UTAH PROPERTY AND CASUALTY INSURANCE EXAM

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UTAH PROPERTY AND CASUALTY INSURANCE EXAM

QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Imports and Exports

Answer:

A category of the Inland and Ocean Marine Nationwide Definition, which is made up of risks eligible for Marine insurance.

Question 2: Audit

Answer:

A survey of the financial records of the insured conducted to determine exposures, limits, etc., \which are needed to calculate the premium. The initial premium is only a deposit.

Question 3: Hull Insurance

Answer:

In Ocean Marine and Aviation insurance, insurance against physical damage to a plane or ship.

Question 4: Contingent Liability

Answer:

Liability that an insured person or business incurs because of the actions of others (family or employees). Also called Vicarious Liability.

Question 5: Insured

Answer:

The party to an insurance arrangement to whom, or on behalf of whom, the insurance company agrees to indemnify for losses, provide benefits, or render service.

Question 6: Insurance Services Office (ISO)

Answer:

An organization, made of member companies, that analyze stats collected from members and then establishes and files standard rates for many lines of insurance. Also develops and files standardized policy forms on behalf of members.

Question 7: Casualty Insurance

Answer:

A type of insurance that is primarily concerned with losses caused by injury to persons and legal liability imposed upon the insured for such injury or damage to property of others.

Question 8: Hold-Harmless Agreement

Answer:

A contractual arrangement whereby one party assumes the Liability inherent in a situation, thereby relieving the other party of responsibility. Such agreements are typically found in contracts such as leases, sidetrack agreements, and easements. Ex a lease may provide that the lessee must "hold harmless" the lessor for any liability from accidents arising out of the premises.

Question 9: Actual Cash Value (ACV)

Answer:

The cost to replace an item of property at the time of loss, less an allowance for depreciation. Often used to determine amount of reimbursement for a loss (Replacement Cost minus Depreciation.)

Question 10: Fidelity Bond

Answer:

A class of bonds that guarantees an employee's honest discharge of duty.

Question 11: Assigned Risk

Answer:

There are some applicants that underwriters do not care to insure, but because of state law or otherwise, must be provided protection. To become authorized, a Casualty company must agree to participate in the Assigned Risk Pool and take its turn providing Auto insurance to high-risk drivers. Also known as the auto insurance "plan".

Question 12: Effective Date

Answer:

The date on which an insurance policy or bond goes into effect and from which protection is furnished.

Question 13: Consequential Loss

Answer:

Indirect losses that occur as a "consequence" of a direct loss. Includes Time-Element coverages, such as coverage for rental value.

Question 14: Comparative Negligence

Answer:

Doctrine that a defendant is liable only for the amount of damages allocated to that defendant in direct proportion to the defendant's percentage of fault (if not 51% or more at fault, defendant is not held liable).

Question 15: Liability Insurance

Answer:

Insures the individual for financial losses that may arise out of the person's responsibilities to others imposed by law or contract.

Question 16: Expediting Expenses

Answer:

A Boiler and Machinery coverage that covers the cost of temporary repairs and the cots of speeding up

permanent repairs. Ex: overtime, express transportation charges.

Question 17: Burglary

Answer:

As it is defined in Crime insurance policies, the unlawful taking of property by forced entry into the premises, or exit from the premises, while the premises are closed for business. There must be visible evidence of forced entry or exit.

Question 18: Countersignature

Answer:

The signature of a licensed agent, which, in most states, must appear on the policy to validate the contract.

Question 19: Inland Marine Insurance

Answer:

A form of insurance originally designed as an extension of Marine coverage to insure transportation of goods over land. Today, it covers, in addition to goods in transit, a variety of portable property.

Question 20: Extended Coverage Endorsement (ECE)

Answer:

A specific endorsement, attached to a standard Fire policy, usually providing coverage for windstorm, hail, explosion, riot, civil commotion, aircraft, vehicular damage, volcanic eruption and smoke damage.

Question 21: Insurability

Answer:

Acceptability of an applicant for insurance to the insurance company.

Question 22: Broker

Answer:

One who represents an insured in the solicitation, negotiation, or procurement of contracts of insurance, and who may render services incidental to those functions. Brokers may also be licensed as agents.

Question 23: Alien Company

Answer:

An insurance company incorporated in a country other than the United States

Question 24: Additional Living Expenses

Answer:

A coverage designed to reimburse the insured for an increase in living expenses necessitated by a loss to the dwelling. This Indirect Loss must be the result of Direct Loss by a covered Peril.

Question 25: Insurer

Answer:

The insurance company assuming risk and agreeing to pay claims or provide services.

Question 26: Insuring Agreement

Answer:

The section of an insurance policy that states which losses will be indemnified, what property is covered, which Perils are insured against. Also known as the insurance clause.