TEST
which is the main purpose of the Gramm-Leach-Bliley Act?
consumer privacy protection
what is the deductible of a personal liability umbrella policy called?
SIR
which section of an insurance policy indicates the general rules or procedure that the insurer and insured agree to follow under the terms of the policy
conditions
for how long after the cancellation of an insurance policy may an insurer conduct a deposit premium audit?
3 years
An insured's homeowners policy covers an antique dining set. After a water pipe burst, the insured moves the set to a storage shed to protect it from water damage. What is the longest period of time the homeowners policy will extend coverage to the dining set?
30 days
an insurer shall provide its insured a copy of their policy within how many days of a written request
30 days
Which of the following sections of a contract contains the insurer's promise to pay in the event of a loss
Insuring agreement
what type of government is primarily concerned with regulating insurance?
State
liability imposed on a parent as a result of the actions of a child would be considered
Vicarious liabiliy
Damages from which of the following perils would be covered under DP-1?
Internal Explosion
Which of the following government programs was created to share the risk of loss from terrorist attacks between the government and the insurance
TRIA
which of the following acts protects consumers against the distribution of incorrect and obsolete personal or financial information
The fair-credit reporting act
Which of the following people are prohibited by statute from being licensed as producers in Colorado?
Those who intend to sell insurance to only themselves and their immediate families
An agent who offers a cash reward to a prospect for buying a policy is guilty of..
rebating
Which of the following loss valuation methods based on the fair valuation of property at the time of policy issue?
Replacement cost
In insurance, the uncertainty of an individual sustaining a loss in the future is classified as a/an
Risk
in insurance , the uncertainty of an individual sustaining a loss in the future is classified as an
Risk
the maximum amount of money the insurance company will pay for a particular loss, or for loss during a period of time is known as what?
limits of liability
producers must be registered with finra to sell what type of insurance products
Any insurance policies
which section of an insurance policy lists perils that are not covered by the policy
Exclusions
Which of the following is defined as an absolutely true statement upon which the validity of the insurance policy depends
Warranty
When does a binder expire?
When the policy is issued
which of the following policy components specifies the maximum amount an insured may collect for a loss
policy limits
all of the following practices would be prohibited except
projecting a dividend on a participating policy
the colorado auto insurance plan is designed to
provide automobile coverage to eligible applicants
a producer who has been found guilty of falsifying an insurance licence application may be fined a MAXIMUM of
1000-violation of insurance code
after initial insurance, an insurance producer may renew an insurance licence for a Maximum period of how many years
2 years
If an insured changes their name, the change may be reflected on the insurance policy by attaching what to the policy
A signed endoresement
which of the following limitations does a homeowners policy place on a home-run business?
An additional premium is charged based on the income of a home-run business
If there is a disagreement between the insured and the insurer on the value of an property loss, either party can make a written demand for which of the folowing?
An appraisal
A Colorado insurance producer's license may be suspended for which of the following?
Being delinquent on child support
insurable interest may exist between all of the following except
Blood relatives
which of the following refers to the upper limit a liability policy will pay out for all claims that arise from a single accident
Combined single limits
which of the following homeowners policy forms covers condominium unit owners
HO-6
Which of the following principles describes creating or increasing the chance of loss
Hazard
Which of the following is normally sent from an insured to an insurer, informing the insurer of events leading to a possible claim to occur?
Notice of Claim
In property and casualty term, continuous or repeated exposure to conditions resulting in damage to property is called
Occurance
in a personal auto policy, which of the following describes coverage for damage to your auto
Part D
an insured must provide which of the following to an insurer, prior to losses being paid?
Proof of loss
Which of the following damages is the most subjective when determining compensation
Punitive damages
Under Colorado insurance law, a producer MUST take which of the following actions with the premium funds
Remit premium funds to the insurance company within 45 days
Which of the following is used to determine the actual cash value of property?
Replacement cost
if a lender requires a borrower to purchase insurance from a specified producer as a condition for a loan, which of the following statements is correct
The lender is acting in violation of Colorado Insurance law
Liability where proof of fault or negligence is not required is defined as
absolute
If an insured is involved in an accident in another state where limits of liability are higher than those of the insured's home state, the insured's auto policy will pay
limits set by the insured's home state
leading a prospect to believe that purchasing an insurance policy constitutes purchasing stock in the insurance company is an example of
misrepresentation
how long is the waiting period after an application has been accepted before flood coverage goes into effect
30 days
within what time period must producers remit collected premiums to the insurer
45 days
Under coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is
50% of the amount provided as Coverage A
under the fraudulent claims and arson information reporting act, an insurance company may be required to release which of the following documents in connection with a loss from a fire of questionable origin?
An insured's history of previous claims
which of the following principles describes restoring the insured to their original financial status after a loss
Indemnity
Violations of the fraudulent claims and arson information reporting act are considered?
Misdemeanors
which of the following provisions is usually found in homeowners' policies and provides a replacement cost settlement to policyholders who carry adequate insurance
Insurance to value
prior to an insurance policy paying on a claim, an insured must pay a certain dollar amount on the claim. THis is referred to as
a deductible
under a personal auto liability coverage, damages to a vehicle may be covered if the person driving the insured vehicle is
a family member in the same household
Of $10,000 in premiums producer Smith wrote over the past year, $3,000 came from sales to a business which employs Smith's spouse. This is:
a legal practice
which of the following actions would be considered an offer
an applicant submitting the application
which of the following is not considered a rebate
an inducement to buy that is not stated in the policy
Which of the following is INCORRECT regarding Medical Payments coverage under a personal auto policy
an insured may refuse medical payments coverage
which of the following is an example of an indirect loss
an insured not being able to stay in the home and having to stay in a hotel because of the fire damage to the home
which of the following best describes a proximate cause?
an unbroken chain of events resulting in a loss
failure of an insurance company to accept a valid proof of loss statement is considered to be
an unfair claims practice
a homeowners insurance summary disclosure form must be delivered to the policyholder at least
annually
a summary of the company's anti-fraud efforts must be submitted to the commissioner
annually
according to the insurance code on rate regulation for property and casualty insurance policies, how are Type II kinds of insurance regulated?
by prior filing and approval of rating information
Which of the following statements is correct concerning the Commissioner's authority to revoke a license?
cannot do so without a hearing
which of the following provides written evidence that an insurance policy has been issued?
certificate of insurance
an agent who solicits and files applications for the sale of life insurance represents
the insure
which of the following situations would covered by the medical payments coverage of a personal auto policy?
the insured's mother is injured in an accident while riding in the insured's car
if the at-fault driver in an automobile accident does not have enough coverage to pay for all damages
the insured's underinsured motorist coverage
In insurance contracts, considered on the part of the insured is
the payment of premiums and representations made in the application
how are the premiums affected in an insurance policy has the additional or supplementary coverage provision
the premium is not affected
the replacement cost method of loss valuation is defined as
the required amount to pay damages or for property loss, which is calculted based on property's current repalemtn value minus depreciation
an insured may be required to disclose which of the following at the time of application for Property and Casualty
insurer's financial rating
which of the following is not a feature of broad theft coverage under a dwelling policy?
it must be added by endorsement
a driver associated with a transportation network company is defined as a(n)
person using their personal vehicle and a digital application to transport others
Which provision requires that an insured protects property from further damage following a loss
duties after a loss
Insurers must file their audited financial statements with the commissioner
each year by march 1
According to Colorado regulation, an inquiry is defined as a(n)
examination made by a third party to settle a claim between an insurance company and the insured
What type of coverage do umbrella policies provide?
excess coverage over an underlying or primary policy
In colorado, owners of motor vehicles are NOT required to maintain a motor vehicle liability insurance policy if
if the vehicle has fewer than 4 wheels
which of the following is normally sent from an insured to an insurer, informing the insurer of events leading to a possible claim to occur?
proof of loss
The chance of loss without any possibility for gain is known as:
pure risk
which of the following is not required of an insured after a loss in a homeowners policy
replace lost property within 30 days
Under colorado unfair claims practices, regulations, all of the following would be considered violations except
requiring claimants to submit proof of loss
which of the following is considered the maximum amount an insurer will pay dor a loss, without an insured having to meet coinsurance requirements
stated value
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
In insurance, the principle of subrogation is defined as
when an insurer who pays a claim can seek damages to recover the loss from a third party
in an auto insurance policy, what does the first limit represent in split liability limits
bodily injury to all injured persons in a single accident
in auto insurance, eligible vehicles titled by the insured during the policy period are considered
owned autos
if an insured has more than one personal auto policy and is involved in an accident
Each insurer would pay its portion of the loss
if a loss is not covered by underlying insurance, which of the following must be paid in order for an umbrella policy to cover the loss
coinsurance
Which of the following is true regarding commission sharing by insurance agents?
commssion can only be shared with a duly licensed person
the law of large numbers is best defined as a large number of people with similar exposures to loss resulting in actual losses being
larger
an individual decides that since he is going to die someday anyway, and since he will be covered by insurance until then, he might as well drink and smoke. Form an underwriters perspective this is an example of
morale hazard
if an insurer terminates an insurance policy at the end of the policy period, the action is referred to as
nonrenwal
A property is insured against damage from hail. Hail would be considered
peril
lenders may require the borrower to secure coverage through a certain producer
true
which of the following is a coverage part of a personal auto policy
uninsured motorist coverage
statements made by an applicant for insurance that are guaranteed to be true are
warranties
which of the following is defined as an absolutely true statement upon which the validity of the insurance policy depends
warranty
In absence of a credit score, the insurer MUST
treat the consumer as if they has a neutral credit score
if an insurer receives a request for information in any format other than an examination request/comment form or examination request/memo form, it must respond within
10 business days
once the insurer has determined they owe the insured money for a loss covered by a homeowners policy, the loss must be paid within how many days
15 days
An Automobile Insurance Plan (Assigned Risk Motor Vehicle Insurance) is designed to provide equitable apportionment among insurance companies for the risks of covering drivers who
are unable to procure auto insurance through ordinary methods.
a personal umbrella policy may act as excess over any of the following except
Auto Collision coverage
What insurance principle means something of value that each party gives to the other?
Consideration
In order for an insurance contract to be legally binding, it must have all of the following elements except
Counteroffer
In homeowners policies, indirect losses are covered by
Coverage A
How soon after the aggregate limit have been met on a liability policy would the limit be restored?
Immediately upon depletoin
