Colorado Health Insurance Practice ExamState
of Colorado Division of Insurance | Latest Update
2026 100% Correct Answers with Rationales
Section 1: Colorado Insurance Laws and Regulations (Questions 1-50)
1. The Colorado Division of Insurance is part of which state department?
A. Department of Regulatory Agencies (DORA)
B. Department of Health and Human Services
C. Department of Revenue
D. Department of Labor and Employment
Answer: A. Department of Regulatory Agencies (DORA)
Rationale: The Colorado Division of Insurance operates under the
Department of Regulatory Agencies (DORA). It is responsible for regulating
the insurance industry in Colorado, including licensing, market conduct, and
consumer protection .
2. What is the term length for an insurance producer license in Colorado?
A. 1 year
B. 2 years
C. 3 years
D. 4 years
Answer: B. 2 years
Rationale: Colorado insurance producer licenses are valid for a 2-year term.
Licenses expire on the last day of the producer's birth month in even-
numbered years .
3. How many hours of continuing education (CE) are required for license
renewal in Colorado?
A. 12 hours
,B. 20 hours
C. 24 hours
D. 30 hours
Answer: C. 24 hours
Rationale: Colorado requires 24 hours of continuing education every 2-year
renewal period. This includes 3 hours of ethics training .
4. The Colorado Division of Insurance may impose which of the following
penalties for violations?
A. License suspension
B. License revocation
C. Fines
D. All of the above
Answer: D. All of the above
Rationale: The Division of Insurance has the authority to suspend, revoke, or
deny licenses, impose fines, and issue cease and desist orders for violations
of insurance laws .
5. A producer must report any administrative action taken against their
license in another state to the Colorado Division of Insurance within:
A. 10 days
B. 30 days
C. 60 days
D. 90 days
Answer: B. 30 days
Rationale: Colorado law requires producers to report any administrative
action taken against their license in another state within 30 days .
6. What is the maximum fine the Colorado Division of Insurance can impose
for each violation of the Unfair Trade Practices Act?
A. $1,000
B. $5,000
,C. $10,000
D. $25,000
Answer: D. $25,000
Rationale: The Colorado Division of Insurance may impose fines up to
$25,000 per violation under the Unfair Trade Practices Act .
7. Which of the following is considered an unfair trade practice in Colorado?
A. Misrepresentation
B. Twisting
C. Rebating
D. All of the above
Answer: D. All of the above
Rationale: Misrepresentation (making false statements), twisting (inducing
replacement through misrepresentation), and rebating (offering
inducements not in the policy) are all prohibited unfair trade practices .
8. Twisting in insurance refers to:
A. Comparing policies honestly
B. Misrepresenting a policy to induce a policyholder to replace coverage
C. Selling multiple policies
D. Changing beneficiaries
Answer: B. Misrepresenting a policy to induce a policyholder to replace
coverage
Rationale: Twisting is the unethical practice of misrepresenting policy terms
to induce a policyholder to replace existing coverage, resulting in potential
loss of benefits .
9. Rebating in insurance refers to:
A. Giving a premium discount
B. Offering anything of value not specified in the policy to induce purchase
C. Reducing premiums for good health
D. Offering group discounts
, Answer: B. Offering anything of value not specified in the policy to induce
purchase
Rationale: Rebating is the prohibited practice of offering anything of value
not specified in the policy (including commission sharing) to induce the
purchase of insurance .
10. Colorado's "Unfair Trade Practices Act" prohibits:
A. False advertising
B. Unfair discrimination
C. Misrepresentation
D. All of the above
Answer: D. All of the above
Rationale: The Unfair Trade Practices Act prohibits misrepresentation, false
advertising, unfair discrimination, rebating, twisting, and other unfair
practices .
11. Under Colorado law, an insurance company must pay claims within how
many days of receiving proof of loss?
A. 30 days
B. 45 days
C. 60 days
D. 90 days
Answer: C. 60 days
Rationale: Colorado law requires insurers to pay claims within 60 days of
receiving proof of loss, unless the claim is reasonably disputed .
12. What is the free look period for individual health insurance policies in
Colorado?
A. 7 days
B. 10 days
C. 20 days
D. 30 days
of Colorado Division of Insurance | Latest Update
2026 100% Correct Answers with Rationales
Section 1: Colorado Insurance Laws and Regulations (Questions 1-50)
1. The Colorado Division of Insurance is part of which state department?
A. Department of Regulatory Agencies (DORA)
B. Department of Health and Human Services
C. Department of Revenue
D. Department of Labor and Employment
Answer: A. Department of Regulatory Agencies (DORA)
Rationale: The Colorado Division of Insurance operates under the
Department of Regulatory Agencies (DORA). It is responsible for regulating
the insurance industry in Colorado, including licensing, market conduct, and
consumer protection .
2. What is the term length for an insurance producer license in Colorado?
A. 1 year
B. 2 years
C. 3 years
D. 4 years
Answer: B. 2 years
Rationale: Colorado insurance producer licenses are valid for a 2-year term.
Licenses expire on the last day of the producer's birth month in even-
numbered years .
3. How many hours of continuing education (CE) are required for license
renewal in Colorado?
A. 12 hours
,B. 20 hours
C. 24 hours
D. 30 hours
Answer: C. 24 hours
Rationale: Colorado requires 24 hours of continuing education every 2-year
renewal period. This includes 3 hours of ethics training .
4. The Colorado Division of Insurance may impose which of the following
penalties for violations?
A. License suspension
B. License revocation
C. Fines
D. All of the above
Answer: D. All of the above
Rationale: The Division of Insurance has the authority to suspend, revoke, or
deny licenses, impose fines, and issue cease and desist orders for violations
of insurance laws .
5. A producer must report any administrative action taken against their
license in another state to the Colorado Division of Insurance within:
A. 10 days
B. 30 days
C. 60 days
D. 90 days
Answer: B. 30 days
Rationale: Colorado law requires producers to report any administrative
action taken against their license in another state within 30 days .
6. What is the maximum fine the Colorado Division of Insurance can impose
for each violation of the Unfair Trade Practices Act?
A. $1,000
B. $5,000
,C. $10,000
D. $25,000
Answer: D. $25,000
Rationale: The Colorado Division of Insurance may impose fines up to
$25,000 per violation under the Unfair Trade Practices Act .
7. Which of the following is considered an unfair trade practice in Colorado?
A. Misrepresentation
B. Twisting
C. Rebating
D. All of the above
Answer: D. All of the above
Rationale: Misrepresentation (making false statements), twisting (inducing
replacement through misrepresentation), and rebating (offering
inducements not in the policy) are all prohibited unfair trade practices .
8. Twisting in insurance refers to:
A. Comparing policies honestly
B. Misrepresenting a policy to induce a policyholder to replace coverage
C. Selling multiple policies
D. Changing beneficiaries
Answer: B. Misrepresenting a policy to induce a policyholder to replace
coverage
Rationale: Twisting is the unethical practice of misrepresenting policy terms
to induce a policyholder to replace existing coverage, resulting in potential
loss of benefits .
9. Rebating in insurance refers to:
A. Giving a premium discount
B. Offering anything of value not specified in the policy to induce purchase
C. Reducing premiums for good health
D. Offering group discounts
, Answer: B. Offering anything of value not specified in the policy to induce
purchase
Rationale: Rebating is the prohibited practice of offering anything of value
not specified in the policy (including commission sharing) to induce the
purchase of insurance .
10. Colorado's "Unfair Trade Practices Act" prohibits:
A. False advertising
B. Unfair discrimination
C. Misrepresentation
D. All of the above
Answer: D. All of the above
Rationale: The Unfair Trade Practices Act prohibits misrepresentation, false
advertising, unfair discrimination, rebating, twisting, and other unfair
practices .
11. Under Colorado law, an insurance company must pay claims within how
many days of receiving proof of loss?
A. 30 days
B. 45 days
C. 60 days
D. 90 days
Answer: C. 60 days
Rationale: Colorado law requires insurers to pay claims within 60 days of
receiving proof of loss, unless the claim is reasonably disputed .
12. What is the free look period for individual health insurance policies in
Colorado?
A. 7 days
B. 10 days
C. 20 days
D. 30 days
