Free Utah Life & Health practice questions

Answer: D. The insurer being examined, apart from a limited hardship exception

Utah Code 31A-2-205(1) requires an examinee that is an insurer (or a rate service organization, a subsidiary of either, or a life settlement provider) to pay the reasonable costs of an examination, except as provided in Subsection (7). That exception lets the department pay all or part of the costs when the commissioner finds they would place an unreasonable burden on the examinee and the department has sufficient funds, which is an exception rather than the general rule. The insurer's producers do not share the cost; under the same section an insurer pays to examine one of its producers when the insurer requested that examination. The NAIC does not pay; the section mentions its examination manual only as a source of recommended rates the commissioner considers.

Answer: C. The life insurance line of authority

Utah Code Ann. Sec. 31A-23a-106(2)(a)(ii) lists variable contracts, which include variable life and annuity, as a producer line of authority that is open only to a producer who also holds the life insurance line. Accident and health, casualty and property are separate producer lines in the same list, and the variable contracts line is conditioned on the life line, not on any of them.

Answer: B. She may request reinstatement within one year of the lapse and ask for a waiver of continuing education requirements.

Under Sec. 31A-23a-113(1)(c), a licensee whose license lapses may request reinstatement no more than one year after the day of the lapse. Where the lapse is due to military service, the licensee may make that request within the same one-year window and may also ask for a waiver of, among other things, an examination requirement and continuing education requirements imposed for failing to comply with renewal procedures. The statute sets a one-year limit and suspends nothing during the service, so reinstatement at any time is wrong. Two years is longer than the statute allows, and the examination is something the licensee may ask to have waived, not a precondition. Reapplying as a new applicant is unnecessary within the year, because the statute expressly provides for reinstatement.

Answer: C. March 31, 2028

Rule R590-244-9(3) ties a renewed individual license to the licensee's birth month: it expires on the last day of that month every two years unless renewed again. For a producer born in March, the renewed license runs to March 31, 2028. Counting two years from the February 10 renewal date confuses the renewal date with the birth month. February 29, 2028 applies the agency rule in subsection (5), which runs from the month of the most recent issue or renewal and does not govern an individual license. March 31, 2027 treats the license as annual, while the individual period is two years.

Answer: B. A good-faith intent to do the business the license would allow

Utah Code Ann. Sec. 31A-23a-107(1) requires an applicant to show the commissioner a good-faith intent to engage in the type of business the license would permit. The same section sets the minimum age for a natural person at 18, not 21, and it contains no requirement of prior sales experience or of prior licensure in another state.

Answer: A. It is written and signed by or under authority of the commissioner

Utah Code 31A-2-201(4)(a) directs the commissioner to issue prohibitory, mandatory and other orders needed to secure compliance with the insurance title, and provides that an order has no effect unless it is in writing and is signed by the commissioner or under the commissioner's authority. Confirmation by a court is not one of the conditions the provision sets for an order to take effect. Publication in a bulletin and acknowledgment by the producer are not among those conditions either; the two conditions the provision names are a writing and a signature.

Answer: D. The religion or national origin of the insured

Utah Code Ann. Sec. 31A-19a-202 lists what the commissioner weighs, within and outside Utah, in determining rates. The list includes loss experience, both past and prospective; catastrophe hazards; trends; loadings that level premium rates over time; a reasonable profit and contingency margin; dividends or savings returned to policyholders; and other relevant factors. Loss experience, catastrophe hazards, trends and a profit margin are therefore all on the list. The insured's religion or national origin is not a rating factor. The same section separately provides that risk classification may not be based on race, color, creed, national origin or religion.

Answer: B. Once the form is filed with the commissioner, and not before then

Utah Code Ann. Sec. 31A-21-201(1)(a) bars using, selling or offering a form for sale until it has been filed with the commissioner, and Subsection (2) makes the insurer responsible for the form's compliance with the title and the commissioner's rules. Filing is the trigger, so a form cannot be used first and filed afterward. Written approval before use is required only where the commissioner, after a hearing, imposes it by rule or order under Subsection (4), which the facts rule out. The section sets no 30-day waiting period after filing; instead Subsection (3) lets the commissioner prohibit a form at any time on the findings it lists.

Answer: A. 24 credit hours, with 3 of those hours in ethics courses

Sec. 31A-23a-202(1) directs the commissioner to prescribe continuing education for producers by rule, and subsection (3)(b)(i) sets the baseline: 24 credit hours every two-year licensing period, 3 of them ethics courses, with at least half completed through classroom hours. The 12-hour figure applies to an individual title insurance producer, not to a life and health producer. A requirement with no ethics component ignores the 3 required ethics hours, and 30 hours with 6 in ethics is not a figure the statute uses. The producer here was first licensed in 2020, so the exemption for licensees first licensed before December 31, 1988 does not apply.

Answer: C. The insured may enforce it against the insurer, but the insurer cannot enforce it

Utah Code 31A-15-105(1) makes an insurance contract entered into in violation of the unauthorized insurer chapter unenforceable by the insurer but enforceable against it, and in a suit against the insurer the insured is bound by the contract's terms as affected by the insurance title and its rules. So the contract is not void as to the insured, who may sue on it, and it is not enforceable by both sides because the insurer cannot enforce it. The section provides no commissioner approval that would let the insurer enforce the contract.