Utah Property & Casualty Insurance Practice Exam Free - 2026

• A. Not allowed; UM may not be sold below the § 31A-22-304 minimum bodily injury limits, though she may select lower limits than her liability limits on the insurer's filed acknowledgment form or reject UM entirely in writing
• B. Allowed; any UM limit the insured chooses is valid if the premium is disclosed
• C. Not allowed; UM limits must always equal the liability limits and cannot be rejected
• D. Allowed only if the insurer files the lower limits with the department

Correct answer: A. Not allowed; UM may not be sold below the § 31A-22-304 minimum bodily injury limits, though she may select lower limits than her liability limits on the insurer's filed acknowledgment form or reject UM entirely in writing

Explanation: Utah Code § 31A-22-305 provides that uninsured motorist coverage may not be sold with limits less than the minimum bodily injury limits under § 31A-22-304; for policies written after January 1, 2001 the UM limits equal the lesser of the liability limits or the insurer's maximum unless the named insured selects lower limits on an acknowledgment form filed with the department that discloses the added premium, and the insured may reject UM entirely by written notice on the insurer's explanatory form; a selection or rejection continues until changed in writing. Options B and D ignore the statutory floor, and option C ignores both the lower-limit selection and the rejection right. See Utah Code § 31A-22-305.

• A. $25,000 per person / $50,000 per accident
• B. $10,000 per person / $20,000 per accident
• C. $30,000 per person / $65,000 per accident
• D. $15,000 per person / $30,000 per accident

Correct answer: B. $10,000 per person / $20,000 per accident

Explanation: Utah Code § 31A-22-305.3 provides that underinsured motorist coverage equals the lesser of the liability limits or the insurer's maximum unless the named insured rejects or reduces it on an acknowledgment form filed with the department, and that UIM may not be sold with limits less than $10,000 for one person and $20,000 for two or more persons in one accident. The $30,000/$65,000 figures are the liability and UM floor under §§ 31A-22-304 and -305, not the UIM floor, and $25,000/$50,000 and $15,000/$30,000 are not Utah figures. See Utah Code § 31A-22-305.3.

• A. 30 days after mailing
• B. 20 days after mailing
• C. 10 days after delivery or first-class mailing of the notice
• D. 45 days after mailing

Correct answer: C. 10 days after delivery or first-class mailing of the notice

Explanation: Utah Code § 31A-21-303 provides that cancellation for nonpayment of premium of a personal lines policy is effective no sooner than 10 days after delivery or first-class mailing of a written notice, while cancellation on the other permitted grounds (material misrepresentation, substantial change in risk, breach of duties, terminal age, driver's license suspension for auto) requires at least 30 days. Twenty and 45 days are not Utah periods, and 30 days applies to grounds other than nonpayment. See Utah Code § 31A-21-303.

• A. Permitted; an insurer may nonrenew for any claim
• B. Permitted, because the driver is under 40
• C. Permitted with 45 days' notice stating the reason
• D. Not permitted; a single not-at-fault accident claim by a driver 21 or older within a 36-month period may not be the sole basis for nonrenewal

Correct answer: D. Not permitted; a single not-at-fault accident claim by a driver 21 or older within a 36-month period may not be the sole basis for nonrenewal

Explanation: Utah Code § 31A-21-303(5) bars an insurer from refusing to renew a personal lines motor vehicle policy solely because of a claim from an accident in which the insured was not at fault where the driver is 21 or older and it is the only such claim within a 36-month period, a single speeding violation of not more than 10 miles per hour over the limit within 36 months, or a single wind, hail, lightning or earthquake claim within 36 months. Options A and B contradict the statute, and option C's 45-day notice is not a Utah figure and cannot cure a prohibited basis. See Utah Code § 31A-21-303.

• A. The identity of a life insurance beneficiary
• B. A workers compensation class code only
• C. The amount of loss
• D. Whether the insured is old enough for health insurance

Correct answer: C. The amount of loss

Explanation: An appraisal condition is commonly used when the insurer and insured disagree about the amount of a covered property loss, not whether coverage exists.

• A. Automatic application of any coverage restrictions the insurer adopts during the policy period without notice
• B. The insured's right to request broadened coverage by endorsement upon payment of additional premium
• C. A refund of unearned premium when the insurer's newly filed forms would have cost the insured less
• D. Automatic application of certain coverage broadening changes without additional premium for a specified period

Correct answer: D. Automatic application of certain coverage broadening changes without additional premium for a specified period

Explanation: A liberalization condition can automatically extend certain broadened coverage changes to existing policies when conditions in the policy are met.

• A. The insured intentionally misrepresents or conceals material facts
• B. The insured innocently misstates an immaterial detail on the application
• C. The producer withholds a material fact that is known to the insurer
• D. The insured files a claim for a loss that later turns out not to be covered

Correct answer: A. The insured intentionally misrepresents or conceals material facts

Explanation: Concealment, misrepresentation, or fraud involving material facts can affect coverage rights under policy conditions and applicable law.

• A. The percentage of each covered loss the insured shares with the insurer
• B. The amount the insured must absorb before the policy pays a covered loss
• C. The minimum amount of insurance the insured must carry to avoid penalty
• D. The most the insurer will pay for any one covered loss during the term

Correct answer: B. The amount the insured must absorb before the policy pays a covered loss

Explanation: A deductible is the portion of a covered loss the insured is responsible for before insurance payment applies, subject to policy terms.

• A. Wind damage during a covered storm
• B. Fire from lightning
• C. Normal wear and tear
• D. Smoke damage from a covered fire

Correct answer: C. Normal wear and tear

Explanation: Normal wear and tear, deterioration, and maintenance-related problems are commonly excluded because insurance is intended for fortuitous losses, not ordinary upkeep.

• A. Destroy damaged property before inspection in every case
• B. Admit liability to every claimant immediately
• C. Refuse to cooperate with the insurer
• D. Give prompt notice of the loss to the insurer

Correct answer: D. Give prompt notice of the loss to the insurer

Explanation: Policies commonly require the insured to provide prompt notice, protect property from further damage, cooperate with the insurer, and submit requested documentation.

• A. How coverage applies when more than one policy may cover the same loss
• B. Which of two policies must be cancelled when both cover the same property
• C. How the insurer recovers from a negligent third party after paying a claim
• D. How a loss is split when two insureds share ownership of the same property

Correct answer: A. How coverage applies when more than one policy may cover the same loss

Explanation: Other insurance provisions explain how a loss is shared or coordinated when multiple policies may apply to the same covered claim.

• A. An insured names two beneficiaries
• B. Only part of a matched pair or set is damaged
• C. Two auto policies renew on the same date
• D. An employee has two jobs

Correct answer: B. Only part of a matched pair or set is damaged

Explanation: A pair or set condition addresses how payment is handled when only part of a matched pair or set is damaged, subject to policy wording.