Utah Property and Casualty Law Supplement Part 1 Exam Questions With Correct Answers

The powers of the Insurance Commissioner include all of the following EXCEPT: A) making insurance laws. B) conducting hearings. C) conducting examinations of insurers and individuals. D) issuing certificates of authority and licenses. - Answer Answer: A The state legislature is responsible for making insurance laws. The Commissioner is responsible for enforcing them. In addition to any other forfeiture or penalty imposed, a person who violates an insurance rule or statute must: A) surrender her license to the Commissioner. B) pay twice the amount of any profits made from the violation. C) forfeit all profits made from the violation. D) spend up to one year in jail. - Answer Answer: B Anyone who violates an insurance statute, rule, or order issued by the Commissioner must pay the state twice the amount of any profit gained by the violation. An individual applicant for an insurance agent's license must be at least: A) 18 years of age. B) 21 years of age. C) 24 years of age. D) 25 years of age. - Answer Answer: A Applicants for producer licenses must prove to the Commissioner that they are at least 18 years old Which one of the following statements regarding the use of aftermarket parts in the repair of an insured vehicle is CORRECT? A) Aftermarket parts may only be used if they are less expensive than original parts. B) Aftermarket parts may be used only if original parts are not available. C) Use of aftermarket parts must be disclosed to an insured prior to making repairs. D) It is unlawful for an insurer to use aftermarket parts when repairing a vehicle. - Answer Answer: C An aftermarket crash part is a replacement for any of the nonmechanical sheet metal or plastic parts that generally constitute the exterior of a motor vehicle, including inner and outer panels. Any aftermarket crash part supplied by a nonoriginal equipment manufacturer for use in a motor vehicle must have the logo or name of the nonoriginal equipment manufacturer affixed or inscribed on it. The nonoriginal equipment manufacturer's logo or name must be visible after installation whenever practicable. How long does an insurer have to complete an investigation of claim after being notified by an insured? A) 60 days. B) 30 days. C) 15 days. D) 45 days. - Answer Answer: B Within 30 days after receiving notice of loss, the insurer must complete its investigation of the claim, unless the investigation cannot reasonably be completed within that time. Following revocation of a license, when can an application for a new license be made? A) After 10 years. B) Whenever so stated in the terms of revocation, not to exceed 5 years. C) At no time. D) After 2 years. - Answer Answer: B A licensee whose license has been revoked may not reapply until after a period, specified in the revocation order, not to exceed 5 years. An agent who offers a premium reduction to customers as an inducement to buy insurance is guilty of an attempted: A) rebating. B) discriminatory practice. C) fraud. D) misrepresentation. - Answer Answer: A Insurers, licensees, officers, or employees may not induce anyone to enter into an insurance contract or terminate an existing contract by offering benefits not specified in the policy (including premium or commission rebates) or by making any agreement not clearly expressed in the policy. This, however, does not prohibit insurers from reducing premiums for expense savings To maintain a license, an agent must complete how many hours of continuing education prior to the license expiration? A) 6 B) 30 C) 45 D) 12 - Answer Answer: D All licensees must complete 5 hours per line of authority (between 12 and 23 hours). If the Commissioner prohibits the use of a policy form, he may order that the insurer discontinue using the form: A) within 15 days. B) within 20 days. C) within 30 days. D) immediately upon receipt of the order. - Answer Answer: A The Commissioner may order that the use of a disapproved form be discontinued within 15 days. Disapproved forms may not be used until the appropriate changes have been made and approved by the Commissioner. An insurance license remains in force until all of the following occur EXCEPT: A) the licensee dies or is judged incompetent. B) the licensee sells his agency. C) revoked, suspended, limited, or lapsed. D) surrendered to and accepted by the Commissioner. - Answer Answer: B