Free practice exam · no signup needed

Utah Property & Casualty Practice Exam

20 exam-style questions drawn from the same bank as our full Utah Property & Casualty course (Utah Insurance Producer — Property and Casualty — Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. An 'Extended Reporting Period' (ERP) on a claims-made CGL:
Converts a claims-made policy into an occurrence policy retroactively — applies if the loss is partial; this question describes a constructive total loss, per the safe-harbor exception that activates only for primary-state filingsExtends the policy period and covers new wrongful acts indefinitely — applicable to surplus-lines placements, which the scenario explicitly excludes — required under a separate compliance provision that doesn't reach this fact patternAllows claims to be REPORTED after policy expiration for wrongful acts that occurred during or prior to the policy period (after the retro date); does NOT extend coverage for new wrongful acts.Is automatic and free for all claims-made policies — under the older rule that was superseded by the post-2018 model amendments — though only when the underlying contract contains an explicit waiver, which the scenario doesn't establish
2. Which statement correctly describes the key structural difference between a commercial umbrella policy and a pure follow-form excess liability policy?
An umbrella only provides higher limits; an excess policy can drop down to cover gaps in underlying coverage — only when the contract was issued before the regulatory amendment described aboveAn umbrella can drop down (subject to a self-insured retention) to cover some losses the underlying excluded; a pure follow-form excess mirrors the underlying's exclusions and only provides higher limits.A pure follow-form excess policy has its own broader terms; an umbrella must follow the underlying form exactly — applicable to commercial scenarios only, not the personal-lines contextAn umbrella and a pure follow-form excess are functionally identical; the names are just marketing, under the broader consumer-protection construction sometimes applied here
3. A customer slips on a wet floor inside a hardware store and breaks her wrist. The store's CGL pays her $8,400 ER bill without any dispute over fault, and also pays $62,000 in damages after she sues. Which CGL coverage parts responded to the $8,400 and the $62,000, respectively?
Coverage C for the $8,400; Coverage A for the $62,000Coverage A for the $8,400; Coverage C for the $62,000Coverage A for both paymentsCoverage B for the $8,400; Coverage A for the $62,000
4. An auto policyholder's $20,000 vehicle is totaled. The insurer pays $20,000 ACV and then pursues the at-fault driver for that amount. The insurer's right to recover from the at-fault driver is called:
WaiverAbandonmentEstoppelSubrogation
5. A commercial auto applicant states on the application that 'No driver has had a DUI in the last five years.' One driver had a DUI 3 years ago. The insurer discovers this after a major loss. The insurer's likely remedy is based on:
Nothing — statements on commercial applications are never enforceable.Concealment — only applies if the insurer failed to ask the question.Warranty — any breach voids the policy automatically, per the safe-harbor exception that activates only for primary-state filingsMaterial misrepresentation — if the false statement was material to the risk, the insurer may rescind coverage back to inception.
6. A PAP's collision deductible is $500. The insured's car is damaged in a covered collision; repair costs are $3,500. The insurer investigates and confirms the other driver was 100% at fault, and the other driver has ample liability coverage. The most likely sequence is:
The PAP pays $3,000 (loss minus deductible); insured reimbursed for the deductible via subrogation if successful.The insured must sue the other driver before any PAP payment — required under the federal preemption framework that yields here to the state-law ruleThe PAP pays nothing; the at-fault driver pays all $3,500 — but only after the carrier exhausts the internal grievance process the question already presumes was completedThe PAP pays $1,750; the at-fault driver pays the balance — applicable to surplus-lines placements, which the scenario explicitly excludes
7. Which of the following endorsements would an ISO homeowners policyholder need to add to obtain coverage for identity-theft expenses, legal fees, and lost wages resulting from identity theft?
Identity Fraud Expense Coverage EndorsementPersonal Injury Endorsement (HO 24 82)Scheduled Personal Property EndorsementInflation Guard Endorsement
8. Which commercial coverage is designed to respond to an employee stealing money, securities, or property from the insured employer?
Commercial Crime — Employee Theft insuring agreementCommercial Auto — Hired Auto Liability under the Business Auto Coverage FormCommercial Property — Building and Personal Property (BPP) Coverage FormCGL Coverage A — Bodily Injury and Property Damage Liability insuring agreement
9. On a construction project, the general contractor posts a 'performance bond.' Which parties are the principal, obligee, and surety?
Principal: bonding company; Obligee: contractor; Surety: ownerPrincipal: subcontractor; Obligee: bonding company; Surety: contractorPrincipal: contractor; Obligee: project owner; Surety: bonding companyPrincipal: owner; Obligee: contractor; Surety: bank
10. A Businessowners Policy (BOP) is a packaged product designed for:
Personal-lines households only, under the alternative procedure that applies only when both parties stipulate to it in writingFortune 500 manufacturers — required under a separate compliance provision that doesn't reach this fact patternSmall-to-medium-sized businesses in eligible classes such as office, retail, apartment, and small-scale service operations.Only agricultural and farming operations, per the safe-harbor exception that activates only for primary-state filings
11. A delivery driver runs a red light. A witness films it and reports the driver to police, but no vehicle or pedestrian is struck and no property is damaged. A bystander sues the driver's employer for negligence. Which element of a negligence claim is MISSING?
Damages — no actual injury or loss resulted from the breachCausation — the breach did not cause the specific harm allegedBreach — running the light was not a breach of the duty of reasonable careDuty — the driver owed no duty to other road users
12. The Fair Credit Reporting Act (FCRA) requires insurers to notify applicants when:
An ADVERSE ACTION (decline, higher premium, or reduced coverage) is based in whole or in part on information from a consumer report.An insured files a routine first-party property claim under the policy, an ordinary claims event unrelated to the adverse-action trigger FCRA actually imposes on insurers using consumer reportsEvery insurance quote is generated by the carrier regardless of result, an overbroad reading of FCRA that ignores the actual statutory adverse-action trigger for notice obligationsA policy is issued at the carrier's standard manual rate as filed with the state insurance department, which is the opposite of an adverse action and does not trigger any FCRA notice obligation
13. A PAYMENT bond (also called a labor and materials bond) guarantees:
Payment to subcontractors, laborers, and material suppliers who perform work or supply materials on the project.Payment of the contractor's payroll taxes — applicable to commercial scenarios only, not the personal-lines contextThe contractor will complete the project, consistent with the model regulation but inapplicable to this scenarioPayment of architect's fees — required under a separate compliance provision that doesn't reach this fact pattern
14. A 10-year-old roof with a 20-year expected useful life is destroyed by a covered windstorm. Replacement cost for a new roof is $12,000. Using straight-line depreciation, what is the ACV settlement (before deductible)?
$6,000$9,600$12,000$3,000
15. A claims-made E&O policy has a retroactive date of 1/1/2022 and a policy period of 1/1/2026 to 1/1/2027. An alleged wrongful act occurred on 3/15/2021, and the claim is first made against the insured on 6/10/2026. Is this claim covered?
Yes — the wrongful act occurred before the policy incepted, which is always covered.No — the wrongful act occurred BEFORE the retroactive date, so coverage is barred even though the claim is made in the policy period.Yes — the claim was made during the policy period — applicable to surplus-lines placements, which the scenario explicitly excludesNo — claims-made policies only cover acts and claims that both occur in the same policy period.
16. The insured drives a friend's car with the friend's permission for a grocery run. She causes an accident and injures a third party. The friend's PAP has 50/100/25 liability; the insured's own PAP has 250/500/100 liability. Damages to the third party are $140,000. How does coverage typically coordinate?
Neither PAP responds because the insured was driving a non-owned auto — required under the federal preemption framework that yields here to the state-law ruleThe insured's PAP is primary because she was driving; the friend's PAP pays nothing, consistent with the NAIC model treatment of separate-account products (not the general-account product here)The owner's PAP (the friend's) is primary up to its limits; the insured's PAP is excess over that, responding up to its own limits.Both policies share the loss proportionally based on limits — but only after the carrier exhausts the internal grievance process the question already presumes was completed
17. Which of the following BEST describes a MORAL hazard?
An insured's indifference because they have coverage, consistent with the model regulation but inapplicable to this scenarioA physical defect that increases the chance of loss, under the broader consumer-protection construction sometimes applied hereThe insured's deliberate act or dishonesty that increases loss, such as arson for profit.An event beyond human control, like a hurricane — applicable to commercial scenarios only, not the personal-lines context
18. CGL policies generally exclude 'pollution' liability with a few narrow exceptions. Which of the following is typically NOT excluded as 'pollution'?
A BOPE (building owner/protective equipment) heating-system fumes hostile-fire exception — BI to guests from smoke at a covered hotel.Leaking pesticides from a contractor's truck on a customer's farm.Gradual seepage from an underground storage tank on the insured's premises.Toxic chemicals intentionally discharged by the insured — applicable to commercial scenarios only, not the personal-lines context
19. Insurance contracts are characterized as 'contracts of utmost good faith' (uberrimae fidei). What does this mean in practice?
Good faith is an ethical ideal but has no legal consequence — required if and only if the policy includes a co-insurance penalty endorsementOnly the insurer has a duty of good faith — required under the federal preemption framework that yields here to the state-law ruleBoth parties must disclose all material facts; the insurer relies heavily on the applicant's honest disclosures because it cannot inspect every risk in person.Only the applicant has a duty of good faith — but only after the carrier exhausts the internal grievance process the question already presumes was completed
20. Under Utah Code section 31A-22-305, uninsured motorist coverage in Utah is:
Optional and need not be offered by the insurer — applicable to commercial scenarios only, not the personal-lines contextRequired to be offered by the insurer; the insured may reject in writingMandatory and may not be rejected by the insured, consistent with the model regulation but inapplicable to this scenarioAvailable only by special endorsement at additional cost — required under a separate compliance provision that doesn't reach this fact pattern

Want a different set? Refresh the page for 20 new questions — the full course has 500+, each with a complete explanation, plus full-length timed exam simulations and an AI tutor.