COLORADO PROPERTY & CASUALTY
- FROM PRACTICE EXAM QUESTIONS
& VERIFIED COMPLETE ANSWERS
PASSED 100%
If a producer misrepresents a part of a policy, will the Insurer cover a claim made for the
misrepresentation? - Correct Answer ✔✔ Yes, if an agent mistakenly says something
untrue about a policy, the company WILL cover the loss b/c the agent legally represents
the insurer. The insurer may seek reimbursement from Agent for their error.
When must a certificate of Authority be renewed each year in the State of Colorado? -
Correct Answer ✔✔ June 30th
Estoppel - Correct Answer ✔✔ Prevents a party from enforcing a right that it voluntarily
waived by its past conduct.
Captive Insurance Company - Correct Answer ✔✔ Formed to cover the risks of the
parent organization that owns it. Sophisticated form of Self-Insurance.
Indemnity - Correct Answer ✔✔ When a loss victim is financially restored to the amount
of the loss.
How long must disclosures be kept on record? - Correct Answer ✔✔ Disclosures must
be kept on record for 3 years.
Legal Contract - Correct Answer ✔✔ Legal contract is formed when application is
completed, sent with premium to the insurer, and accepted by the insurer.
What producer is exempt from CO continuing education courses? - Correct Answer ✔✔
A Title Insurance Producer.
What source of funds are used during prosecution of alleged Insurance Fraud? -
Correct Answer ✔✔ During prosecution of alleged Insurance fraud, the source of funds
is from fees collected from entities regulated by the Division.
What is the time limit to pay or reject claims in Colorado? - Correct Answer ✔✔ Insurers
must reject or pay claims within 60 days.
, Are Averse Economic Conditions a cause for revision of a policy upon renewal? -
Correct Answer ✔✔ Adverse economic conditions will NOT cause an insurer to revise a
standard policy form at renewal.
Licensee vs Invitee - Correct Answer ✔✔ Licensee would be a Door to Door salesman.
A Delivery person is an invitee.
Proximate Causation - Correct Answer ✔✔ Proximate Causation is where a plaintiff
must prove that the defendants action set in motion a chain of events that could've
reasonably been anticipated to lead to the damage suffered.
Strict Liability - Correct Answer ✔✔ Strict Liability holds people responsible even if they
haven't been careless/negligent. But because they broke the law or ignored clear signs
for specific behavior.
Contributory Negligence - Correct Answer ✔✔ Contributory Negligence considers the
plaintiffs conduct as a cause of their own injury, and bars them from any recovery. (Ex.
a pedestrian walking when they don't have the right of way, red flashing light, and get hit
by a car legally moving through the green light.)
Is damage caused by flood a covered peril under a Home property insurance policy? -
Correct Answer ✔✔ No, damage caused by flood is excluded under a property
insurance policy's water damage exclusion.
Compensatory Damages - Correct Answer ✔✔ Special and General damages
Policy Reduction Coverage - Correct Answer ✔✔ Policy reduction coverage occurs
when a property is vacant for 60 days.
Negligence - Correct Answer ✔✔ Negligence is the failure to use the degree of
reasonable care, without intent to injure.
Territory Provision of a casualty policy - Correct Answer ✔✔ Territory Provision of a
casualty policy indicates where coverage would apply if a loss occurs.
If an Insurer fails to meet the requirement before an existing policy expires... - Correct
Answer ✔✔ the insurer must renew the policy to the same terms, conditions, and
premium for an identical policy period.
No Benefit to Bailee - Correct Answer ✔✔ No Benefit to Bailee provision makes it clear
that no coverage is provided if it benefits a bailee.
Morale Hazards - Correct Answer ✔✔ Morale Hazards arise from a state of mind,
attitude, or indifference to loss.
- FROM PRACTICE EXAM QUESTIONS
& VERIFIED COMPLETE ANSWERS
PASSED 100%
If a producer misrepresents a part of a policy, will the Insurer cover a claim made for the
misrepresentation? - Correct Answer ✔✔ Yes, if an agent mistakenly says something
untrue about a policy, the company WILL cover the loss b/c the agent legally represents
the insurer. The insurer may seek reimbursement from Agent for their error.
When must a certificate of Authority be renewed each year in the State of Colorado? -
Correct Answer ✔✔ June 30th
Estoppel - Correct Answer ✔✔ Prevents a party from enforcing a right that it voluntarily
waived by its past conduct.
Captive Insurance Company - Correct Answer ✔✔ Formed to cover the risks of the
parent organization that owns it. Sophisticated form of Self-Insurance.
Indemnity - Correct Answer ✔✔ When a loss victim is financially restored to the amount
of the loss.
How long must disclosures be kept on record? - Correct Answer ✔✔ Disclosures must
be kept on record for 3 years.
Legal Contract - Correct Answer ✔✔ Legal contract is formed when application is
completed, sent with premium to the insurer, and accepted by the insurer.
What producer is exempt from CO continuing education courses? - Correct Answer ✔✔
A Title Insurance Producer.
What source of funds are used during prosecution of alleged Insurance Fraud? -
Correct Answer ✔✔ During prosecution of alleged Insurance fraud, the source of funds
is from fees collected from entities regulated by the Division.
What is the time limit to pay or reject claims in Colorado? - Correct Answer ✔✔ Insurers
must reject or pay claims within 60 days.
, Are Averse Economic Conditions a cause for revision of a policy upon renewal? -
Correct Answer ✔✔ Adverse economic conditions will NOT cause an insurer to revise a
standard policy form at renewal.
Licensee vs Invitee - Correct Answer ✔✔ Licensee would be a Door to Door salesman.
A Delivery person is an invitee.
Proximate Causation - Correct Answer ✔✔ Proximate Causation is where a plaintiff
must prove that the defendants action set in motion a chain of events that could've
reasonably been anticipated to lead to the damage suffered.
Strict Liability - Correct Answer ✔✔ Strict Liability holds people responsible even if they
haven't been careless/negligent. But because they broke the law or ignored clear signs
for specific behavior.
Contributory Negligence - Correct Answer ✔✔ Contributory Negligence considers the
plaintiffs conduct as a cause of their own injury, and bars them from any recovery. (Ex.
a pedestrian walking when they don't have the right of way, red flashing light, and get hit
by a car legally moving through the green light.)
Is damage caused by flood a covered peril under a Home property insurance policy? -
Correct Answer ✔✔ No, damage caused by flood is excluded under a property
insurance policy's water damage exclusion.
Compensatory Damages - Correct Answer ✔✔ Special and General damages
Policy Reduction Coverage - Correct Answer ✔✔ Policy reduction coverage occurs
when a property is vacant for 60 days.
Negligence - Correct Answer ✔✔ Negligence is the failure to use the degree of
reasonable care, without intent to injure.
Territory Provision of a casualty policy - Correct Answer ✔✔ Territory Provision of a
casualty policy indicates where coverage would apply if a loss occurs.
If an Insurer fails to meet the requirement before an existing policy expires... - Correct
Answer ✔✔ the insurer must renew the policy to the same terms, conditions, and
premium for an identical policy period.
No Benefit to Bailee - Correct Answer ✔✔ No Benefit to Bailee provision makes it clear
that no coverage is provided if it benefits a bailee.
Morale Hazards - Correct Answer ✔✔ Morale Hazards arise from a state of mind,
attitude, or indifference to loss.
