Colorado Life Insurance Pre-Licensing Exam Preparation
Guide (2026–2027): Comprehensive Review with 200
Practice Questions and Verified Correct Answers.
What is the maximum amount the commissioner can fine an insurer for each
violation of a cease-and-desist order? - Answer - $10,000
When appropriate the commissioner reports a violation of insurance law to -
Answer - The district attorney
A company that has not been authorized to operate in Colorado is known as -
Answer - A nonadmitted insurer
An insurer that terminates the producers appointment must inform the
commissioner within how many days? - Answer - 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 - Answer -
See. Writing insurance laws
When an insurer terminates a producer's appointment, the insurer must notify -
Answer - The commissioner and producer
An insurance producer who solicits insurance on behalf of an insurer represents the
- Answer - Insurer
The commissioner may... - Answer - 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 - Answer - Authority
In Colorado all of the following are considered unfair trade practices except: a.
Misrepresentation b. Rebating c.. Replacement D. Coercion - Answer - 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 - Answer - 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 - Answer - D. Replacing one life insurance
policy with another
How many hours of continuing education must be in courses associated with the
lines of insurance for which the producer is licensed? - Answer - 18
All of the following are examples of unfair claims settlement practices except: A.
Paying the claim without conducting an investigation B. Denying a claim promptly
but without explaining the coverage or laws on which the denial is based C. Paying
a claim promptly but without explaining the coverage or laws on which the
payment is based D. Denying the claim without making an investigation - Answer
- A. Paying a claim without conducting an investigation
, A producer has how many days to file a written appeal to the commissioner after
he has been terminated by his appointing insurer? - Answer - 30
A fraternal benefit society representative need not be licensed as a producer if he
sells life insurance with the face amount equal to or less than: - Answer - 50,000
To be licensed to sell life, accident and health insurance in Colorado, and applicant
must complete: - Answer - 100 hours of pre-licensing education
A fiduciary responsibility is defined as: - Answer - A relationship of special trust
and confidence when a person is entrusted with another's funds
A producer who has to write a majority of his insurance business on the employees
and officers of a restaurant owned by his wife is transacting: - Answer - Controlled
business
Circulation of a maliciously critical statement about an insurer's financial condition
to damage the insurer's reputation or business is called: - Answer - Defamation
In general, people who represent fraternal benefit society's to solicit insurance are:
- Answer - Considered insurance producers and must meet all licensing
requirements
How must insurance producers account for each insurance policy and the
premiums they receive on it? - Answer - As a separate account of the insured
Suppose a producer helps a client set up an estate plan, which is not part of the
producers usual service. The producer can charge a fee for this service if all of the
Guide (2026–2027): Comprehensive Review with 200
Practice Questions and Verified Correct Answers.
What is the maximum amount the commissioner can fine an insurer for each
violation of a cease-and-desist order? - Answer - $10,000
When appropriate the commissioner reports a violation of insurance law to -
Answer - The district attorney
A company that has not been authorized to operate in Colorado is known as -
Answer - A nonadmitted insurer
An insurer that terminates the producers appointment must inform the
commissioner within how many days? - Answer - 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 - Answer -
See. Writing insurance laws
When an insurer terminates a producer's appointment, the insurer must notify -
Answer - The commissioner and producer
An insurance producer who solicits insurance on behalf of an insurer represents the
- Answer - Insurer
The commissioner may... - Answer - 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 - Answer - Authority
In Colorado all of the following are considered unfair trade practices except: a.
Misrepresentation b. Rebating c.. Replacement D. Coercion - Answer - 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 - Answer - 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 - Answer - D. Replacing one life insurance
policy with another
How many hours of continuing education must be in courses associated with the
lines of insurance for which the producer is licensed? - Answer - 18
All of the following are examples of unfair claims settlement practices except: A.
Paying the claim without conducting an investigation B. Denying a claim promptly
but without explaining the coverage or laws on which the denial is based C. Paying
a claim promptly but without explaining the coverage or laws on which the
payment is based D. Denying the claim without making an investigation - Answer
- A. Paying a claim without conducting an investigation
, A producer has how many days to file a written appeal to the commissioner after
he has been terminated by his appointing insurer? - Answer - 30
A fraternal benefit society representative need not be licensed as a producer if he
sells life insurance with the face amount equal to or less than: - Answer - 50,000
To be licensed to sell life, accident and health insurance in Colorado, and applicant
must complete: - Answer - 100 hours of pre-licensing education
A fiduciary responsibility is defined as: - Answer - A relationship of special trust
and confidence when a person is entrusted with another's funds
A producer who has to write a majority of his insurance business on the employees
and officers of a restaurant owned by his wife is transacting: - Answer - Controlled
business
Circulation of a maliciously critical statement about an insurer's financial condition
to damage the insurer's reputation or business is called: - Answer - Defamation
In general, people who represent fraternal benefit society's to solicit insurance are:
- Answer - Considered insurance producers and must meet all licensing
requirements
How must insurance producers account for each insurance policy and the
premiums they receive on it? - Answer - As a separate account of the insured
Suppose a producer helps a client set up an estate plan, which is not part of the
producers usual service. The producer can charge a fee for this service if all of the
