All Practice Quiz & Exam Test Questions
Which of the following special liability coverages will provide protection to managers of a corporation for non-profit entity would, under the law, be required to reimburse the individual director or officer for judgements arising from the actions alleging wrongful acts?
Directors & Officers Liability
What method of premium computation relates an employers losses, payroll, & premiums to the ratings bureau's classifications of operation?
Experience Modification Factor
When the commissioner believes that a person has engaged in an unfair method of competition or an unfair trade practice, before issuing a cease and desist order, the commissioner must do what?
Hold a hearing
Producers who wish to sell variable life insurance in this state must be registered with what entity?
FINRA (Financial Industry Regulatory Authority)
Coverage A - Bodily Injury & Property Damage in the commercial general liability policy will cover?
Losses due to the insured's negligence. Coverage A Provides protection for bodily injury & property damage suffered by third parties due to the insured.
What is the MAX civil penalty per violation if any unauthorized entity violates the Commissioner's cease & desist order?
$25,000
An insurer who willfully violates a single provision of an unfair trade practice regulation may be fined?
$30,000 for each violation (not to exceed an aggregate of $75,000 annually).
How often must the commissioner examine all insurers to guard against insurance company insolvent?
At least once every five years
An insurer who frequently misses deadlines to respond to inquiries from the Division of Insurance may be fined, for each violation, as much as?...
Can be fined up to $5,000 ($500 fines at a time can be applied, up to $5,000)
Which of the following entities is appointed to oversee the business of insurance and to ensure that the insurance laws of Colorado are enforced?
The Commissioner of Insurance
Regulation of the insurance industry primarily rests with?
The State
The regulation of the insurance industry primarily rests with...?
The State
The purpose of insurance regulations is?
To protect the insurance buying public.
When a replacement auto is acquired during the policy period, what coverage will apply to it automatically under a personal auto policy?
Whatever coverage applied to the vehicle being replaced.
When the commissioner believes that a person has engaged in an unfair method of competition or an unfair trade practice, before issuing a cease and desist order, the Commissioner must?...
Hold a hearing.
The party to a surety or fidelity bond who promises to fulfill the obligation is the?
Principle - The principle purchases the bond and promises to perform.
How is the commissioner selected for office?
Appointed by the governor
In order to facilitate responses to inquiries from the division of insurance, companies must maintain all records for at least how long?
The current calendar year, plus the 2 prior calendar years.
When a producers license has been terminated, the producer must remit the license to the Commissioner within how many days?
15 days
What is the minimum age for producer licensing in the state of Colorado?
18 years old
The division of insurance has requested information regarding an insurer's underwriting policies via email. How many days does the insurer have to respond to the request?
20 days.
After a client signs a disclosure statement regarding additional fees charged by a producer, the producer must keep a copy of the statement for at least?....
3 years from the date of the completion of services.
All licensed producers are required to inform the commissioner in writing of any changes of address within how many days of the change?
30 days
For how many years must a producer keep supporting documentation of his/her continuing education completion?
5 years following license continuation.
A producer's license has been suspended for noncompliance with continuing education requirements. What is the producers duty regarding the license?
Promptly return it to the Commissioner
A producer's license has been suspended for noncompliance with continuing education requirements. What is the producer's duty regarding the license?
Promptly return it to the commissioner.
Regarding investigations of insurer's, the Colorado Commissioner of Insurance may do what?
Subpoena witnesses whenever he/she deems necessary.
Surety Bonds are written for a definite limit called?
The Bond Penalty
A liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called?
Claims-Made Form. This form require that the loss occur after the retroactive date and the claim be reported before the expiration date of the coverage if the policy is to respond.
How often will the commissioner examine domestic insurer's in this state?
Every 5 years
An employee is visiting an out of state site. How will the worker's compensation benefits be determined?
Benefits will be provided if state
In insurance, producers are permitted to share or split commissions, providing that?
Both are properly licensed for the line of insurance.
Every insurer in the state of Colorado to prepare, implement & maintain an insurance anti-fraud plan. In addition, a summary of the company's anti-fraud efforts must be submitted to the commissioner on?...
An annual basis
Noncompliance with the regulation regarding fees charged by producers may result in which of the following penalties?
Fines & License Suspension or Revocation
When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays?
The excess over the self-insured retention.
A friend helped an insurance producer sell an insurance policy. The producer can share the commission with a friend if?
The friend is licensed in the same line of insurance.
If the Commissioner believes a producer has committed a violation of an insurance law, the Commissioner will hold a hearing. What is the purpose of the hearing?
To allow the aggrieved party to be heard.