COLORADO STATUTES RULES AND
REGULATIONS EXAMINATION TEST 2026
SICKNESS & ACCIDENT INSURANCE FULL
QUESTIONS AND CORRECT ANSWERS
⩥ An insurer decides an intimidation strategy in order to corner a large
portion of the insurance market. Which of the following best describes
this practice? Answer: Illegal
*It is illegal to participate in any boycott, coercion or intimidation that is
intended to restrict fair trade or create a monopoly
⩥ An insurer who willfully violates a single provision of an unfair trade
practice regulation may be fines Answer: $30,000
*In Colorado, an insurer who knew or reasonably should have known it
was in violation could be fined up to $30k for each violation, not to
exceed an aggregate of $750k annually
⩥ All of the following are considered to be misuses of fiduciary funds
EXCEPT Answer: Collecting interest on customer balances held in a
producer's trust account
,*Producers who act in an agency capacity are required to maintain a
separate trust account for premiums. Any interest earned in a trust
account belong to the producer. Trust accounts may not be used as a
personal asset or as collateral for a loan to a producer; operating
expenses may not be paid out of the trust account. Producers must remit
a return premium to an insurer within 30 days after the producer
received it from the insurer.
⩥ How many days do producers have to report administrative actions
taken against them in another jurisdiction? Answer: 30 days
⩥ All of the following could be considered rebates if offered to an
insured in the sale of insurance EXCEPT Answer: Dividends from a
mutual insurer.
Dividends paid to policyholders of a mutual insurer are not considered to
be a rebate because the policy specifies that they might be paid.
⩥ Forcing a client to buy insurance from a particular lender as a
condition of granting a loan is defined as Answer: Coercion
⩥ A producer who is licensed to transact several types of insurance
wants to remove a line of authority from his license. What should the
producer do? Answer: Submit an appropriate form to the commissioner
and return the license for amendment.
, ⩥ An insurer publishes intimidating brochures that portray the insurer's
competition as financially and professionally unstable. Which of the
following best describes this act? Answer: Illegal under any
circumstances
When a company criticizes the financial situation of another company,
with the intention of injuring that company, it has committed an illegal
trade practice called "defamation."
⩥ A producer's license has been suspended for noncompliance with
continuing education requirements. What is the producer'a duty
regarding the license? Answer: Promptly return it to the Commissioner
⩥ Under Colorado's Unfair Claims Practices regulations, when denying
a claim an insurer must do all of the following EXCEPT Answer: **A.-
Pay a claim that occurs after the grace period has ended
B.- indicate to the claimant which section of the policy they are relying
upon
C.- conduct a reasonable investigation
D.- respond promptly to claims communications
⩥ The Governor has asked the Commissioner to examine an insurance
company after a group of insureds has filed several complaints against
the company. Who will pay for this examination? Answer: The insurance
company
REGULATIONS EXAMINATION TEST 2026
SICKNESS & ACCIDENT INSURANCE FULL
QUESTIONS AND CORRECT ANSWERS
⩥ An insurer decides an intimidation strategy in order to corner a large
portion of the insurance market. Which of the following best describes
this practice? Answer: Illegal
*It is illegal to participate in any boycott, coercion or intimidation that is
intended to restrict fair trade or create a monopoly
⩥ An insurer who willfully violates a single provision of an unfair trade
practice regulation may be fines Answer: $30,000
*In Colorado, an insurer who knew or reasonably should have known it
was in violation could be fined up to $30k for each violation, not to
exceed an aggregate of $750k annually
⩥ All of the following are considered to be misuses of fiduciary funds
EXCEPT Answer: Collecting interest on customer balances held in a
producer's trust account
,*Producers who act in an agency capacity are required to maintain a
separate trust account for premiums. Any interest earned in a trust
account belong to the producer. Trust accounts may not be used as a
personal asset or as collateral for a loan to a producer; operating
expenses may not be paid out of the trust account. Producers must remit
a return premium to an insurer within 30 days after the producer
received it from the insurer.
⩥ How many days do producers have to report administrative actions
taken against them in another jurisdiction? Answer: 30 days
⩥ All of the following could be considered rebates if offered to an
insured in the sale of insurance EXCEPT Answer: Dividends from a
mutual insurer.
Dividends paid to policyholders of a mutual insurer are not considered to
be a rebate because the policy specifies that they might be paid.
⩥ Forcing a client to buy insurance from a particular lender as a
condition of granting a loan is defined as Answer: Coercion
⩥ A producer who is licensed to transact several types of insurance
wants to remove a line of authority from his license. What should the
producer do? Answer: Submit an appropriate form to the commissioner
and return the license for amendment.
, ⩥ An insurer publishes intimidating brochures that portray the insurer's
competition as financially and professionally unstable. Which of the
following best describes this act? Answer: Illegal under any
circumstances
When a company criticizes the financial situation of another company,
with the intention of injuring that company, it has committed an illegal
trade practice called "defamation."
⩥ A producer's license has been suspended for noncompliance with
continuing education requirements. What is the producer'a duty
regarding the license? Answer: Promptly return it to the Commissioner
⩥ Under Colorado's Unfair Claims Practices regulations, when denying
a claim an insurer must do all of the following EXCEPT Answer: **A.-
Pay a claim that occurs after the grace period has ended
B.- indicate to the claimant which section of the policy they are relying
upon
C.- conduct a reasonable investigation
D.- respond promptly to claims communications
⩥ The Governor has asked the Commissioner to examine an insurance
company after a group of insureds has filed several complaints against
the company. Who will pay for this examination? Answer: The insurance
company
