COLORADO PROPERTY AND CASUALTY INSURANCE EXAM | QUESTIONS WITH 100% CORRECT ANSWERS | VERIFIED | LATEST UPDATE 2026

COLORADO PROPERTY AND CASUALTY INSURANCE
EXAM | QUESTIONS WITH 100% CORRECT ANSWERS |
VERIFIED | LATEST UPDATE 2026


Attribute Detail
Total 117 (state + national topics)
questions
Format Multiple-choice; Colorado includes state-specific items.
Core Insurance principles; policy provisions; property, auto,
domains commercial; underwriting; rating; claims; Colorado
statutes/regulations.
Passing Scaled score ~70% (Colorado standard).
target



Colorado P&C style (Q1–Q10)

Q1. Which insurance principle requires the insured to have a financial stake in the
insured property to collect after a loss?

 A. Indemnity
 B. Insurable interest
 C. Subrogation
 D. Utmost good faith Insurable interest must exist at the time of loss to
prevent wagering on losses.

,Q2. Under a standard homeowners policy, which peril is typically excluded unless
added by endorsement?

 A. Fire
 B. Windstorm
 C. Flood
 D. Theft Flood is excluded from standard HO forms and requires separate
flood insurance.

Q3. Colorado minimum auto liability limits commonly cited are 25/50/15; what
does the middle number represent?

 A. Property damage per accident
 B. Total bodily injury per accident
 C. Per-person bodily injury limit
 D. Medical payments limit 25/50/15 denotes $25k per person, $50k per
accident BI, $15k PD.

Q4. Which policy provision allows an insurer to pursue recovery from a negligent
third party after paying the insured’s loss?

 A. Assignment
 B. Subrogation
 C. Salvage
 D. Endorsement Subrogation transfers the insurer’s right to recover from
the at-fault party.

Q5. In underwriting, which factor most directly affects the premium charged for a
homeowner’s policy?

,  A. Insured’s marital status
 B. Construction type and fire protection class
 C. Insured’s political affiliation
 D. Insured’s favorite color Construction and fire protection materially
change loss exposure and rating.

Q6. Which commercial coverage form typically covers direct physical loss to
business property at the premises?

 A. General liability
 B. Commercial property (building and personal property)
 C. Workers’ compensation
 D. Inland marine Commercial property forms insure buildings, business
personal property, and BI exposures.

Q7. Which Colorado regulation topic is essential for agents to disclose at point of
sale?

 A. Local weather forecasts
 B. Privacy practices and consumer notice (GLBA/Colorado rules)
 C. Competitor pricing only
 D. Personal investment advice Privacy and consumer disclosures are
required under federal/state rules.

Q8. Which claim handling principle requires the insurer to investigate and settle in
a timely, fair manner?

 A. Estoppel only
 B. Unfair claim settlement practices prohibition

,  C. Subrogation only
 D. Salvage only Regulators prohibit unfair claim practices and require
prompt, fair investigations.

Q9. Which endorsement would broaden an auto policy to cover hired auto liability
for a small business?

 A. Named nonowner endorsement only
 B. Hired and nonowned auto endorsement
 C. Medical payments endorsement only
 D. Collision endorsement only Hired/nonowned endorsements extend
liability for business use of rented or employee vehicles.

Q10. Which rating factor is most appropriate for distinguishing high-risk from
low-risk drivers?

 A. Driver’s shoe size only
 B. Driving record (accidents and violations)
 C. Favorite music only
 D. Hair color only Driving history is a primary underwriting determinant for
auto risk classification.

Next steps (what I’ll include if you want the full 117)

 All 117 questions formatted identically (question, A–D choices, correct
answer, one-line rationale).
 Balanced coverage: property, casualty, commercial, auto, homeowners,
underwriting, claims, Colorado statutes/regulations.