Download STUDY THIS: Property Insurance Test Pearson Vue (LAW) Actual Test Questions with Detailed and more Exams Nursing in PDF only on Docsity!
STUDY THIS: Property Insurance Test
Pearson Vue (LAW) Actual Test Questions
with Detailed Verified Answers / Already
Graded A, 2025 / 2026
_____________Quiz____________? In this state, a domestic insurer is defined as a company that: A. Operates in this state but is incorporated in another state B. operates in this state but is domiciled in another state C. is headquartered in this state D. is incorporated in this state -
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D. is incorporated in this state _____________Quiz____________? The Insurance Commissioner may issue a limited insurance representative license to an individual who wants to sell which of the following types of policies? A. Fire B. Automobile C. Mortgage Guaranty D. Health -
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C. Mortgage Guaranty
_____________Quiz____________? Upon determining that a producer has violated the insurance law, the Insurance Commissioner is required to take which of the following actions? A. Place the licensee on probation immediately B. Publish notice of the violation C. Hold a hearing on the infraction D. Submit the infraction to the Department of Insurance for review -
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C. Hold a hearing on the infraction _____________Quiz____________? An insurer that intends to nonrenew a Homeowners policy MUST take which of the following actions? A. Obtain coverage for the policyholder from another insurer B. Obtain coverage for the policyholder under the FAIR Plan C. Send a nonrenewal notice to the Commissioner of Insurance thirty days prior to the policy expiration date D. Send a notice stating the reason for nonrenewal to the insured -
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D. Send a notice stating the reason for nonrenewal to the insured _____________Quiz____________? All of the following items contained in a basement are covered under the standard flood insurance policy EXCEPT:
C. The insured with the permission of the insurance company D. The insured only -
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C. The insured with the permission of the insurance company _____________Quiz____________? The Insurance Commissioner may suspend, revoke, or deny a producer's license for all of the following reasons EXCEPT: A. Untrue statements on the license application B. Conviction of a misdemeanor C. Incompetency D. Coverting funds -
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B. Conviction of a misdemeanor _____________Quiz____________? An insurer that generally fails to affirm or deny coverage of claims within a reasonable period of time after receiving Proof of Loss may be found guilty of: A. a breach of fiduciary responsibility B. an improper claims practice C. defamation D. misrepresentation -
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B. an improper claims practice _____________Quiz____________?
After an insurance producer license is issued, a licensee MUST complete how many hours of approved continuing education courses every two years? A. 10 B. 15 C. 20 D. 24 -
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D. 24
_____________Quiz____________? In order to be reimbursed for a covered loss under a Standard Fire policy in this state, an insured MUST: A. contact an independent claims adjuster B. protect the property from further loss C. provide a proof of loss statement within 10 days D. obtain a written appraisal of the damages -
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B. protect the property from further loss _____________Quiz____________? A candidate for licensure as a property insurance producer must have completed a MINIMUM of how many hours of prelicensing education? A. 45 B. 30 C. 15 D. 7.5 -
_____________Quiz____________? Which of the following situations is considered an insurance transaction? A. Two insurance companies share actuarial data B. Two parties negotiate the term of coverage when executing an insurance contract C. An independent audit company reviews a domestic insurer's records for a fee D. An insured sends a policy to the bank in preparation for a mortgage closing -
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B. Two parties negotiate the term of coverage when executing an insurance contract _____________Quiz____________? Coverage of goods in transit is usually provided by which of the following types of insurance? A. Casualty B. Surety C. Inland marine D. Automobile -
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C. Inland marine _____________Quiz____________? Under the standard flood insurance policy, all of the following loss avoidance measures are covered up to $1,000 when damage to the insured property due to flooding is imminent EXCEPT: A. sandbags, including the sand to fill them B. Tools required to secure the property C. plastic sheeting and lumber
D. the value of work, at the federal minimum wage, that a member of the household performs -
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B. Tools required to secure the property _____________Quiz____________? An incorporated insurer with capital divided into shares and owned by its shareholders is known as: A. a stock company B. a mutual company C. a fraternal benefit society D. an association group -
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A. a stock company _____________Quiz____________? After an insurer receives a satisfactory proof of loss from an insured on a fire loss, payment is due within a MAXIMUM of how many days? A. 5 B. 30 C. 60 D. 90 -
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A. 5
_____________Quiz____________? To obtain coverage from this state's FAIR Plan, an applicant MUST
C. Membership in the FAIR Plan is optional for XYZ D. XYZ must belong to the FAIR plan because it has a certificate of authority to sell homeowners insurance in Illinois -
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D. XYZ must belong to the FAIR plan because it has a certificate of authority to sell homeowners insurance in Illinois _____________Quiz____________? If an owner-occupied dwelling is totally destroyed without criminal fault on the part of the insured, the amount of the loss covered by a property policy would be based on: A. a depreciated value of the dwelling B. the policy limits C. the market value of the dwelling D. the assessed value of the dwelling -
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B. the policy limits _____________Quiz____________? The purpose of the FAIR Plan is to provide: A. automobile insurance for high-risk drivers B. crime insurance for residents of high-risk neighborhoods C. property insurance on recreational vehicles for which such coverage is unavailable in the regular market D. Basic property insurance for which coverage is not available in the regular market -
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D. Basic property insurance for which coverage is not available in the regular market
_____________Quiz____________? The insurance commissioner is empowered to: A. enforce state laws relating to insurance B. pass state laws relating to insurance C. write policy forms for mandatory insurance coverages D. set rates for mandatory insurance coverages -
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A. enforce state laws relating to insurance _____________Quiz____________? The Insurance Commissioner is: A. Appointed by the President of the NAIC B. Appointed by the Governor and confirmed by the State Senate C. Appointed by the State Senate and confirmed by the Governor D. Elected through public nominations -
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C. Appointed by the State Senate and confirmed by the Governor _____________Quiz____________? All of the following are powers and duties of the Commissioner, except: A. Issuing, denying, revoking, or suspending insurance licenses. B. enforce state insurance laws C. Ensuring that insurance rates are adequate D. Performing all duties in the best interest of independent insurance agent -
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B. The property of the insurance company under which you operate C. The property of the State of Colorado D. None of the above -
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C. The property of the State of Colorado _____________Quiz____________? If a producer is the subject of criminal prosecution in any jurisdiction, the producer must report to the Commissioner after the initial pretrial hearing date within: A. 60 days B. 12 months C. 10 days D. 30 days -
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D. 30 days _____________Quiz____________? How much is the penalty for a negligent violation per accident and max per year? A. $1,000 per accident, $5,000 max per 12 months B. $20,000 per accident, $750,000 max per 12 months C. $3,000 per accident, $30,000 max per 12 months D. $30,000 per accident, $750,000 max per 12 months -
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C. $3,000 per accident Unintentional 3k up to 30k
Intentional 30k up to 750k _____________Quiz____________? How much is the penalty for a willful violation per accident and max per year? A. $1,000 per accident, $5,000 max per 12 months B. $20,000 per accident, $750,000 max per 12 months C. $3,000 per accident, $30,000 max per 12 months per accident and max per year D. $30,000 per accident, $750,000 max per 12 months -
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D. $30,000 per accident, $750,000 max per 12 months _____________Quiz____________? The Commissioner can refuse, suspend, revoke, or nonrenew a license if the licensee has committed any of the following, except: A. Failed to pay child support B. Issued insufficient coverage to a customer through apparent authority C. Had a license suspended or revoked in another state D. Cheated on an insurance examination -
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B. Issued insufficient coverage to a customer through apparent authority (Explanation in book: Being convicted of a felony, misappropriating funds belonging to someone else, demonstrating a lack of trustworthiness or competence, or committing an unfair trade practice are also grounds for license suspension, non-renewal or revocation) _____________Quiz____________?
A. Residency in Colorado B. Residency in a state to which Colorado grants nonresident licenses C. Passing the state licensing examination D. Being at least 21 years of age -
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D. Being at least 21 years of age _____________Quiz____________? Each of the following is a component of the legal responsibility of maintaining an insurance license, except: A. A producer must register any assumed name in writing to the Commissioner within 30 days of use B. A producer must inform the Commissioner of any change in address within 30 days C. An insurer must notify the Commissioner within 30 days of terminating a producer's appointment D. The producer must be given a copy of the termination within 15 days of the Commissioner's notification, but has 30 days to file comments about that termination with the Commissioner -
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A. A producer must register any assumed name in writing to the Commissioner within 30 days of use _____________Quiz____________? All of the following are true about surplus lines insurance, except: A. Within 30 days, surplus lines producer must file an affidavit with the Commissioner describing coverage placed with a non-admitted insurer within 30 days B. To write surplus lines insurance in Colorado, a non-admitted insurer must be on the Commissioner's approved list that is issued each year on July 1
C. The written record documenting the search for admitted insurance must be maintained by the producer for at least one year from the effective data of coverage D. Each surplus lines produce must remit a 3% tax on the previous year's surplus lines premiums on or before March 1st of each year. -
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C. The written record documenting the search for admitted insurance must be maintained by the producer for at least one year from the effective data of coverage (Answer in the book: A written record documenting diligent search efforts must be maintained by the producer for at least 3 years from the effective date of coverage and not one year from the effective dates) _____________Quiz____________? Producers can receive the following forms of compensation for soliciting, procuring, or servicing policies: A. Administrative fees, in addition to commissions B. Service fees, in addition to commissions C. Consulting fees, in addition to commissions D. Commissions from an insurer -
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D. Commissions from an insurer _____________Quiz____________? With respect to a producer's fiduciary responsibilities and duties, the agent must do all of the following, except: A. Remit premiums received to the insurer on or before the due date, or within 45 days if there is no due date B. Account for any collected premiums within 45 days after the policy due date or within 90 days after receipt
_____________Quiz____________? Which of the following is correct regarding unauthorized entities? A. An unauthorized insurer's act or contract is invalid because it is not authorized to transact insurance business B. The Commissioner is required to issue a Cease and Desist Order stating charges if an unauthorized person is transacting insurance C. Every person acting as an insurance adviser, counselor, or analyst must report every policy issued by an unauthorized insurer to the Commissioner D. A claims adjuster is not required to report unauthorized business to the Commissioner -
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C. Every person acting as an insurance adviser, counselor, or analyst must report every policy issued by an unauthorized insurer to the Commissioner _____________Quiz____________? Refusing to insure or renew, canceling, or limiting the amount of coverage on the residential property risk or personal property solely because of the age of the residential property is considered to be: A. Coercion B. Defamation C. Unfair claim practice D. Unfair discrimination -
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D. Unfair discrimination _____________Quiz____________? Obtaining an insurance license for the sole purpose of writing insurance on the life or property of one's employer constitutes which of the following?
A. Rebating B. Redlining C. Controlled business D. Discrimination -
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C. Controlled business _____________Quiz____________? Each of the following are an example of boycott, coercion, or intimidation, except: A. Offering a premium discount or credit that is not specified in the policy B. Unreasonably disapproving a policy that provides requisite coverage C. Coercing a debtor into getting requisite insurance through a particular age D. Requiring a mortgager to pay a handling charge on a policy required to secure a loan -
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A. Offering a premium discount or credit that is not specified in the policy _____________Quiz____________? Which of the following is NOT an unfair claims practice? A. Misrepresenting pertinent policy facts or provisions to claimants B. Excluding medical benefits under health coverage solely because the individual uses a motorcycle, snowmobile, off-highway vehicle, skis, or a snowboard C. Promptly acknowledging communications pertinent to a claim D. Failing to attempt, in good faith, to promptly, fairly, and equitably settle a claim in which the insurer's liability has become reasonably clear -
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C. Promptly acknowledging communications pertinent to a claim
