Colorado Property & Casualty Insurance Law Supplement

Terminating an Appointment: The commissioner must be notified within ___ days after date of producer appointment termination. An insurer has an additional ___ days to notify the producer. The producer must file a response with the commissioner within ___ days of receiving notice

30 days 15 days 30 days

the commissioner must examine every licensed insurer at least once every ___ years

5 years

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Automobile Insurance: Within the first ___ days an insurer may cancel for any legal reason.

59 days

Unfair Trade Practices and Methods of Competition: Unfair Claims Practices First party P&C claims must be paid by insurers within _____ days of receipt unless disputed

60

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: Death benefits payable to dependents will be based on ___% of the average weekly wage

66 2/3%

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: Permanent total disability benefits are ___% of the employee's average weekly earnings

66 2/3%

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: 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%

Penalties - license denial, suspension, or revocation - Civil penalty of up to $_____ per violation

$3,000

Unfair Trade Practices and Methods of Competition - maximum per violation fine for violations

$3,000

Unfair Trade Practices and Methods of Competition - Insurer maximum per violation fine for violations committed knowingly

$30,000

Unfair Trade Practices and Methods of Competition - maximum aggregate fine for violations

$30,000

Penalties - Penalties for Falsifying Books or Documents: Maximum penalty of $____, ____ months imprisonment, or both fine and imprisonment

$5,000, 12 months

Penalties - Penalties for false testimony: Maximum penalty of $____, ____ months imprisonment, or both fine and imprisonment

$5,000, 3 months

Bail Bonds: Maximum bail bond commission is the greater of $___ or ___%

$50 or 15%

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: Injured employees or dependents (if deceased) must file a claim within ___ years after the injury or death occurred

2 years

Producer License Renewal Period: A producer's license is continually renewed every ___ years as long as proper fees and continuing education requirements are met

2 years

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: No disability benefits if disability lasts fewer than___ days (waiting period). Compensation is retroactive if a disability lasts more than ___ weeks.

3 days 2 weeks

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: Employers must notify the commissioner immediately if ___ employees or more are injured or if an employee dies from an injury

3 employees

Surplus lines tax on net premium is ___%

3%

UNDER THE FRAUDULENT CLAIMS AND ARSON INFORMATION REPORTING ACT, WHICH OF THE FOLLOWING IS CONSIDERED AN AUTHORIZED AGENCY?

1) THE COLORADO BUREAU OF INVESTIGATION 2) FIRE DEPARTMENTS AND OTHER LAW ENFORCEMENT AGENCIES 3) DISTRICT OR COUNTY ATTORNEYS AND THEIR REPRESENTATIVES 4) ANY PROFESSION LICENSING BOARD

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Automobile Insurance: 1. Insurers must offer collision coverage deductibles of $___ and $___ in addition to other deductible choices 2. Minimum medical payments limits 3. Insured's written rejection of medical payments must be retained for at least ___ years

1. $100 and $250 2. $5,000 3. 3 years

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY: Automobile Insurance - Uninsured/Underinsured Motorists: Minimum limits of liability (bodily injury) = 1. $___ per person, 2. $___ per occurrence

1. $25,000 2. $50,000

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO PROPERTY ONLY - Homeowners Insurance - Notice of Cancellation or Nonrenewal: 1. ___ days in advance for nonpayment of premium 2. ___ days in advance for all other reasons

1. 10 days 2. 30 days

Insurance Commissioner - Reporting of administrative Actions - any administrative actions or criminal prosecutions must be reported to the commissioner within ____ days

30 days

Licensing and Producer's Legal Responsibility: Change of address (resident producers) must be reported within ____ days

30 days

Licensing and Producer's Legal Responsibility: Nonresident producers moving from one state to another or resident producers moving from CO to another state must file a change in address and provide certification from the new resident state within ___ days

30 days

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY: Automobile Insurance - Notice of Cancellation: 1. ___ days advance written notice for nonpayment of premium. 2. ___ days advance written notice for all other reasons. 3. Reason(s) for cancellation must be sent within ____ of the insured's request.

1. 10 days 2. 30 days 3. 15 days

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO PROPERTY AND CASUALTY ONLY: Commercial Policy Requirements - 1. ____days' notice of cancellation for nonpayment of premium 2. ____ days' notice of cancellation or nonrenewal for policies in effect more than 60 days 3. Insurer must provide at least a ___-day written notice for increases in premium or decreases in coverage at renewal

1. 10 days 2. 45 days 3. 45-day

Records and Requests for Information: 1. Division of Insurance inquiries must be answered within ___ calendar days 2. Requests for information during a market conduct or financial examination must be responded to within ____ calendar days

1. 20 days 2. 10 days

Licensing and Producer's Legal Responsibility: 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 with 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

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: A lump sum of $___ is paid for reasonable funeral and burial expenses

$7,000

Unfair Trade Practices and Methods of Competition - Insurer maximum aggregate fine for violations committed knowingly

$750,000

Unfair Trade Practices & Methods of Competition: Emergency Cease and Desist Order - Civil penalty for each violation

$25,000

WHAT ARE THE MINIMUM LIMITS OF LIABILITY ANY INDIVIDUAL MUST PROVIDE FOR BODILY INJURY AND PROPERTY DAMAGE?

$25,000 PER PERSON $50,000 PER ACCIDENT FOR BODILY INJURY $15,000 FOR PROPERTY DAMAGE

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY: Automobile Insurance: Financial Responsibility - minimum limits of liability = $____ per person, $____ per occurrence

$25,000 per person $50,000 per occurrence

Unfair Trade Practices and Methods of Competition: Violation of Cease and Desist Orders 1) Maximum fine per violation (individual) 2) Maximum fine per violation (insurer)

1) $500 2) $10,000

Continuing Education (CE): 1. Total CE hours required for each two-year licensing period 2. Includes ___ hours of required ethics 3. Required ___ hours of approved courses in the lines for which the producer is licensed 4. An additional ___ hours covering homeowners insurance must be completed by producers that sell property or personal lines insurance 5. Maximum number of hours that may be carried over to next CE period 6. Up to a ___-month extension may be granted by the commissioner 7. Education documents must be retained for ___ years

1. 24 hours 2. 3 hours 3. 18 hours 4. 3 hours 5. 12 hours 6. 12-month 7. 5 years

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY Automobile Insurance - Notice of Nonrenewal: 1. Notice of nonrenewal must be given at least ___ days of insured's request. 2. Reason(s) for nonrenewal must be sent within ___ days of the insured's request.

1. 30 days 2. 20 days

Fiduciary: 1. A producer must remit premiums to insurer within ___ days after receipt 2. A producer must return all premium to the insured within ___ days

1. 45 days 2. 30 days

Licensing and Producer's Legal Responsibility: Prelicensing Education Requirements - 1. Life insurance producer 2. Accident and health insurance producer 3. Life, accident, and health insurance producer 4. Property and casualty insurance producer 5. Minimum hours required for industry ethics (per 50-hour course)

1. 50 hours 2. 50 hours 3. 100 hours 4. 50 hours 5. 3 hours

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO PROPERTY AND CASUALTY ONLY: Use of Credit Information - 1. Credit scores used as a basis for an adverse action must be from reports run within the previous ___ days 2. Insurance scores must be updated at least every ___ months

1. 90 days 2. 36 months

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: Self-insurance pools are examined by the commissioner _______(how many year(s)), and must file an annual report with the commissioner by _______ each year

1. Annually 2. March 30

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO CASUALTY ONLY - Workers' Compensation Insurance: Claim Procedures - Employers must report injuries to the commissioner and insurer within ___ days after an injury

10 days

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

The Insurance Commissioner's certificate of authority expires on ____ each year and must be renewed annually

June 30

WHEN APPROPRIATE, THE COMMISSIONER REPORTS A VIOLATION OF INSURANCE LAW TO ____?

THE APPROPRIATE DISTRICT ATTORNEY

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO PROPERTY AND CASUALTY ONLY: Rate regulation classification for workers compensation pure premium, and assigned risk auto insurance (Type I, Type II, Type III)

Type I

COLORADO LAWS, RULES, AND REGULATIONS PERTINENT TO PROPERTY AND CASUALTY ONLY: Rate regulation classification for fire, casualty, inland marine, title, and credit (Type I, Type II, Type III). NOT filed with Commissioner. Rates are regulated by open competition between the insurers. Rating data must be filed with commissioner at same time as the effective date of new rates

Type II

If an insured chooses NOT to purchase uninsured motorists coverage: a) the insurer is not required to notify the policyholder in renewal notices about the availability of such coverage b) the insurer must notify the policyholder about the option limits in future notices c) the insurer must send the policy holder written notification about the availability of such coverage in the first year's renewal notice only d) the insured may not add such coverage later

a) the insurer is not required to notify the policyholder in renewal notices about the availability of such coverage

Licensing and Producer's Legal Responsibility: Minimum age for license

age 18

What happens if workers' compensation benefits and periodic Social Security benefits are both payable to an employee? a) the employee receives both b) the employee receives neither c) the workers' compensation benefits can be reduced d) Social Security benefits are suspended until workers' compensation is completely paid

c_ the WC benefits can be reduced

All of the following are methods an employer can use to insure its workers' compensation obligation EXCEPT: a) the Colorado compensation insurance authority fund b) a stock or mutual company authorized to transact workers' compensation insurance c) an approved self-insurance plan of the employer d) a group captive workers' compensation insurance plan

d) a group captive workers' compensation insurance plan