COLORADO ACCIDENT
HEALTH LAWS STATE
PRACTICE EXAM 36
QUESTIONS
Question 1: A Colorado resident wants to sell and negotiate accident and health
insurance policies. What must the person have before performing those activities?
Choices:
1) A valid Colorado insurance producer license with the appropriate line of authority 2) Only an appointment from an insurer 3) A business entity registration without an individual producer license 4) A written authorization from each prospective insured Correct Answer: A valid Colorado insurance producer license with the appropriate line of authority Explanation: C.R.S. § 10-2-401 requires a person who sells, solicits, or negotiates insurance in Colorado to be duly licensed and authorized for the applicable line of insurance.Page 1
Question 2: In a dispute between a Colorado insured and an insurer, how is a
producer who solicited or negotiated the application on behalf of that insurer generally regarded?
Choices:
1) As a neutral mediator between the parties 2) As the insured's legal representative 3) As representing the insurer 4) As representing the Colorado Division of Insurance
Correct Answer: As representing the insurer
Explanation: Under C.R.S. § 10-2-401, a producer who solicits or negotiates an application on behalf of an insurer is regarded as representing the insurer, not the insured or bene�ciary, in a controversy between them.Question 3: A Colorado producer is the subject of a �nal administrative action by another state's insurance regulator. By when must the producer report the action to the Colorado commissioner?
Choices:
1) Within 30 days after �nal disposition 2) Within 10 days after the action is �led 3) At the producer's next license continuation date 4) Only if the other state suspends the license
Correct Answer: Within 30 days after �nal disposition
Explanation: C.R.S. § 10-2-801 requires a producer to report an administrative action taken in another jurisdiction within 30 days after the �nal disposition of the matter.Page 2
Question 4: A Colorado insurance producer is criminally prosecuted in another
jurisdiction. When does the Colorado reporting period begin for purposes of the producer's duty to report the prosecution?
Choices:
1) On the date of conviction 2) On the date a sentence is imposed 3) On the date the producer's insurer learns of the case 4) After the initial pretrial hearing
Correct Answer: After the initial pretrial hearing
Explanation: C.R.S. § 10-2-801 requires a producer to report a criminal prosecution within 30 days after the initial pretrial hearing and to provide the required legal documents.
Question 5: A producer's Colorado license was revoked, and the producer now
wants to apply for a new license. What minimum waiting period applies before a new application may be made under the licensing discipline statute?
Choices:
1) 6 months 2) 2 years 3) 3 years 4) 5 years
Correct Answer: 2 years
Explanation: C.R.S. § 10-2-801 provides that a person whose license was revoked, or who surrendered a license to avoid discipline, may not apply for a new license for two years.Page 3