Colorado statutes, rules, and regulations common to all lines

All insurance companies doing business in the state of Colorado must file a financial statement with the commissioner

Annually, on or before March 1

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

Apply and pay a fee to a nonresident state that reciprocates

How often must the commissioner examine all insurers to guard against insurance company insolvency

At least once every 5 years

Noncompliance with the regulation regarding fees charged by producers may result in which of the following penalties?

Fines and license suspension or revocation

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. What is the company guilty of?

Misrepresentation

In the state of Colorado, an unfair trade practice of defamation is considered a

Petty offense

The purpose of insurance regulations is to

Protect the insurance buying public

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

$30,000. In Colorado, an insurer who knew or reasonably should have known it was in violation could be fined up to $30,000 for each violation, not to exceed an aggregate of $750,000 annually.

An insurer who frequently misses deadlines to respond to inquiries from the Division of Insurance may be fined, for each violation, as much as

$5,000

An insurer misses the deadline to respond to an Examination Request from the Division of Insurance. If this is the company's first violation, it can face a penalty of

$500

What is the maximum a producer may be fined for violating a cease and desist order?

$500

A certificate proving that an applicant for a license has completed the required pre-licensing education is valid for how long>

1 Year

The Division of Insurance has requested information regarding an insurer's underwriting policies via e-mail. How many days does the insurer have to respond to this request?

20 days

Of the required 50 hours of prelicensing what is the minimum number if hours an applicant must complete on the subject of ethics?

3 hours

After a client signs a disclosure statement, the producer must keep a copy of the statement for at least

3 years from the date of completion of the services

All insurers that terminate employment with a producer are required to notify the Commissioner within how many days following the effective date of the termination?

30 days

How many days do producers have to report administrative actions against them in another jurisdiction?

30 days

The regulation of the insurance industry primarily rests with

A. the state; each state is responsible for the conduct of insurance within that state

Which type of insurers will be held liable for their actions in court?

All companies: authorized and unauthorized

Every insurer in the state of Colorado is required to prepare, implement and maintain an insurance anti-fraud plan. In addition, a summary of the company's anti-fraud efforts must be submitted to the commisioner on an

Annual basis

In insurance, producers are permitted to share or split commissions, providing that

Both are properly licensed for the line of insurance.

If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?

Cease and desist order

An insurer may not transact insurance in this state without which of the following?

Certificate Authority

An insurance producer just sold an insurance policy to his sister. What kind of business is this?

Controlled

How often will the commisioner examine domestic insurers in the state?

Every 5 years

How often will the commissioner examine domestic insurers in the state?

Every 5 years

immunity

Exemption from a duty or legal obligation, or protection against a liability

True or false: when settling claims, negotiation CANT come into play?

False, negotiations can come into play

The commissioner of insurance is appointed by which authority?

Governor

Authorized User

Insurer who has received a certificate of authority from the department of insurance to transact insurance in this state.

Exempt

Not subject to an obligation

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

A producer failed to meet the continuing education requirement by the license renewal date, so the license was cancelled 10 months ago. What does the producer have to do to restore his license?

Reinstate the same license within 12 months of the lapse

Disclousure

Revealed information to help someone make an intelligent and educated decision

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

Regarding investigations of insurers, the Colorado Commissioner of Insurance may

Subpoena witnesses whenever he/she deems necessary

The regulation of insurance primarily rests with

The State

The regulation of the insurance industry primarily rests with

The state

Solvency

ability to meet financial obligations

aggregate

gather; accumulate

Cease and desist

to stop or discontinue

What entity is appointed to oversee the business of insurance and to ensure that the insurance laws of Colorado are enforced?

The commissioner of insurance

If a company has transacted insurance in this state without a certificate of authority, which of the following is true of its obligations for the policies sold?

The company can still be liable for its policies in any court of this state

In order to facilitate responses to inquiries from the division of Insurance, companies must maintain all records for at least

The current calendar year, plus the 2 prior calendar years

The commissioner is conducting an examination of a foreign company located outside of Colorado. Who is responsible for the cost of the examination?

The foreign company

Business Entity

a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity

Inducement

an offer that attempts to influence the other party

Subpoena

an order for someone to appear as a witness or submit testimony or evidence

Whenever the commissioner issues a cease and desist order, how will that order be delivered to the person in violation?

by certified mail

Statutue

A formal written law enacted by legislature; insurance statutes can be found in the state insurance code

Producers will be deemed to be using their license primarily to write controlled business if, during any 12-month period

The total premiums on controlled business exceed the total premiums on all other business written

Believing a producer has violated provisions of the insurance code, the commissioner will schedule a hearing

To allow the producer to show why penalties should not be assessed

promulgate

To make public, to put into action

True or False: Sharing commissions is allowed as long as both producers are properly licensed.

True

moral turpitude

conduct that is contrary to community standards of justice, honesty or good morals

Commission

payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

Insurers must complete claims investigations

promptly