Free Property Insurance Basics Practice Questions
Utah Property exam (series 17-22) — 118 practice questions.
Subtopics: Actual cash value rule, Depreciation documentation, Investigation not a waiver, Notice to adjuster or agent, Repair damage included, Written denial, Insurable interest, Actual cash value, Replacement cost, Agreed value, Functional replacement cost, Direct vs indirect loss, Coinsurance purpose, Coinsurance calculation, Deductible, Declarations, Insuring agreement, Exclusions, Conditions, First named insured, Duties after loss, Subrogation condition, Liberalization, Other insurance pro rata, Blanket insurance, Loss payable clause, Construction class, Rate components, Underwriting purpose, Valued policy, Market value, Cancellation short rate, Policy territory, Assignment property, No benefit to bailee, Claim settlement options, Pair and set clause, Vacancy, Specific insurance, Terrorism program, Indirect loss time element, Hazard reduction underwriting, Named perils form, Open perils form, Burden of proof, Proximate cause, Concurrent causation, Anti-concurrent causation clause, Pro rata cancellation, Flat cancellation, Nonrenewal notice, Policy period, Salvage rights, No abandonment clause, Appraisal provision, Proof of loss, Notice of loss, Depreciation, Recoverable depreciation, Percentage deductible, Period of restoration, Business income waiting period, Contribution by equal shares, Excess other insurance, Margin clause, Waiver of subrogation, Mysterious disappearance, Inherent vice exclusion, Wear and tear exclusion, Earth movement exclusion, Flood exclusion, Ensuing loss, Ordinance or law exclusion, Sue and labor, Ingress and egress, Reinstatement of limit, Coverage extension, Stated amount, Actual cash value calculation, Deductible application, Coinsurance - adequate insurance, Coinsurance with deductible, Coinsurance - limit cap, Coinsurance - value at time of loss, Coinsurance - who bears shortfall, ACV calculation - contents, Pro rata other insurance calc, Pro rata return premium calc, Pair and set calc, Proximate cause example, Direct loss example, Endorsements, Definitions section, Limits - sublimits, Mortgagee - proof of loss, Mortgagee - premium, Mortgagee - cancellation notice, Subrogation example, Appraisal procedure, Appraisal costs, Proof of loss timing, Suit against insurer, Burglary definition, Robbery definition, Theft definition, Water damage vs flood, Valued policy law, Liberalization timing, Occurrence, Named insured, Salvage value, Unearned premium, Settlement of claims - deductible, Additional coverages vs extensions, Policy conditions - concealment, Valuation
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Sample questions & answers
1. When a Utah residential fire policy settles on an actual cash value basis, the insurer must determine actual cash value as:
Replacement cost at the time of loss less depreciation
R590-190-13(2)(a)(i) requires actual cash value on residential fire and extended coverage to be the replacement cost at the time of loss less depreciation, if any.
2. A Utah insured asks how the insurer computed depreciation on an actual cash value fire claim. Under the claims rule, the insurer must:
Provide the claim file papers detailing each deduction
R590-190-13(2)(a)(ii) requires the insurer, on the insured's request, to provide a copy of relevant claim file documentation detailing each deduction for depreciation.
3. A Utah property insurer acknowledges a claim, sends proof of loss forms and investigates. Under Utah law, these acts alone:
Do not waive the insurer's defenses to the claim
Utah Code 31A-21-312(6) provides that acknowledging notice, furnishing forms, accepting proofs or investigating a claim are not alone sufficient to waive the insurer's rights to defend the claim.
4. Under Utah's claims rule, unless the insurer directs otherwise through a specific disclosure, an insured may give notice of a loss to:
An authorized agent or adjuster of the insurer
R590-190-7(2) lets an insured give notice of loss to an authorized agent, authorized adjuster or other agent of the insurer unless the insurer directs otherwise through a specific disclosure.
Practice: Property Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
