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Utah Property and Casualty Insurance Questions and Answers Fully Solved
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Utah Property and Casualty Insurance
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Utah Property and Casualty InsuranceAbsolute Liability - answer Liability that arises from an extremely dangerous situation.
Absolute liability is often found in cases involving explosives. Also known as "strict"
liability. For ex you are absolutely liable if you keep a wild animal as a pet.
Accident - answer A sudden and unexpected event, occurring at a specific time and
place.
Actual Cash Value (ACV) - answer The cost to replace an item of property at the time of
loss, less an allowance for depreciation. Often used to determine amount of
reimbursement for a loss (Replacement Cost minus Depreciation.)
Additional Insured - answerA person, firm, or corporation other than the Named Insured
on a policy, or a lender named in a mortgage clause, who is protected against loss by
the terms of the policy.
Additional Living Expenses - answerA coverage designed to reimburse the insured for
an increase in living expenses necessitated by a loss to the dwelling. This Indirect Loss
must be the result of Direct Loss by a covered Peril.
Adjuster - answerRepresents the insurance company and acts for the company in
working on agreements as to the amount of a loss and the liability of the company.
Admitted Company - answerA company that meets the state insurance department's
standards and is authorized by the Director to do business in the state.
Agent/Producer - answerAn individual appointed by an insurance company to solicit,
negotiate, effect, or countersign insurance contracts on its behalf.
Aggregate Limit - answerA type of policy limit found in Liability policies that limits
coverage to a specified total amount for all losses occurring within the policy period.
Alien Company - answerAn insurance company incorporated in a country other than the
United States
Allied Lines - answerProperty coverages that are closely associated with and frequently
sold with fire insurance: Dwelling Building and Contents form, Earthquake insurance,
Sprinkler Leakage, etc.
, All-Risk Insurance - answerInsurance protecting the insured from loss arising from any
Peril other than those specifically excluded by name. This contrasts with Named Peril
Insurance, which names the Peril or Perils insured against.
Application - answerA questionnaire that is filled out by an agent and the prospect
seeking insurance. The form contains rating and underwriting information. The applicant
is expected to make representations by answering questions to the best of his
knowledge (truthfully).
Appraisal - answerIf the insured and insurer cannot agree on the amount of loss, either
may demand an appraisal, If demanded, each will select an appraiser, who jointly will
select an umpire. The appraisers will appraise the loss and either agree or submit
differences to the umpire. Agreement by any two of the three will be binding. Each party
will pay its own appraiser and share equally the expenses of the appraisal and the
umpire.
Appurtenant Structure - answerA structure belonging to the insured structure, such as a
tool shed. Appurtenant structures are provided for in the Homeowners policy and other
Dwelling policies. This coverage is often called Other Structures or Out Buildings.
Assigned Risk - answerThere are some applicants that underwriters do not care to
insure, but because of state law or otherwise, must be provided protection. To become
authorized, a Casualty company must agree to participate in the Assigned Risk Pool
and take its turn providing Auto insurance to high-risk drivers. Also known as the auto
insurance "plan".
Audit - answerA survey of the financial records of the insured conducted to determine
exposures, limits, etc., \which are needed to calculate the premium. The initial premium
is only a deposit.
Bailee - answerA person who has temporary custody of property belonging to another
person. An example of a bailee: the dry cleaners.
Bailee's Customers Policy - answerInsurance obtained by a bailee, to cover loss or
damage to customers' property in the bailee's custody, without regard to liability.
Binders - answerBinders and other temporary insurance contracts may be made orally
or in writing. Each binder is deemed to include all usual terms of the policy for which it
was given plus endorsements. Life or Disability insurance utilizes conditional receipts
instead of binders.
Blanket Position Bond - answerFidelity bond that specifies a single limit of Liability
applicable to each employee involved in a loss.
Bodily Injury - answerUsually defined to include bodily harm, sickness, disease,
including required care, loss of services and resulting in death.
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