Colorado Licensing Rules / Regulations
Insurer may not use credit information, unless the insurer recalculates the consumer's insurance score or obtains an updated credit report, no later than every ____
36 Months
COMMERCIAL POLICY REQUIREMENTS: INSURER must give the INSURED at least ____ notice for cancellation, non-renwal, increasing premiums, or reducing coverage at policy renewal
45 days
FIDUCIARY: A PRODUCER must REMIT premiums to insurer within ____ days after the receipt
45 days after the receipt
CONTINUING EDUCATION: Length of time a producer must maintain CE completion records
5 years
AUTO INSURANCE: within the first ____ days an insurer may cancel for any legal reason
59 days
CONTINUING EDUCATION: Number of hours on subjects designated by the Commissioner
6 hours
COMMERCIAL POLICY REQUIREMENTS: ______ days notice is required to raise premiums or reduce coverage for medical malpractice policies
90 days
In addition to other deductible choices, all insurers must offer collision coverage deductibles of $____ and $_____
$100 and $250
AUTO INSURANCE FINANCIAL RESPONSIBILITY: $______ per accident for property damage
$15,000
AUTO INSURANCE FINANCIAL RESPONSIBILITY: $____ per person for bodily injury or death
$25,000
Min uninsured / underinsured limits are ____ per person and ___ per occurrence for bodily injury. Uninsured / underinsured motorist coverage may be rejected by the insured
$25,000 / $50,000
Unless rejected, the min Medical payment's limit s is ____
$5,000
BAIL BONDS: Max bail bond commission is the greater of $_____ or ______ %
$50 or 15%
AUTO INSURANCE FINANCIAL RESPONSIBILITY: $____ per accident for bodily injury or death
$50,000
CO CASUALTY LAWS: (Worker's Comp, Benefit amounts are subject to state min and max) Employer must notify the division and insurance carrier of injury within ____
10 days
CO PROPERTY LAWS: Insurer must give ____ notice on homeowners cancellation if due to nonpayment of premium
10 days
For good cause, the Commissioner can grant licensees an extension of how many months to complete their continuing education requirements? a) 3 b) 6 c) 9 d) 12
12
CONTINUING EDUCATION: Number of hours a producer can accumulate and apply to the next CE period
12 hours
The INSURER has an additional ____ days to notify the PRODUCER of appointment termination
15 DAYS
Appointment Termination: The INSURER has an additional ______ days to notify the producer.
15 days
How many hours of continuing education must be in approved courses in the lines of insurance for which the producer is licensed? a) 10 b) 14 c) 15 d) 18
18
CONTINUING EDUCATION: Number of hours in the lines of insurance for which the PRODUCER is licensed
18 hours
CO CASUALTY LAWS: (Worker's Comp, Benefit amounts are subject to state min and max)If disability extends beyond ____ then the above waiting period will be added back
2 weeks
PRODUCER'S LICENSE RENEWAL PERIOD: The license may be continually renewed as long as the proper fees are paid and continuing education requirements are met
2 years
AUTO INSURANCE FINANCIAL RESPONSIBILITY: Required limits of liability:
25/50/15
CO CASUALTY LAWS: (Worker's Comp, Benefit amounts are subject to state min and max)No disability benefits if disability lasts fewer than ___ (waiting period)
3 days
CONTINUING EDUCATION: Number of hours a property or personal lines producer must complete on homeowners insurance coverage
3 hours
Number of required Pre-Licensing Education Hours -- of each 50 hour course ____ hours must cover industry ethics
3 hours
CONTINUING EDUCATION: Number of hours required of ethics CE
3 hours in ethics
Proof of medical payment's rejection must be retained for ____ years
3 years
A producer has how many days to file a written response to the Commissioner after he has been terminated by his appointing insurer? a) 15 b) 30 c) 60 d) 90
30
Appt Termination - When terminating a PRODUCER appt for cause, an insurer must inform the Commissioner within _____ days of the termination
30
AUTO INSURANCE: Notice of Cancellation: ____ days in advance if the policy is being cancelled for any other reason;
30 days
AUTO INSURANCE: Notice of Cancellation: ______ days in advance if raising the premiums on the policy
30 days
AUTO INSURANCE: Notice of non-renewal if the policy is being cancelled for any other reason or;
30 days
An insurer who terminates a producer's appt. must inform the Commissioner within how many days? a) 15 b)30 c) 45 d) 60
30 days
Appointment Termination: Within ____ days of notification, the PRODUCER may file a written response with the Commissioner
30 days
CO PROPERTY LAWS - Insurer must give ____ notice on Homeowner's cancellation or nonrenewal
30 days
FIDUCIARY: A PRODUCER must RETURN all premiums to insured within ____ days
30 days
Producer's time to notify the DOI of name or address change
30 days
Within ____ days of notification the PRODUCER may file a written response w the Commissioner for appt termination
30 days
Number of required Pre-licensing Education Hours P&C Insurance Producer
50 hours
P&C COLORADO LAWS: INSURERS must pay first-party claims under P&C policies within ___ days of receiving a complete claim (unless disputed)
60 days
CO CASUALTY LAWS: (Worker's Comp, Benefit amounts are subject to state min and max) Permanent total disability: ___ of the employee's average weekly earnings
66 2/3%
Bob, an insurance producer, publishes a written statement that is false and derogatory. It concerns the financial condition of AllPro Insurers and is designed to injure the company's reputation. This can be considered an act of: a) coercion (the practice of persuading someone to do something by using force or threats.) b) twisting c) misrepresentation d) defamation (slander)
Defamation
A person may not act as a Colorado insurance producer unless she: a) is employed by a Colorado insurance company b) has qualified to become a licensed insurance producer c) is at least 21 years old d) has lived in Colorado for at least 3 years
Has qualified to become a licensed insurance producer
All of the following are violations of Colorado insurance law EXCEPT: a) charging individuals of the same class different premium rates b) offering tickets to a football game as an incentive to purchase a policy c) informing a new policyholder that his new policy, if inadvertently lapsed for nonpayment of premium could be reinstated upon reapplication d) having an interdependent arrangement to sell stock to a person contingent upon the purchase of an annuity
Informing a new policyholder that his new policy if inadvertently lapsed for nonpayment of premium, could be reinstated upon reapplication
All of the following are duties of the Commissioner EXCEPT: a) Keeping records of the insurers that he has examined b) adopting rules and regulations c) writing insurance laws d) issuing insurance licenses to qualified individuals and companies
Writing insurance laws
AUTO INSURANCE: Notice of Cancellation: ____ days in advance, if the reason is nonpayment of premium
10 days
CONTINUING EDUCATION: Requirements for each 2 year CE term
24 credit hours
How much may the Commissioner fine an insurer for each violation of a cease and desist order? a) $500 b) $1,000 c) $5,000 d) $10,000
$10,000
CONTINUING EDUCATION: Length of CE extension from the commissioner for good cause
1 year
All of the following insurance practices are illegal in Colorado EXCEPT: a) soliciting or procuring insurance without a license b) paying a fee for services as in insurance producer to anyone who is not properly licensed c) inquiring about an applicant's sexual orientation in connection w an application d) comparing policies
Comparing Polices
CONTROLLED BUSINESS: A license is deemed to be used for controlled business if, during any 12-month period, the total premiums on controlled business _____ the total premiums on all other business
EXCEED
When an insurer terminates a producer's appointment, the insurer must notify: a) the attorney general b) the state insurance trade association c) the Commissioner and producer d) the state legislature and public
The Commissioner and Producer
When appropriate, the Commissioner reports a violation of insurance law to a) the Federal Bureau of Investigation b) the state police c) the appropriate district attorney d) the state legislature
The appropriate district of attorney
P&C COLORADO LAWS: Rate regulation classification for worker's compensation pure premium, and assigned risk auto insurance
Type 1
P&C COLORADO LAWS: Rate regulation classification for fire, casualty, inland marine, title and credit
Type II
The Commissioner gives approval to an insurer to do business in CO in a certificate of: a) convenience b) authority c) admittance d) agency
authority
A producer license is not required of a fraternal benefit society representative if the representative did not receive sales compensation and: In the preceding calendar year, the representative sold the society life insurance contracts w a face amount of $_____ or less; OR sold any other kind of insurance on behalf of the society to _____ or fewer individuals and received no compensation from these policies
$50,000 / 25
For each violation of a cease and desist order, how much may the Commissioner fine an INDIVIDUAL? a) $500 b) $1,000 c) $5,000 d) $10,000
$500
COMMERCIAL POLICY REQUIREMENTS: ______ days' notice is required when canceling due to nonpayment of premium
10
CO CASUALTY LAWS: (Worker's Comp, Benefit amounts are subject to state min and max) Temporary, total, and partial disability benefits are ___ % of the difference between the employee's weekly earnings at the time of injury, and the employee's actual gross weekly income from employment during the period of temporary partial disability
66 2/3%
Death benefits payable to dependents will be based on ____ of the average weekly wage
66 2/3%
USE OF CREDIT INFORMATION: Insurer may not take an adverse action based on credit information; unless the insurer uses a credit / insurance score calculated within ____ before the date the policy is first written
90 days
Which of the following statements regarding the payment of commissions is NOT correct? a) A producer may share commissions w another license producer b) A producer may not share commissions w unlicensed persons c) A producer may not charge additional fees not included in his commissions for soliciting and procuring insurance or for servicing existing policyholders d) A producer cannot share commissions w a license nonresident producer
A producer cannot share commissions w a licensed nonresident prodcuer
Applicant's min age complete pre-licensing education requirement. Pass the licensing exam/ Pay required licensing fee
Age 18
CO CASUALTY LAWS: (Worker's Comp, Benefit amounts are subject to state min and max) Self Insurance pools are examined by the commissioner ____ and must file and annual report w the Commissioner by ____ of each year
Annually / March 30th
All of the following may result in license suspension of revocation EXCEPT: a) making a factual but subjective comparison of 2 policies b) intentionally violating a cease and desist order c) making a false statement in a license application d) violating an insurance regulation
Making a factual but subjective comparison of 2 policies
INSURANCE COMMISSIONER: Insurers must file an annual report w the Commissioner by _____
March 1st
All of the following are examples of unfair claim settlement practices EXCEPT: a) requiring both a claimant and his physician to fill out extensive proof of loss forms b) denying a claim promptly but without explaining the coverage or laws on which the denial is based c) paying a claim promptly after liability has become reasonably clear d) denying a claim without making an investigation
Paying a claim promptly after liability has become reasonably clear
To motivate a buyer to sign an application for insurance, a producer promises a gift equal to one-half of the commission. This is an example of: a) rebating b) twisting c) misrepresentation d) coercion
Rebating
A license is deemed to be used for control business if during any 12-month period a) the licensee wrote more than 5 policies on controlled business b) the licensee wrote polices totaling more than $50,000 on controlled business c) the licensee's total premium on controlled business exceeded the total premiums on all other business d) the licensee's total premium on controlled business made up more than 10% of his total premiums
The licensee's total premiums on controlled business exceeded the total premiums on all other business
The Commissioner may: a) conduct investigations relating to insurance matters only through the state attorney general b) conduct investigations on his own but cannot subpoena witnesses c) investigate only individuals and companies that apply for licenses d) conduct investigations and subpoena witnesses whenever he deems necessary
conduct investigations and subpoena witnesses whenever he deems necessary
All of the following are considered unfair trade practices EXCEPT: a) misrepresentation b) rebating c) replacement d) coercion
replacement
An insurance producer who solicits insurance on behalf of an insurer represents: a) the insurer b) the insured c) the beneficiary d) the Commissioner's office
the insurer