Utah Property and Casualty Insurance 2024 (100% verified answers)

Abandonment correct answers The abdication of insured property into the hands of another, or into the possession of no one in particular. Absolute Liability correct answers A type of liability that occurs due to extremely dangerous operations, such as the use of explosives or working at extreme heights. Accident correct answers An unplanned, unforeseen event which occurs suddenly and at a specific place. Actual Cash Value (ACV) correct answers The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation. Additional Coverage correct answers A provision in an insurance policy that allows for more coverage for a specific loss expense without increase in premium. Additional Insureds correct answers Individuals or business that are not named as insured on the declaration page, but are protected by the policy, usually in regard to a specific interest. Adhesion correct answers A contact offered on a "take-it-or-leave-it" basis by an insurer, in which the insured's only option is to accept or reject the contract. Any ambiguities in the contract will be settled in favor of the insured. Admitted Insurer correct answers An insurance company authorized and licensed to transact business in a particular state. Adverse Selection correct answers The tendency of risks with higher probability of loss to purchase and maintain insurance more often than the risks who present lower probability. Agent correct answers An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of an insurer. Aggregate Limit correct answers The maximum limit of coverage available to under a liability policy during a policy year regardless of the number of claims that may be made or the number of accidents that may occur. Agreed Value correct answers A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written. Aleatory correct answers A contract in which the participating parties agree to exchange unequal amounts. Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss.