Colorado Life & Health Insurance State Law Supplement Practice Exam with complete solutions

Colorado Life & Health Insurance State Law Supplement Practice Exam with complete solutions What is the maximum amount the commissioner can fine an insurer for each violation of a cease-and-desist order? $10,000 When appropriate the commissioner reports a violation of insurance law to The district attorney A company that has not been authorized to operate in Colorado is known as A nonadmitted insurer An insurer that terminates the producers appointment must inform the commissioner within how many days? 30 All of the following are duties of the commissioner except: a. keeping records of the insurers that he has examined b. adopting rules and regulations c. writing insurance laws d. submitting an annual report to the General assembly See. Writing insurance laws When an insurer terminates a producer's appointment, the insurer must notify The commissioner and producer An insurance producer who solicits insurance on behalf of an insurer represents the Insurer The commissioner may... Conduct investigations and subpoena witnesses whenever he deems it necessary The commissioner gives approval to an insurer to do business in Colorado in a certificate of Authority In Colorado all of the following are considered unfair trade practices except: a. Misrepresentation b. Rebating c.. Replacement D. Coercion C. Replacement All of the following are violations of Colorado insurance law except: a. Charging individuals of the same class different premium rates b. Offering tickets to a football game as an incentive to purchase a policy c. In forming a new policy holder that his new policy, if lapsed for nonpayment of premium, could be reinstated upon reapplication d. Having an arrangement to sell stock to a person contingent upon the purchase of an annuity C. In forming a new policy holder that his new policy, if lapsed for nonpayment of premium, could be reinstated upon reapplication All of the following insurance practices are illegal in Colorado except: A. Soliciting or procuring insurance without a license B. Paying a fee for services as an insurance producer to anyone who is not properly licensed C. Inquiring about an applicant sexual orientation in connection with an application D. Replacing one life insurance policy with another D. Replacing one life insurance policy with another How many hours of continuing education must be in courses associated with the lines of insurance for which the producer is licensed? 18 All of the following are examples of unfair claims settlement practices except: A. Paying the claim without conducting an investigation B. Denying a claim promptly but without explaining the coverage or laws on which the denial is based C. Paying a claim promptly but without explaining the coverage or laws on which the payment is based D. Denying the claim without making an investigation A. Paying a claim without conducting an investigation A producer has how many days to file a written appeal to the commissioner after he has been terminated by his appointing insurer? 30 A fraternal benefit society representative need not be licensed as a producer if he sells life insurance with the face amount equal to or less than: 50,000 To be licensed to sell life, accident and health insurance in Colorado, and applicant must complete: 100 hours of pre-licensing education A fiduciary responsibility is defined as: A relationship of special trust and confidence when a person is entrusted with another's funds A producer who has to write a majority of his insurance business on the employees and officers of a restaurant owned by his wife is transacting: Controlled business Circulation of a maliciously critical statement about an insurer's financial condition to damage the insurer's reputation or business is called: Defamation In general, people who represent fraternal benefit society's to solicit insurance are: Considered insurance producers and must meet all licensing requirements How must insurance producers account for each insurance policy and the premiums they receive on it? As a separate account of the insured