from death or physical trauma to a
person as a result of a negligent or purposeful act and omissions by the insured.
Boycott - answer✔An unfair trade practice in which one person refuses to do business with
another until he or she agrees to certain conditions.
Builder's Risk Coverage Form - answer✔A commercial property form that covers buildings
under construction.
Building and personal Property Coverage Form - answer✔A commercial property form that
covers buildings, and/or their contents.
Burglary - answer✔The forced entry into another's premises with felonious intent.
Cancellation - answer✔The termination of an in-force insurance policy by either insured or the
insurer prior to the expiration date shown in the policy.
Casualty Insurance - answer✔A type of insurance that covers losses caused by injury to persons
or damage to the property of others.
Cease and Desist Order - answer✔A demand of a person to stop committing an action that is in
violation of a provision.
Certificate of Authority - answer✔A document that authorizes a company to start conducting
business and specifies the kind(s) of insurance a company can transact. It is illegal for an
insurance company to transact insurance without this certificate.
Certificate of Insurance - answer✔A legal document that indicates that an insurance policy has
been issued, and that states both the amounts and types of insurance provided.
Claim - answer✔A demand made by the insured to cover a loss protected by the insurance
policy.
Class Rating - answer✔The practice of computing a price per unit of insurance that applies to all
applicants possessing a given set of characteristics.
Coercion - answer✔An unfair trade practice in which an insurer uses physical or mental force to
persuade an applicant to buy insurance.
Coinsurance - answer✔An agreement between an insurer and insured in which both parties are
expected to pay a certain portion of the potential loss and other expenses.
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