Utah Property and Casualty Insurance - Final Exam Correct 100%

An unlicensed employee of an insurance agency may perform all of the following EXCEPT: - Answer A) Accept a claim form B) Type correspondence for a direct mail campaign C) Deposit properly endorsed checks into the agency's bank account •• D) Advise an insured of coverage issues A producer must notify the insurance division of an address change within: - Answer A) 10 days B) 20 days C) 25 days •• D) 30 days A Temporary License may be issued to approved individuals for a period of: - Answer A) Twelve Months B) Nine Months •• C) 90 days with extensions up to 180 days D) 30 days Contribution by Equal Shares: - Answer A) Is applicable in Workers Compensation B) Is excess over primary coverage C) Prorates coverage between all policies equally •• D) Is a form of proportional coverage in which losses are paid equally by all policies until one policy is exhausted, whereby the other policy pays alone Which of the following is NOT a requirement necessary to qualify as a producer in Iowas? - Answer A) Pass the exam required by statute B) Be a resident of the state of Iowa C) Be of good character and company •• D) Complete a 36-hour licensing course All of the following are true of the Iowa's Continuing Education Regulation EXCEPT: - Answer A) A continuing education term is three years B) New producers must complete 36 credits every continuing education term •• C) Continuing education is automatically waived for producers that are attorneys D) Producers must have 3 credits in ethics every CE term All of the following applicants may be denied a producer's license EXCEPT: - Answer •• A) An attorney B) An individual that provides incomplete information on a license application C) An applicant whose letter of clearance is dated 120 days prior D) A nonresident not licensed in their state of domicile Personal liability coverage under the Dwelling Policy is: - Answer A) Automatically provided under the policy •• B) Only provided by endorsement C) Broader and more comprehensive than homeowner personal liability D) Limited to 10% of Coverage A All of the following would be considered a hazard EXCEPT: - Answer A) Trash and debris in the basement of a home B) Broken steps and hand railings C) Overloaded electrical wiring •• D) Properly stored paint and related solvents All of the following would be considered a Unfair Claims Practice EXCEPT: - Answer A) Failure to acknowledge written or oral communications B) Failure to deny or affirm coverage •• C) Dealing with the insured or claimant in good faith D) Refusing to pay covered claims A producer license is: - Answer A) Automatically renewed B) Renewed for one-year periods subject to the completion of CE C) Renewed for two-year periods subject to the completion of CE •• D) Renewed for three-year periods subject to the completion of CE In a Personal Umbrella Policy, the amount paid by the insured for certain losses not covered under the primary coverage is called: - Answer A) The deductible B) The security insured retention •• C) The self-insured retention D) The sole insurable retention To form a contract, a competent part: - Answer A) Must be 16 years old •• B) Must have legal capacity C) Is anyone age 18 or older regardless of their personal history D) Is anyone 21 or older, even if that person is intoxicated In 2010, a homeowner insured his home for its purchase price of $100,000 and added the inflation guard endorsement. Under the Homeowner Policy, what amount should the homeowner be carrying today to be property insured? - Answer A) The $100,000 plus the inflation guard coverage amount B) The $100,000 plus the inflation guard, but minus depreciation coverage C) Its fair market value •• D) The current cost to replace with like kind and quality at today's rebuilding costs Which of the following reduces small nuisance claims and helps keep premiums down? - Answer •• A) Deductible B) Indemnity C) Coinsurance D) Salvage A fire severely damages a tenant occupied duplex insured under a Dwelling Policy. After the fire the tenants are forced to move. In this case: - Answer A) The Dwelling Policy will pay nothing B) The Dwelling Policy will pay the tenant's extra expenses •• C) The Dwelling Policy will pay the owner's loss of rental value D) The Dwelling Policy will pay the tenant's moving allowance The Notice of Aftermarket Crash Parts must be given to the insured no later than at: - Answer A) Application of insurance B) Approval of insurance •• C) Delivery of policy D) Time of repair The Principle of Indemnity is used extensively in the property casualty field to: - Answer A) Indemnity an insured in excess of their loss B) Reduced lawsuits •• C) Restore or reimburse one to the extent of their loss D) Promote arbitration Which of the following is CORRECT of Collision coverage under the Personal Auto Policy? - Answer •• A) It is the upset of a covered auto or its impact with another vehicle or object B) Examples of collision include missiles or falling objects C) Examples of collision include fire, theft or larceny D) Examples of collision include explosion, earthquake or windstorm Insurance is a method which: - Answer A) Reduces risk B) Retains risk C) Avoids risk •• D) Transfers risk A known right that is voluntarily relinquished by an insurer is: - Answer A) Estoppel •• B) Waiver C) Subrogation D) Appraisal Which of the following activities would require an individual to be licensed as a producer? - Answer A) Giving a homeowner brochure to prospect •• B) signing an insurance application C) Depositing a check into the insurer's premium account D) Arranging or making meeting appointments for licensed proudcer the process of treating and managing loss exposures is risk: - Answer A) Avoidance B) Selection C) Identification •• D) Management A producer who learns of adverse underwriting information on an insured should: - Answer A) Do nothing B) Process cancellation of the policy •• C) Advise the insurance company of the adverse information D) Process an endorsement deleting the newly discovered exposure The authority granted by the insurer tot he producer that permits the producer to put coverage into effect prior to its actual submission tot he insurer, BEST describes: - Answer •• A) Binding authority B) Agency authority C) Implied authority D) Permitted authority Under the Personal Auto Policy: - Answer A) OTC and Collision coverage are generally written with the same deductible amount B) Flood is excluded under the OTC coverage •• C) Applicable sales tax is paid on stolen vehicles D) Loss settlement is on a replacement cost basis An insurance contract feature that permits all ambiguous areas to be construed in favor of the insured is: - Answer A) Aleatory •• B) Adhesion C) Good faith D) Subrogation Basked upon the Law of Large Numbers, the larger the number of homogeneous units: - Answer A) Loss predictability will decrease B) Loss predictability will remain the same •• C) Loss predictability will increase D) Loss severity will increase a producer licensed for property and casualty insurance: - Answer A) Is exempt from continuing education if they function in a management capacity •• B) May complete 36 approved credits in life, health, property, or casualty insurance C) Is required to complete 36 approved credits in property and casualty insurance D) Is required to complete 36 approved credits in life and health insurance A producer's license: - Answer A) Is waived if 24 approved credits are completed prior to application for license •• B) Must be renewed every three years subject tot he completion of approved CE C) Is not required in Iowa D) Is waived if you have a Bachelors Degree in insurance Producers are only permitted to share or split commission if: - Answer A) There is a written agreement between the two producers •• B) Both are licensed for the same line of authority C) The insured knows the arrangement D) The insurance division knows of the arrangement All of the following are requirements necessary to secure a nonresident producer's license EXCEPT: - Answer A) File a license application with the insurance division B) submit an original certification by the insurance commissioner of the applicant's state of residence •• C) Place business with surplus lines producer D) Pay a license fee to the insurance division All of the following are prohibited in Iowa EXCEPT: - Answer A) Twisting B) Rebating •• C) Commission splitting D) Misrepresentation All of the following would be considered an Unfair Claims Settlement Practice EXCEPT: - Answer A) Misrepresenting the policy provisions B) Failure to promptly investigate claims C) Failure to deny or affirm coverage or pay a claim •• D) Failure to pay a claim not covered