Colorado Property & Casualty Exam with all Correct &
100% Verified Answers |Actual Complete Update |
Already Graded A+
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.
Abandonment Provision ✔Correct Answer-An Abandonment Provision in property policies
specifies that the insured cannot walk away from damaged property and turn it over to the
insurer. The insurer ISN'T required to accept any property that an insured has abandoned.
100% Verified Answers |Actual Complete Update |
Already Graded A+
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.
Abandonment Provision ✔Correct Answer-An Abandonment Provision in property policies
specifies that the insured cannot walk away from damaged property and turn it over to the
insurer. The insurer ISN'T required to accept any property that an insured has abandoned.
