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UTAH INSURANCE EXAM PREP
Qs and Ans - Expert- Explanation - ing score -97 Questions and Answers
-Format: Multiple-choice / Flashcard
Question 1: Liability
Answer:
Aka casualty insurance.Liability insurance pays if the insured has a legal obligation to pay damages due to negligence.
Question 2: 2 types of risk
Answer:
Pure & speculative
Question 3: Commissioner
Answer:
Chief officer of the IT department of insurance
Question 4: Insurance
Answer:
A contract in which one party agrees to indemnify the insured party against loss, damage or liability arising from an unknown event.
Question 5: Producer
Answer:
-Represents the ______ (insurer... Principal) -does not represent the customer -anything the producer knows, the _____ also knows (insurer)
-an act of the producer, is an act of the ____ (insurer)
Question 6: Licensing
Answer:
Purpose- promote professional competence.
Question 7: Strict liability
Answer:
When a manufacturer of a product is held responsible if someone is injured or damaged by the product.
Question 8: Who appoints the commissioner?
Answer:
Governor
Question 9: Hazard
Answer:
Condition that INCREASES the chance of loss.
Question 10: Loss
Answer:
Financial consequence. Reduction or decrease value.
Question 11: 3 types of insurance licenses for Utah residents
Answer:
-producer -consultant -adjuster
Question 12: Which hazards does insurance cover?
Answer:
Physical & Morale
Question 13: Yes
Answer:
Can 2 producers share commissions from an insurance transactions?
Question 14: Working 30 days of termination.
Answer:
Unfair claims settlement practices.
Question 15: Risk sharing
Answer:
Similar parties share the losses that occur within the group. (Ex. Neighbors forming an informal risk sharing group. Reciprocal insurance exchanges (farmers insurance)
Question 16: The records that licenses keep must be available for the commiss
Answer:
Solvency
Question 17: Adverse Selection
Answer:
Natural tendency for higher risk people to want insurance & keep insurance.
Question 18: Insolvent
Answer:
DOI monitors insurers to make sure they can meet
Question 19: Contract of adhesion
Answer:
The insurer has the advantage when the policy is made.The customer can buy it or not buy it.Take it or leave it
Question 20: Named peril
Answer:
List the perils that are covered.
Question 21: Special- medical bills, loss of wages... Ect
General- pain & suffering, mental anguish, disfigurement Punitive- punishment for extremely outrages behavior
Answer:
- types of intentional torts
Question 22: Adjusters
Answer:
Settles claims.Two types of licensed adjusters- independent & public.
Question 23: 3 elements of insurable interest.
Answer:
Financial Blood Business
Question 24: Fraud
Answer:
Intentional misrepresentation Breach of warranty Intentional concealment Grounds for voiding an insurance contract
Question 25: Reinsurance
Answer:
Insurance for insurance companies
Question 26: Types of hazards
Answer:
Physical (can't be controlled) & moral (due to lack of character) & morale (due to carelessness).
Question 27: Up to 5 years
Answer:
Misrepresentation
Question 28: Risk retention
Answer:
-Keep (retain) the risk.-Methods: deciding to not buy insurance. & Being self- insured. & having a deductible.
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