COLORADO PROPERTY INSURANCE
EXAM 2025 QUESTIONS AND ANSWERS
How often must an insurer who sells personal lines property and casualty policies recalculate a
consumer's insurance score or obtain an updated credit report? - ANS Every 36 months. (The
least often the insurer must pull the credit report is once every 3 years. The most often an
insured can request that the credit report be pulled, for the purposes of insurance rating, is
every 12 months [annually])
An insurer who frequently misses deadlines to respond to inquiries from the Division of
Insurance may be fined, for each violation, as much as... - ANS $5,000.
(An insurer who fails to respond to a Division of Insurance inquiry by the deadline faces a $500
civil penalty for the initial violation. Fines may reach up to $5,000 for subsequent violations.)
Which of the following will NOT be considered unfair discrimination by insurers?
a) Discriminating in benefits and coverages based on the insured's habits and lifestyle
b) Charging applicants with similar health histories different premiums based on their ethnicity
c) Cancelling individual coverage based on the insured's marital status
d) Assigning different risk classifications to applicants based on gender identity -
ANS Discriminating in benefits and coverages based on the insured's habits and lifestyle.
(Discriminating between individuals of the same class with equal life expectancies, or by reason
of race, nationality, or ethnic group would be considered unfair discrimination. Insurers are also
not allowed to cancel individual coverage due to a change in marital status. Discriminating in
benefits based on the insured's habits and lifestyle [such as smoking or dangerous hobbies] - is
acceptable.)
1
Page
@COPYRIGHT THESTAR 2025/2026
, An insurer wishes to cancel a Commercial General Liability Policy. This policy has been in effect
for more than 60 days and the cancellation is due to a reason other than nonpayment of
premium. How many days before the effective date of cancellation must the insurer send
notice of cancellation to the insured? - ANS 45 days.
For how many years must a producer keep supporting documentation of his or her continuing
education completion? - ANS 5 years following license continuation. (It is the responsibility
of the producer to maintain records sufficient to document successful completion of 24 credit
hours on a biennial basis. Supporting documentation must be maintained by the producer for 5
years following license continuation and must be available for audit by the Division of Insurance
or the Continuing Education Administrator.)
Under Colorado's Unfair Claims Practices regulations, when denying a claim an insurer must do
all of the following EXCEPT...
a) Respond promptly to claims communications.
b) Conduct a reasonable investigation.
c) Pay a claim that occurs after the grace period has ended.
d) Indicate to the claimant which section of the policy they are relying upon. - ANS Pay a
claim that occurs after the grace period has ended. (A claim that occurs during a grace period of
a policy is covered, the insurer will simply deduct premium owed from the claim and pay the
rest up to a limit, if one is indicated on the policy. Once the grace period ends, a policy expires
and no further claims are valid.)
As a condition of initial licensure, an individual applicant for a producer license in one line of
authority will be required to complete approved prelicensing education of how many hours? -
ANS 50 hours! (A total of 50 hours of an approved course is required as a condition of initial
licensure. Of the 50 hours, at least 3 hours will pertain specifically to ethics and 4 hours will
pertain specifically to state laws related to the line of authority.)
The process of determining the premium charged and how much insurance is required for a
particular loss is called...? - ANS Loss valuation. (Loss valuation is the process of determining
appropriate monetary value to a particular loss and its resulting repair or replacement.)
2
Page
@COPYRIGHT THESTAR 2025/2026
, What is the minimum amount of coverage that should be carried on an HO-2 on a home that
was purchased four years ago for $75,000, which today has a replacement value of $100,000? -
ANS $80,000
(A homeowner, at the time of loss, must be insured for at least 80% of replacement cost in
order to collect the full replacement cost of a partial loss.)
The extension of coverage under the Commercial Fine Arts Floater includes coverage for newly
acquired property for a maximum of... - ANS $10,000.
(An extension of coverage is included for newly acquired property for 30 days for up to 25% of
the total limit of insurance, for a maximum of $10,000.)
Replacement cost is defined as... - ANS Full replacement of property at its current cost, new
and without reduction for depreciation.
Which of the following is covered under the Mail floater of a Commercial Inland Marine policy
ONLY if is sent by registered mail? - ANS Currency and unsold travelers checks.
(Property covered only when sent by registered mail includes the following: bullion; platinum
and other precious metals; currency and unsold travelers checks; or jewelry, watches, precious
and semiprecious stones and similar property.)
Coverage under the builders risk form will end in all of the following situations EXCEPT...
a) The insured has sold the property.
b) 60 days after the construction has ended.
c) Construction has been abandoned.
d) 60 days after the building became occupied. - ANS 60 days after the construction has
ended.(Coverage under the builders risk form ends if it is abandoned without any plans to
complete it or if the insured's interest in the property ceases, or 60 days after the building is
occupied, or 90 days after construction is completed.)
3
Page
@COPYRIGHT THESTAR 2025/2026
EXAM 2025 QUESTIONS AND ANSWERS
How often must an insurer who sells personal lines property and casualty policies recalculate a
consumer's insurance score or obtain an updated credit report? - ANS Every 36 months. (The
least often the insurer must pull the credit report is once every 3 years. The most often an
insured can request that the credit report be pulled, for the purposes of insurance rating, is
every 12 months [annually])
An insurer who frequently misses deadlines to respond to inquiries from the Division of
Insurance may be fined, for each violation, as much as... - ANS $5,000.
(An insurer who fails to respond to a Division of Insurance inquiry by the deadline faces a $500
civil penalty for the initial violation. Fines may reach up to $5,000 for subsequent violations.)
Which of the following will NOT be considered unfair discrimination by insurers?
a) Discriminating in benefits and coverages based on the insured's habits and lifestyle
b) Charging applicants with similar health histories different premiums based on their ethnicity
c) Cancelling individual coverage based on the insured's marital status
d) Assigning different risk classifications to applicants based on gender identity -
ANS Discriminating in benefits and coverages based on the insured's habits and lifestyle.
(Discriminating between individuals of the same class with equal life expectancies, or by reason
of race, nationality, or ethnic group would be considered unfair discrimination. Insurers are also
not allowed to cancel individual coverage due to a change in marital status. Discriminating in
benefits based on the insured's habits and lifestyle [such as smoking or dangerous hobbies] - is
acceptable.)
1
Page
@COPYRIGHT THESTAR 2025/2026
, An insurer wishes to cancel a Commercial General Liability Policy. This policy has been in effect
for more than 60 days and the cancellation is due to a reason other than nonpayment of
premium. How many days before the effective date of cancellation must the insurer send
notice of cancellation to the insured? - ANS 45 days.
For how many years must a producer keep supporting documentation of his or her continuing
education completion? - ANS 5 years following license continuation. (It is the responsibility
of the producer to maintain records sufficient to document successful completion of 24 credit
hours on a biennial basis. Supporting documentation must be maintained by the producer for 5
years following license continuation and must be available for audit by the Division of Insurance
or the Continuing Education Administrator.)
Under Colorado's Unfair Claims Practices regulations, when denying a claim an insurer must do
all of the following EXCEPT...
a) Respond promptly to claims communications.
b) Conduct a reasonable investigation.
c) Pay a claim that occurs after the grace period has ended.
d) Indicate to the claimant which section of the policy they are relying upon. - ANS Pay a
claim that occurs after the grace period has ended. (A claim that occurs during a grace period of
a policy is covered, the insurer will simply deduct premium owed from the claim and pay the
rest up to a limit, if one is indicated on the policy. Once the grace period ends, a policy expires
and no further claims are valid.)
As a condition of initial licensure, an individual applicant for a producer license in one line of
authority will be required to complete approved prelicensing education of how many hours? -
ANS 50 hours! (A total of 50 hours of an approved course is required as a condition of initial
licensure. Of the 50 hours, at least 3 hours will pertain specifically to ethics and 4 hours will
pertain specifically to state laws related to the line of authority.)
The process of determining the premium charged and how much insurance is required for a
particular loss is called...? - ANS Loss valuation. (Loss valuation is the process of determining
appropriate monetary value to a particular loss and its resulting repair or replacement.)
2
Page
@COPYRIGHT THESTAR 2025/2026
, What is the minimum amount of coverage that should be carried on an HO-2 on a home that
was purchased four years ago for $75,000, which today has a replacement value of $100,000? -
ANS $80,000
(A homeowner, at the time of loss, must be insured for at least 80% of replacement cost in
order to collect the full replacement cost of a partial loss.)
The extension of coverage under the Commercial Fine Arts Floater includes coverage for newly
acquired property for a maximum of... - ANS $10,000.
(An extension of coverage is included for newly acquired property for 30 days for up to 25% of
the total limit of insurance, for a maximum of $10,000.)
Replacement cost is defined as... - ANS Full replacement of property at its current cost, new
and without reduction for depreciation.
Which of the following is covered under the Mail floater of a Commercial Inland Marine policy
ONLY if is sent by registered mail? - ANS Currency and unsold travelers checks.
(Property covered only when sent by registered mail includes the following: bullion; platinum
and other precious metals; currency and unsold travelers checks; or jewelry, watches, precious
and semiprecious stones and similar property.)
Coverage under the builders risk form will end in all of the following situations EXCEPT...
a) The insured has sold the property.
b) 60 days after the construction has ended.
c) Construction has been abandoned.
d) 60 days after the building became occupied. - ANS 60 days after the construction has
ended.(Coverage under the builders risk form ends if it is abandoned without any plans to
complete it or if the insured's interest in the property ceases, or 60 days after the building is
occupied, or 90 days after construction is completed.)
3
Page
@COPYRIGHT THESTAR 2025/2026
