National Property Fundamentals
32%of exam
National Casualty Fundamentals
32%of exam
General LiabilityPersonal AutoWorkers CompBondsLiability Concepts
Colorado Property Law
16%of exam
DORA StructureProducer LicensingUnfair PracticesFire and Arson StatutesHomeowners Cancellation
Colorado Casualty Law
20%of exam
Auto MinimumsUM/UIM RulesComparative NegligenceWorkers Comp COGuaranty Association
Quick Facts
- Exam
- CO Property & Casualty
- Credential
- P&C Producer License
- Property Qs
- 75 scored (+5 pretest)
- Casualty Qs
- 81 scored (+5 pretest)
- Time
- 120 min each exam
- Pass Score
- 70% each exam
- Format
- Two separate Pearson VUE exams
- Level
- State producer license
Hazard Types Mnemonic
Moral, Morale, Physical hazard
Moral: dishonestyMorale: carelessnessPhysical: tangible condition
ACV vs Replacement Cost
ACV
- RC minus depreciation
- Older items depreciated
Replacement Cost
- New materials, no depreciation
- Subject to policy terms
Depreciation applies or not
Which Homeowners Form Applies
- Own, occupy single-family home→HO-3(Special form)
- Renting, don't own building→HO-4(Tenants form)
- Own a condo unit→HO-6(Unit-owners form)
- Older home, high replacement cost→HO-8(ACV/modified form)
- Want broadest total coverage→HO-5(Comprehensive form)
Homeowners Forms
- HO-2
- Broad form, named perils
- HO-3
- Special form, open perils
- HO-4
- Renters form, no dwelling
- HO-5
- Comprehensive open perils form
- HO-6
- Condo unit-owners form
- HO-8
- Older home, ACV settlement
Four Policy Parts
Declarations, Insuring Agreement, Conditions, Exclusions
Declarations: who, what, limitsInsuring Agreement: the promiseConditions: duties, both partiesExclusions: what's not covered
DP-1 vs DP-3
DP-1
- Basic named perils
- Fire, lightning only
DP-3
- Special open perils
- Broadest dwelling form
Named perils vs open perils
Which Dwelling Form Fits
- Basic named-perils coverage needed→DP-1(Fire, lightning only)
- Need broader named perils→DP-2(Broad form)
- Rental needs open-perils dwelling→DP-3(Special form)
- Small business needs a bundle→BOP(Property plus GL)
- Building is under construction→Builders Risk(Construction period only)
Dwelling and Commercial Forms
- DP-1
- Basic named perils only
- DP-2
- Broad named perils form
- DP-3
- Special open perils form
- CPP
- Modular commercial package policy
- BOP
- Bundled property plus liability
- Builders Risk
- Under-construction property only
- Inland Marine
- Movable, scheduled property coverage
Perils and Valuation Concepts
- ACV
- RC minus depreciation
- Replacement Cost
- New cost, no depreciation
- Coinsurance
- Insure-to-value penalty formula
- Proximate Cause
- Dominant, efficient cause
- Direct Loss
- Physical damage itself
- Indirect Loss
- Consequential loss, like income
- Peril
- Cause of loss
- Hazard
- Condition raising loss chance
Property Contract Concepts
- Insurable Interest
- Must exist at loss
- Warranty
- Guaranteed exactly true
- Representation
- Believed true when made
- Concealment
- Withholding a material fact
- Subrogation
- Insurer recovers from wrongdoer
- Vacancy Clause
- Suspends perils if vacant
- Endorsement
- Modifies the base form
- Binder
- Temporary proof of coverage
CGL Coverage Letters
A: BI/PD, B: Ad injury, C: Medical
A: bodily and property damageB: personal and advertising injuryC: medical payments
Occurrence vs Claims-Made
Occurrence
- Injury date controls
- No retroactive date needed
Claims-Made
- Claim date controls
- Needs retroactive date, tail
Injury date vs claim date
Occurrence vs Claims-Made Selection
- Injury happened during policy period→Occurrence form(Date of injury controls)
- Long-tail professional exposure→Claims-made form(Needs retroactive date)
- Policy cancels, tail needed→Extended reporting period(Buys tail coverage)
- Reputational or advertising harm→Coverage B(Not Coverage A)
CGL Coverage Parts
- Coverage A
- Bodily injury, property damage
- Coverage B
- Personal and advertising injury
- Coverage C
- Medical payments coverage
- Occurrence Trigger
- Injury happens during policy
- Claims-Made Trigger
- Claim reported during period
- Retroactive Date
- Claims-made coverage start point
- Aggregate Limit
- Policy-period total claim cap
- Per-Occurrence Limit
- Single-event payout cap
Surety vs Fidelity Bond
Surety Bond
- Guarantees principal's performance
- Surety seeks reimbursement
Fidelity Bond
- Covers employee dishonesty
- First-party insurance
Third-party vs first-party
Personal and Business Auto
- Split Limits
- Separate BI and PD caps
- Combined Single Limit
- One total per-accident limit
- Medical Payments
- No-fault injury coverage
- UM
- Uninsured motorist coverage
- UIM
- Underinsured motorist coverage
- Non-Owned Auto
- Borrowed or rented vehicle
- Hired Auto
- Business-rented vehicle coverage
Split Limits vs CSL
Split Limits
- Separate BI/BI/PD caps
- Example: 25/50/15
Combined Single Limit
- One total per accident
- No sub-caps
Separate caps vs one total
Liability Types and Bonds
- Absolute Liability
- Fault is irrelevant
- Strict Liability
- Inherently dangerous activity risk
- Vicarious Liability
- Employer liable for employee
- Surety Bond
- Guarantees principal's performance
- Fidelity Bond
- Protects against employee dishonesty
- E&O
- Professional negligence coverage
- D&O
- Leadership wrongful-act coverage
- EPLI
- Wrongful termination, discrimination claims
Workers Comp and Umbrella
- Exclusive Remedy
- WC bars employer lawsuit
- Employers Liability
- Covers WC coverage gaps
- Umbrella
- Excess limits above underlying
- Drop-Down
- Umbrella fills coverage gaps
- SIR
- Self-insured retention amount
- Compensatory Damages
- General and special damages
- Punitive Damages
- Punishes egregious conduct
Rebating vs Twisting
Rebating
- Undisclosed commission kickback
- Inducement to buy
Twisting
- Misleading replacement pitch
- Induces policy replacement
Buy new vs replace
Colorado DOI Structure
- DORA
- Houses Division of Insurance
- Commissioner
- Governor-appointed, Senate-confirmed official
- Producer License
- Required to sell, solicit
- Pre-License Hours
- 50 hours total required
- Rebating
- Undisclosed commission kickback, banned
- Twisting
- Misleading replacement inducement, banned
Colorado Property Statutes
- Fraud/Arson Act
- Requires fraud reporting
- Homeowners Cancellation
- Statutory notice period limits
- Rate Regulation
- DOI reviews property filings
- Summary Disclosure
- Plain-language policy summary form
- Credit Info Use
- Restricted in underwriting decisions
- Fire Insurance Availability
- Statutory access protections
- 2026 Disclosure Law
- Plain-language summary, Spanish if translated
Colorado Auto Limits Order
25 per person, 50 per accident, 15 property
25k: bodily injury per person50k: bodily injury per accident15k: property damage limit
Coercion vs Controlled Business
Coercion
- Pressures insurance purchase
- Threatens loan or service
Controlled Business
- Excessive self/family insuring
- Not serving the public
Pressure vs self-dealing
Colorado Auto Coverage Check
- Setting minimum liability limits→25/50/15(State floor)
- Client wants to skip UM/UIM→Written rejection(Required by law)
- Claimant is 50%+ at fault→Barred from recovery(Modified comparative rule)
- Rideshare driver logged in only→TNC tier coverage(Varies by app status)
Colorado Auto Law
- 25/50/15
- Auto liability minimum limits
- C.R.S. 10-4-609
- UM/UIM must be offered
- UM/UIM Offer
- Must match BI limits
- Written Rejection
- Required to decline UM/UIM
- 50% Bar
- Comparative negligence recovery cutoff
- CO Auto Plan
- Assigned-risk market mechanism
- TNC Drivers
- Rideshare tiered insurance rules
Colorado Casualty and Ethics
- CPCIGA
- Guaranty fund, insolvent insurers
- Coercion
- Pressuring an insurance purchase
- Controlled Business
- Excessive self or family insuring
- Premium Trust Funds
- No commingling client premiums
- CE Requirement
- 24 hours per cycle
- Ethics CE
- 3 hours required minimum
- Homeowners CE
- 3 hours for property producers
Common Traps
Rebating ≠ Twisting
Rebating: hides commission return ≠ Twisting: misleads on replacement
ACV ≠ Replacement Cost
ACV: pays minus depreciation ≠ RC: pays new, no deduction
Occurrence ≠ Claims-Made
Occurrence: date of injury ≠ Claims-made: date claim reported
Surety ≠ Fidelity Bond
Surety: guarantees third party ≠ Fidelity: covers employee theft
Split Limits ≠ CSL
Split: three separate caps ≠ CSL: one combined total
Coercion ≠ Controlled Business
Coercion: pressures a purchase ≠ Controlled business: excessive self-dealing
Last Minute
- 1.Property exam: 75 scored, 120 min
- 2.Casualty exam: 81 scored, 120 min
- 3.Both exams require 70% each
- 4.HO-3: dwelling open, contents named perils
- 5.ACV subtracts depreciation from replacement cost
- 6.Claims-made needs a retroactive date
- 7.CO auto minimums: 25-50-15
- 8.50% bar blocks negligence recovery
- 9.24 CE hours per Colorado cycle
- 10.UM/UIM offer needs written rejection
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