UTAH LIFE AND HEALTH INSURANCE PRACTICE EXAM
QUESTIONS AND CORRECT ANSWERS
Question 1
A waiver of premium rider allows an insured to waive premium payments if the insured is
Correct Answer
completely and permanently disabled
Question 2
An insurer who is domiciled outside of Utah, but within the United States is referred to as a(n) ______ insurer in Utah.
Correct Answer
foreign
Question 3
Which of the following types of employee welfare plans is specifically exempt from regulation under ERISA?
Correct Answer
Church plans
Page 1 of 210
,Question 4
An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all
insurers and their producers need to comply with?
Correct Answer
Fair Credit Reporting Act
Question 5
Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so.
Under the McCarran-Ferguson Act, what is the maximum penalty for this?
Correct Answer
$10,000
Question 6
At what point may a producer sell insurance for an insurer?
Correct Answer
After being properly appointed by the insurer
Question 7
A pharmacy benefit covers prescription drugs derived from a list called a(n)
Correct Answer
drug formulary
Page 2 of 210
,Question 8
A 70-year old insured individual has suffered from kidney failure for the past 24 months. She is covered by her spouse's
large-group employer plan. How will Medicare be utilized in this situation?
Correct Answer
Will be the secondary insurer and pay for claims not fully covered by the group plan
Question 9
Which of these characteristics of an applicant is NOT taken into consideration when assessing risk for Disability coverage?
Correct Answer
number of children
Question 10
In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each
employee pays 40% of the premium. Any income benefits paid are taxed to the employee at
Correct Answer
60% of the benefit
Question 11
Which of these is NOT a qualifying event for Medicare?
Correct Answer
Falling below the federal poverty level
Page 3 of 210
, Question 12
The type of multiple protection coverage that pays on the death of the last person is called a(n)
Correct Answer
survivorship life policy
Question 13
How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company?
Correct Answer
With a usual, customary, and reasonable fee
Question 14
An example of a presumptive disability would be
Correct Answer
deafness
Question 15
An example of risk sharing would be
Correct Answer
Doctors pooling their money to cover malpractice exposures
Page 4 of 210
QUESTIONS AND CORRECT ANSWERS
Question 1
A waiver of premium rider allows an insured to waive premium payments if the insured is
Correct Answer
completely and permanently disabled
Question 2
An insurer who is domiciled outside of Utah, but within the United States is referred to as a(n) ______ insurer in Utah.
Correct Answer
foreign
Question 3
Which of the following types of employee welfare plans is specifically exempt from regulation under ERISA?
Correct Answer
Church plans
Page 1 of 210
,Question 4
An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all
insurers and their producers need to comply with?
Correct Answer
Fair Credit Reporting Act
Question 5
Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so.
Under the McCarran-Ferguson Act, what is the maximum penalty for this?
Correct Answer
$10,000
Question 6
At what point may a producer sell insurance for an insurer?
Correct Answer
After being properly appointed by the insurer
Question 7
A pharmacy benefit covers prescription drugs derived from a list called a(n)
Correct Answer
drug formulary
Page 2 of 210
,Question 8
A 70-year old insured individual has suffered from kidney failure for the past 24 months. She is covered by her spouse's
large-group employer plan. How will Medicare be utilized in this situation?
Correct Answer
Will be the secondary insurer and pay for claims not fully covered by the group plan
Question 9
Which of these characteristics of an applicant is NOT taken into consideration when assessing risk for Disability coverage?
Correct Answer
number of children
Question 10
In an employer-sponsored contributory group Disability Income plan, the employer pays 60% of the premium and each
employee pays 40% of the premium. Any income benefits paid are taxed to the employee at
Correct Answer
60% of the benefit
Question 11
Which of these is NOT a qualifying event for Medicare?
Correct Answer
Falling below the federal poverty level
Page 3 of 210
, Question 12
The type of multiple protection coverage that pays on the death of the last person is called a(n)
Correct Answer
survivorship life policy
Question 13
How is a health provider reimbursed if they do NOT have an agreement in place with the insurance company?
Correct Answer
With a usual, customary, and reasonable fee
Question 14
An example of a presumptive disability would be
Correct Answer
deafness
Question 15
An example of risk sharing would be
Correct Answer
Doctors pooling their money to cover malpractice exposures
Page 4 of 210
