Colorado Accident & Health Laws State Exam Simulator Questions and Answers 2023

Which of the following is an example of defamation? A brochure including an untrue statement regarding a competitor's ability to pay claims A truthful estimate of the dividends A pamphlet listing a competitor's financial rating A verbal statement of a competitor's complaint ratio - A brochure including an untrue statement regarding a competitor's ability to pay claims Which of the following is an example of rebating? offer of temporary insurance coverage cancellation of an insurance policy without cause sale of mass-marketed insurance products returning a portion of a premium as inducement to purchase insurance - returning a portion of a premium as inducement to purchase insurance Which of the following is a duty of the Commissioner? Setting insurance rates Writing insurance laws Setting sales quotas Reviewing and approving license applications - reviewing and approving license applications A license is deemed to be used for controlled business if during any 12-month period the licensee wrote more than 10 policies on controlled business the licensee wrote policies totaling more than $25,000 on controlled business the licensee's total premiums on controlled business made up more than 25% of his total premiums the licensee's total premiums on controlled business exceeded the total premiums on all other business - the licensee's total premiums on controlled business exceeded the total premiums on all other business In Colorado, which of the following is true regarding the commingling of an insured's funds with the funds of the producer? It is never okay It is okay with the insurer's written approval It is okay if records are kept on the transaction It is okay with the insured's written approval - it is never okay Who is not eligible to receive commissions from the sale of an insurance product? Corporate executive General agent Licensed home office employee Personal producer - corporate executive Which of the following is an example of a misrepresentation? Making malicious statements about an insurer Describing a universal life policy as a security Returning a portion of a premium as inducement to purchase insurance Failing to affirm or deny coverage of claims within a reasonable time - describing a universal life policy as a security An insurer that terminates a producer's appointment must inform the Commissioner within how many days? 45 55 15 30 - 30 In Colorado, all of the following are considered unfair trade practices EXCEPT coercion rebating replacement misrepresentation - replacement A fiduciary responsibility is defined as a relationship of special trust and confidence when a person is entrusted with another's funds the responsibility of the insured to pay premiums in a timely fashion the responsibility the producer has to the appointing insurer the relationship between the broker and the insurer whose products are sold - a relationship of special trust and confidence when a person is entrusted with another's funds Circulation of a maliciously critical statement about an insurer's financial condition meant to damage the insurer's reputation or business is called defamation unfair discrimination conservation coercion - defamation Which information is NOT included in the Colorado Supplement to the Summary of Benefits and Coverage form? Covered cancer screenings Deductibles Insurer's prior year financials Balanced billing - insurer's prior year financials How long must a replacing insurer maintain the records of a replacement transaction? 5 years 4 years 2 years 3 years - 5 years From what point must the insurer pay interest on the proceeds of a death claim? Date claim is postmarked Date of death Date insurer is notified of the death claim Date claim is received by insurer - date of death Ultimately, who is responsible for a producer-generated advertisement? The Department of Insurance Producer Insurer Life and Health Guaranty Association - insurer If an insurance company wishes to discriminate rates based on gender, it must receive prior approval from the Department of Insurance be justified by actuarial statistics allow for no more than a 10% rate difference disclose the rate difference on the application - be justified by actuarial statistics As a condition to be approved for a loan, a creditor may require the borrower to obtain an insurance policy through the lender obtain an insurance policy for more than the loan amount obtain an insurance policy through an insurer of lender's preference obtain an insurance policy through an insurer of the borrower's preference - obtain an insurance policy through an insurer of the borrower's preference All of the following penalties apply to anyone giving intentional false testimony during an insurance examination EXCEPT imprisonment up to three months guilty of a misdemeanor guilty of a felony fine of up to $5,000 - guilty of a felony