COLORADO PROPERTY AND CASUALTY
INSURANCE EXAM WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS| CURRENTLY TESTING VERSION |
ALREADY GRADED A+|EXPERT VERIFIED
FOR GUARANTEED PASS 2026-2027
Definition and Duties of the Insured
An insured is anyone who is covered under the policy, whether named or not
Named Insured
The individual whose name appears on the policy's declaration
First Named Insured
The individual whose name appears first on the policy's declaration
Additional Insureds
Are the individuals or businesses that are not named as insureds on the declaration
page, but are protected by the policy
In the event of of a loss covered by the policy the named insured is required to:
1. Protect the damaged property from further damage
2. Prepare an inventory of damaged property
3. Cooperate with the insurer in settling the loss
4. Notify the police in case of theft loss
5. Submit to the insurer a signed sworn proof of loss within allotted amount of time after
being requested to do so
Obligations of the Insurance Company
1|Page
,An insurance company, in return for a premium, must be fair in underwriting and must
pay covered losses
Appraisal
If there is a disagreement between the insured and the insurer on the value of any
property loss, either property can make a written demand for an appraisal. Each party
will select a competent appraiser who will then select an umpire if they are unable to
agree on a fair value
Other Insurance
Is a provision found in some property insurance policy that defines how the policy will
respond if there is other valid insurance written on the same risk
Pro rata
Is a provision found in some property insurance policies that provides for the sharing of
loss with other insurance that may be written on the same risk in the same proportions
as their limits of insurance bear to the total of coverage of all policies covering the risk,
whether collectible or not
Notice of Claim
Is a form/statement from an insured to insurer, informing the insurer that events leading
to a possible claim have occurred. The notice will include information as to how, when,
and where the loss took place
Proof of Loss
Is a sworn statement that must usually be furnished by the insured to an insurer before
any loss under a policy can be paid.
Cancellation
The termination of an in-force insurance policy, either by the insured or insurer
Non-renewal
The termination of an insurance policy at its expiration date
2|Page
, Mortgagee Rights
A mortgagee clause is attached to a policy to protect the interest of the mortgagee in
the mortgaged property.
Sources of Underwriting Info
1. Application form
2. Motor vehicle records
3. Interviews with neighbors, friends, employers
4. Inspection of property
5. Inspection of insurance history
Policy Application
Is a printed form that includes questions about a prospective insured and the desired
insurance coverage and limits. Provides the underwriter with info for accepting or
rejecting the prospective insured and rating the desired policy
Fair Credit Reporting Act
Established procedures that consumer-reporting agencies must follow in order to
ensure that records are confidential. accurate, relevant, and properly used. Protects
consumers against the circulation of inaccurate, obsolete personal, or financial info
Privacy Protection (Gramm-Leach-Bliley)
The Gramm-Leach-Bliley Act stipulates that in general, an insurance company may not
disclose nonpublic personal information to a non-affiliated third party except for the
following reasons:
1. The insurance company clearly and conspicuously discloses to the consumer in
writing that information may be disclosed to a third party
2. The consumer is given the opportunity, before the time that the information is initially
disclosed, to direct that information not to be disclosed to the third party
3. The consumer is given an explanation of how the consumer can exercise a
nondisclosure option
The act requires 2 disclosures to a customer:
3|Page
INSURANCE EXAM WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS| CURRENTLY TESTING VERSION |
ALREADY GRADED A+|EXPERT VERIFIED
FOR GUARANTEED PASS 2026-2027
Definition and Duties of the Insured
An insured is anyone who is covered under the policy, whether named or not
Named Insured
The individual whose name appears on the policy's declaration
First Named Insured
The individual whose name appears first on the policy's declaration
Additional Insureds
Are the individuals or businesses that are not named as insureds on the declaration
page, but are protected by the policy
In the event of of a loss covered by the policy the named insured is required to:
1. Protect the damaged property from further damage
2. Prepare an inventory of damaged property
3. Cooperate with the insurer in settling the loss
4. Notify the police in case of theft loss
5. Submit to the insurer a signed sworn proof of loss within allotted amount of time after
being requested to do so
Obligations of the Insurance Company
1|Page
,An insurance company, in return for a premium, must be fair in underwriting and must
pay covered losses
Appraisal
If there is a disagreement between the insured and the insurer on the value of any
property loss, either property can make a written demand for an appraisal. Each party
will select a competent appraiser who will then select an umpire if they are unable to
agree on a fair value
Other Insurance
Is a provision found in some property insurance policy that defines how the policy will
respond if there is other valid insurance written on the same risk
Pro rata
Is a provision found in some property insurance policies that provides for the sharing of
loss with other insurance that may be written on the same risk in the same proportions
as their limits of insurance bear to the total of coverage of all policies covering the risk,
whether collectible or not
Notice of Claim
Is a form/statement from an insured to insurer, informing the insurer that events leading
to a possible claim have occurred. The notice will include information as to how, when,
and where the loss took place
Proof of Loss
Is a sworn statement that must usually be furnished by the insured to an insurer before
any loss under a policy can be paid.
Cancellation
The termination of an in-force insurance policy, either by the insured or insurer
Non-renewal
The termination of an insurance policy at its expiration date
2|Page
, Mortgagee Rights
A mortgagee clause is attached to a policy to protect the interest of the mortgagee in
the mortgaged property.
Sources of Underwriting Info
1. Application form
2. Motor vehicle records
3. Interviews with neighbors, friends, employers
4. Inspection of property
5. Inspection of insurance history
Policy Application
Is a printed form that includes questions about a prospective insured and the desired
insurance coverage and limits. Provides the underwriter with info for accepting or
rejecting the prospective insured and rating the desired policy
Fair Credit Reporting Act
Established procedures that consumer-reporting agencies must follow in order to
ensure that records are confidential. accurate, relevant, and properly used. Protects
consumers against the circulation of inaccurate, obsolete personal, or financial info
Privacy Protection (Gramm-Leach-Bliley)
The Gramm-Leach-Bliley Act stipulates that in general, an insurance company may not
disclose nonpublic personal information to a non-affiliated third party except for the
following reasons:
1. The insurance company clearly and conspicuously discloses to the consumer in
writing that information may be disclosed to a third party
2. The consumer is given the opportunity, before the time that the information is initially
disclosed, to direct that information not to be disclosed to the third party
3. The consumer is given an explanation of how the consumer can exercise a
nondisclosure option
The act requires 2 disclosures to a customer:
3|Page
