Utah Personal Lines Insurance License Exam — All Questions
5 questions
How does Utah generally handle liability for auto accidents?
- a.It is a pure at-fault (tort) state with no PIP
- b.It is a no-fault state - each driver's own Personal Injury Protection (PIP) pays certain expenses regardless of fault✓
- c.Fault is never considered; claims are split evenly
- d.Only a state fund pays auto claims
Utah is a no-fault state: a driver's own Personal Injury Protection (PIP) pays certain medical and related expenses regardless of who caused the crash, and the right to sue is limited unless injuries meet a statutory threshold. Source: Utah Code section 31A-22-302 and the Utah DMV insurance requirements. Verify current thresholds with the Utah Insurance Department (https://insurance.utah.gov).
What must a Utah personal auto policy include, in addition to bodily injury and property damage liability, because of Utah's no-fault system?
- a.Nothing extra - liability coverage alone satisfies Utah law
- b.Collision coverage on every vehicle
- c.Personal Injury Protection (PIP / no-fault) coverage✓
- d.Flood coverage
Because Utah is a no-fault state, a compliant personal auto policy must include Personal Injury Protection (PIP), also called no-fault coverage, on top of bodily injury and property damage liability. PIP pays first-party medical and related expenses regardless of fault. Source: Utah DMV insurance requirements; Utah Code section 31A-22-302.
A producer wants to quote the exact minimum liability limits and minimum PIP benefit required in Utah. What is the best practice?
- a.Assume they are the same as the neighboring state
- b.Use whatever limits the insurer prefers
- c.Tell the client Utah has no minimums
- d.Look up the current statutory minimums and confirm them with the Utah Insurance Department before advising✓
Utah sets statutory minimum liability limits and a minimum PIP benefit, but the exact dollar figures can change and should never be quoted from memory. The correct practice is to verify the current minimums with the Utah Insurance Department (https://insurance.utah.gov) or the Utah Code (Title 31A) before advising a client.
How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Utah?
- a.Insurers may cancel any policy at any time without notice
- b.Policies can never be cancelled once issued
- c.Only the insured may cancel; the insurer never can
- d.State law limits the permissible reasons and requires advance written notice of cancellation or nonrenewal✓
Utah law limits the reasons an insurer may cancel a personal auto or homeowners policy mid-term and requires advance written notice of cancellation or nonrenewal. The exact number of days depends on the reason and line - verify current Utah notice periods with the Utah Insurance Department (https://insurance.utah.gov).
Which best describes the body that writes and enforces Utah's insurance regulations affecting personal lines policies?
- a.The Utah Insurance Department, under the Commissioner✓
- b.A private trade association of insurers
- c.The U.S. Department of the Treasury
- d.County insurance boards
The Utah Insurance Department, headed by the Commissioner, adopts and enforces the administrative rules and market-conduct standards that apply to personal lines insurers and producers in Utah under Title 31A. Source: Utah Insurance Department (https://insurance.utah.gov).