Colorado Property and Casualty Insurance
Exam | Questions with 100% Correct
Answers | Verified | Latest Update
Question 1
Sources of Underwriting Info
Correct Answer
1. Application form
2. Motor vehicle records
3. Interviews with neighbors, friends, employers
4. Inspection of property
5. Inspection of insurance history
Question 2
Obligations of the Insurance Company
Correct Answer
An insurance company, in return for a premium, must be fair in underwriting and
must pay covered losses
Question 3
Inspections
Correct Answer
May be made as needed by the insurer. The insurance company reserves the right
to inspect or examine the insured's location or books to determine the exact
exposure for underwriting and rating purposes
Page 1 of 85
,Question 4
Stated Value
Correct Answer
A stated amount is the amount of insurance in a property policy that is not subject
to any coinsurance requirements in the event of a covered loss. This scheduled
amount is the maximum amount the insurer will pay in the event of a loss
Question 5
Policy Application
Correct Answer
Is a printed form that includes questions about a prospective insured and the
desired insurance coverage and limits. Provides the underwriter with info for
accepting or rejecting the prospective insured and rating the desired policy
Question 6
NARAB is required to provide a mechanism for the adoption and multi-state
application of requirements and conditions pertaining to:
Correct Answer
1. Licensing, continuing education, and other qualifications of non-NARAB
insurance producers
2. Resident/Non-resident insurance producer appointments
3. Supervision/disciplining of such producers
4. Setting of licensing fees for insurance producers
Question 7
National Association of Registered Agents and Brokers (NARAB) Reform
Correct Answer
This title of the program amends the Grammy-Leach-Bililey Act to repeal
Question 8
Life Insurance
Correct Answer
Insures against the financial loss caused by the premature death of the insured
Page 2 of 85
,Question 9
Health Insurance
Correct Answer
Insures against the medical expenses and/or loss of income caused by the insured's
sickness or accidental injury
Question 10
Mortgagee Rights
Correct Answer
A mortgagee clause is attached to a policy to protect the interest of the mortgagee
in the mortgaged property.
Question 11
Example of Insurable Interest
Correct Answer
Mortgagees and leaseholders may have insurable interest in their respective
properties
Page 3 of 85
, Question 12
Coverage B: Other Structures (Properties Covered & Not)
Correct Answer
Covered:
1. Other structures that are separated from the dwelling by a clear space or
connected only by a fence, utility line, or similar connection
2. Other structures rented to anyone, other than a tenant of the dwelling, but only
when used as a private garage
3. Structures used in commercial, farming or manufacturing when storing property
owned solely by the insured or a tenant of the dwelling. Gaseous and liquid fuel
must be stored in a tank that is part of a vehicle/craft stored in the structure
Not Covered:
1. Land, including land where the other structures are located
2. Structures rented/held for rental to anyone other than a tenant of the dwelling
when not used as a private garage
3. Other structures that are used in business, whether in whole or in part unless
noted above
4. Grave-markers and mausoleums
Question 13
Representations
Correct Answer
Statements believed to be true to the best of one's knowledge, but they are not
guaranteed to be true
Question 14
Moral Hazards
Correct Answer
Refer to those applicants that may lie on an application for insurance, or have done
so in the past, or have submitted fraudulent claims against an insurer
Page 4 of 85
Exam | Questions with 100% Correct
Answers | Verified | Latest Update
Question 1
Sources of Underwriting Info
Correct Answer
1. Application form
2. Motor vehicle records
3. Interviews with neighbors, friends, employers
4. Inspection of property
5. Inspection of insurance history
Question 2
Obligations of the Insurance Company
Correct Answer
An insurance company, in return for a premium, must be fair in underwriting and
must pay covered losses
Question 3
Inspections
Correct Answer
May be made as needed by the insurer. The insurance company reserves the right
to inspect or examine the insured's location or books to determine the exact
exposure for underwriting and rating purposes
Page 1 of 85
,Question 4
Stated Value
Correct Answer
A stated amount is the amount of insurance in a property policy that is not subject
to any coinsurance requirements in the event of a covered loss. This scheduled
amount is the maximum amount the insurer will pay in the event of a loss
Question 5
Policy Application
Correct Answer
Is a printed form that includes questions about a prospective insured and the
desired insurance coverage and limits. Provides the underwriter with info for
accepting or rejecting the prospective insured and rating the desired policy
Question 6
NARAB is required to provide a mechanism for the adoption and multi-state
application of requirements and conditions pertaining to:
Correct Answer
1. Licensing, continuing education, and other qualifications of non-NARAB
insurance producers
2. Resident/Non-resident insurance producer appointments
3. Supervision/disciplining of such producers
4. Setting of licensing fees for insurance producers
Question 7
National Association of Registered Agents and Brokers (NARAB) Reform
Correct Answer
This title of the program amends the Grammy-Leach-Bililey Act to repeal
Question 8
Life Insurance
Correct Answer
Insures against the financial loss caused by the premature death of the insured
Page 2 of 85
,Question 9
Health Insurance
Correct Answer
Insures against the medical expenses and/or loss of income caused by the insured's
sickness or accidental injury
Question 10
Mortgagee Rights
Correct Answer
A mortgagee clause is attached to a policy to protect the interest of the mortgagee
in the mortgaged property.
Question 11
Example of Insurable Interest
Correct Answer
Mortgagees and leaseholders may have insurable interest in their respective
properties
Page 3 of 85
, Question 12
Coverage B: Other Structures (Properties Covered & Not)
Correct Answer
Covered:
1. Other structures that are separated from the dwelling by a clear space or
connected only by a fence, utility line, or similar connection
2. Other structures rented to anyone, other than a tenant of the dwelling, but only
when used as a private garage
3. Structures used in commercial, farming or manufacturing when storing property
owned solely by the insured or a tenant of the dwelling. Gaseous and liquid fuel
must be stored in a tank that is part of a vehicle/craft stored in the structure
Not Covered:
1. Land, including land where the other structures are located
2. Structures rented/held for rental to anyone other than a tenant of the dwelling
when not used as a private garage
3. Other structures that are used in business, whether in whole or in part unless
noted above
4. Grave-markers and mausoleums
Question 13
Representations
Correct Answer
Statements believed to be true to the best of one's knowledge, but they are not
guaranteed to be true
Question 14
Moral Hazards
Correct Answer
Refer to those applicants that may lie on an application for insurance, or have done
so in the past, or have submitted fraudulent claims against an insurer
Page 4 of 85
