Free CO Casualty Producer Practice Questions
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Sample Practice Questions
Try these 10 sample questions from the CO Casualty Producer practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.
1A contractor finishes installing a handrail and leaves the customer's building. A week later, the rail detaches and injures a visitor. Which CGL exposure best describes the contractor's liability?
- A. Premises and ongoing operations exposure
- B. Products and completed operations exposure
- C. Personal and advertising injury exposure
- D. Medical payments without liability exposure
Answer: B
Explanation: The California insurance guide states, "Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work." The installation was finished before the injury. Premises/operations concerns work in progress; the other options describe different coverage categories.
Reference: California Department of Insurance, Commercial Insurance Guide — Commercial General Liability—Coverage
2A risk assessor reviews four loss exposures. Which one best illustrates a morale hazard, rather than intentional dishonesty or a physical condition?
- A. An applicant deliberately conceals prior losses
- B. A manager carelessly skips routine safety checks
- C. A stairway has a loose and damaged handrail
- D. A stockroom contains a leaking solvent drum
Answer: B
Explanation: NAIC defines "Morale Hazard" as "negligence or disregard on the part of the insured which could lead to probable loss." The manager's carelessness fits. Deliberate concealment is a moral issue; the handrail and solvent are physical conditions.
Reference: NAIC, Glossary of Insurance Terms — Glossary—Moral Hazard and Morale Hazard
3A producer needs to confirm a client's policy effective date, liability limit, and deductible before discussing a loss. Which policy section ordinarily lists those particulars?
- A. The insuring agreement
- B. The policy conditions
- C. The declarations page
- D. The exclusions section
Answer: C
Explanation: The insurance guide says the declarations page contains "effective and expiration dates, premium payable, the amount and types of coverage, and the deductibles." These are the particulars the producer needs. The other sections state the coverage promise, duties, or limitations.
Reference: California Department of Insurance, Commercial Insurance Guide — Glossary—Declarations (DEC) Page
4Who appoints the Colorado Commissioner of Insurance, and what confirmation is required?
- A. The governor appoints the commissioner with Senate consent
- B. The General Assembly elects the commissioner without confirmation
- C. The attorney general appoints the commissioner with House consent
- D. Colorado voters elect the commissioner statewide
5Which three standards govern insurance rates under Colorado's property-and-casualty rating law?
- A. Uniform, guaranteed, and refundable
- B. Not excessive, inadequate, or unfairly discriminatory
- C. Identical, prepaid, and noncancelable
- D. Federal, municipal, and county-approved
6A homeowner employs a domestic worker in the private home for 40 hours each week. Does the usual private-home domestic worker exclusion apply?
- A. Yes, because every worker performing domestic work at a private home is excluded
- B. Yes, unless the domestic worker owns at least ten percent of the employer's corporation
- C. No; the statute does not apply that exclusion to a worker employed full-time as defined
- D. No, but only if the worker is employed fewer than forty hours and fewer than five days weekly
7A claims-made liability policy runs from January 1 through December 31, 2026, with a retroactive date of January 1, 2025. A claim is first made in July 2026. Assuming all other terms are met, what is the earliest occurrence date that can qualify under these timing terms?
- A. January 1, 2024
- B. July 1, 2024
- C. January 1, 2025
- D. July 1, 2025
Answer: C
Explanation: The guide defines claims-made coverage as applying to claims filed during the policy period "subject to a retroactive inception date." A July 2026 claim satisfies the claim timing; January 1, 2025 is the earliest qualifying occurrence date. The 2024 dates precede the retroactive date, and July 2025 is later than the earliest eligible date.
Reference: California Department of Insurance, Commercial Insurance Guide — Glossary—Claims Made
8A producer is separating pure risks from opportunities that may also generate a gain. Which exposure is a pure risk?
- A. A warehouse may suffer a fire loss or no fire loss
- B. A share purchase may appreciate or depreciate
- C. A commodity position may profit or lose value
- D. A new retail venture may earn or lose money
Answer: A
Explanation: NAIC defines "Pure Risk" as a circumstance with "possibility of loss or no loss but no possibility of gain." Fire damage fits that structure. The investment, commodity, and venture outcomes each can produce a gain as well as a loss.
Reference: NAIC, Glossary of Insurance Terms — Glossary—Pure Risk
9A liability policy's insuring agreement promises damages because of bodily injury caused by an occurrence during the policy period. A visitor alleges the insured's negligent maintenance caused an accidental injury during that period and seeks damages. Before considering exclusions and conditions, how should the producer treat the claim under the stated grant?
- A. It passes the initial bodily-injury coverage grant
- B. It is automatically payable without further review
- C. It is excluded because the visitor was not insured
- D. It is confined to property-damage coverage only
Answer: A
Explanation: The guide calls the insuring agreement "The portion of an insurance contract that describes what is covered." The alleged liability for accidental bodily injury during the policy period fits the stated initial grant. Conditions and exclusions still require review; a third-party claimant need not be the named insured, and property damage is a different loss.
Reference: California Department of Insurance, Commercial Insurance Guide — Glossary—Insuring Agreement
10Which qualification is expressly required of the Colorado Commissioner of Insurance?
- A. Ten years as a Colorado-licensed producer
- B. Being a Colorado elector who is well versed in insurance
- C. Membership in the state bar
- D. Prior service as a deputy commissioner
Topics in this practice bank
These topics describe the available practice for CO Casualty Producer. Review the examination outline and its sources for scope and allocation details.
General knowledge / I. TYPES OF POLICIES, BONDS, AND RELATED TERMS
- A. Commercial general liability
- A. Commercial general liability / 1. Exposures
- A. Commercial general liability / 1. Exposures / a. Premises and Operations
- A. Commercial general liability / 1. Exposures / b. Products and Completed Operations
- A. Commercial general liability / 2. Coverage
- A. Commercial general liability / 2. Coverage / a. Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
- A. Commercial general liability / 2. Coverage / b. Coverage B: Personal Injury and Advertising Injury
- A. Commercial general liability / 2. Coverage / c. Coverage C: Medical Payments
- A. Commercial general liability / 2. Coverage / d. Supplemental Payments
- A. Commercial general liability / 2. Coverage / e. Who is an insured
- A. Commercial general liability / 2. Coverage / f. First named insured
- A. Commercial general liability / 2. Coverage / g. Limits (Per occurrence, Annual Aggregate)
- A. Commercial general liability / 2. Coverage / h. Damage to Property of Others
- B. Automobile: personal auto and business auto
- B. Automobile: personal auto and business auto / 1. Liability
- B. Automobile: personal auto and business auto / 1. Liability / a. Bodily Injury
- B. Automobile: personal auto and business auto / 1. Liability / b. Property Damage
- B. Automobile: personal auto and business auto / 1. Liability / c. Split Limits
- B. Automobile: personal auto and business auto / 1. Liability / d. Combined Single Limit
- B. Automobile: personal auto and business auto / 2. Medical Payments
- B. Automobile: personal auto and business auto / 3. Physical Damage (collision; other than collision; specified perils)
- B. Automobile: personal auto and business auto / 4. Uninsured motorists
- B. Automobile: personal auto and business auto / 5. Underinsured motorists
- B. Automobile: personal auto and business auto / 6. Who is an insured
- B. Automobile: personal auto and business auto / 7. Types of Auto
- B. Automobile: personal auto and business auto / 7. Types of Auto / a. Owned
- B. Automobile: personal auto and business auto / 7. Types of Auto / b. Non-owned
- B. Automobile: personal auto and business auto / 7. Types of Auto / c. Hired
- B. Automobile: personal auto and business auto / 7. Types of Auto / d. Temporary Substitute
- B. Automobile: personal auto and business auto / 7. Types of Auto / e. Newly Acquired Autos
- B. Automobile: personal auto and business auto / 7. Types of Auto / f. Transportation Expense and Rental Reimbursement Expense
- B. Automobile: personal auto and business auto / 8. Auto Dealers Coverage Form, including Garagekeepers Insurance
- B. Automobile: personal auto and business auto / 9. Exclusions
- B. Automobile: personal auto and business auto / 10. Individual Insured and Drive Other Car (DOC)
- B. Automobile: personal auto and business auto / 11. Mobile equipment
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.)
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts / a. Who is an employee/employer
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts / b. Compensation
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 2. Work-related vs. non-work-related
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 3. Other states’ insurance
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 4. Employers Liability
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 5. Exclusive remedy
- C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 6. Premium Determination
- D. Crime
- D. Crime / 1. Employee Dishonesty
- D. Crime / 2. Theft
- D. Crime / 3. Robbery
- D. Crime / 4. Burglary
- D. Crime / 5. Forgery and Alteration
- D. Crime / 6. Mysterious disappearance
- E. Bonds
- E. Bonds / 1. Surety
- E. Bonds / 2. Fidelity
- F. Professional liability
- F. Professional liability / 1. Errors and Omissions
- F. Professional liability / 2. Medical Malpractice
- F. Professional liability / 3. Directors and Officers (D&O)
- F. Professional liability / 4. Employment Practices Liability (EPLI)
- F. Professional liability / 5. Cyber liability and data breach, funds transfer
- F. Professional liability / 6. Liquor liability
- G. Umbrella/Excess Liability
- H. Businessowners Policy (BOP)
General knowledge / II. INSURANCE TERMS AND RELATED CONCEPTS
- A. Risk
- B. Hazards
- B. Hazards / 1. Moral
- B. Hazards / 2. Morale
- B. Hazards / 3. Physical
- C. Indemnity
- D. Insurable interest
- E. Loss valuation
- E. Loss valuation / 1. Actual cash value
- E. Loss valuation / 2. Replacement cost
- E. Loss valuation / 3. Market value
- E. Loss valuation / 4. Stated/agreed value
- E. Loss valuation / 5. Salvage value
- F. Negligence
- G. Liability
- H. Occurrence
- I. Binders
- J. Warranties
- K. Representations
- L. Concealment
- M. Deposit Premium/Audit
- N. Certificate of Insurance
- O. Law of Large Numbers
- P. Pure vs. Speculative Risk
- Q. Endorsements
- R. Damages
- R. Damages / 1. Compensatory
- R. Damages / 1. Compensatory / a. General
- R. Damages / 1. Compensatory / b. Special
- R. Damages / 2. Punitive
- S. Compliance with provisions of Fair Credit Reporting Act
General knowledge / III. POLICY PROVISIONS
- A. Declarations
- B. Insuring agreement
- C. Conditions
- D. Exclusions and Limitations
- E. Definition of the insured
- F. Duties of the insured after a loss
- G. Cancellation and nonrenewal provisions
- H. Supplementary payments
- I. Proof of loss
- J. Notice of claim
- K. Other insurance
- L. Subrogation
- M. Loss settlement provisions including consent to settle a loss
- N. Terrorism Risk Insurance Act (TRIA)
Colorado specific / I. COLORADO STATUTES, RULES, AND REGULATIONS COMMON TO LIFE, SICKNESS AND ACCIDENT, PROPERTY (FIRE), AND CASUALTY INSURANCE
- A. Insurance Commissioner
- A. Insurance Commissioner / 1. Power and duties
- A. Insurance Commissioner / 2. Hearings and penalties
- A. Insurance Commissioner / 3. License suspension and revocation
- A. Insurance Commissioner / 4. Records and requests for information
- B. Licensing and producers’ legal responsibility
- B. Licensing and producers’ legal responsibility / 1. Persons required to be licensed
- B. Licensing and producers’ legal responsibility / 2. Surplus Lines
- B. Licensing and producers’ legal responsibility / 3. Payment and acceptance of commissions/fees
- B. Licensing and producers’ legal responsibility / 4. Fiduciary/commingling
- B. Licensing and producers’ legal responsibility / 5. Pre-licensing and continuing education
- B. Licensing and producers’ legal responsibility / 6. Unauthorized entities
- C. Unfair competition and deceptive practices
- C. Unfair competition and deceptive practices / 1. Coercion
- C. Unfair competition and deceptive practices / 2. Misrepresentation
- C. Unfair competition and deceptive practices / 3. Unfair discrimination
- C. Unfair competition and deceptive practices / 4. Controlled business
- C. Unfair competition and deceptive practices / 5. Defamation
- C. Unfair competition and deceptive practices / 6. Rebates
- C. Unfair competition and deceptive practices / 7. Unfair claims practices
- C. Unfair competition and deceptive practices / 8. Colorado Fraud Statute
Colorado specific / II. COLORADO STATUTES, RULES, AND REGULATIONS COMMON TO PROPERTY AND CASUALTY INSURANCE ONLY
- A. Rate regulations
- B. Summary disclosure form
- C. Commercial policy requirements
- D. Use of Credit Information
Colorado specific / III. COLORADO STATUTES, RULES, AND REGULATIONS PERTINENT TO CASUALTY INSURANCE ONLY
- A. Workers compensation
- A. Workers compensation / 1. Who must be covered
- A. Workers compensation / 2. Sources of coverages
- A. Workers compensation / 3. Benefits
- A. Workers compensation / 4. Claims procedures
- B. Automobile insurance
- B. Automobile insurance / 1. Cancellation/nonrenewal
- B. Automobile insurance / 2. Excluded drivers
- B. Automobile insurance / 3. Uninsured motorist/Underinsured motorist
- B. Automobile insurance / 4. Financial responsibility
- B. Automobile insurance / 5. Required Coverages
- B. Automobile insurance / 6. Medical Payment Coverage
- B. Automobile insurance / 7. Transportation Network Company
- B. Automobile insurance / 8. Claims
- C. Colorado Auto Insurance Plan
- D. Bail Bonds
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