Utah Health Insurance Practice Exam Free - 2026

• A. 31 days
• B. 60 days
• C. 30 days
• D. 90 days

Correct answer: C. 30 days

Explanation: Utah Code § 31A-22-610 covers a newly born child from the moment of birth on the same basis as other dependents and, where a premium is required, requires the policyholder to enroll the child within 30 days after the date of birth (an adopted child within 30 days of placement), with no preexisting-condition exclusion. Thirty-one days is the group life conversion window in § 31A-22-517, 60 days is the mini-COBRA election period, and 90 days is the adoption-indemnity placement window. See Utah Code § 31A-22-610.

• A. Age 19, unless he is a full-time student
• B. Age 24
• C. Age 25
• D. His 26th birthday

Correct answer: D. His 26th birthday

Explanation: Utah Code § 31A-22-610.5 provides that an individual or group accident and health policy may not terminate coverage of an unmarried dependent by reason of age before the dependent's 26th birthday and must, on application, cover all unmarried dependents up to age 26, with the cost for ages 19 to 26 included in the premium on the same basis. Student status is irrelevant, so option A is wrong, and 24 and 25 are below the statutory age. See Utah Code § 31A-22-610.5.

• A. $4,000, subject to permitted cost-sharing adjustments
• B. $2,000
• C. $10,000
• D. None; adoption benefits are optional in Utah

Correct answer: A. $4,000, subject to permitted cost-sharing adjustments

Explanation: Utah Code § 31A-22-610.1 requires an insurer that offers maternity coverage to pay an adoption indemnity benefit of $4,000 (subject to the cost-sharing adjustments the statute permits) when an insured receives an adoptive placement within 90 days of the child's birth; the insurer may instead allow the amount to be applied to infertility treatment. The $2,000 and $10,000 figures are not in the statute, and option D is wrong because the benefit is mandatory for plans with maternity coverage. See Utah Code § 31A-22-610.1.

• A. 18 months
• B. 12 months
• C. 6 months
• D. 36 months

Correct answer: B. 12 months

Explanation: Utah Code § 31A-22-722 requires an employer's group policy to offer extension of an employee's coverage for 12 months after a qualifying event such as termination, provided the employee was continuously covered for the three months before; the employer must notify her by first-class mail within 30 days, she must elect within 60 days of losing coverage, and the premium may not exceed 102 percent of the group rate. Eighteen and 36 months are federal COBRA periods, and 6 months is not a Utah figure. See Utah Code § 31A-22-722.

• A. Contributions are taxable, but earnings and all withdrawals are tax free
• B. Contributions are deductible, earnings are taxable annually, and qualified withdrawals are tax free
• C. Contributions are deductible, earnings grow tax free, and distributions for qualified medical expenses are tax free
• D. Contributions are deductible, earnings grow tax free, and all withdrawals for any purpose are tax free

Correct answer: C. Contributions are deductible, earnings grow tax free, and distributions for qualified medical expenses are tax free

Explanation: HSA contributions are deductible even for taxpayers who do not itemize, earnings inside the account are not taxed, and distributions are tax free when used for qualified medical expenses. Option D overstates the benefit: withdrawals for nonmedical purposes are taxable and may carry an additional tax. See IRS Publication 969.

• A. It is included in his gross income, but no 20% additional tax applies because he is over age 65
• B. It is completely tax free because he is over age 65
• C. It is included in income and also subject to the 20% additional tax
• D. It is tax free up to his lifetime contribution total and taxable above that

Correct answer: A. It is included in his gross income, but no 20% additional tax applies because he is over age 65

Explanation: HSA distributions not used for qualified medical expenses are included in gross income. The 20% additional tax, however, does not apply to distributions made after the owner reaches age 65, becomes disabled, or dies. So the withdrawal is taxable as ordinary income but escapes the penalty. See IRS Publication 969.

• A. It is automatically refunded to the employee as taxable wages
• B. It rolls over in full to the next plan year in every FSA
• C. It converts to an HSA balance owned by the employee
• D. It is generally forfeited, unless the plan offers a limited carryover or grace period

Correct answer: D. It is generally forfeited, unless the plan offers a limited carryover or grace period

Explanation: Health FSAs operate under a use-it-or-lose-it rule: unused amounts generally do not carry over to the following year. An employer may design the plan to allow a limited carryover of a capped amount or a short grace period, but neither is required, and full unlimited rollover is never permitted. See IRS Publication 969.

• A. Employees fund the HRA through pre-tax salary reduction
• B. The HRA must be funded solely by the employer; employees may not contribute
• C. Employer and employee must each fund half of the annual amount
• D. The HRA is funded by the health insurer out of premium refunds

Correct answer: B. The HRA must be funded solely by the employer; employees may not contribute

Explanation: An HRA must receive contributions from the employer only; employees may not contribute, and there is no salary-reduction feature. Employer contributions and reimbursements for qualified medical expenses are not included in the employee's income. See IRS Publication 969.

• A. Both sets of benefits are fully taxable
• B. Both sets of benefits are received income tax free
• C. Her benefits are tax free, while the coworker's employer-paid benefits are taxable income
• D. Her benefits are taxable, while the coworker's benefits are tax free

Correct answer: C. Her benefits are tax free, while the coworker's employer-paid benefits are taxable income

Explanation: The taxation of disability benefits follows who paid the premium. When the insured pays the entire cost of the coverage on an after-tax basis, the benefits are excluded from income; when the employer pays the premium, amounts the employee receives for disability must be reported as income. See irs.gov on life and disability insurance proceeds.

• A. A W-2 employee whose employer pays no part of the premium
• B. Any taxpayer who buys individual coverage on a public exchange
• C. A shareholder owning 1% of a C corporation's stock
• D. A more-than-2% S corporation shareholder who received wages from the corporation

Correct answer: D. A more-than-2% S corporation shareholder who received wages from the corporation

Explanation: The deduction is an adjustment to income available to the self-employed: sole proprietors with a net profit, partners with net self-employment earnings, and more-than-2% S corporation shareholders who received wages from the corporation. It is claimed on Schedule 1 of Form 1040 rather than as an itemized deduction. Ordinary employees and small C corporation shareholders do not qualify. See IRS Form 7206 instructions.

• A. Insurance companies and other private companies approved by Medicare
• B. The federal government directly, through Social Security offices
• C. State Medicaid agencies under federal contract
• D. Hospitals participating in Medicare Part A

Correct answer: A. Insurance companies and other private companies approved by Medicare

Explanation: Part D drug coverage is offered to everyone with Medicare, but the plans themselves are sold and run by insurance companies and other private companies approved by Medicare, not by the government directly. Beneficiaries choose among competing private plans. See medicare.gov.

• A. A flat one-time fee equal to three months of premium
• B. 1% of the national base beneficiary premium for each full uncovered month, added to the premium for as long as the person has Medicare drug coverage
• C. 10% of the plan's own premium for each uncovered year, charged for twice the number of years without coverage
• D. 5% of the national base beneficiary premium for each uncovered quarter, charged for five years

Correct answer: B. 1% of the national base beneficiary premium for each full uncovered month, added to the premium for as long as the person has Medicare drug coverage

Explanation: The penalty is 1% of the national base beneficiary premium multiplied by the number of full months the person was eligible but had neither Part D nor other creditable coverage. The amount is added to the monthly premium and generally continues for as long as the person has Medicare drug coverage. Option C describes the Part B late penalty pattern, not Part D. See medicare.gov.