Utah Property and Casualty Exam Questions With Verified Answers

the one basic characteristic of any type of insurance is that the insured is returned to the same status that existed prior to the loss, but without a chance for gain or profit - Answer true which of the following coverages does an open peril policy provide? - Answer perils other than those specifically named as being excluded determine the actual cash value in the following situation: original price of office equiptment when purchased 8 years ago- 9,000. depreciated amount at time of fire-5,000 current replacement cost 12,000 - Answer 7,000 liquor liability - Answer need for a dram shot, liquor, or package store inherent vice or defect - Answer iron rusting, milk going sour, rubber breaking down are all inherent vices how is hitting an animal on the road covered? - Answer other than collision otc medicare supplement insurance - Answer aka medical gap insurance. must include core benefits ordinance or law - Answer an endorsement for building code upgrades loss sustained/discovery forms under crime coverage - Answer loss is for later than the policy period. discovery is for before the policy (loss is later, discovery before) designated brush fire or civil unrest areas - Answer qualifying areas under the fair plan stop loss provision - Answer used in health insurance to limit the maximum amount of money the insured would have to pay out of pocket on a health claim in any particular claim shortages of inventory - Answer under crime insurance the employee dishonesty endorsement never covers can the mortgagee still collect if the insured burns their house down - Answer yes, the mortgage clause is a standard provision otc covers - Answer earthquake, flood, hail, theft, hitting an animal, gunshots (no collision or upset) law of large numbers - Answer the greater the number of insured the more accurately the prediction where does a driver have coverage? - Answer U.S. Canada and US possessions eg puerto rico, guam what is excluded under commercial general liability? - Answer pollution-with the exception of fuel spilled during normal operations. Pollution is normally covered under cpp or builders risk what is the midi-tail on claims made? - Answer provides 5 years coverage for something reported during minitail speculative risk - Answer chance for loss or gain commercial package - Answer modular policy Binder - Answer a temp insuring contract (written or oral) Hazard - Answer anything that increases a chance for loss OTC - Answer anything causing loss or damage to the car, except collision you have liability only and borrow a car and collide with another. which pays? - Answer the borrowed cars insurance is primary basic broad special: which has the broadest coverage? - Answer special gap insurance - Answer pays the difference between the amount an insurer pays on a totaled car and the amount owed on the loan or lease eligibility/enrollment period - Answer used in life and health group benefits without having to prove insurability symbol 9 - Answer non-owned autos the lender on a home is called - Answer mortgagee or mortgage holder multiple employer trust - Answer a legal entity of small biz owners grouped together to buy insurance what percentage must vacant for a building to be called vacant? - Answer 70% size limits for business owners policy - Answer 6 stories, 100,000 sq feet on offices, 25,000 sq feet and 3 million dollars gross sales for mercantile space (store) Dp-1 covers - Answer fire, lightning, and internal explosion dp1, 2, 3 all dwelling forms cover? - Answer loss of rental income third party - Answer the injured party. to whom liability insurance pays claims Personal property - Answer property that can move eg furniture, clothes, paintings, etc why is yacht like ocean marine, even though yacht is a personal line? - Answer the structure of the policy is the same; hull covers damage to the vessel. P and C covers liability and workers comp. A yacht policy can be used for organized racing while ocean marine cannot. Medical Payments in boat owners insurance covers? - Answer covers medical payments and injury for insured and others on a personal boat. does not cover business use or competitive racing. Protection and Indemnity on Ocean Marine or Yacht - Answer Liability and workers comp. portion of ocean marine or yacht policies. code section 770 - Answer when buying property that is financed, a lender cannot force the purchaser to buy insurance from a particular agent or broker part of protection and indemnity - Answer worker compensation in a yacht policy elimination period - Answer used in disability income health insurance. that time period benefits are not paid. also called the waiting period did over should - Answer did over should is the fraction of the loss the company pays. the remaining is paid by the insured.( take what they did carry over what they should have carried. Occupational disability income contract - Answer a disability income policy that will pay benefits whether on or off the job. Guaranteed renewable insurance contract - Answer a life or health insurance policy that cannot be changed except for the rate. does the fair plan cover vandalism and mischief - Answer yes, during civil unrest ( riots) you will need it. Misc Vehicle - Answer Motorcycle atvs (not autos, not mobile equiptment) Open Peril - Answer all perils except those specifically excluded.