2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Utah Property and Casualty Insurance
Questions and Correct Answers | Latest
Update
Abandonment
✓ -:- The abdication of insured property into the hands of another, or into
the possession of no one in particular.
Absolute Liability
✓ -:- A type of liability that occurs due to extremely dangerous
operations, such as the use of explosives or working at extre me heights.
Accident
✓ -:- An unplanned, unforeseen event which occurs suddenly and at a
specific place.
Actual Cash Value (ACV)
✓ -:- The required amount to pay damages or for property loss, which is
calculated based on the property's current replacemen t value minus
depreciation.
1|P a g e | G r a d e A + | 2 0 2 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Additional Coverage
✓ -:- A provision in an insurance policy that allows for more coverage for
a specific loss expense without increase in premium.
Additional Insureds
✓ -:- Individuals or business that are not named as insure d on the
declaration page, but are protected by the policy, usually in regard to a
specific interest.
Adhesion
✓ -:- 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
✓ -:- An insurance company authorized and licensed to transact business
in a particular state.
2|P a g e | G r a d e A + | 2 0 2 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Adverse Selection
✓ -:- The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower
probability.
Agent
✓ -:- An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer.
Aggregate Limit
✓ -:- 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
✓ -:- 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.
3|P a g e | G r a d e A + | 2 0 2 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Aleatory
✓ -:- 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.
Alien Insurer
✓ -:- An insurance company that is incorporated outside the United
States.
Apparent Authority
✓ -:- The appearance or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the
principal created.
Appraisal
✓ -:- An assessment of property to determine either the correct am ount
of insurance to be written or the amount of loss to be paid.
4|P a g e | G r a d e A + | 2 0 2 0 2 5
Utah Property and Casualty Insurance
Questions and Correct Answers | Latest
Update
Abandonment
✓ -:- The abdication of insured property into the hands of another, or into
the possession of no one in particular.
Absolute Liability
✓ -:- A type of liability that occurs due to extremely dangerous
operations, such as the use of explosives or working at extre me heights.
Accident
✓ -:- An unplanned, unforeseen event which occurs suddenly and at a
specific place.
Actual Cash Value (ACV)
✓ -:- The required amount to pay damages or for property loss, which is
calculated based on the property's current replacemen t value minus
depreciation.
1|P a g e | G r a d e A + | 2 0 2 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Additional Coverage
✓ -:- A provision in an insurance policy that allows for more coverage for
a specific loss expense without increase in premium.
Additional Insureds
✓ -:- Individuals or business that are not named as insure d on the
declaration page, but are protected by the policy, usually in regard to a
specific interest.
Adhesion
✓ -:- 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
✓ -:- An insurance company authorized and licensed to transact business
in a particular state.
2|P a g e | G r a d e A + | 2 0 2 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Adverse Selection
✓ -:- The tendency of risks with higher probability of loss to purchase and
maintain insurance more often than the risks who present lower
probability.
Agent
✓ -:- An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer.
Aggregate Limit
✓ -:- 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
✓ -:- 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.
3|P a g e | G r a d e A + | 2 0 2 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Aleatory
✓ -:- 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.
Alien Insurer
✓ -:- An insurance company that is incorporated outside the United
States.
Apparent Authority
✓ -:- The appearance or the assumption of authority based on the actions,
words, or deeds of the principal or because of circumstances the
principal created.
Appraisal
✓ -:- An assessment of property to determine either the correct am ount
of insurance to be written or the amount of loss to be paid.
4|P a g e | G r a d e A + | 2 0 2 0 2 5
