UT Property & Casualty Insurance Producer Exam Questions & Answers Solved 100%

Someone who is eligible to become a Consultant if he or she has how many years of related experience? - Answer At least 3 years of experience in the last 4 years What is a fiduciary? - Answer Someone who is trusted with someone else's money What level of education does someone need to become a licensed insurance producer in Utah? - Answer No education is required What type of agreement does UT have with other states that allows a non-resident licensed producer to obtain a Utah license without having to take the UT insurance exam?? - Answer Reciprocal agreement The records of insurance transactions that a licensee keeps must be available for the Commissioner to inspect during business hours for at least how long? - Answer The rest of the current calendar year plus 3 years A party in an insurance contract has engaged in misrepresentation if he or she has done what? - Answer Lied or provided information that is untrue or misleading An insurance shall maintain a complete and accurate record of the forms it uses for how long? - Answer The balance of the current year plus 5 years What are the 3 types of insurance licensed for UT residents ? - Answer Producer, consultant, adjuster For up to how long may the Commissioner suspend an insurance license? - Answer 1 years Up to what amount of payment or gift to a customer- that is conditional upon getting a quote or purchasing a policy- is allowable and not considered illegal rebating? - Answer $10 If an individual that lives in another state has a producer license in that state, what license does he or she need to sell insurance in UT? - Answer Non-Resident Producer license What are the rules regarding "binding of coverage" for property and casualty producers compared to life and health producers? - Answer Property and casualty producers normally have binding authority, while life and health producers do not. How many continuing education credits in ethics training are required in each license period? - Answer 3 credits Unless an insurance license is renewed, by it will expire when? - Answer On the last day of the licensees birth month every two years A licensee must report to the commissioner an action taken against him or her within how many days? - Answer 30 days Who approved the appointment of three state insurance commissioner? - Answer State senate What is an assumed name and what are the requirements of using an assumed name? - Answer It is doing business under a name other than a licensee must notify the commissioner before using the assumed name. For up to how long May the commissioner por a license under probation? - Answer 2 years Within how long after terminating a producer appointment must an insurer notify the commissioner? - Answer 30 days Rate filings must be submitted to the commissioner within how many days of the effective date? - Answer 30 days When the office of the commissioner is vacant, or when the commissioner is unable to perform the duties of the office, who shall fill the position? - Answer The governor If an insurance license has become inactive how long does the license have the option to reinstate it? - Answer 1 year How many continuing credits must be earned in a classroom setting during each license period? - Answer 12 credits By state law two producers are allowed to share the commission from an insurance transaction if both individuals are what? - Answer Licensed in the same line of insurance that was sold What are the requirements to get a Utah insurance license? - Answer 18y/o, pass exam, pay fees, finger prints and pass background check, be competent and trustworthy Who makes the insurance laws in Utah? - Answer The state legislature. The commissioners office enforces the laws Which government ensures that insurers which operate within the state are solvent? - Answer The commissioner (insurance department) It is illegal for a producer to __________ funds collected from premiums with good oye her own personal funds - Answer Commingle Licensees must notify the commissioner within how many days after a change of address, email address, or phone number? - Answer 30 days An insurance license is not required to take continuing education if he or she was first licensed before what date? - Answer December 31, 1982 Under what condition is receiving commission for controlled business legal? - Answer If the premiums collected from non controlled business in the past 12 months exceed those collected from controlled business How many total continuing education credits must a licensee take during each license period in order to renew his or her license? - Answer 24 credits The insurance department (commissioner) does not do what? - Answer Endorse insurers, make laws, make insurance policies, contracts, forms, rates, establishes fines and penalties How many days after appointing a producer must an insurer notify the commissioner? - Answer 15 days What is controlled business? - Answer Insurance coverage that a producer seeks to oneself, a close family member of a business associate Misinterpretation our any deceptive or misleading at statements in any advertisement is called what? - Answer False advertising An insurer is considered to be solvent if it's able to do what? - Answer Meet the financial obligations and pay claims Who does an independent adjuster represent? - Answer Insurance company (aka carriers? What does an insurer adjuster do? - Answer Evaluates damages and losses and determines how much the insurer should pay the claimant How often does the commissioner examine insurers that operate within one state - Answer At least once every 5 years A party in an insurance contract has engaged in concealment i I f he or she has done what? - Answer Intentionally withheld material (important) information Who must pay the cost of the commissioners inspection of an insurer? - Answer The insurer being examined As a fiduciary for the insurer a producer must forward any premiums received directly to the insurer or deposited the money into what? - Answer A trust account if a licensed producer from another state moved to Utah the commissioner shall waive the examination requirement if he or she applies f for an insurance product license within how many days of establishing Legal residence in Utah? - Answer 90 days Who does an insurance consultant represent? - Answer The insured (customers) What is a company adjuster and what type of license does he put she need? - Answer A regular employee of an insurer that handles claims, company adjuster adjusters do not need a license How long does someone have to live in Utah before he por she can become a resident producer? - Answer There's no waiting period before someone can take the exam and apply for an insurance license. Who does a public adjuster represent? - Answer Insureds (costumers) In selling insurance policies and charging premiums, discrimination within the same _______ is ilegal. - Answer Class What is the title of the Chief Officer of the Utah Insurance department? - Answer Insurance Commissioner Whom does an insurance producer represent? - Answer Insurer (insurance company) An insurance producer may add the Surplus Lines of authority to their insurance license if he or she has how many years of related experience? - Answer At least 3 years of experience in the last 4 years The rates that are used to determine premiums cannot be what? - Answer Excessive, Inadequate, Unfairly Discriminatory Up to what amount of payment or gift to a customer - that is not conditional upon getting a quote or purchasing a policy - is allowable and not considered illegal rebating or a prohibited inducement ? - Answer $100 What are some reasons that a license would be disciplined? - Answer Lying on a license application, refusing to be examined, violating an insurance law or rule, failing to pay child support or income taxes, committing a felony (a misdemeanor May or may not result in discipline by the commissioner) Which other insurance policy provision stipulates that two policies on a single risk will share losses equally, up to each policy's limit? - Answer Contribution by equal shares If the injured party contributed to (was partially at fault for) his or her own injuries, he if she is not able to collect from another party. This "defense against negligence" is called what? - Answer Contributory negligence The rating method known as Loss Costs includes what? - Answer Losses and Loss adjusting expenses. It does not include overhead expenses (employee salaries, building costs, etc.) and profit If buildings at multiple locations are insured under a policy with one limit of insurance, it is known as what type of insurance? - Answer Blanket Which type of construction has a rating of two hours or more and has the most favorable fire rating? - Answer Fire resistive Which type of rating method determines premiums based on pre-set standards for properties that share a given set of criteria? - Answer Class rating (aka Manual Rating); in this method, the premium is calculated by multiplying the rate by the exposure In a commercial policy, who has control of the policy and is responsible for paying premiums and reporting losses? - Answer First named insured What is "named peril" coverage and how does it differ from "open peril" coverage? - Answer A named peril policy covers only the perils that are listed in the policy; an open peril covers all perils except the ones that are specifically excluded What is absolute liability? - Answer When someone is automatically held responsible for another's injuries or damages - without having to prove that he or she was negligent; examples: swimming pools, dangerous animals, explosives. What is vicarious liability? - Answer When someone is responsible for the actions of another person; examples: parents are responsible for the actions of their children; employers are responsible for the actions of their employees Which part of a policy includes basic underwriting information such as ho is insured, what is insured, how much is insured, and when is it insured? - Answer Declarations When an insured is indemnified after a loss that was caused by a negligent third party, the insured gives up his or her right to seek damages from the negligent party to the insurer that paid for the loss, it is described as what? - Answer Subrogation Which part of a policy describes the insurers promise to pay? - Answer Insuring agreement Which other insurance policy provision stipulates that two policies covering a single risk, will share losses in proportion to each policies limits compared to the total amount of insurance property? - Answer Pro Rata Which part of a policy clarified the terms used within the policy? - Answer Definitions Which type of individual rating method involves making a list of a commercial buildings characteristics and adjusting the premium up or down accordingly? - Answer Schedule rating; in insurance, the word "schedule" often means "to make a list" What are the 4 elements of a negligent act? - Answer Legal duty, standard of care (breach of duty), proximate cause, actual loss or damage Which part of a policy contains addendums and amendments which change the policy? - Answer Endorsements Libel, slander, and false arrest and other non-physical injuries are considered to be what? - Answer Personal injuries What is an assignment, and what is needed for an assignment to occur? - Answer Assignment is the transferring of the rights and duties of the policy to someone else. An assignment is only valid if the insurer provides written consent. What is the purpose of other insurance policy provision? - Answer It defines how the policy will respond if there is other valid insurance on the same risk at the same time What are the five defenses against negligence? - Answer Competitive negligence, contributor negligence, assumption of risk, intervening cause, statute of limitations