,Colorado Health Insurance Exam | Questions and
Verified Answers | 100% Correct (Latest Update
2026)
QUESTION 1
An insurance producer who represents only one insurance company is
considered:
A. An independent agent
B. A captive agent
C. A broker
D. A surplus lines broker
Correct Answer: B. A captive agent
*Rationale: * A captive agent represents and sells insurance for only one
company. They are often employees of that company and are paid a salary
or commission. An independent agent represents multiple companies. A
broker represents the insured, not the insurer.
QUESTION 2
The part of a policy that describes the specific perils or risks that are not
covered is called:
,A. Declaration page
B. Insuring agreement
C. Exclusions
D. Conditions
Correct Answer: C. Exclusions
*Rationale: * Exclusions are provisions in a policy that eliminate coverage
for certain risks, perils, or situations. They define what is not covered. The
declaration page contains policy-specific information, the insuring
agreement states what the insurer promises to do, and conditions outline
the rules of the contract.
QUESTION 3
Which of the following is NOT an example of unfair discrimination in
insurance?
A. Charging different premiums based on age
B. Charging different premiums based on race
C. Charging different premiums based on gender
D. Charging different premiums based on smoking status
, *Correct Answer: D. Charging different premiums based on smoking
status
*Rationale: * Charging different premiums based on smoking status is legal
because it is a valid underwriting factor based on risk assessment. Race and
gender are protected classes and cannot be used for discrimination. Age is
allowed but subject to rating restrictions under the ACA.
QUESTION 4
What is the maximum amount of time an insurer has to pay a claim in
Colorado?
A. 30 days
B. 45 days
C. 60 days
D. 90 days
Correct Answer: C. 60 days
*Rationale: * Colorado law requires insurers to pay claims within 60 days of
receiving proof of loss. Failure to pay within this timeframe may result in
interest penalties or other regulatory action. The 60-day period begins
when all necessary documentation has been received.
QUESTION 5
Verified Answers | 100% Correct (Latest Update
2026)
QUESTION 1
An insurance producer who represents only one insurance company is
considered:
A. An independent agent
B. A captive agent
C. A broker
D. A surplus lines broker
Correct Answer: B. A captive agent
*Rationale: * A captive agent represents and sells insurance for only one
company. They are often employees of that company and are paid a salary
or commission. An independent agent represents multiple companies. A
broker represents the insured, not the insurer.
QUESTION 2
The part of a policy that describes the specific perils or risks that are not
covered is called:
,A. Declaration page
B. Insuring agreement
C. Exclusions
D. Conditions
Correct Answer: C. Exclusions
*Rationale: * Exclusions are provisions in a policy that eliminate coverage
for certain risks, perils, or situations. They define what is not covered. The
declaration page contains policy-specific information, the insuring
agreement states what the insurer promises to do, and conditions outline
the rules of the contract.
QUESTION 3
Which of the following is NOT an example of unfair discrimination in
insurance?
A. Charging different premiums based on age
B. Charging different premiums based on race
C. Charging different premiums based on gender
D. Charging different premiums based on smoking status
, *Correct Answer: D. Charging different premiums based on smoking
status
*Rationale: * Charging different premiums based on smoking status is legal
because it is a valid underwriting factor based on risk assessment. Race and
gender are protected classes and cannot be used for discrimination. Age is
allowed but subject to rating restrictions under the ACA.
QUESTION 4
What is the maximum amount of time an insurer has to pay a claim in
Colorado?
A. 30 days
B. 45 days
C. 60 days
D. 90 days
Correct Answer: C. 60 days
*Rationale: * Colorado law requires insurers to pay claims within 60 days of
receiving proof of loss. Failure to pay within this timeframe may result in
interest penalties or other regulatory action. The 60-day period begins
when all necessary documentation has been received.
QUESTION 5
