Colorado Property & Casualty - from practice exam questions with correct answers
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.)
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.)
