OpenExamsFREE PRACTICE — ANY EXAM

Free Utah Adjuster's Property and Casualty Exam Practice Questions

148 free questions · Answer explanations · No signup required

View examination details, outline and sources

Loading selected examination banks…

Sample Practice Questions

Try these 10 sample questions from the Utah Adjuster's Property and Casualty Exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A Utah resident begins negotiating property claim settlements for insurers as an independent contractor. What must the resident generally have before performing that work?

    1. A. A valid Utah adjuster license
    2. B. Only an insurer appointment
    3. C. Only a business registration
    4. D. A producer license in any line

    Answer: A

    Explanation: Utah Code provides that a person may not perform insurance adjusting "without a valid license under Section 31A-26-203." An independent contractor does not receive the salaried-employee exemption, so a valid adjuster license is required.

    Reference: Utah Code 31 a 26 — Section 31A-26-201(1)(a)

  2. 2Two legally competent parties agree on the proposed premium and policy terms, but the insurer has not accepted the applicant's offer. Which essential contract element remains absent?

    1. A. Consideration from the party seeking the policy
    2. B. Competence of the parties entering the agreement
    3. C. Acceptance of the applicant's insurance offer
    4. D. An offer specifying the proposed insurance terms

    Answer: C

    Explanation: "require offer and acceptance, competent parties, consideration and a meeting of the minds." A proposed policy is not formed merely because an offer exists; acceptance is one of the essential formation elements. The stem supplies the other listed elements, while acceptance is absent.

    Reference: U.S. District Court for Utah, contract formation opinion — Opinion at printed page 19, contract formation paragraph

  3. 3An individual holds both Utah independent-adjuster and public-adjuster licenses. May the person represent the insurer and insured in the same claim transaction?

    1. A. No, the two sides may not be represented in the same transaction
    2. B. Yes, if both sides sign a disclosure
    3. C. Yes, if the claim is under $10,000
    4. D. No, unless the commissioner approves each fee

    Answer: A

    Explanation: Utah Code says a person licensed in both roles "may not represent both the insurer and the insured in the same transaction." Disclosure or claim size does not create an exception.

    Reference: Utah Code 31 a 26 — Section 31A-26-304

  4. 4Repair of a covered dwelling item causes significant physical damage to an adjacent item. Under Utah's replacement-cost settlement rule, how is that additional damage treated if not otherwise excluded?

    1. A. It is excluded as incidental damage
    2. B. It is paid only after appraisal
    3. C. It is included in the loss
    4. D. It is subject to a separate policy limit

    Answer: C

    Explanation: The rule says "any significant physical damage incurred in making such repair or replacement not otherwise excluded by the policy shall be included in the loss." The adjacent damage is included.

    Reference: Utah Office of Administrative Rules — R590-190-13(1)(a)(i)

  5. 5A covered homeowners item has nominal economic value that is disproportionate to replacement cost less depreciation. What does Utah's actual-cash-value rule permit?

    1. A. Automatic payment of full replacement cost
    2. B. A mandatory appraisal
    3. C. No settlement of the claim
    4. D. The usual replacement-cost-less-depreciation determination is not required

    Answer: D

    Explanation: When the insured's interest is limited because value is nominal, nonexistent, or disproportionate, "the determination of actual cash value is not required." The rule permits a different limited-interest determination.

    Reference: Utah Office of Administrative Rules — R590-190-13(2)(b)(i)

  6. 6For an ordinary Utah motor vehicle liability policy issued after January 1, 2025, what split minimum limits apply?

    1. A. $25,000/$50,000/$15,000
    2. B. $30,000/$65,000/$25,000
    3. C. $50,000/$100,000/$25,000
    4. D. $90,000/$90,000/$90,000

    Answer: B

    Explanation: For policies issued or renewed on or after January 1, 2025, Utah specifies "$30,000 because of liability for bodily injury to or death of one person" and sets the corresponding two-or-more-person and property-damage limits at $65,000 and $25,000. The resulting split is $30,000/$65,000/$25,000.

    Reference: Utah Code 31 a 22 — Section 31A-22-304(2)(a)

  7. 7A manufacturing firm outside the eligible small-business BOP class wants property and liability coverage parts combined in one commercial package. Which policy structure fits?

    1. A. Commercial package policy.
    2. B. Businessowners policy.
    3. C. Commercial property policy.
    4. D. Commercial umbrella policy.

    Answer: A

    Explanation: "broad package of property and liability coverages for commercial ventures" The CPP packages those parts for commercial ventures outside the BOP class. The BOP serves a different eligibility group; the commercial property and umbrella choices do not provide this combined primary property-liability package.

    Reference: NAIC, Glossary of Insurance Terms — Commercial Package Policy

  8. 8A small retail shop wants a standard packaged product designed for small stores that combines business property and general liability. Which NAIC product classification fits?

    1. A. Businessowners policy.
    2. B. Commercial package policy.
    3. C. Commercial property policy.
    4. D. Commercial general liability policy.

    Answer: A

    Explanation: "liability coverages for small and medium sized apartment buildings, offices, and retail stores." The NAIC identifies this as part of the BOP classification, a combined property and liability package designed for eligible small retail stores. CPP is a different package classification; property and CGL alone are single lines.

    Reference: NAIC Property/Casualty Insurance Manual — Businessowners policy classification

  9. 9An injured Utah employee waits more than 180 days to report a work injury. What consequence may follow?

    1. A. Automatic permanent-total-disability benefits
    2. B. A doubled waiting period
    3. C. Disqualification from workers' compensation benefits
    4. D. Transfer of the claim to the health insurer

    Answer: C

    Explanation: Utah Code gives the employee "180 days after the day on which the injury occurs" to provide the required notice and bars the claim if that deadline is missed. The delayed report can therefore defeat benefits.

    Reference: Utah Code 34 a 2 — Section 34A-2-407(3)

  10. 10Which worker is exempt from Utah's adjuster-license requirement based on employment status?

    1. A. An outside catastrophe contractor paid per file
    2. B. A regular salaried insurer employee who is not an independent contractor
    3. C. A self-employed adjuster handling one claim
    4. D. A vendor negotiating settlements for several insurers

    Answer: B

    Explanation: The exemption covers "an individual engaged in insurance adjusting as a regular salaried employee of, and not an independent contractor for, an insurer." The other workers are not within that employment-status exemption.

    Reference: Utah Code 31 a 26 — Section 31A-26-201(2)(a)

Topics in this practice bank

These topics describe the available practice for Utah Adjuster's Property and Casualty Exam. Review the examination outline and its sources for scope and allocation details.

  • Insurance Regulation
    • Licensing requirements Definitions (31A-26-102) Qualifications (31A-26-203, 205) Purpose (31A-26-202) Process (31A-26-202) Classifications of licenses (31A-26-204) License/character requirements (31A-26-204 & 205) Licensing exceptions (31A-26-201(2)) Adjusters (31A-26-102, 201, 204 (1)(c)) Nonresident adjuster (31A-26-208) Emergency adjuster license (31A-26-212)
    • Maintenance and duration Renewal (31A-26-213; 31A-26-214.5; Reg. R590-244-7 though 9) Continuing education requirements (31A-26- 206; Reg. R590-142-1 through 10) Reinstatement (31A-26-214.5 (2); Reg. R590-244-8) Assumed name (31A-26-209(2)) Records (31A-26-306(2–4)) Change of address or telephone number (31A-26-306(1)(b)) Reporting of actions (31A-26-203)
    • Disciplinary actions License Termination, suspension, revocation, refusal to issue or renew (31A-26-213) Probation (31A-26-214) Monetary forfeiture (fines) (31A-2-308)
    • Unfair claim settlement laws and regulations (31A-26-301, 303; Reg R590- 190-1–14) Place of business/records maintenance (31A- 26-102)
  • Insurance Basics
    • Contracts Elements of a legal contract Offer and acceptance Consideration Competent parties Legal purpose Distinct characteristics of an insurance contract Contract of adhesion Aleatory contract Personal contract Unilateral contract Conditional contract Legal interpretations affecting contracts Ambiguities in a contract of adhesion Reasonable expectations Indemnity Utmost good faith Representations/misrepresentations Warranties Concealment Fraud Waiver and estoppel
    • Principles and concepts Insurable interest Hazards Physical Moral Morale Negligence Elements of a negligent act Defenses against negligence Damages Compensatory — special versus general Punitive Absolute liability Strict liability Vicarious liability Causes of loss (perils) Named perils versus special (open) perils Direct loss Consequential or indirect loss Blanket versus specific insurance Basic types of construction Loss valuation Actual cash value Replacement cost Functional replacement cost Market value Agreed value Stated amount Valued policy
    • Policy structure Declarations Definitions Insuring agreement or clause Additional/supplementary coverage Conditions Exclusions Endorsements
    • Common policy provisions Insureds — named, first named and additional Policy period Policy territory Cancellation and nonrenewal Deductibles Other insurance Nonconcurrency Primary and excess Pro rata Contribution by equal shares Limits of liability Per occurrence (accident) Per person Aggregate — general versus products — completed operations Split Combined single Restoration/nonreduction of limits Coinsurance Vacancy or unoccupancy Assignment Insurer provisions Liberalization Duty to defend Third-party provisions Standard mortgage clause Loss payable clause No benefit to the bailee
  • Adjusting Losses
    • Role of the adjuster Duties and responsibilities (31A-26-304–311) Staff and independent adjuster versus public adjuster Relationship to legal profession
    • Claim reporting Claim investigation Claim file documentation of events Types of reports Initial or first field Interim or status Full formal
    • Property losses Duties of insured after a loss Notice to insurer Minimizing the loss Proof of loss Special requirements Production of books and records Abandonment Determining value and loss Burden of proof of value and loss Estimates Depreciation Salvage Claim settlement options Payment and discharge
    • Liability losses Investigation procedures Verify coverages Determine liability Gathering evidence Physical evidence Witness statements Determining value of intangible damages
    • Coverage problems Dealing with coverage disputes Reservation of rights letter Nonwaiver agreement Declaratory judgment action
    • Claims adjustment procedures Settlement procedures Advance payments Draft authority Execution of releases Subrogation procedures Alternative dispute resolution Appraisal Arbitration Competitive estimates Mediation Negotiation
  • Dwelling Policy
    • Characteristics and purpose
    • Coverage forms — Perils insured against Basic Broad Special
    • Property coverages Coverage A — Dwelling Coverage B — Other structures Coverage C — Personal property Coverage D — Fair rental value Coverage E — Additional living expense Other coverages
    • General exclusions
    • Conditions
    • Selected endorsements Special provisions — Utah (DP 01 43) Automatic increase in insurance (DP 04 11) Broad theft coverage (DP 04 72) Dwelling under construction (DP 11 43)
    • Personal liability supplement
  • Homeowners Policy
    • Coverage forms HO-2 through HO-6 HO-8
    • Definitions
    • Section I — Property coverages Coverage A — Dwelling Coverage B — Other structures Coverage C — Personal property Coverage D — Loss of use Additional coverages
    • Section II — Liability coverages Coverage E — Personal liability Coverage F — Medical payments to others Additional coverages
    • Perils insured against
    • Exclusions
    • Conditions
    • Selected endorsements Special provisions — Utah (HO 01 43) Limited fungi, wet or dry rot, or bacteria coverage (HO 04 26, HO 04 27, HO 04 28) Permitted incidental occupancies — residence premises (HO 04 42) Earthquake (HO 04 54) Scheduled personal property (HO 04 61) Personal property replacement cost (HO 04 90) Home day care (HO 04 97) Business pursuits (HO 24 71) Personal injury (HO 24 82)
  • Auto Insurance
    • Laws Utah Financial Responsibility of Motor Vehicle Owners and Operators Act (RL 41-12a-101– 104) Required motor vehicle limits of liability (31A-22-301–304) Personal injury protection (31A-22-306–309) Medical Loss of income Special damages allowance Funeral Death Uninsured/underinsured motorist (31A-22- 305–305.3) Definitions Bodily injury Property damage (31A-22-305.5) UM/UIM rejection Required limits Utah Assigned Risk Insurance Plan (31A-22- 310) Aftermarket Crash Parts Act (31A-22-316– 319)
    • Personal auto policy Definitions Liability coverage Bodily injury and property damage Supplementary payments Exclusions Medical payments coverage Uninsured motorists coverage Coverage for damage to your auto Collision Other than collision Deductibles Transportation expenses Exclusions Duties after an accident or loss General provisions Selected endorsements Amendment of policy provisions — Utah (PP 01 93) Towing and labor costs (PP 03 03) Extended non-owned coverage — vehicles furnished or available for regular use (PP 03 06) Miscellaneous type vehicle (PP 03 23) Joint ownership coverage (PP 03 34)
    • Commercial auto Commercial auto coverage forms Business auto Garage Business auto physical damage Truckers Motor carrier Coverage form sections Covered autos Liability coverage Garagekeepers coverage Trailer interchange coverage Physical damage coverage Exclusions Conditions Definitions Selected endorsements Deductible liability (CA 03 01) Lessor — additional insured and loss payee (CA 20 01) Mobile equipment (CA 20 15) Broad form products (CA 25 01) False pretense coverage (CA 25 03) Auto medical payments coverage (CA 99 03) Drive other car coverage (CA 99 10) Hired autos specified as covered autos you own (CA 99 16) Individual named insured (CA 99 17) Employees as insureds (CA 99 33) Pollution liability — broadened coverage (CA 99 48; CA 99 55) Commercial carrier regulations The Motor Carrier Act of 1980 Endorsement for motor carrier policies of insurance for public liability (MCS-90)
  • Commercial Package Policy (CPP)
    • Components of a commercial policy Common policy declarations Common policy conditions Interline endorsements One or more coverage parts
    • Commercial general liability Commercial general liability coverage forms Bodily injury and property damage liability Personal and advertising injury liability Medical payments Supplementary payments Who is an insured Limits of insurance Conditions Definitions Exclusions Occurrence versus claims-made Claims-made features Trigger Retroactive date Extended reporting periods — basic versus supplemental Claim information Premises and operations Products and completed operations Insured contract Owners and contractors protective liability coverage form Pollution liability Pollution liability coverage form (CG 00 39) Pollution liability limited coverage form (CG 00 40) Pollution liability coverage extension endorsement (CG 04 22)
    • Commercial property Commercial property conditions form Coverage forms Building and personal property Condominium association Condominium commercial unit-owners Builders risk Business income Legal liability Extra expense Causes of loss forms Basic Broad Special Selected endorsements Ordinance or law (CP 04 05) Spoilage (CP 04 40) Peak season limit of insurance (CP 12 30) Value reporting form (CP 13 10)
    • Commercial crime General definitions Burglary Theft Robbery Crime coverage forms Commercial crime coverage forms (discovery/loss sustained) Government crime coverage forms (discovery/loss sustained) Coverages Employee theft Forgery or alteration Inside the premises — theft of money and securities Inside the premises — robbery or safe burglary of other property Outside the premises Computer fraud Funds transfer fraud Money orders and counterfeit money Other crime coverages Extortion — commercial entities (CR 04 03) Lessees of safe deposit boxes (CR 04 09) Securities deposited with others (CR 04 10) Guests' property (CR 04 11) Safe depository (CR 04 12)
    • Commercial inland marine Nationwide marine definition Commercial inland marine conditions form Inland marine coverage forms Accounts receivable Bailee's customer Commercial articles Contractors equipment floater Electronic data processing Equipment dealers Installation floater Jewelers block Signs Valuable papers and records Transportation coverages Common carrier cargo liability Motor truck cargo forms Transit coverage forms
    • Equipment breakdown Equipment breakdown protection coverage form (EB 00 20) Selected endorsement Actual cash value (EB 99 59)
    • Farm coverage Farm property coverage form Coverage A — Dwellings Coverage B — Other private structures Coverage C — Household personal property Coverage D — Loss of use Coverage E — Scheduled personal property Coverage F — Unscheduled farm personal property Coverage G — Other farm structures Farm liability coverage form Coverage H — Bodily injury and property damage liability Coverage I — Personal and advertising injury liability Coverage J — Medical payments Mobile agricultural machinery and equipment coverage form Livestock coverage form Definitions Causes of loss (basic, broad and special) Conditions Exclusions Limits Additional coverages
  • Businessowners Policy
    • Characteristics and purpose
    • Businessowners Section I — Property Coverages Exclusions Limits Deductibles Loss conditions General conditions Optional coverages Definitions
    • Businessowners Section II — Liability Coverages Exclusions Who is an insured Limits of insurance General conditions Definitions
    • Businessowners Section III — Common Policy Conditions
    • Selected endorsements Hired auto and non-owned auto liability (BP 04 04) Protective safeguards (BP 04 30) Utility services — direct damage (BP 04 56) Utility services — time element (BP 04 57)
  • Workers Compensation Insurance
    • Workers compensation laws Type of law Monopolistic versus competitive Compulsory versus elective Utah Workers' Compensation Law Exclusive remedy (RL 34A-2-105) Employment covered (required, voluntary) (RL 34A-2-103, 104) Covered injuries (RL 34A-2-401, 402) Occupational disease (RL 34A-3-101– 112) Benefits provided (RL 34A-2-401, 408– 418) Employers' Reinsurance Fund (RL 34A-2- 702, 703) Uninsured Employers' Fund (RL 34A-2- 704) Federal workers compensation laws U.S. Longshore and Harbor Workers' Compensation Act (33 USC 904) The Jones Act (46 USC 688)
    • Workers compensation and employers liability insurance policy General section Part One — Workers compensation insurance Part Two — Employers liability insurance Part Three — Other states insurance Part Four — Your duties if injury occurs Part Five — Premium Part Six — Conditions Selected endorsements Voluntary compensation Foreign coverage Anniversary rating date Other states Sole proprietors, partners, officers and others coverage

How to use these free practice questions

Choose an answer, check the explanation, and review your progress by chapter. Practice questions and explanations are free to access without signing up.

These are independent study questions, not actual examination items. For examination requirements and official information, view Utah Adjuster's Property and Casualty Exam details.