UTAH LIFE AND HEALTH INSURANCE Comprehensive Certification Practice Exam 300 Questions
with Verified Answers & Detailed Rationales Utah Insurance Department | Series 17-03 | Latest
2026 Edition
TABLE OF CONTENTS
| Section | Topic Area | Questions |
|---------|-----------|-----------|
| 1 | General Insurance Principles & Concepts | 1–35 |
| 2 | Life Insurance Policies & Provisions | 36–85 |
| 3 | Life Insurance Contractual Provisions & Options | 86–110 |
| 4 | Annuities & Retirement Planning | 111–135 |
| 5 | Health Insurance Fundamentals | 136–170 |
| 6 | Health Insurance Policy Provisions | 171–195 |
| 7 | Disability Income & Long-Term Care | 196–220 |
| 8 | Group Health & Medicare | 221–245 |
| 9 | Utah State-Specific Laws & Regulations | 246–280 |
| 10 | Ethics, Licensing & Professional Conduct | 281–300 |
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EXAM OVERVIEW
| Feature | Details |
|---------|---------|
| Exam Series | 17-03 (Producer's Life, Accident & Health) |
| Total Questions on Actual Exam | 150 multiple-choice questions |
,| Time Allotment | 2 hours 30 minutes |
| Passing Score | Approximately 70% (varies by administration) |
| Question Types | Knowledge-based and application-based |
| Primary Governing Body | Utah Insurance Department |
Exam Content Breakdown (Approximate):
| Category | Percentage |
|----------|------------|
| Life Insurance | ~40% |
| Health Insurance | ~40% |
| General Insurance Principles | ~10% |
| Utah State Regulations | ~10% |
---
SECTION 1: GENERAL INSURANCE PRINCIPLES & CONCEPTS
Questions 1–35
---
Question 1
Which of the following best describes pure risk?
A) A chance of loss or gain
,B) A chance of loss or no loss, but no chance of gain
C) A chance of gain only
D) A speculative investment with uncertain outcome
Correct Answer: B
Rationale: Pure risk is the only type of risk that is insurable. It involves either a loss or no loss at
all, with no possibility of gain. Speculative risk, such as gambling or investing, involves a chance
of gain and is NOT insurable.
---
Question 2
What type of hazard is indicated when an applicant knowingly lies on an insurance application?
A) Physical hazard
B) Moral hazard
C) Morale hazard
D) Legal hazard
Correct Answer: B
Rationale: A moral hazard involves dishonesty or character defects that increase the likelihood
or severity of a loss. Lying on an application is a classic example of moral hazard. Physical
hazards relate to tangible conditions; morale hazards involve carelessness or indifference.
---
, Question 3
Which of the following is NOT a requirement for a risk to be insurable?
A) The loss must be due to chance
B) The loss must be definite and measurable
C) The loss must be catastrophic in nature
D) The loss exposure must be part of a large group of similar risks
Correct Answer: C
Rationale: For a risk to be insurable, it must NOT be catastrophic to the insurer. The insurer
must be able to spread risk across many policies. Losses that are catastrophic (e.g., widespread
nuclear event) are typically excluded.
---
Question 4
An insurance company that is incorporated outside the United States is called a(n):
A) Domestic insurer
B) Foreign insurer
C) Alien insurer
D) Non-admitted insurer
Correct Answer: C
with Verified Answers & Detailed Rationales Utah Insurance Department | Series 17-03 | Latest
2026 Edition
TABLE OF CONTENTS
| Section | Topic Area | Questions |
|---------|-----------|-----------|
| 1 | General Insurance Principles & Concepts | 1–35 |
| 2 | Life Insurance Policies & Provisions | 36–85 |
| 3 | Life Insurance Contractual Provisions & Options | 86–110 |
| 4 | Annuities & Retirement Planning | 111–135 |
| 5 | Health Insurance Fundamentals | 136–170 |
| 6 | Health Insurance Policy Provisions | 171–195 |
| 7 | Disability Income & Long-Term Care | 196–220 |
| 8 | Group Health & Medicare | 221–245 |
| 9 | Utah State-Specific Laws & Regulations | 246–280 |
| 10 | Ethics, Licensing & Professional Conduct | 281–300 |
---
EXAM OVERVIEW
| Feature | Details |
|---------|---------|
| Exam Series | 17-03 (Producer's Life, Accident & Health) |
| Total Questions on Actual Exam | 150 multiple-choice questions |
,| Time Allotment | 2 hours 30 minutes |
| Passing Score | Approximately 70% (varies by administration) |
| Question Types | Knowledge-based and application-based |
| Primary Governing Body | Utah Insurance Department |
Exam Content Breakdown (Approximate):
| Category | Percentage |
|----------|------------|
| Life Insurance | ~40% |
| Health Insurance | ~40% |
| General Insurance Principles | ~10% |
| Utah State Regulations | ~10% |
---
SECTION 1: GENERAL INSURANCE PRINCIPLES & CONCEPTS
Questions 1–35
---
Question 1
Which of the following best describes pure risk?
A) A chance of loss or gain
,B) A chance of loss or no loss, but no chance of gain
C) A chance of gain only
D) A speculative investment with uncertain outcome
Correct Answer: B
Rationale: Pure risk is the only type of risk that is insurable. It involves either a loss or no loss at
all, with no possibility of gain. Speculative risk, such as gambling or investing, involves a chance
of gain and is NOT insurable.
---
Question 2
What type of hazard is indicated when an applicant knowingly lies on an insurance application?
A) Physical hazard
B) Moral hazard
C) Morale hazard
D) Legal hazard
Correct Answer: B
Rationale: A moral hazard involves dishonesty or character defects that increase the likelihood
or severity of a loss. Lying on an application is a classic example of moral hazard. Physical
hazards relate to tangible conditions; morale hazards involve carelessness or indifference.
---
, Question 3
Which of the following is NOT a requirement for a risk to be insurable?
A) The loss must be due to chance
B) The loss must be definite and measurable
C) The loss must be catastrophic in nature
D) The loss exposure must be part of a large group of similar risks
Correct Answer: C
Rationale: For a risk to be insurable, it must NOT be catastrophic to the insurer. The insurer
must be able to spread risk across many policies. Losses that are catastrophic (e.g., widespread
nuclear event) are typically excluded.
---
Question 4
An insurance company that is incorporated outside the United States is called a(n):
A) Domestic insurer
B) Foreign insurer
C) Alien insurer
D) Non-admitted insurer
Correct Answer: C
