Colorado Life & Health Insurance State Law Supplement Practice Exam: Questions & Answers

What is the maximum amount the commissioner can fine an insurer for each violation of a cease-and-desist order? (Ans- $10,000 When appropriate the commissioner reports a violation of insurance law to (Ans- The district attorney A company that has not been authorized to operate in Colorado is known as (Ans- A nonadmitted insurer An insurer that terminates the producers appointment must inform the commissioner within how many days? (Ans- 30 All of the following are duties of the commissioner except: a. keeping records of the insurers that he has examined b. adopting rules and regulations c. writing insurance laws d. submitting an annual report to the General assembly (Ans- See. Writing insurance laws When an insurer terminates a producer's appointment, the insurer must notify (Ans- The commissioner and producer An insurance producer who solicits insurance on behalf of an insurer represents the (Ans- Insurer The commissioner may... (Ans- Conduct investigations and subpoena witnesses whenever he deems it necessary The commissioner gives approval to an insurer to do business in Colorado in a certificate of (Ans- Authority In Colorado all of the following are considered unfair trade practices except: a. Misrepresentation b. Rebating c.. Replacement D. Coercion (Ans- C. Replacement All of the following are violations of Colorado insurance law except: a. Charging individuals of the same class different premium rates b. Offering tickets to a football game as an incentive to purchase a policy c. In forming a new policy holder that his new policy, if lapsed for nonpayment of premium, could be reinstated upon reapplication d. Having an arrangement to sell stock to a person contingent upon the purchase of an annuity (Ans- C. In forming a new policy holder that his new policy, if lapsed for nonpayment of premium, could be reinstated upon reapplication All of the following insurance practices are illegal in Colorado except: A. Soliciting or procuring insurance without a license B. Paying a fee for services as an insurance producer to anyone who is not properly licensed C. Inquiring about an applicant sexual orientation in connection with an application D. Replacing one life insurance policy with another (Ans- D. Replacing one life insurance policy with another