Utah Life & Health Test Study Guide

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? A. 3 days B. 5 days C. 10 days D. 14 days.

A. 3 days

Which of the following is NOT a duty of the Commissioner? A. Regulate insurance rates B. Develop insurance rates C. License insurance companies and producers D. Enforce the Insurance Code

B. Develop insurance rates

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? A. Adverse selection B. Discrimination C. Law of large numbers D. Misrepresentation

B. Discrimination

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of... A. Rebating. B. Misrepresentation. C. Concealment. D. Unfair claim practice.

B. Misrepresentation.

A producer committed a violated the insurance code. The act she committed was so uncommon that no specific penalty is attached to it. In this case, what is the maximum fine that could be leveled? A. $25,000 B. $3,000 C. $5,000 D. $10,000

C. $5,000

The Commissioner last examined an insurance company in 2013. When is the next date by which the Commissioner must examine the same company? A. 2015 B. 2016 C. 2018 D. 2020

C. 2018

For how many years must an insurance producer be licensed prior to adding surplus lines to their repertoire? A. 2 years B. 1 year C. 3 years D. 4 years

C. 3 years

Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing? A. 25% B. 50% C. 80% D. 100%

D. 100%

Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing? A. 25% B. 50% C. 80% D. 100%

D. 100%

How many hours of continuing education per licensing period must all licensees complete in order to renew their licenses? A. 8 hours B .10 hours C. 12 hours D. 24 hours

D. 24 hours

Which of the following would NOT be considered an unfair and deceptive practice? A. Rebating B. Defamation C. Misrepresentation D. Controlled business

D. Controlled business

All admitted insurance companies in this state are subject to fiscal examinations by the Commissioner... A. Biennially. B. Every 3 years. C. At least every 5 years. D. Once a year.

C. At least every 5 years.

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? A. Conditional receipt B. Disclosure rule C. Fair Credit Reporting Act D. Consumer Privacy Act

C. Fair Credit Reporting Act

In a circumstance that would warrant license suspension, the Commissioner may instead decide to put the license on probation. What is the maximum number of months that the probation could last? A. 6 B. 12 C. 18 D. 24

D. 24

When handling premium funds in the conduct of their business, insurance producers act in a(n)... A. Accounting capacity. B. Financial capacity. C. Special capacity. D. Fiduciary capacity.

D. Fiduciary capacity.

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of? A. Coercion. B. Twisting. C. Controlled business. D. Rebating.

D. Rebating.

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? A. They provide additional information from an outside source about a particular risk. B. They provide information about a customer's character and reputation. C. The customer has no knowledge of this action. D. The customer's associates, friends, and neighbors provide the report's data.

D. The customer's associates, friends, and neighbors provide the report's data.

All of the following are true regarding rebates EXCEPT? A. Rebates are allowed if it's in the best interest of the client. B. Rebates are only allowed if specifically stated in the policy. C. Rebating can be anything of economic value, given as an inducement to buy. D. Dividends are not considered to be rebates.

A. Rebates are allowed if it's in the best interest of the client.