Casualty Insurance Law Portion Of Exam
An insurer who willfully violates a single provision of an unfair trade practice regulation may be fined
$30,000
What is the maximum a producer may be fined for violating a cease and desist order?
$500
Notice of an injury compensable under Workers Compensation must be given by the employer to the division and the insurance carrier within
10 days.
How many days do producers have to report administrative actions taken against them in another jurisdiction?
30 days
All of the following statements are true regarding producer appointments EXCEPT
A producer may only hold an appointment with one insurer .
How often must an insurer who sells personal lines property and casualty policies recalculate a consumer's insurance score or obtain an updated credit report?
Every 36 months
An insurance producer is prohibited from charging separate fees for any of the following services EXCEPT
Financial planning
If a person knowingly presents false information and intends to deceive another for financial gain, it is considered to be
Fraud
When would a producer be able to transact insurance through an unauthorized insurer?
If surplus lines insurance
Which of the following is NOT a Type I kind of insurance?
Inland Marine insurance
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
Which of the following is a requirement for an insurance agency transacting insurance in Colorado?
It must obtain a producer license
Before coverage is placed with a surplus lines company, diligent effort must be made to place the risk with admitted insurers.
Policies written by a surplus lines insurer typically contain standard coverages and forms.
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it's in the best interest of the client.
A bail bond producer executed a bail bond and received a full payment, but wasn't able to post the bond for 3 days. What should a producer do to avoid further engaging in an unfair trade practice?
Refund all the money within 7 days of the receipt.
All of the following are unfair claims settlement practices EXCEPT
Suggesting negotiations in settling the claim.
An insurer with their home office in another state may do business in Colorado if
They obtain a Certificate of Authority in Colorado
A producer is subject to criminal prosecution in another jurisdiction. Within what time frame must the producer report this fact to the Commissioner?
Within 30 days after the initial pre-trial hearing
The Commissioner may revoke a producer license for all of the following reasons EXCEPT
Acting in a fiduciary capacity..
Within how many days are insurers required to notify the Commissioner that a producer's employment has been terminated?
30 days
The Division of Insurance has requested information regarding an insurer's underwriting policies via e-mail. How many days does the insurer have to respond to this request?
20 days
When an insurer intends to not renew an automobile insurance policy beyond its current expiration date, the insurer must give how many days' advance prior notice of their intentions?
30 days
An individual seeking a license to sell insurance must complete a prelicensing program that includes how many hours pertaining specifically to state laws related to the line of authority?
4 hours
A producer is required to remit premiums from a trust account to the insurer within how many days of receipt?
45 days
The purpose of an automobile insurance assigned risk plan is to
Apportion those applicants for automobile insurance among all insurers authorized to write auto insurance in the state. b) Provide a market for those applicants for auto insurance who are unable to obtain coverage in the normal market. c) Establish coverage that is adequate to meet the financial responsibility requirements of the state at a reasonable rate. D)All of the above(Answer)
How often may an insurer who sells personal lines property and casualty policies recalculate a consumer's insurance score or obtain an updated credit report?
As often as the insurer would like
An insurer that is admitted to transact motor vehicle insurance and fails to subscribe to the Colorado Auto Insurance Plan may
Have its certificate of authority suspended
A producer's appointment with an insurer has been terminated. Under what circumstances can the producer sue the insurer or the Commissioner for information provided during producer investigation?
If the termination was a result of willful and malicious behavior
Under Colorado's Unfair Claims Practices regulations, when denying a claim an insurer must do all of the following EXCEPT
Pay a claim that occurs after the grace period has ended.
Which of the following is a requirement for producers who want to start selling variable life insurance and annuities?
Register with FINRA and pass the Series 6 examination