©EVERLY 2025 ALL RIGHTS RESERVED
Colorado Property & Casualty - From
Practice Exam Questions And Answers 100%
Pass
If a producer misrepresents a part of a policy, will the Insurer cover a claim made for the
misrepresentation? - ANS 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? -
ANS June 30th
Estoppel - ANS Prevents a party from enforcing a right that it voluntarily waived by its past
conduct.
Captive Insurance Company - ANS Formed to cover the risks of the parent organization that
owns it. Sophisticated form of Self-Insurance.
Indemnity - ANS When a loss victim is financially restored to the amount of the loss.
How long must disclosures be kept on record? - ANS Disclosures must be kept on record for
3 years.
Legal Contract - ANS Legal contract is formed when application is completed, sent with
premium to the insurer, and accepted by the insurer.
, ©EVERLY 2025 ALL RIGHTS RESERVED
What producer is exempt from CO continuing education courses? - ANS A Title Insurance
Producer.
What source of funds are used during prosecution of alleged Insurance Fraud? - ANS 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? - ANS Insurers must reject or pay
claims within 60 days.
Are Averse Economic Conditions a cause for revision of a policy upon renewal? -
ANS Adverse economic conditions will NOT cause an insurer to revise a standard policy form
at renewal.
Licensee vs Invitee - ANS Licensee would be a Door to Door salesman. A Delivery person is an
invitee.
Proximate Causation - ANS 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 - ANS 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 - ANS 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.)
Colorado Property & Casualty - From
Practice Exam Questions And Answers 100%
Pass
If a producer misrepresents a part of a policy, will the Insurer cover a claim made for the
misrepresentation? - ANS 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? -
ANS June 30th
Estoppel - ANS Prevents a party from enforcing a right that it voluntarily waived by its past
conduct.
Captive Insurance Company - ANS Formed to cover the risks of the parent organization that
owns it. Sophisticated form of Self-Insurance.
Indemnity - ANS When a loss victim is financially restored to the amount of the loss.
How long must disclosures be kept on record? - ANS Disclosures must be kept on record for
3 years.
Legal Contract - ANS Legal contract is formed when application is completed, sent with
premium to the insurer, and accepted by the insurer.
, ©EVERLY 2025 ALL RIGHTS RESERVED
What producer is exempt from CO continuing education courses? - ANS A Title Insurance
Producer.
What source of funds are used during prosecution of alleged Insurance Fraud? - ANS 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? - ANS Insurers must reject or pay
claims within 60 days.
Are Averse Economic Conditions a cause for revision of a policy upon renewal? -
ANS Adverse economic conditions will NOT cause an insurer to revise a standard policy form
at renewal.
Licensee vs Invitee - ANS Licensee would be a Door to Door salesman. A Delivery person is an
invitee.
Proximate Causation - ANS 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 - ANS 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 - ANS 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.)
