An insurer licensed in Colorado had a formal financial examination two years ago. It has since been sold to a new owner and replaced its senior management. May the commissioner take those changes into account in deciding whether to examine it again before five years have passed?

Yes; changes in management or ownership are among the matters weighed in scheduling

Two years after issuing a Colorado producer license, the commissioner learns of a condition that existed when the producer applied and that would have justified refusing the license had the commissioner known of it then. May the commissioner discipline the licensee on that basis?

Yes, after notice and a hearing, because the condition would have justified refusing the license

Under Colorado's unfair discrimination provisions, an insurer places an applicant in a separate classification solely because the applicant is partially blind. When is that classification permitted?

When it rests on unequal life expectancy or a different expected risk of loss

Under Colorado's fraudulent insurance acts statute, which of the following must every licensed insurance company doing business in Colorado prepare, implement, and maintain?

An insurance anti-fraud plan outlining specific procedures

A Colorado life policy carries a rider that accelerates the death benefit for long-term care certified by a physician. Under Colorado's acceleration-of-benefits section, which statement about what long-term care includes is correct?

It can include nonnursing custodial care given at the insured's own residence

When a nonresident individual applies for a Colorado insurance producer license, what must the commissioner verify the applicant has furnished concerning the applicant's licensing?

A current certification of the applicant's license status

Under the Colorado Insurable Interest Act, an individual with a substantial interest engendered by love and affection has an insurable interest in the life of a relative who is related how closely to the insured?

Within the fifth degree or closer, by blood or by marriage, under the civil law method of counting

Maria lawfully bought and owns a life policy on her brother's life; she is the owner but not the insured. She now wants to enter into a viatical settlement contract on the policy. Under Colorado's Insurable Interest Act, how does the act affect her plan?

It leaves the plan open, because her policy was lawfully procured and the owner need not be the insured.

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1.An insurer licensed in Colorado had a formal financial examination two years ago. It has since been sold to a new owner and replaced its senior management. May the commissioner take those changes into account in deciding whether to examine it again before five years have passed?
Answer: B. Yes; changes in management or ownership are among the matters weighed in scheduling
The commissioner may examine any company as often as the commissioner, in sole discretion, considers appropriate. Once every five years is the minimum frequency for a formal financial examination of a licensed insurer, not a ceiling. In scheduling examinations and setting their nature, scope, and frequency, the commissioner considers matters that expressly include changes in management or ownership, along with financial statement analyses and ratios, actuarial opinions, independent accountants' reports, and criteria in the NAIC examiners' handbook. Nothing in the provision requires the new owner's consent or a request from another state.
Source
Colo. Rev. Stat. Sec. 10-1-203(1)
Choose an answer to see the explanation.
2.Two years after issuing a Colorado producer license, the commissioner learns of a condition that existed when the producer applied and that would have justified refusing the license had the commissioner known of it then. May the commissioner discipline the licensee on that basis?
Answer: A. Yes, after notice and a hearing, because the condition would have justified refusing the license
Colorado's producer discipline statute lets the commissioner, after notice to the licensee and a hearing, place a producer on probation, suspend or revoke the license, refuse to continue or renew it, order restitution, or assess a civil penalty when one of the listed conditions is found. One listed condition is any cause that would have supported refusing the license had it existed and been known to the commissioner when the license was issued. The condition here fits that ground, so discipline is available. Limiting discipline to post-issuance conduct ignores that listed ground. Waiting for renewal is wrong because the same section also permits probation, suspension and revocation. Acting at once without notice or a hearing is wrong because the section conditions these actions on notice and a hearing.
Source
Colo. Rev. Stat. Sec. 10-2-801(1)(b)
Choose an answer to see the explanation.
3.Under the definitions in Colorado's Insurable Interest Act, each of the following is expressly listed as a form of business entity EXCEPT:
Answer: D. A natural person
The Act defines a business entity as a legal entity and lists joint ventures, partnerships, corporations, limited liability companies and business trusts as examples. A natural person is not on that list. The Act's separate definition of person names a natural person and a business entity as distinct categories, which confirms that an individual is not a business entity. Partnerships, business trusts and limited liability companies all appear in the business entity definition.
Source
Colo. Rev. Stat. Sec. 10-7-702(1)
Choose an answer to see the explanation.
4.Under Colorado's unfair discrimination provisions, an insurer places an applicant in a separate classification solely because the applicant is partially blind. When is that classification permitted?
Answer: C. When it rests on unequal life expectancy or a different expected risk of loss
Under this subparagraph, an insurer may not classify a person solely because of blindness, partial blindness, or a specific physical disability. The one exception is a classification grounded in an unequal expectation of life or in an expected risk of loss that differs from other individuals. A filing with the commissioner and the applicant's written consent are not exceptions the subparagraph recognizes, and a face-amount limit applied to everyone does not supply the required link to life expectancy or risk of loss.
Source
Colo. Rev. Stat. Sec. 10-3-1104(1)(f)(IV)
Choose an answer to see the explanation.
5.Under Colorado's fraudulent insurance acts statute, which of the following must every licensed insurance company doing business in Colorado prepare, implement, and maintain?
Answer: B. An insurance anti-fraud plan outlining specific procedures
Colorado's fraud statute requires each licensed insurance company doing business in the state to have an insurance anti-fraud plan, and the plan must set out specific procedures suited to the kind of insurance the company writes in Colorado. That subsection requires no fraud reserve fund, no surety bond for fraud losses, and no referral contract with a prosecutor; none of those appears in it.
Source
Colo. Rev. Stat. Sec. 10-1-128(5)(a)
Choose an answer to see the explanation.
6.A Colorado life policy carries a rider that accelerates the death benefit for long-term care certified by a physician. Under Colorado's acceleration-of-benefits section, which statement about what long-term care includes is correct?
Answer: A. It can include nonnursing custodial care given at the insured's own residence
Sec. 10-7-113(2) gives an open-ended list for long-term care under the acceleration section: hospice care, adult day care, professional nursing care, medical care expenses, and both custodial nursing care and nonnursing custodial care, whether delivered in a nursing home or at the insured's residence. Custodial care at home is therefore within the definition. Because the list is expressly not exhaustive and names hospice care and adult day care, a version limited to nursing-home skilled care, or one leaving out either of those services, misstates it.
Source
Colo. Rev. Stat. Sec. 10-7-113(2)
Choose an answer to see the explanation.
7.When a nonresident individual applies for a Colorado insurance producer license, what must the commissioner verify the applicant has furnished concerning the applicant's licensing?
Answer: C. A current certification of the applicant's license status
Before approving a nonresident individual's application, the commissioner must confirm that the applicant has provided a current certification of license status, the document referenced in Colorado's nonresident qualification rules. The verification items listed for an individual applicant include none of the other three: no sponsorship letter from a Colorado producer, no Colorado business office, and no surety bond.
Source
Colo. Rev. Stat. Sec. 10-2-404(1)(d)
Choose an answer to see the explanation.
8.Under Colorado's surplus lines export conditions, a broker may not place coverage with a nonadmitted insurer for the purpose of obtaining a lower premium rate, unless the admitted insurer's quoted rate is higher than the nonadmitted insurer's quote by what margin?
Answer: C. More than 10 percent
Sec. 10-5-103(1)(b) bars placing insurance with a nonadmitted insurer to secure a lower premium rate than an admitted insurer would accept, unless the admitted insurer's quoted rate is more than ten percent higher than the nonadmitted insurer's quote. The statute sets that line at 10 percent, so 5, 15 and 25 percent are each the wrong margin for this test. The price test sits alongside the other export conditions in the same subsection, including that the full amount of coverage must be unobtainable from admitted insurers after diligent effort.
Source
Colo. Rev. Stat. Sec. 10-5-103(1)(b) (amended eff. May 16, 1995)
Choose an answer to see the explanation.
9.Under the Colorado Insurable Interest Act, an individual with a substantial interest engendered by love and affection has an insurable interest in the life of a relative who is related how closely to the insured?
Answer: A. Within the fifth degree or closer, by blood or by marriage, under the civil law method of counting
Colorado's Insurable Interest Act lists the relationships in which love and affection support an insurable interest in another person's life. One is a relative within the fifth degree or closer, with the degree counted by the civil law system, whether the relationship arises by blood or by marriage. A third-degree or second-degree limit is narrower than the statute, a blood-only limit leaves out relatives by marriage, and the statute names the civil law method rather than the common law or canon law method.
Source
Colo. Rev. Stat. Sec. 10-7-704(1)(a)(I)
Choose an answer to see the explanation.
10.Maria lawfully bought and owns a life policy on her brother's life; she is the owner but not the insured. She now wants to enter into a viatical settlement contract on the policy. Under Colorado's Insurable Interest Act, how does the act affect her plan?
Answer: C. It leaves the plan open, because her policy was lawfully procured and the owner need not be the insured.
The act's legitimate-transactions section says that, except where a policy was procured or effected in violation of the prohibited-practices section, nothing in the article prevents a policy owner from entering a viatical settlement contract, whether or not the owner is also the person insured. Maria's policy was lawfully procured, so the act does not stand in her way. Because the section expressly covers an owner who is not the insured, the answer limiting settlements to an owner-insured is wrong. The act's definition of stranger originated life insurance excludes lawful viatical settlement contracts, so a lawful settlement is not wagering on life under the act. Nothing in the section conditions the owner's settlement on the buyer holding an insurable interest in the insured.
Source
Colo. Rev. Stat. Sec. 10-7-710(1)(a)
Choose an answer to see the explanation.

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1.An insurer licensed in Colorado had a formal financial examination two years ago. It has since been sold to a new owner and replaced its senior management. May the commissioner take those changes into account in deciding whether to examine it again before five years have passed?

2.Two years after issuing a Colorado producer license, the commissioner learns of a condition that existed when the producer applied and that would have justified refusing the license had the commissioner known of it then. May the commissioner discipline the licensee on that basis?

3.Under the definitions in Colorado's Insurable Interest Act, each of the following is expressly listed as a form of business entity EXCEPT:

4.Under Colorado's unfair discrimination provisions, an insurer places an applicant in a separate classification solely because the applicant is partially blind. When is that classification permitted?

5.Under Colorado's fraudulent insurance acts statute, which of the following must every licensed insurance company doing business in Colorado prepare, implement, and maintain?

6.A Colorado life policy carries a rider that accelerates the death benefit for long-term care certified by a physician. Under Colorado's acceleration-of-benefits section, which statement about what long-term care includes is correct?

7.When a nonresident individual applies for a Colorado insurance producer license, what must the commissioner verify the applicant has furnished concerning the applicant's licensing?

8.Under Colorado's surplus lines export conditions, a broker may not place coverage with a nonadmitted insurer for the purpose of obtaining a lower premium rate, unless the admitted insurer's quoted rate is higher than the nonadmitted insurer's quote by what margin?

9.Under the Colorado Insurable Interest Act, an individual with a substantial interest engendered by love and affection has an insurable interest in the life of a relative who is related how closely to the insured?

10.Maria lawfully bought and owns a life policy on her brother's life; she is the owner but not the insured. She now wants to enter into a viatical settlement contract on the policy. Under Colorado's Insurable Interest Act, how does the act affect her plan?

The other 293 questions are $29.