Utah Property & Casualty Producer's Practice Exam Questions & Answers

If a nonresident applies for a Utah insurance license, the commissioner shall waive the license requirements for a license and issue the person a nonresident license if the nonresident applicant has met certain requirements. These requirements include all of the following EXCEPT - Answer Has passed the Utah insurance exam Which of the following is most likely to be paid by Ernie's Electric Guitar Shop's CGL Coverage C - Medical Payments? - Answer A customer fell and broke his wrist after he tripped over an electrical cord at Ernie's shop. Which of the following situations could be covered by an HO-4 policy? - Answer Mark lives in a two-story home that he rents Totally Radical Insurance Company is owned by investors called shareholders. This means it is which type of insurer? - Answer Stock Which Crime coverage form provides coverage for losses that occur at any time and discovered during the policy period or an extended reporting period? - Answer Discovery Form Damage caused by floods can be covered by - Answer the National Flood Insurance Program (NFIP). Which condition states that the insurer will not provide coverage for the benefit of any person or organization holding, storing, or transporting property for a fee? - Answer No Benefit to Bailee Which of the following is a reason why a home might NOT qualify for a Homeowners policy? - Answer It is occupied by a tenant and is not occupied by its owner. Which additional coverage pays for reasonable cleanup costs due to a covered peril? - Answer Debris Removal A farm visitor is injured when he walks into Farmer Fanny's chicken coop, taunts a rooster, and is bitten by the rooster. The visitor needs stitches and the doctor bill is $1,200. Farmer Fanny was NOT negligent for the injury. Which Farm Liability coverage is most likely to pay? - Answer Coverage J - Medical Payments Which type of insurance can pay a claim if a doctor is held responsible for a wrongful act that causes someone to be injured? - Answer Medical Malpractice Regarding Inland Marine Transportation coverage, the trucker who is transporting the goods is the - Answer Carrier. An employee of Ricky's Auto Repair Shop causes an accident while test driving a customer's car. The customer's car has $17,000 damage. Which coverage on Ricky's Garage coverage form policy will pay for this loss? - Answer Garagekeepers Comprehensive coverage is also known as - Answer Other Than Collision coverage. In Utah, a policy with split limits of liability must have limits equal to or greater than - Answer $25,000 / $65,000 / $15,000 FOB Shipping (Shipper's Location) means the transfer of ownership occurs when the - Answer Shipper delivers the goods to the Carrier. The Businessowners Policy covers risks of direct physical loss. It provides Open Peril coverage. That means - Answer all causes of loss are covered—except the ones that are specifically listed as exclusions in the policy. Which of the following is NOT covered under Coverage C - Personal Property of a dwelling policy? - Answer a $750 family dog named Bubba Which of the following would NOT be covered by building coverage of the building and business personal property coverage form? - Answer Hired Auto Liability coverage applies to bodily injury or property damage arising out of the maintenance or use of a hired auto by the insured or the insured's employees in the course of the insured's business; all of the following are hired autos EXCEPT - Answer an auto owned by the insured's employee. What is another name for Liquor Liability Insurance? - Answer Dram Shop Liability According to Part Six: Conditions in a Workers Compensation policy, the insurer may cancel the policy by giving how many day's notice? - Answer 10 days Victoria, an insurance producer, advertised that anyone who comes into her office to get an auto insurance quote will receive a gift certificate for a car wash. To be within the law, the value of the gift certificate cannot exceed how much? - Answer $10 Marisol, Edgar, and their son Juan are all insureds on their auto insurance policy. Marisol and Edgar are named insureds on the policy, but Juan is not. Juan is considered - Answer an additional insured. Which of the following statements is FALSE? - Answer Examples of mobile equipment include motorcycles, dune buggies, and golf carts. When is the estimated annual premium calculated for a Workers Compensation policy? - Answer At the beginning of a policy period Which condition states the insured cannot transfer ownership of the policy to someone else unless the insurer provides written consent? - Answer Assignment Which of the following individuals is NOT eligible to purchase a Homeowners policy? - Answer Melinda, who owns a duplex that she doesn't live in The Extra Expense coverage included in the Businessowners Policy - Answer pays for expenses the insured needs to pay that result from damage or loss due to a covered cause of loss. What is the purpose of the Utah Property & Casualty Insurance Guaranty Association (UPCIGA)? - Answer To protect Utah policyholders and claimants in the event of an insurance company insolvency (bankruptcy) Carrie has decided to not buy renter's insurance, since she believes it is too expensive. Which method of handling risk is this? - Answer Risk retention If a building is primarily used for business, it - Answer is not eligible for a Homeowners policy. Beverly borrowed her neighbor's table saw and broke it, causing a loss of $1,500. Her Homeowners insurance policy will - Answer pay $1,000. Jorge received a dividend check from the carrier that insures his home. Which of the following statements is NOT true? - Answer Jorge's insurance policy is a non-participating policy. Rates may not be all of the following EXCEPT what? - Answer Adequate What occurs when underwriters accept too many high risk applications for insurance? - Answer Adverse selection Under Aviation and Ocean Marine insurance policies, Hull Coverage is normally written on an Agreed Value or Valued Policy basis. That means the amount paid for a loss is - Answer a predetermined amount agreed to by the insurer and insured. The Businessowners Policy can pay for all of these situations EXCEPT - Answer Medical Expenses of the insured or the insured's employee Arnold was injured while participating in a triathlon race. Arnold signed a waiver before the race stating, (a) participating in triathlons are dangerous and (b) the race organizer is not held responsible if a participant is injured. When Arnold sued the race organizer for his injuries, the race organizer's attorney argued that her client should not be held responsible, because Arnold signed the waiver. This is an example of which defense against negligence? - Answer Assumption of risk Ricky owns and operates Ricky's Auto Repair Shop. Which commercial auto policy does Ricky need? - Answer Garage After wind damaged her home, Rebecca had to pay a contractor $5,000 to clean up the mess. Which coverage on Rebecca's dwelling policy will pay this bill? - Answer Debris Removal What is the difference between a vacant building and an unoccupied building? - Answer A vacant building is completely empty. Which of the following statements is NOT true about current Workers Compensation laws? - Answer They do not impose absolute liability on employers; if a worker is injured on the job, the employer must be found negligent for the injured worker to be compensated. Which type of judicial bond is required when a defendant wants to appeal a court ruling while delaying the payment of a judgment? - Answer Appeal bond An insurance company's domicile refers to what? - Answer Where it is located Which is true about named peril coverage? - Answer It specifically lists all perils that are covered. A person must have all of the following to sell, solicit, or negotiate insurance--EXCEPT what? - Answer A certificate of authority from the insurance commissioner Of the following, which is the best definition of a fiduciary? - Answer Someone who is trusted with someone else's money Which type of liability insurance covers businesses that serve alcohol—such as taverns, bars, and restaurants? - Answer Dram Shop Liability The Duties Condition in the Businessowners Policy states that the insured is required to do all of the following in the event of loss or damage to covered property EXCEPT - Answer Prevent the insurer from inspecting the property Emma has a DP-3 (Special Form) policy. Which of the following perils is covered by her policy? - Answer riot Per state law, Workers Compensation Rating Organizations - Answer may not provide any service relating to statistical collection or the rates of any insurance unless the organization is licensed. The limit of insurance shown in the Declarations for Medical Expenses under the Businessowners Policy is the most the insurer will pay for that coverage - Answer to any one person. A state-approved insurance company that provides liability insurance to large businesses. It is owned by the member businesses that it provides insurance to. This describes which type of insurer? - Answer Risk Retention Group The mandated coverage amount for carriers of extremely hazardous materials, such as gasoline, explosives and radioactive material is - Answer $5,000,000. Georgia's auto insurance policy provides a $250,000 limit for all bodily injury and property damage liability per occurrence. Georgia's policy is - Answer a combined single limit policy. Before Workers Compensation--the argument that a company could not be sued by an employee for a workplace injury because another employee's actions caused the injury--would be considered which common-law defense? - Answer Fellow servant rule Under the Businessowners Policy, the Utility Services - Direct Damage endorsement could pay for - Answer damage to the insured's building due to loss of power, water, or communication services. Susie's car was damaged in a hail storm. The damage to her car is - Answer a direct loss. All of the following drivers would be considered an uninsured motorist EXCEPT which one? - Answer Arthur has auto liability insurance as required by law, but not enough to pay for the injuries he caused. Bradley is thinking about intentionally burning down his house, so he can collect the insurance money. This is an example of what? - Answer Moral hazard The mandated coverage amount for carriers of oil and some other hazardous materials is - Answer $1,000,000.