Free Utah Life practice questions

Answer: D. The applicant's personal history, experience and education

Under Utah Code Ann. Sec. 31A-23a-104(2), an individual seeking an initial or renewal license files an application on the forms the commissioner prescribes, and Subsection (2)(b) requires that application to supply, among other things, the applicant's personal history, experience, education and business record. The federal employer identification number, the designated responsible licensed individual, and the identity of owners, partners, officers and directors are items that Subsection (5)(b) requires on an agency license application, not on an individual's.

Answer: B. Within 30 days

Utah requires a licensee who changes an address to notify the commissioner within 30 days of the change, and the same duty covers a registered telephone number and business email address. The statute sets 30 days, so both 10 days and 60 days misstate the deadline. Waiting for the next renewal is wrong because the deadline runs from the change itself, not from the renewal cycle.

Answer: C. No, because the three years must be as a producer holding property or casualty lines.

Sec. 31A-23a-203(1) makes a producer eligible for surplus lines only if, among other conditions, she has passed the surplus lines producer examination and has been a producer with property or casualty lines of authority, or both, for at least three of the four years immediately before applying. Her five years were spent with life and accident and health lines only, so they do not supply that experience. Passing the examination is a separate requirement listed alongside the experience, not a replacement for it. The statute asks for three years within the preceding four, not ten.

Answer: C. Reinstatement is barred, because the license period of the surrender has ended

Utah Code Ann. Sec. 31A-23a-111(2) lets a voluntarily surrendered license be reinstated within one year after it is no longer in force, but Subsection (2)(b) adds that a surrendered license may not be reinstated after the license period in which it was surrendered. Her request falls within one year of March 1, yet her license period ended June 30, so the one-year window alone does not save it. Two years is not a period the provision uses, and the provision does limit when a surrendered license may come back.

Answer: B. The order must state the scope of the examination and designate the examiner in charge

Utah Code 31A-2-204(2)(a) requires the commissioner to issue an order for each examination that states its scope and names the examiner in charge, and the examiner in charge gives the examinee a copy. The commissioner need not give the examinee advance notice of an examination, so no 30-day notice period applies. Statements of scope in the order are guidance for the examiner only, and examining relevant matters the order does not mention is not a violation of the title. The commissioner may also alter the scope or nature of the examination at any time without advance notice, providing the examinee a copy of any amended order, so the insurer's consent is not required.

Answer: B. $250,000 per claim and $500,000 annual aggregate

Rule R590-244-5(3)(b) requires an individual licensed as a resident producer to carry legal liability errors and omissions coverage of at least $250,000 per claim and a $500,000 annual aggregate. The $100,000 and $300,000 pairing falls below both minimums. The $500,000 and $1,000,000 pairing is more coverage than the rule demands, so it describes a choice a producer could make rather than the required minimum. An aggregate equal to the per-claim amount understates the aggregate the rule sets.

Answer: A. Maintain a deposit equal to its required capital before it can receive a certificate of authority

Utah Code 31A-4-105 requires domestic insurers organized or operating under the domestic stock and mutual, nonprofit health service, or fraternal chapters to maintain a deposit equal to the insurer's required capital for a stock insurer, or its minimum permanent surplus for a mutual, and it bars the commissioner from issuing a certificate of authority until the insurer complies. The permanent surplus measure applies to mutuals rather than stock insurers, and the deposit is a condition of receiving the certificate rather than something due afterward. Domestic insurers are covered by this section, so the deposit requirement is not limited to foreign insurers. The section measures the deposit by capital or surplus, not by projected premium.

Answer: A. That substantial adherence is insufficient and loosening the wording would defeat its purpose

Utah Code Ann. Sec. 31A-21-203(2) lets a rule creating an authorized clause call for verbatim or substantial adherence to prescribed language, set standards or criteria, or require drafting principles, and it may allow the prescribed language to be liberalized. Verbatim adherence carries an extra condition: the commissioner must first find that substantial adherence is not sufficient and that liberalizing the prescribed language would frustrate the purposes of prescribing it. The section does not make that condition turn on how many insurers already use the wording, on legislative approval of the text, or on an advance notice period.

Answer: C. Nothing in the application affects the insurer's obligations to the policyholder

Utah Code Ann. Sec. 31A-21-105(1)(c) lets a policyholder ask in writing for a copy of the application when the policy was reinstated or renewed without the original application attached. If the insurer fails to deliver or mail the copy within 30 days after it or its agent receives the request, the application drops out of the picture: nothing in it affects the insurer's obligations under the policy to the person who asked. An answer that leaves the insurer free to rely on the application contradicts that consequence. This subsection does not end coverage or give the policyholder a right to cancel and recover premiums; the remedy it states is that the application cannot be used against the requester.

Answer: C. Disclosing it prominently in writing before consulting, and urging appropriate scrutiny

Utah Code Ann. Sec. 31A-23a-401(1)(a)(ii) generally bars a consultant from recommending an insurer in which the consultant's spouse is an owner, executive or employee. Subsection (1)(b) lifts that bar only when three conditions are met. First, before performing the consulting services, the consultant prominently discloses the relationship to the client in writing, along with a statement that the recommendations should be given appropriate scrutiny. Second, the consulting fee is agreed in writing after that disclosure but before the work. Third, any report from the services includes a copy of the disclosure. An oral mention at the moment of recommendation fails both the writing and the timing requirements, a disclosure after the purchase comes too late, and the statute does not list the commissioner's approval among the conditions.