Utah Adjuster Practice Test: Utah law, Part 2

Correct answer: C. Repair or replace items for a reasonably uniform look

For policies that settle first-party losses at replacement cost, R590-190-13(1)(a)(ii) requires that, when repaired or replaced items do not match in color, texture or size, the insurer repair or replace items so the interior or exterior has a reasonably uniform appearance. The insured is responsible only for the applicable deductible. Actual cash value settlement applies to policies written on an actual cash value basis.

Reference: Utah Admin. Code R590-190-13(1)

Correct answer: A. Advise her that it insures both drivers once it learns this

When an auto insurer represents both the tortfeasor and the claimant, R590-190-9(19) makes it unfair to fail to tell the claimant, as soon as the insurer learns it, that the same company represents both. It is also unfair to allocate medical payments to the tortfeasor's liability coverage before exhausting the claimant's personal injury protection, so her PIP pays first. The rule does not require one adjuster for both claims.

Reference: Utah Admin. Code R590-190-9(19)

Correct answer: C. 30 days

Section 31A-22-323(1) requires a policy-limit demand in a third-party auto liability claim to include enough information to evaluate the claim, such as medical records and bills, and to give the insurer no less than 30 days to accept or reject it. If the insurer declines and the claimant writes directly to an unrepresented insured, suit generally must wait 45 days, and the insurer must tell the insured within 30 days whether it will defend and indemnify.

Reference: Utah Code 31A-22-323(1) to (3)

Correct answer: C. May not accept it, and may not share in the repairs either

Section 31A-26-312 bars independent and public adjusters from participating directly or indirectly in repairing property on a claim they adjust, from having a financial interest in or benefiting from a repair, salvage or construction firm that gets business from the claim, and from accepting any fee or consideration for referring an insured to a third party, including a contractor. Violations are subject to penalties under 31A-2-308.

Reference: Utah Code 31A-26-312(1) and (3)

Correct answer: B. May not represent both the insurer and the insured

Section 31A-26-304 allows a person to hold independent and public adjuster licenses at the same time, but the person may not represent both the insurer and the insured in the same transaction. Since May 6, 2026, 31A-26-405 also bars a public adjuster from acting as a company or independent adjuster on the same claim. Consent and disclosure do not cure the conflict.

Reference: Utah Code 31A-26-304 and 31A-26-405(13)

Correct answer: B. It is valid, and the $250 comes back within 15 business days

Section 31A-26-311 lets an insured rescind a public adjuster contract by delivering written notice within 10 days of entering into it, unless the adjuster has already effected an acceptable settlement; June 9 is within 10 days of June 3. Under 31A-26-401(2)(b), effective May 6, 2026, the adjuster must return anything of value received under the contract within 15 business days. The deposit was improper anyway under 31A-26-402(6)(d).

Reference: Utah Code 31A-26-311, 31A-26-401(2) and 31A-26-402(6)(d)

Correct answer: C. $16,000

Since May 6, 2026, 31A-26-402(6)(c) caps what a public adjuster may charge or accept, as compensation or reimbursement, at 10% of a catastrophic claim settlement and 20% of a non-catastrophic settlement. A single kitchen fire is non-catastrophic, so the cap is 20% x $80,000 = $16,000. The $8,000 answer applies the catastrophic cap, and $12,000 reflects the 15% figure in the Department's original proposal, not the enacted law.

Reference: Utah Code 31A-26-402(6)(c) (as amended by 2026 General Session, Chapter 45)

Correct answer: D. Reasonable compensation for time spent and expenses only

Section 31A-26-402(4) bars a percentage fee on a claim where the insurer, within 72 hours after the loss is reported, pays or commits in writing to pay the policy limit. The public adjuster is instead entitled to reasonable compensation from the insured based on time spent and expenses incurred until the claim is paid or the commitment is received. The 10% and 20% caps apply only where a percentage fee is allowed.

Reference: Utah Code 31A-26-402(4) and (6)

Correct answer: D. $30,000 / $65,000 / $25,000

Section 31A-22-304(2) raised the minimums for policies issued or renewed on or after January 1, 2025, to $30,000 per person and $65,000 per accident for bodily injury and $25,000 for property damage, or a $90,000 single limit. The older 25/65/15 limits, or an $80,000 single limit, applied to policies issued or renewed through December 31, 2024, and still apply to self-insured private rental fleets.

Reference: Utah Code 31A-22-304(1) to (3)

Correct answer: B. $221.00

Section 31A-22-307(1)(b)(i) pays the lesser of $250 per week or 85% of lost gross income, for up to 52 consecutive weeks. Here 85% x $260 = $221, which is less than $250, so $221 is owed. Because the disability lasts longer than two weeks, the first three days are also payable. The $173.33 figure uses two-thirds of wages, a workers' compensation style formula, not the PIP rule.

Reference: Utah Code 31A-22-307(1)(b)(i)

Correct answer: C. She suffered a broken wrist in the accident

Section 31A-22-309(1)(a) bars a suit for general damages by a person with PIP coverage unless the injury involves death, dismemberment, permanent disability or impairment based on objective findings, permanent disfigurement, a bone fracture, or medical expenses over $3,000. A broken wrist is a fracture, so the threshold is met. Medical bills of $2,800, lost work time and a citation do not by themselves meet it.

Reference: Utah Code 31A-22-309(1)(a)

Correct answer: C. $60

Under 31A-22-309(5), PIP benefits are overdue if not paid within 30 days after the insurer receives reasonable proof of the expenses, and overdue amounts bear interest at 1-1/2% per month. Two months late: $2,000 x 1.5% x 2 = $60. The claimant may also sue for the benefits plus interest, and an insurer required in that action to pay overdue benefits must also pay a reasonable attorney fee.

Reference: Utah Code 31A-22-309(5)

Correct answer: B. As uninsured, since the dispute has lasted over 60 days

Section 31A-22-305(2)(c) includes in the definition of uninsured motor vehicle one covered by a liability policy whose insurer has disputed coverage for the accident for more than 60 days. The definition also covers vehicles with no liability coverage, vehicles insured below Utah's minimum limits (to the extent of the shortfall), hit-and-run vehicles and vehicles whose insurer is declared insolvent, to the extent a guaranty fund does not pay.

Reference: Utah Code 31A-22-305(2)

Correct answer: D. Up to $300,000 of the covered claim

Section 31A-28-207(1)(b) limits the association's obligation on each covered claim to the amount under $300,000, so she recovers no more than that from the association. The $10,000 figure is the per-policy maximum for personal lines unearned premium claims, which are covered only above $100. Workers' compensation claims are the exception to the cap and are paid in full.

Reference: Utah Code 31A-28-207(1)(b) to (d)

Correct answer: A. 18 days

Section 34A-2-408 withholds compensation for the first three days after the injury, but if temporary total disability lasts more than 14 days, those first three days are also paid. An 18-day disability passes the 14-day mark, so all 18 days are compensated. Medical, hospital, medicine and funeral benefits are payable from the first day regardless of the waiting period.

Reference: Utah Code 34A-2-408