Colorado Property & Casualty Insurance Practice Exam Free - 2026

• A. One year
• B. Two years
• C. Five years
• D. At least three years

Correct answer: D. At least three years

Explanation: C.R.S. § 10-4-635 requires the insurer to retain proof of the named insured's rejection of medical payments coverage for at least three years; without that proof the policy is presumed to include the $5,000 minimum. The other periods are not in the statute. See C.R.S. § 10-4-635.

• A. At least 30 days for most reasons, but only 10 days for nonpayment of premium
• B. At least 45 days in every case
• C. At least 60 days, or 20 days for nonpayment
• D. At least 10 days in every case

Correct answer: A. At least 30 days for most reasons, but only 10 days for nonpayment of premium

Explanation: C.R.S. § 10-4-603 requires the cancellation notice to be mailed or delivered at least thirty days before the effective date, except that ten days' notice suffices when cancellation is for nonpayment of premium. Forty-five days is the commercial-lines nonrenewal notice; sixty days is the homeowners standard; ten days applies only to nonpayment. See C.R.S. § 10-4-603.

• A. The insured was in an at-fault accident
• B. The insured's driver's license was suspended during the policy period
• C. The insured knowingly made a false statement on the application
• D. The insured did not pay the premium

Correct answer: A. The insured was in an at-fault accident

Explanation: C.R.S. § 10-4-602 limits mid-term cancellation to nonpayment of premium; suspension or revocation of the driver's license or registration during the policy period (or the 180 days before renewal); a knowingly false statement on the application; and a knowing and willful false material statement on a claim. An at-fault accident is not among the permitted grounds, although it may bear on nonrenewal. See C.R.S. § 10-4-602.

• A. Give 45 days' notice; reasons are never required
• B. Give 10 days' notice and reasons within 5 days
• C. Give at least 30 days' advance notice of nonrenewal and the reasons within 20 days after receiving the written request
• D. Give 60 days' notice with reasons in the notice

Correct answer: C. Give at least 30 days' advance notice of nonrenewal and the reasons within 20 days after receiving the written request

Explanation: C.R.S. § 10-4-604 requires at least thirty days' advance notice of an intention not to renew a personal auto policy, and when the insured demands the reasons in writing the insurer must provide them within twenty days after receiving the request. Forty-five days is the commercial-lines figure, sixty days with stated reasons is the homeowners rule, and B has no basis. See C.R.S. § 10-4-604.

• A. Liability for injuries to adult trespassers who ignore posted warning signs
• B. Liability for injuries to children attracted to dangerous conditions on property
• C. Liability imposed on a business for the negligent acts of its employees
• D. Liability for injuries to invited guests caused by hazards the owner failed to repair

Correct answer: B. Liability for injuries to children attracted to dangerous conditions on property

Explanation: The attractive nuisance doctrine holds property owners liable for injuries to children who are attracted onto the property by dangerous conditions (like swimming pools or trampolines) that the owner should protect against.

• A. Liability imposed without any proof of negligence or fault
• B. Liability that allows each defendant to be held for the full judgment
• C. Liability imposed on one party for the actions of another
• D. Liability of a property owner for injuries to children lured by hazards

Correct answer: C. Liability imposed on one party for the actions of another

Explanation: Vicarious liability holds one party legally responsible for the actions of another party, such as an employer being liable for the negligent acts of employees performed within the scope of employment.

• A. Liability imposed on an employer for an employee's negligent acts
• B. Liability that is reduced by the injured party's own share of fault
• C. Liability that requires the plaintiff to prove a breach of duty
• D. Liability imposed without proof of negligence or fault

Correct answer: D. Liability imposed without proof of negligence or fault

Explanation: Strict liability (absolute liability) holds a party responsible for damages regardless of negligence or fault. It typically applies to inherently dangerous activities or defective products.

• A. Each defendant can be held responsible for the full amount of damages
• B. Each defendant is responsible for damages strictly in proportion to its share of fault
• C. Each defendant is responsible for an equal share of the damages regardless of fault
• D. The plaintiff must sue every defendant together before collecting any damages

Correct answer: A. Each defendant can be held responsible for the full amount of damages

Explanation: Joint and several liability means each defendant can be held responsible for the full amount of damages, allowing the plaintiff to collect the entire judgment from any defendant, regardless of their individual share of fault.

• A. A system where any fault by the plaintiff completely bars recovery of damages
• B. A system where damages are reduced by the plaintiff's percentage of fault
• C. A system where damages are divided equally among all negligent defendants
• D. A system where the defendant is liable regardless of whether negligence is proven

Correct answer: B. A system where damages are reduced by the plaintiff's percentage of fault

Explanation: Comparative negligence is a legal principle that reduces a plaintiff's recovery by their percentage of fault in causing the injury. In pure comparative negligence, even a 99% at-fault plaintiff can recover 1%.

• A. A rule that reduces the plaintiff's award in proportion to their percentage of fault
• B. A defense that bars recovery when the plaintiff was more than 50 percent at fault
• C. A defense that bars recovery if the plaintiff contributed to their own injury at all
• D. A defense that shifts the entire loss to the defendant who contributed most to the injury

Correct answer: C. A defense that bars recovery if the plaintiff contributed to their own injury at all

Explanation: Contributory negligence is a strict legal defense that completely bars a plaintiff from recovering damages if they were even partially at fault for their own injury. Only a few states still use this doctrine.

• A. The maximum amount the insurer will pay for all claims arising from a single event
• B. The maximum amount the insured must pay out of pocket before coverage responds
• C. The total of the limits carried under all of the insured's liability policies combined
• D. The maximum amount the insurer will pay for all claims during a policy period

Correct answer: D. The maximum amount the insurer will pay for all claims during a policy period

Explanation: The aggregate limit is the maximum total amount an insurer will pay for all claims during a policy period. Once exhausted, no further claims are covered until the policy renews.

• A. The maximum amount payable for any single covered event
• B. The maximum amount payable to any one injured person per event
• C. The maximum amount payable for all claims during the policy term
• D. The amount the insured must pay before the insurer pays on each claim

Correct answer: A. The maximum amount payable for any single covered event

Explanation: The per occurrence limit is the maximum amount an insurer will pay for all claims arising from a single covered event or occurrence, regardless of the number of claimants.