Colorado Health Insurance Practice ExamState of Colorado Division of Insurance | Latest Update 2026 100% Correct Answers with Rationales

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?
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A. Department of Regulatory Agencies (DORA) n n n n


B. Department of Health and Human Services n n n n n


C. Department of Revenue n n


D. Department of Labor and Employment n n n n




Answer: A. Department of Regulatory Agencies (DORA)
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Rationale: The Colorado Division of Insurance operates under
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the
n


Department of Regulatory Agencies (DORA). It is responsible for regulating
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the insurance industry in Colorado, including licensing, market conduct,
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and consumer protection .
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2. What is the term length for an insurance producer license in Colorado?
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A. 1 year
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B. 2 years
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C. 3 years
n


D. 4 years
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Answer: B. 2 years n n n


Rationale: Colorado insurance producer licenses are valid for a 2-year term.
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Licenses expire on the last day of the producer's birth month in even-
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numbered years .
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3. How many hours of continuing education (CE) are required for
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license renewal in Colorado?
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A. 12 hours
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,B. 20 hours n


C. 24 hours n


D. 30 hours n




Answer: C. 24 hours n n n



Rationale: Colorado requires 24 hours of continuing education every 2-year
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renewal period. This includes 3 hours of ethics training .
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4. The Colorado Division of Insurance may impose which of the
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following penalties for violations?
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A. License suspension n


B. License revocation n


C. Fines
D. All of the above n n n




Answer: D. All of the above n n n n n


Rationale: The Division of Insurance has the authority to suspend, revoke,
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or deny licenses, impose fines, and issue cease and desist orders for
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violations of insurance laws .
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5. A producer must report any administrative action taken against
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their license in another state to the Colorado Division of Insurance
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within:
n


A. 10 days n


B. 30 days n


C. 60 days n


D. 90 days n




Answer: B. 30 days n n n


Rationale: Colorado law requires producers to report any administrative
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action taken against their license in another state within 30 days .
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6. What is the maximum fine the Colorado Division of Insurance can
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impose for each violation of the Unfair Trade Practices Act?
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A. $1,000
B. $5,000

,C. $10,000
D. $25,000
Answer: D. $25,000 n n


Rationale: The Colorado Division of Insurance may impose fines up to
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$25,000 per violation under the Unfair Trade Practices Act .
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7. Which of the following is considered an unfair trade practice in Colorado?
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A. Misrepresentation
B. Twisting
C. Rebating
D. All of the above
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Answer: D. All of the above
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Rationale: Misrepresentation (making false statements), twisting (inducing
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replacement through misrepresentation), and rebating (offering
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inducements not in the policy) are all prohibited unfair trade practices .
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8. Twisting in insurance refers to: n n n n


A. Comparing policies honestly n n


B. Misrepresenting a policy to induce a policyholder to replace coveragen n n n n n n n n


C. Selling multiple policiesn n


D. Changing beneficiaries n




Answer: B. Misrepresenting a policy to induce a policyholder to replace
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coverage
n


Rationale: Twisting is the unethical practice of misrepresenting policy terms
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to induce a policyholder to replace existing coverage, resulting in potential
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loss of benefits .
n n n n




9. Rebating in insurance refers to: n n n n


A. Giving a premium discountn n n


B. Offering anything of value not specified in the policy to induce purchase
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C. Reducing premiums for good health n n n n


D. Offering group discounts n n

, Answer: B. Offering anything of value not specified in the policy to induce
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purchase
n


Rationale: Rebating is the prohibited practice of offering anything of value
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not specified in the policy (including commission sharing) to induce the
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purchase of insurance .
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10. Colorado's "Unfair Trade Practices Act" prohibits:
n n n n n


A. False advertising n


B. Unfair discrimination n


C. Misrepresentation
D. All of the above n n n




Answer: D. All of the above
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Rationale: The Unfair Trade Practices Act prohibits misrepresentation, false
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advertising, unfair discrimination, rebating, twisting, and other unfair
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practices .
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11. Under Colorado law, an insurance company must pay claims within
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nhow many days of receiving proof of loss?
n n n n n n n


A. 30 days n


B. 45 days n


C. 60 days n


D. 90 days n




Answer: C. 60 days n n n


Rationale: Colorado law requires insurers to pay claims within 60 days of
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receiving proof of loss, unless the claim is reasonably disputed .
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12. What is the free look period for individual health insurance policies
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nin Colorado?
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A. 7 days
n


B. 10 days n


C. 20 days n


D. 30 days n