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In property insurance, actual cash value is defined as which of the following? a) Market value of the property at the time of the loss b) Stated value of the property as shown on the declaration c) The actual amount of a loss payable, less the policy deductible d) Replacement cost at the time of the loss, less depreciation. - D With regard to fire insurance premiums, structures with which of the following type of construction would most likely have the most favorable premium rate for the pe...

Utah real estate Verified Package Deal With 100% Correct Updates

A real estate principal broker must maintain a copy of closing statements: - b. for three years following the year in which closing occurred An earnest money deposit received by a sales agent should be turned over to the: - c. the sales agent's principle broker Which of the following would be required to have a real estate principal broker present? - a. An auctioneer auctioning real estate A real estate principal broker is prohibited from purchasing real estate on his own behalf by - a. ...

All of these items must have happened in order for settlement to have occurred according to the Utah REPC EXCEPT the following: - The proceeds of any new loan have been delivered by the lender to the seller or escrow/title office. Once you have completed all real estate pre-licensing classes and received a school certifying document, how long do you have in which to pass your licensing exam and apply for your real estate license? - one year A Closing Disclosure is a five-page form that pro...

A broker in Vernal Lists a property in Roosevelt under an exclusive right to sell listing. The selling broker does not sell through the listing broker. This could create. (a) Double commission (b) Dual agency (c) Double contract (d) Dual dispostion - (a) Double commission Assuming a REPC is accepted on January 25th and a check for $1,000 earnest money is given the same day, what is the latest it can be deposited into the Brokerage Trust Account? (a) January 26 (b) January 28 (c) Januar...

What is a net listing? Is it illegal? - A net listing is selling a property for a determined price where the seller Only requires a small amount of money and let the agent have the rest (huge commission); it is ILLEGAL in the state of Utah After foreclosure, there's not enough money to cover all files of the mechanic's liens. What is the priority of payoff? - Laborers first, suppliers and subs second, general contractor last Where should a broker keep sales agents' licenses? - Broker's ...

AFFILIATED BUSINESS ARRANGEMENT (AfBA) - A financial interest in a business that could provide services to a borrower in a loan transaction. The lender is required to disclose such affiliations to the borrower and may not require that the borrower use the affiliate. Disclosure is also required when it is the policy of the lender to share private information of borrowers with its affiliates. The borrower may refuse permission to share information by returning the notice indicating that they O...

Which of the following statements is not true concerning security deposits? - The security deposit is landlord property until and unless it must be refunded. What are the three kinds of maintenance a manager has to carry out for a managed property? - Routine, preventive, and corrective. An agent contacted an owner to see if they might want to sell the property. The agent said, "I think I can get you $250,000," which surprised the owner. The owner said, "Ok, and anything over that can be ...

Commissioners - A member of a state regulatory Real estate commission, board, or division. Continuing Education - A requirement for licensees to complete a specifies number of educational offerings as a prerequisite to license renewal or reinstatement. After completing the pre-licensing course and successfully passing the State exam, which of the following will keep someone from having to take the test again? - Get the license within 90 days from the successful test date. An associate brok...

1) The most critical committee that requires tenured board members is: a. Audit Committee b. Finance Committee c. Nominating Committee d. Executive Committee - c. Nominating Committee 2) The duty of loyalty requires that: a. A board member discloses all of their assets before becoming a board member b. A board member belongs to as few healthcare organizations as possible c. A board member refrains from conflicts of interest d. A board member serves out his/her entire term - c. A board m...

RMIN 4000 EXAM PACKAGE DEAL WITH 100% CORRECT ANSWERS

hedging price risks - hedging is a technique for transferring the risk of unfavorable price fluctuations to a speculator by purchasing and selling futures contracts on an organized exchange, such as the chicago board of trade subjective probability - the individual's personal estimate of the chance of loss example: people who buy a lottery ticket on their birthday may believe it is their lucky day and overestimate the small chance of winning enterprise risk - a term that encompasses all m...

Pure Risk - A chance of loss or no loss, but no chance of gain. Insurance can be bought for this Exposures - things of value (assets) that could be lost Property Risk - a risk that can lead to destruction or theft and loss of personal or business property including money, vehicles, and buildings; 2 types (direct and indirect) Diversifiable risk - a risk that affects only individuals or small groups and not the entire economy. It can be eliminated/ reduced through diversification. the risks ...

Prospective Loss Costs (Pure Premium) - Amount needed to pay future claims and loss adjustment expenses. Class (Manual) Rating: Frequency*Severity Lloyd's of London - Specialized lines of business. Brokers - represent policyholders to arrange coverage with syndicates. Legally represents insured. Syndicates - Offer insurance contracts in the market. Managing Agents - Manage the syndicates, who typically specialize in certain lines. Underwriters - Work for the syndicates to assess risks a...

Assessment Mutual Insurer - Has the right to assess policyowners an additional amount if the insurer's financial operations are unfavorable Retention - Firms retain part or all of the losses that can result from a given loss; Ex: Expense, set aside liquid, credit line Risk - Uncertainty about chance, timing, or amount of loss Chance of Loss - Probability that an event will occur Objective Risk - The relative variation of actual loss from expected loss; (ActualExpected)/Expected; higher va...

How much life insurance is needed? - depends on family size, income levels, existing financial assets, and financial goals Costs of Premature Death - - future earnings are lost forever. - additional expenses incurred: funeral expenses, uninsured medical bills, higher childcare costs, estate settlement expenses, and outstanding debts. - possible reduction of standard living. Why have deductibles? - -eliminate small claims -reduce premiums -reduce moral and morale hazard Declarations - st...

Defense Costs - •Defense costs can be huge. Good thing the Liability Section covers loss IN ADDITION to the policy limits. •This means that the costs of defense will not erode the coverage limits available for payment of claims. •But, the duty to defend ENDS when limits have been exhausted through actual payment of claims Part C: Why do we need this? - • A compulsory insurance law requires motorists to carry at least a minimum amount of liability insurance before the vehicle can be ...

distribution- independent agency - usually represents several unrelated insurers agents are paid a commission which varies by the line of insurance the agency owns the expirations or renewal rights to the business agents may be authorized to adjust small claims and may provide loss control services to their insurers large brokerage firms - very important in commercial P&C coverage may have knowledge of highly specialized insurance markets may provide risk management and loss control servic...

requirements of res ipsa loquitur - does not normally occur in absence of negligence, defendant has exclusive control over the instrumentality causing the accident, and injured party has not contributed to the accident assumption of risk - A person who understands and recognizes the danger inherent in a particular activity cannot recover damages in the event of an injury (foul ball at game) contributory negligence - Injured person cannot collect if their care falls below the standard of ca...

Heisenberg Insurance has a home office in Albuquerque, New Mexico and they specialize in insuring chemical manufacturers. Heisenberg is owned by its policyholders and any annual profits are distributed through rate reductions. Which type of insurer is Heisenberg? - mutual insurer Antonio is employed by an insurance company. He reviews applications to determine whether his company should insure the applicant. Antonio assigns the applicant to a rating category based on the applicant's degree...