Colorado common law

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

Colorado's Insurance Continuing Education law requires:

24 credit hours every 2 years regardless of the number of licenses held

Continuing education requirements in the state of Colorado include:

24 hours total

A surplus lines producer must collect a tax on premiums of which amount?

3%

Which of the following need to be licensed?

A life and health producer

Conditions for a corporate insurance agency seeking a Colorado license include:

All agency principals selling insurance to have an individual license

In authorizing an insurer to transact business in Colorado, the Commissioner is:

Allowing that company to legally do business in this state

It is not unfair to deny a claim in which of the following situations?

An excluded claim

Who may be the Insurance Commissioner?

Any qualified person appointed by the governor and approved by the senate

All of the following are requirements for obtaining a producer's license EXCEPT:

Attaining age 21

All of the following entities fall under the Insurance Commissioner's jurisdiction EXCEPT:

Auto loan companies

Which of the following would not be a penalty for a consumer that violated the Fraud Warning?

Automatic increase in premiums

Clark's credit union refused his application for an auto loan unless he agreed to purchase credit life insurance from them. This is an example of:

Coercion

A producer who procures a license for the principal purpose of obtaining insurance for herself, relatives or employees is violating the regulation prohibiting:

Controlled Business

Insurers must file their audited financial statements with the Commissioner:

Each year by March 1st

Which of the following is unlawful?

Giving the insured a rebate

The Commissioner does all of the following EXCEPT:

Grant prior approval of auto insurance rates

If a producer or insurer is found to have violated an insurance law, the Commissioner may do all of the following EXCEPT:

Impose time in jail

As an insurance producer, you represent:

Insurers

All of the following are true regarding the principle of indemnity EXCEPT:

Life insurance policies follow this principle

A consumer who violates the Fraud Warning may experience all of the following EXCEPT:

Loss of license

Which of the following is not one of the duties of the Commissioner?

Making rates

Surplus Lines brokers must remit premium taxes due on the preceding years' business no later than:

March 1st

Falsifying an application for insurance is:

Misrepresentation

Which type of insurer may pay dividends to policyholders?

Mutual

Which of the following statements concerning clerical and administration personnel who do not solicit or get commission is true?

Need not be licensed

All of the following would be prohibited EXCEPT:

Offering a client a multi-policy discount

Which of the following correctly defines an "alien" insurer doing business in Colorado?

One formed under the laws of another country, but holding a Certificate of Authority in Colorado

Which of the following is not a violation?

Paying premiums to insurer from trust account within 45 days of receipt

You need a license to sell all of the following types of policies EXCEPT:

Pre-paid legal

You need an insurance license to sell all EXCEPT:

Prepaid legal

An insurance producer using an assumed name is required to file the name with the Insurance Commissioner when?

Prior to use

All of the following are considered misrepresentation EXCEPT:

Projecting a dividend on a participating policy

Insurers must complete claims investigations:

Promptly

The purpose of insurance regulations is to:

Protect the insurance buying public

Which is not prohibited under unfair trade practice regulations?

Readjusting group premiums based on loss or expense experience

Which of the following would not be considered an unfair claims settlement practice?

Refusing to pay a claim after conducting a proper investigation

All of the following are true regarding an insurer's Anti-Fraud Plan EXCEPT:

The plan must contract three or more fraud investigators

You represent a large insurer who does business in all 50 states. All of the following are true EXCEPT:

You must obtain a producer's license in all 50 states

The Surplus Lines premium tax in Colorado is:

3%

As the producer you are required to remit premiums from a trust account to your insurer within how many days of receipt?

45 days

Which of the following statements is correct concerning the Commissioner's authority to revoke a license?

Cannot do so without hearing and order

No insurer shall transact insurance in this state without a:

Certificate of Authority

The Fraud Warning must be found on all of the following EXCEPT:

Certificate of Authority

The Commissioner has issued an emergency cease and desist order. How must it be communicated to the agent?

Certified mail

Which of the following is not considered an unfair method of competition?

Commingling

A producer who procures a license for the principal purpose of obtaining insurance for herself, her family members or employees is violating the regulations concerning:

Controlled business

Making false or malicious statements about an insurer or producer is what type of unfair trade practice:

Defamation

What is the maximum penalty for a producer found guilty in a court of law for selling insurance on behalf of an unauthorized insurer?

Fine and/or jail

Which of the following would likely be the first penalty for acting as an "unauthorized entity"?

Fines

The Fraud Warning must appear on all of the following EXCEPT:

Marketing material

A producer's false statement on an application regarding insurance is:

Misrepresentation

Defamation is:

Misstating financial status

An example of defamation, which is an unfair trade practice, is:

Misstating the financial condition of an insurer or producer

When can a producer keep property or funds of a customer?

Never

To renew your producer's license you must:

Pay your fees and complete 24 hours of CE by the end of your fourth year of being licensed

Which of the following would constitute unfair discrimination?

Refusing to make available coverage for persons of the same class

All of the following are violations of the Colorado insurance code EXCEPT:

Replacing life or health insurance

Which of the following would be prohibited?

Selling insurance for an unauthorized company

Which of the following is not considered controlled business?

Selling insurance to your friends and neighbors

The producer cannot ask about which of these on the application?

Sexual orientation

Which type of government is primarily concerned with regulating insurance?

State

The Insurance Commissioner's job includes all of the following EXCEPT:

Suspending a license without a hearing and order

A client of a Colorado nonresident producer wants to sue her. Who should the client have the "Service of Process" served on?

The Colorado Insurance Commissioner

All of the following are true about the Insurance Commissioner's powers EXCEPT:

The Commissioner makes rates

The Commissioner may examine (audit) an authorized insurer:

Whenever necessary

Which of the following is correct regarding a producer's license?

A producer's license is perpetual, subject to payment of renewal fees and continuing education

Which of the following accurately describes the ability of a licensed Colorado resident producer to become licensed in other states?

The producer can get a non-resident license in all reciprocal states

Which of the following is producer's fiduciary duty?

Handling premiums

To obtain a Colorado producer's license as a nonresident, you must:

Have a similar license in your home state

All of the following are true regarding warranties and representations EXCEPT:

Insurers require insured(s) to make warranties on a life and health application

Which of the following would be considered to be a rebate?

Offering to give part of the commission to a customer as an inducement to buy

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

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:

Perfectly legal

Giving a customer a stock option on the insurer's stock as inducement to buy is considered which one of the following unfair trade practices?

Rebating

Under Colorado's Unfair Claims Practices regulations, all would be considered violations EXCEPT:

Requiring claimants to submit proof of loss

Which of the following is not one of the duties of the Insurance Commissioner?

Requiring insurers to maintain adequate staffing levels

All are true about "foreign" insurance companies EXCEPT:

They do not need a Certificate of Authority in Colorado

An insurer with their home office in another state may do business in Colorado if:

They obtain a Certificate of Authority in Colorado

Which of the following factors would be allowed in setting premiums for insurance?

Tobacco usage

You must be licensed to sell all of the following EXCEPT:

Travel accident

The Insurance Commissioner may examine admitted companies:

Whenever advisable

If, after a hearing, the Commissioner finds that an insurer willfully violated insurance law, he may impose a maximum total fine of _______ in 12 months.

$750,000

The minimum age requirement to qualify for a license is:

18

What is the maximum time a Colorado producer's license may be issued for?

2 years

If the Commissioner requests any type of paperwork from an insurer, the insurer must submit it within __ days. If late, a __ per day fine will apply.

20/$100

The Commissioner must audit each admitted insurer a minimum of once every:

5 years

A foreign insurer doing business in Colorado must have which of the following?

A Colorado license

Forcing a client to buy insurance from a particular producer as a condition to a loan is defined as:

Coercion

Refusing to make a loan unless the customer also buys insurance from the lender is an unfair trade practice known as:

Coercion

All of the following are considered to be misuses of fiduciary funds EXCEPT:

Collecting interest on customer balances held in a producer's trust account

To which of the following could a producer pay part of her commission without violating any insurance regulations?

A partnership of which the producer is a member

All are true regarding renewing a producer's license EXCEPT:

A producer may continue to sell for up to 12 months on an expired license

All are true regarding company producer appointments EXCEPT:

A producer may only hold an appointment with one insurer