SIMULATE EXAM

An insurer who willfully violates a single provision of an unfair trade practice regulation may be fined

$30,000

The maximum amount a bail bondsman may charge an innocent person who is arrested is

$50 or 15% of the bond amount, which ever is greater

in liability insurance policies, supplementary payments are made

In addition to the limit of liability

The primary purpose of a Surety bond is to

Make sure obligations are fulfilled

in property insurance, actual cash value is defined as which of the following

Replacement cost at the time of the loss, less depreciation

all of the following are considered unfair trade practices in the business of insurance except

Sharing commissions

an insurer may not transact insurance in the state without which of the following

certificate of authority

A plant worker for a chemicals manufacturer was recently diagnosed with a rare blood disease. She told her doctor that her job required her to handle industrial waste chemicals. Which of the following types of injuries is covered under the Worker's Compensation policy

occupational disease caused or aggravated by condition of employment

all the following are considered parts of the policy structure except

provisions

and insured as 5000 medical coverage and a personal auto policy at the time of a covered accident. The insured and two passengers are injured. The medical treatment cost 7000 for the insured, 4000 for the first passenger and 8000 for the second passenger. How much will the policy pay under medical payments coverage

14,000

an insured has a auto liability policy with limits of 25/50/15. The insured is involved in the accident caused by her negligence and is held legally liable for bodily injuries of three people in the other auto as follows. A 15,000, B 30,000, C 35,000. How much will her insurer pay in total for all injuries

15,000

because of a work related injury, an employee was unable to work for 28 days. Worker's Compensation will pay for a maximum of how many days of disability benefit

28

A producer is required to remit premiums from a trust account to the insurer within how many days of receipt

45 days

if a personal auto ensure makes medical payments coverage available, such coverage must provide benefits of

5,000 per person

and insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could not be insured under a personal auto policy

A 2 ton green truck with a 6500 pound capacity

which of the following statements is true regarding the premium computation for Worker's Compensation insurance

A premium auditor has a right to examine the insurance compensation records at the end of the policy period to Determine the actual premium basis

what is a material misrepresentation

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

What type of liability would a person who owns wild animals have?

Absolute Any conduct that is inherently dangerous, such as using explosives or keeping wild animals, imposes absolute liability. The claimant does not have to prove anything.

which of the following would not be a violation of state insurance regulations

Agent C uses her license to write only business other than controlled.

In order to get a nonresident license in this state, a producer must

Apply and pay a fee to a nonresident state that reciprocates

If an insured has an umbrella liability policy in addition to his personal auto policy, which would be considered the underlying policy?

Auto policy

all of the following are supplemental payments found in liability policies except

Costs the insured incurred in hiring an attorney.

The part of a policy that clarifies terms in the policy is the

Definitions

What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations?

Experience modification factor

which of the following would be named on the declarations page of a property or liability policy?

First named insured

the policy conditions define

How parties to the contract must act following a loss.

If an insured needs protection on property other than money and securities inside the premises from losses caused by breaking and entering after business hours, which of the following Crime Coverage forms should be purchased?

Inside Premises - Robbery or Burglary of Other Property

all the following are factors in the determination of actual cash value except

Insurance premium paid

which of the following statements is not true regarding a personal umbrella liability policy

It provides errors and omissions coverage for an agency.

which of the following would be covered under the crime coverage inside the premises - theft of money and securities?

Losser damage to locked safe vaults or cash register

What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?

Other insurance

which professional liability form provides coverage for liability arising out of errors or mistakes made in rendering medical services

Physicians, surgeons and dentists malpractice

which of the following liability policies is usually written on a claims made form

Professional liability insurance

before an insure will pay any loss under a policy, what is usually required from the insured

Proof of Loss

Which method of loss valuation is contrary to the basic concept of indemnity?

Replacement cost

which of the following is included under the physical damage coverage of a personal auto policy

Sound reproduction equipment permanently installed in the covered auto

Events in which a person has both the chance of winning or losing are classified as

Speculative risk

A producer who is licensed to transact several types of insurance wants to remove a line of authority from his license. What should the producer do

Submit an appropriate form to the Commissioner and return the license for amendment

all of the following are unfair claims settlement practices except

Suggesting negotiations in settling the claim

which of the following is an example of a producer being involved in an unfair trade practice of rebating

Telling a client that his first premium will be waived if he purchased the insurance policy today

all the following are correct about the summary disclosure form except

The Summer disclosure form discloses everything that has found in the policy

before forming a self insurance pool for Worker's Compensation coverage, a public entity must submit a proposal to

The commissioner

how the following situations would be covered under a professional liability policy except

The failure of an attorney to you properly defend a client due to his personal dislike of the client

A friend helped an insurance producer selling insurance policy. The producer can share the commission with the friend if

The friend is licensed in the same line of insurance

which of the following is most likely to occur if it is determined by the audit that the deposit premium was too high

The insured will receive a return premium

At the request of a claimant, insurance who offer automobile coverage must supply all of the following information except

The insured's driving record

under which of the following circumstances would an insurance company not be responsible for payment of a claim involving an automobile as insured under the policy

The operator of the auto at the time of the accident was named on the policy as an excluded driver

which of the following is considered a work related injury occupational disease under workers compensation law

Tom works as a painter in an auto body shop. The chemicals from the paint aggravate Tom's asthma to the point that he must be hospitalized for several days.

When would uninsured motorist coverage apply?

When the other party is legally liable but has no insurance

an insured devices and intimidation strategy on where to corner a large portion of the insurance market. Which of the following best describes this practice

a legal advertising strategy

on the other insurance is written on the same basis as a commercial property policy obligation of the insure is to cover

a share of the loss

And insured and says that the insurer owes him 10,000 for liability damages, while the insurance asserts that they owe no more than 7000. which of the following would most likely describe the type of claim settlement that the insured and sure might pursue

abitration

The commissioner may revoke a producers license for all the following reasons except

acting in a fiduciary capacity.

in which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured's properties appreciation or depreciation

agreed value

which of the following classes of employment are exempt from Colorado Worker's Compensation laws

all are exempt

which type of ensures will be held liable for their actions in court

all companies - authorized and unauthorized

which of the following is a method of claim settlement used in casualty insurance when the insured and sure cannot agree on how to settle a claim

arbitration

When an insurer is authorized to cancel, nonrenew, or increase premiums Annie auto liability policy ensures more than one person, because of the clean experience or driving record of at least one but not all insurance, and Luo cancellation or non-renewal, the insurer may exclude coverage for the offending drivers, if they

are named on the policy as excluded drivers

which of the following would not qualified as a hired auto

auto borrowed from employee

in insurance, produces are permitted to share split commissions, providing that

both are property license for the line of insurance

termination of an enforced insurance policy prior to the expiration date showing in the policy is known as

cancellation

an insured was involved in automobile accidents in which the insured was at fault. Which of the following coverage would pay for damage to the insured automobile

collision

The mixing a premiums belonging to the insurer or the insured with the producers personal funds not related to the business is called

commingling

the part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the

conditions

The Advil driver and an insurance auto crush had the state required minimums for auto liability coverage, but not enough to pay for all the damaged on to the insured this driver is

considered under insured

a professional liability policy will provide coverage for loss in all of the following cases, except, when the insured doctor was shown to be

criminally negligent

A used car dealer takes a car in trade as partial payment for a car on its car lot. The customer promises to bring in the car is title but does not. Another customer takes the trade-in for a test drive and has an accident. In regard to the dealerships business auto physical damage coverage, which of the following is true

damage to the trade-in is covered

when a producer was reviewing a potential customers coverage written by another company, the producer made several remarks that were maliciously critical of that other insure. The producer could be found guilty

defamation

Which of the following provisions requires that the insured protects the damage property from further damage, cooperates with the insure and settling the loss, and submit some sure sign proof of loss within a specified period Of time

duties after loss

Directors and officers liability insurance defends actions against a corporation for its officers and directors alleging wrongful acts. With regard to the coverage provided, wrongful acts include any of the following except

embezzlement

all workers conversation insurance issued in Colorado must include provisions for

employers legal liability

professional liability coverage protects against legal liability resulting from

errors and omissions

under the professional liability law settlement provision, what must an insured do before offering to pay a claimant to settle a claim

get the insureds consent

to obtain a nonresident producers license in the state, a prospective licensee must

have a similar license in his or her home state

when would a misrepensation on the insurance application be considered fraud

if it is intentional and material

which of the following is not a penalty for violating provisions of the insurance code

imprisonment

to purchase insurance, the policy owner must have financial interest in the property being insured. This is known as

insurable interest

The part of the insurance contract that describes the covered per owls in the nature of coverage in the contractual agreement between the insurance and insured as called

insuring agreement

all of the following are conditions commonly found in the insurance policy except

insuring agreement

and insured receives an examination request form dated June 2 from the division of insurance. The insurer must respond by

june 12th

The process of determining the premium charge and how much insurance is required for a particular loss as called

loss valuation

The insurance houses located 1 mile from the county's new landfill and across the road from the entrance of a rock quarry. It would cost 150,000 to rebuild the house if something happened to it, but when the insured tried to sell it, the best offer here received was 80,000. The insurance company will ensure the house for only 80,000. What method of valuation is used to ensure this property

market value

If an insurer offering personal lines of property and casualty insurance uses credit information in underwriting or rating a consumer, the insurer or producer must disclose to the consumer that it may obtain credit information. Such disclosure

must be given in writing or in the same medium as the application for insurance is taken

under the personal auto policy, liability for bodily injury resulting from the insurance use a nano automobile is

provided by the insurance policy on a access basis

any a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

self insured retention

Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

special

what are the two types of compensatory damages?

special and general

The transfer of an insurance right to seek damages from a negligent party to the insurer is found in which of the following clauses

subrogation

all of the following provisions must be included in an insurance anti-fraud plan except

suspension of producers license

A lender is requiring that a borrower purchases an insurance policy through particular insurance, as a condition to the extension of credit. This is example of which of the following

unfair practice of coercion

When a parent is required to pay for damages caused by his or her children, this is an example of

vicarious liability

which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract

warranty

When the policyholder of a commercial insurance policy operates in more than one state, the policy may include provisions to determine disputes arising from claim handling and procedures, cancellation, or non-renewal. These disputes will be governed by the state

what's the largest percentage of premium charged

which of the following best describes negligence

you failure to use reasonable and prudent

which would not be covered by the inside premises - robbery or safe burglary of other property coverage

⁉️