Colorado Insurance Handbook

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JANUARY 2009

INSURANCE LICENSINGCANDIDATE HANDBOOK

STATE OF COLORADO

Quick Referenceinside front cover

Table of Contentspage i

Exam Reservationspage 14

Test Center Locationsback cover

Exam Day:What to Bringpage 17

Content Outlinespage 24
http://www.asisvcs.com/publications/pdf/120606.pdfhttp://www.asisvcs.com/publications/pdf/120606.pdfhttp://www.asisvcs.com/publications/pdf/120606.pdf


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RESERVATIONS

Before making an exam reservation

Candidates should thoroughly review this handbook, which contains examination

content outlines and important information regarding eligibility and theexamination and licensing application process.

When contacting Pearson VUE, formerly Promissor,

for examination information candidates should:

Calling during off-peak hours to decrease any possible wait time.Off-peak hours are Mon-Fri from 8 am to 10 am and all day duringthe weekend.

Have a pencil or pen available when calling to record any additionalinformation

Have the identication number ready, if you have one. Have a list of prepared questions

Have this handbook available for reference Record the name of the Customer Representative with whom they are

speaking Fax reservation to Pearson VUE 24 hours a day, 7 days a week by using the

Fax Reservation Form.Handbooks for licensure are available at www.pearsonvue.com

Candidates should make a reservation by either phone or Web at least twenty-four(24) hours before the desired examination date and by fax at least four (4) businessdays before the desired examination date.Walk-in examinations are not available.

SCHEDULES & FEES

Test Center locations

A list of test centers appears on the back cover of this handbook. Candidates shouldcontact Pearson VUE to conrm specic locations and examination schedules.

Exam fees

e examination fee of $73 must be paid at the time of reservation by credit card,debit card, voucher, or electronic check. Fees will not be accepted at the testcenter. Examination fees are non-refundable and non-transferable, except asdetailed in Change/Cancel Policy(page 17).

EXAM DAY

What to bring to the exam

Candidates should bring to the examination the conrmation number theyreceived when they made the examination reservation, proper identication, andother materials as dictated by the state licensing agency. A complete list appears inWhat to Bring(page 18).

Exam procedures

Candidates should report to the test center at least thirty (30) minutes beforethe examination begins to complete registration. e time allotted for theexamination varies, and each candidate will leave the test center with an officialscore report in hand.

QUICK REFERENCE

PEARSON VUE

(formerly Promissor)

EXAMINATION

INFORMATION

Candidate scores will NOT

be given over the phone.

(800) 274-2616

HOURS

Monday through Friday

from 7:00 a.m. until 5:00 p.m.

(Mountain Time)

PEARSON VUE

LICENSING

INFORMATION

Pearson VUE

Colorado Insurance

3131 S Vaughn Way, Ste. 205

Aurora, CO 80014

(800) 275-8247

HOURS

Monday through Friday

from 7:00 a.m. until 5:00 p.m.

(Mountain Time)

Web site

www.pearsonvue.com,

formerly

promissor.com

STATE

LICENSING

INFORMATION

Colorado Division of

Insurance

Department of Regulatory

Agencies

1560 Broadway, Suite 850Denver, CO 80202

(303) 894-7499 (phone)

Web site

www.dora.state.

co.us/insurance


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QUICK REFERENCE ........... inside front cover

OVERVIEW ....................................................... ii

INTRODUCTION ..............................................1

Contact Information ...................................1

The Licensure Process .............................. 1

Practice Tests ............................................. 1

COLORADO

LICENSING REQUIREMENTS ......................... 2

Producer ..................................................... 2

Pearson VUE Tests

and Lines of Authorities ............................. 3

Professional Designations ......................... 5

New Colorado Resident ............................. 5

Surplus Lines..............................................6

Title Insurance Adjusters ...........................6

Public Insurance Adjusters ........................6

Registration of

Assumed (Trade) Names ............................ 7

Prelicensing Training .................................. 8

COLORADO SINGLE PRODUCERLICENSE ACT ................................................. 10

FREQUENTLY ASKED QUESTIONS

CONTINUING EDUCATION REQUIREMENTS

FOR INSURANCE PRODUCERS .................. 11

EXAM RESERVATIONS ................................. 14

Phone Reservations ................................. 14

Fax Reservations ..................................... 14

Americans with Disabilities Act (ADA) .... 14

Non-Saturday Exams ............................... 14

Exam Fees ................................................ 15

Electronic Checks ..................................15

Vouchers ................................................. 15

Change/Cancel Policy ............................. 16

Absence/Lateness Policy ........................ 16

Weather Delays and Cancellations ......... 16

Retaking an Exam .................................... 16

EXAM DAY ...................................................... 17

What to Bring .......................................... 17

Exam Procedures .................................... 17

Test Center Policies ................................. 18

Exam Security ......................................... 19

SCORE REPORTING ..................................... 20

Understanding Your Score Report .......... 20

Duplicate Score Reports ......................... 20

PREPARING FOR THE EXAM ....................... 21

Pretest Questions .................................... 21

Exam Structure and Content ................... 21

EQUATING AND SCALING ............................ 22

How Your Reported Numeric Score Is

Determined ............................................... 22

Study Manuals, Schools,

and Programs ........................................... 22

EXAM CONTENTOUTLINES ...................................................... 24

APPENDIX

Fax Reservation Form......end of handbook

Duplicate

Score Request Form ........ end of handbook

Voucher Request Form .... end of handbook

Special Accommodations

Request Form...................end of handbook

Resident Licensing

Requirements Form ......... end of handbook

GENERAL INFORMATION

Test Centers ...............................back cover

Available Exams .........................back cover

Exam Fees ..................................back cover

Pearson VUE

Holiday Schedule .......................back cover

State of Colorado Insurance page i

TABLE OF CONTENTS


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State of Colorado Insurance page 1

CONTACT INFORMATION

Candidates may call Pearson VUE Reservationsat (800) 274-2616 to:

Schedule an examination (see back cover) Change or cancel an examination

Obtain information about examination procedures

Monday through Friday6 am 9 pm

Saturday6 am 3 pm

Sunday8 am 2 pm

Mountain Standard Time

Candidates may contact Pearson VUE Licensingto obtain:

A new license A license renewal Appointment information

Mail

Pearson VUEColorado Insurance

3131 S Vaughn Way, Ste. 205Aurora, CO 80014

Phone

(800) 275-8247Monday through Friday7:00 a.m. 5:00 p.m.


Web site

www.pearsonvue.com

Candidates may contact the Colorado Department of Insurance to:

Obtain information about prelicensing education requirements Find out how to maintain a license once it has been obtained

Mail

Colorado Division of InsuranceDepartment of Regulatory Agencies

1560 Broadway, Suite 850Denver, CO 80202

Phone

(303) 894-7499Web site

www.dora.state.co.us/insurance

THE LICENSURE PROCESS

Licensure is the process by which an agency of state government or other jurisdictiongrants permission to individuals to engage in the practice of, and prohibits all others

from legally practicing a particular profession, vocation, or occupation. By ensuringa minimum level of competence, the licensure process protects the general public.e state regulatory agency is responsible for establishing the acceptable level of safepractice and for determining whether an individual meets that standard.

e State of Colorado has retained the services of Pearson VUE, formerlyPromissor, to develop and administer its insurance licensing examination program.Pearson VUE is a leading provider of assessment services to regulatory agencies andnational associations.

PRACTICE TESTS

Practice tests are offered exclusively online at www.pearsonvue.com, giving candidateseven more opportunity to succeed on insurance examinations. Our practice tests willnot only prepare candidates for the types of questions they will see on the licensureexam, but also familiarize them with taking computer-based examinations.

Pearson VUE offers practice tests in the areas of Life, Health, and Property andCasualty that contain questions developed by subject matter experts using conceptsfound in the general portion of the licensure examination. e tests closely reectthe format of the real licensure examination, can be scored instantly, and provideimmediate feedback to help candidates identify correct and incorrect answers.Candidates can purchase practice tests anytime at www.pearsonvue.com. e fee is$19.95 per test.

PRACTICE TESTS

Practice tests are offered

exclusively online atwww.pearsonvue.com.

INTRODUCTION

CANDIDATE SCORES

WILL NOT BE GIVEN

OUT OVER THE PHONE.

*TELECOMMUNICATION

DEVICES

FOR THE DEAF

Pearson VUE is equipped

with TDD (TelecommunicationDevices for the Deaf) to assist

deaf and hearing-impaired

candidates. TDD calling is

available during

Pearson VUE business hours

toll-free at (800) 274-2617.

This TDD phone option is for

individuals equipped with

compatible TDD machinery.


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page 2 State of Colorado Insurance

PRODUCER

Since the effective date of January 1, 1995, qualied insurance producers are issueda single Colorado Producer License. e license that is issued shows the authority or

authorities that the producer is qualied to sell.

To be licensed as a Resident Insurance Producer

You must meet the following requirements:1. You must be a resident of the state of Colorado.

2. You must be at least 18 years of age.

3. You must be trustworthy, competent, nancially responsible, and of goodpersonal and business reputation.

4. Mandatory disclosure of all insurance licenses that have been previouslyrevoked, denied, or suspended, to include a written explanation.(Refer to screening questions on application)

5. Prelicensing Training Requirements

Prelicensing training of applicants for Life, Accident and Health, Property,Casualty or Personal Lines is required. As a condition of initial licensure andto be eligible to take the required examination, you must satisfy prelicensingtraining requirements prior to taking the licensing examination(s). ContactPearson VUE for further information.

6. Unless exempt, you must pass examination(s) administered byPearson VUE. Candidates previously licensed in another state within the pastthree (3) months of the expiration date of their previous license are exemptfrom examination, with a letter of clearance. e letter of clearance must showthe license termination date within 3 months of application and must besubmitted to Pearson VUE Processing after completing the online application.

7. Proof of legal residency in the United States. Effective January 1, 2007, HB

06S-1009 requires that the Division of Insurance will only issue or renew aproducer insurance license if the individual is lawfully present in the UnitedStates. e law requires individuals to prove his or her identity with a secureand veriable document, which includes:

a. Any Colorado Driver License, Colorado Driver Permit or ColoradoIdentication Card, expired less than one year. (Temporary paper license

with invalid Colorado Driver License, Colorado Driver Permit, orColorado Identication Card, expired less than one year is consideredacceptable.)

b. Out-of-state issued photo Drivers License or photo identication card,photo drivers permit expired less than one year.

c. Valid foreign passport bearing an unexpired Processed for I-551 stamp

or with an attached unexpired Temporary I-551 visa.d. Valid I-551 Resident Alien or Permanent Resident card.e. Valid foreign passport accompanied by an I-94 indicating a specic

future until date.f. Valid I-94 issued by Canadian government with L1 or R1 status and a

valid Canadian Drivers License or valid Canadian Identication card.g. Valid Temporary Resident Card.h. Valid I-94 with refugee/asylum stamp.i. Valid 1688B or 1766 Employment Authorization Card.j. Valid US Military ID (active duty, dependent, retired, reserve and

National Guard).

COLORADO LICENSING REQUIREMENTS


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k. Tribal Identication Card with intact photo (US or Canadian).l. Certicate of Naturalization with intact photo.m. Certicate of (US) Citizenship with intact photo.

n. Passport issued by the U.S. Government with one of the followingdocuments: Social Security card; marriage, divorce or separation certicateor decree; or a Colorado or Federal tax return.

o. Colorado Department of Corrections Inmate Identication Card with aSocial Security card issued by the United States Government.

Refer to Bulletin No. 04-06 at www.dora.state.co.us/insurance for additionalinformation.

PEARSON VUE TESTS AND LINES OF AUTHORITIES

Listed in the chart are the types of examinations by license authority:

TYPES OF EXAMS BY LINE OF AUTHORITY

Colorado Line of Authority Pearson VUE Exam

Exemption

from ExamLife 01 Life

Accident and Health 02 Accident and Health

Property 03 Property

Casualty 04 Casualty

Personal Lines 55 Personal Lines

Public Insurance Adjuster14 Public Insurance

Adjuster

Reg 1-2-12 Section

3 (c)

Limited Lines Credit Insurance30 Limited Lines Credit

Insurance

Bail 23 Bail Bond

Title 83 Title

An attorney-at-law

licensed to practice

in Colorado

Crop Hail 31 Crop Hail

Variable Life &

Variable Annuity Products

Licensee can apply with

a Life authority. The

licensee must also be

registered with FINRA

and have already passed

either the S6, the S7, or

the S63 examination.

Surplus Lines 82 Surplus

8. Issuance of Temporary Licenses

Effective January 1, 2007, Pearson VUE will no longer issue temporarylicenses at the test centers. e Colorado Division of Insurance will issuea temporary license for up to 180 days, pursuant to CRS 10-2-410(1) to:(a) surviving spouse or next of kin, or to the executor or an employee, of alicensed insurance producer who becomes deceased; (b) a surviving spouse ornext of kin, or to an employee or the legal guardian, of a licensed insuranceproducer who becomes disabled; (c) a member, employee, or officer of alicensed insurance agency or business entity, licensed as an insurance producerupon the death or disability of an individual designated in or registered as to


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the agency or business entity license; (d) the designee of a licensed insuranceproducer upon entering active service in the armed forces of the United States;(e) any person in any other circumstance where the commissioner deems that

the public interest will best be served by the issuance of such license.9. Resident New License

Effective January 1, 2007, the Colorado Division of Insurance has switchedto an all-electronic process for new licensing applications. New residentapplicants must complete the following:

a. Pre-licensing TrainingPre-licensing training is required for all individuals applying for Life,

Accident & Health, Property, Casualty, and Personal Lines. Candidatesmust provide evidence of successful completion of pre-licensing trainingat the time of examination. e examination must be passed within oneyear of pre-licensing training completion. After one year, the pre-licensingtraining is no longer valid.

Effective September 1, 2007, pre-licensing providers are required tosubmit pre-licensing completion information electronically toPearson VUE/Colorado Division of Insurance within 10 days ofcompletion. Electronically banked completion information cannot beveried at the testing facility but will be veried during license applicationprocessing. Applicants who have tested prior to September 1, 2007 mustprovide a copy of their Certicate of Completion to Pearson VUE forapplication processing.

b. ExaminationQualication by examination is required for all individuals applying for aLife, Accident & Health, Property, Casualty, Personal Lines, Surplus Lines,Title, Credit, Crop Hail, or Public Adjuster license. Pre-licensing coursecompletion requirements must be satised prior to passing the

Pearson VUE examination for the exam scores to be valid. Passing scoresare valid for one year from the examination date. e license applicationmust be received by Pearson VUE within one year of passing theexamination.

c. Clearance Letter QualicationApplicants who have previously held a resident insurance license inanother state and are moving to Colorado must submit their application

within 90 days from the termination date of their previously heldlicense to qualify for an exemption from prelicensing and examinationrequirements. An original signed and/or sealed letter of clearance issued bythe resident state insurance department from which you were previouslylicensed must be submitted to Pearson VUE. If the original was alreadysubmitted with a prior Colorado application, provide a photocopy toPearson VUE. Should your previous resident state refuse to issue a letterof clearance, Pearson VUE will conduct a review of the Producer DataBase (PDB) to verify licensure status. Should your license status reectactive resident in your previous state your application will be delayedpending the update of the PDB by the state showing your license has beenterminated or has been switched to non-resident status.

d. Electronic Applicatione licensing application can be accessed at www.sircon.com/colorado.

You will be notied by mail of any outstanding requirements. Please refer

IMPOSED CHECK FEE

A fee of $17 will be imposed

for returned or unpaid checks.


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to the Resident Licensing Requirements matrix located in this handbookfor a complete list of requirements.Licensing Fees- Reference the fee schedule.

10. Examination QualicationExamination qualication is valid for as long as a person continuously holdsa valid producer license issued by the Colorado Division of Insurance and for12 months after the license expiration or cancellation. ereafter, an applicantmust be reexamined and must reapply for licensure. Examination scores are

valid for one year from the examination date.

11. License Continuation

Producer licenses are due to be continued on the licensees birth month everytwo (2) years. License continuation notices will be sent by the Division ofInsurance/Pearson VUE to the licensees designated mailing address. A licenseemust inform the Colorado Division of Insurance/

Pearson VUE or a name and/or address change within thirty (30) daysof the change. All address changes must be made electronically atwww.sircon.com/colorado. All name changes must be submitted toPearson VUE in writing.

PROFESSIONAL DESIGNATIONS

If you have obtained one or more of the following professional designations: CharteredLife Underwriter (CLU), Chartered Financial Consultant (ChFC), CharteredProperty and Casualty Underwriter (CPCU), or Registered Health Underwriter(RHU) you may become eligible for licensure by passing only Part 2 (Colorado law)of the appropriate examinations.

1. According to Colorado law, you may qualify for licensure by passing onlyPart 2 (Colorado law) of the following licensure examinations:CPCU Property, Casualty and Health, CLU Life and Health,ChFC Life Health, RHU Life and Health

2. After passing the required examinations, you must submit to theDivision of Insurance/Pearson VUE:

a. e electronic license application which can be located atwww.sircon.com/colorado.

b. Copy of your current membership card or a letter of good standing fromyour local chapter as proof of your professional designation status.

c. Appropriate feesreference the fee schedule.d. e required supporting documents as specied in the screening questions

section of the application.

NEW COLORADO RESIDENT

1. Under Colorado law, a person who previously held a like license in a formerstate of residence within 90 days prior to application for licensure in Coloradomay apply for licensure without taking an examination.

2. e applicant must submit to the Division of Insurance/Pearson VUE:

a. e electronic license application which can be located atwww.sircon.com/colorado.

PROCESSING OF

APPLICATIONS

Applications will not

be approved until they

are complete.


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b. Clearance Letteran original signed and/or sealed letter of clearanceissued by the state in which you were previously licensed, which must statethat you held, within the previous 90 days from the expiration/cancellation

date of the authority, a license for the same license authority or authoritiesfor which you are now making application, the date the license wascanceled or expired, and the fact that you were in good standing.

A photocopy is acceptable if the original letter of clearance was submittedwith a prior Colorado license application within 90 days.

c. Certication of Completion of Prelicensing Training, unless your previousstate has a prelicensing reciprocity agreement with Colorado or you havebeen licensed in your previous state for one year.

d. Appropriate feesreference the fee schedule. Any supporting documentsas specied in the supporting documentation sections of the application.

SURPLUS LINES

1. Under Colorado law, a resident applicant for Surplus Lines Authoritymust hold an active Colorado producer license with Property and CasualtyAuthorities prior to or in conjunction with the submission of the SurplusLines application, and must pass the SPL examination.

2. e applicant must meet the following requirements:

a. Hold an active Colorado Property and Casualty license.b. Pass the Surplus Lines examination.c. Submit the resident new license electronic application which can be

accessed at www.sircon.com/colorado.d. Provide the required supporting documentation as indicated in the

screening question section of the resident new license application.

TITLE INSURANCE

All title and attorney title applicants must electronically submit all affiliated businessarrangements during application for licensure at https://www.dora.state.co.us/pls/real/AFB_Web.Logon?p_div=INS.

All title agency applicants must provide an original notarized letter from an accountantverifying actual paid-in cash capital of a minimum of $10,000 (Reg 3-5-1, Section 7)at the time of application.

PUBLIC INSURANCE ADJUSTERS

To be a licensed as a public insurance adjuster, an applicant must meet the followingrequirements:

1. You must be at least 18 years of age.2. You must be trustworthy, competent, nancially responsible, and of good

personal and business reputation.

3. Mandatory disclosure of all insurance licenses that have been previouslyrevoked, denied, or suspended, to include a written explanation. (Refer toscreening questions on application.)

4. File all service contracts that will be used by the public insurance adjuster.

5. Pass the Public Insurance Adjusters Exam. Exemptions from exam are outlinesin Reg 1-2-12, Section 3(c)


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6. Proof of legal residency in the United States. Effective January 1, 2007, HB06S-1009 requires that the Division of Insurance will only issue or renew aproducer insurance license if the individual is lawfully present in the United

States. e law requires individuals to prove his or her identity with a secureand veriable document, which includes:

a. Any Colorado Driver License, Colorado Driver Permit or ColoradoIdentication Card, expired less than one year. (Temporary paper license

with invalid Colorado Driver License, Colorado Driver Permit, or ColoradoIdentication Card expired less than one year is considered acceptable.)

b. Out-of-state issued photo Drivers License or photo identication card,photo drivers permit expired less than one year.

c. Valid foreign passport with I-94 or valid Processed For 1551 stamps.d. Valid I-94 issued by Canadian government with L1 or R1 status and a

valid Canadian drivers license or valid Canadian identication card.e. Valid 1551 Resident Alien/Permanent Resident card. NO border crosser

or USA B1/B2 Visa/BCC cards.

f. Valid 1688 Temporary Resident Card, 1688B and 1766 EmploymentAuthorization Card.

g. Valid US Military ID.h. Tribal Identication Card with intact photo (U.S. or Canadian).i. Certication of Naturalization with intact photo.j. Certicate of (US) Citizenship with intact photo.

Refer to Bulletin No. 04-06 at www.dora.state.co.us/insurance for additionalinformation.

REGISTRATION OF ASSUMED (TRADE) NAMES

Prior to registering with the Insurance Commissioner, producers must contact theSecretary of States Office at (303) 8942251 for procedures to le with the Secretaryof State.

Section 10-2-701 C.R.S. requires any licensee using an assumed name to register thename with the Insurance Commissioner prior to using the assumed name.

It is the Commissioners responsibility to determine the following: If the name would tend to be misleading to the public or If the name is similar or identical to the name of any producer whose

license has been revoked or suspended.To register your alias or your assumed name, d/b/a including without limitation atrade or ctitious name, under which the insurance producer conducts business,register the name with the Insurance Commissioner before using the assumed name bysubmitting the Assumed Name Registration form available on the DOI Web page.

Obtaining and Submitting a Registration Form

1. Visit www.dora.state.co.us/insurance and click on Information for Producersand then Licensing

2. Click on Assumed/Trade Name Registration Request Form

3. Print out and complete the form, and submit it to:

Pearson VUE/Colorado Division of Insurance3131 S Vaughn Way, Ste. 205

Aurora, CO 80014


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ere is no fee for this service, and the form will be processed in approximately six(6) business days.

For those registering more than one name with the Division:

1. e name cannot duplicate one that is already registered.2. Submit one registration form per name to be registered. A new law will go

into effect 7/1/08 which will slightly change the registration of names.

PRELICENSING TRAINING

e following are the minimum requirements for prelicensing training as outlinedin Regulation 1-2-5, Minimum Training Requirements for Insurance ProducerLicensure.

All applicants for a resident license with life, health, property, casualty, or personallines authorities must satisfactorily complete the following hours of training prior totaking the Pearson VUE Colorado licensing examination. e basic requirements

are three (3) hours of Principles of Insurance, four (4) hours of Legal Concepts andregulations, and three (3) hours of Ethics. In addition, candidates require prelicensingin a specic line: twenty (20) hours of Property and (20) hours of Casualty, or forty(40) hours of Life, and/or forty (40) hours of Accident & Health prelicensing trainingfor a total of fty (50) hours of training for each resident license.

TOTAL HOUR REQUIREMENTS

LifeAccident

& Health

Property

& CasualtyPersonal Lines

Property Casualty

50 hours 50 hours 30 hours 30 hours 20 hours

Training is required in the following areas:Principles of Insurance: 3 hours

Legal Concepts and Regulations: 4 hours

Ethics: 3 hours

Property Insurance: 20 hours

Casualty Insurance: 20 hours

Life Insurance: 40 hours

Accident & Health Insurance: 40 hours

Personal Lines: 10 hours

e Principles of Insurance, Legal Concepts and Regulations, and Ethics training

need to be taken only once if multiple authorities are being applied for.


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Other means of satisfying the required training are: Professional Designations An indiviual holding a current and valid AAI, ARM, CIC, or CPCU

designation is exempt from pre-licensing for property and casualty lines ofauthority. An individual holding a current and valid RHU, CEBS, REBC, or HIA

designation is exempt from pre-licensing education for accident and healthor sickness lines of authority.

An individual holding a current and valid CEBS, ChFC, CIC, CFP, CLU,FLMI, or LUTCF designation is exempt from pre-licensing education forthe Life line of authority.

Baccalaureate degree with a Major in Insurance.

Prelicensure education will not be required for applicants if:1. ey are applying to reinstate a cancelled or expired license in Colorado that

has been inactive for one year or less; or

2. ey are applying for a resident license in Colorado, were previously licensed inanother state and have satised prelicensure education required by the formerstate pertinent to the line or lines of authority being applied for in Colorado; or

3. ey are applying for a non-resident license in Colorado pertinent to the lineor lines of authority held in their home state.

e Certicate of Completion of Prelicensing Training Form will be issued to theapplicant upon successful completion of prelicensing training. By completing thecerticate, the individual and the instructor are certifying that the training has beendone. Prelicensing training courses are valid for one year. Applicants who allowtheir license to lapse for more than one year must complete a new prelicensingeducation course.

e Certicate of Completion of Prelicensing Training Form must show the courses

completed using the exact title as approved by the Commissioner. Each course mustbe listed in the area corresponding with the requirement and the provider numbermustbe included on the form. ose applicants who complete the required trainingthrough a qualied home office located in Colorado should contact his/her trainerfor the proper method of completing the Certicate of Completion of PrelicensingTraining Form orApplicant Prelicensing Certication Letter. e date of completionmust be on the same day or prior to the Pearson VUE examination date in order forthe test scores to be valid.


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COLORADO SINGLE PRODUCER LICENSE ACT

FORMS & FEES REQUIRED EFFECTIVE JUNE 1, 2008

Submitted by Transaction TypeForms are Available from

and should be submitted toTotal Fee

Individual or Agency Producer New License Resident sircon.com $52 per authority

Individual or Agency Producer New License Nonresident sircon.com and licenseregistr y.com $93 per authority

Individual Producer New License Bail Bonding Agent sircon.com $248

Individual or Agency Producer License Renewal Resident sircon.com $13 per authority

Individual or Agency Producer License Renewal Nonresident sircon.com and licenseregistr y.com $41 per authority

Individual or Agency Producer License Renewal Surplus Lines Resident sircon.com $269

Individual or Agency ProducerLicense Renewal Surplus Lines

Nonresidentsircon.com and licenseregistry.com $409

Individual Producer Only License Renewal Bail Bonding Agent sircon.com $248 per authority

Individual or Agency Producer Adding an Authority Resident sircon.com $52 per authority

Individual or Agency Producer Adding an Authority Nonresident sircon.com and licenseregistry.com $93 per authority

Individual Producer Only Adding an Authority Bail Bonding Agent sircon.com $248 per authority

Individual or Agency ProducerAdding an Authority Surplus Lines -

Residentsircon.com $269

Individual or Agency ProducerAdd an Authority Surplus Lines

Non-Residentsircon.com and licenseregistry.com $409

Individual or Agency Producer Cancel ing an Authority Resident pearsonvue.com No Fee

Individual or Agency Producer Canceling an Authority Non-Resident pearsonvue.com No Fee

Individual Producer Only Canceling an Authority Bail Bonding Agent pearsonvue.com No Fee

Individual or Agency Producer Name Change written request to Pearson VUE No Fee

Individual or Agency Producer Address Change sircon.com and licenseregistry.com No Fee

Individual or Agency Producer Letter of Certification sircon.com No Fee

Individual or Agency Producer Letter of Clearance written request to Pearson VUE No Fee

Individual or Agency ProducerTemporary License In case of death,

service to Producerwritten request to DOI No Fee

Individual Producer Only Bail Bond Amount Change pearsonvue.com $49

Individual or Agency Producer Trade Name Registration www.dora.state.co.us/insurance No Fee

Agency Producer OnlyProducer Registration/Cancellation of

Unlicensed Officerpearsonvue.com No Fee

Bail Bond Companies Only Bail Bond Appointments/Terminations No Fee

Individual or Agency Producer New License Reinsurance written request to DOI $200

Individual or Agency License Renewal - Reinsurancesircon.com and licenseregistry

(nonresidents only)$200

Education Provider Prelicensing Education Course Registration No form, submit fee only to DOI $20

Education Provider Continuing Education Course Registration No form, submit fee only to DOI $20

Education Provider Course Renewal No form, submit fee only to DOI $20

Individual Producer Only Licensing Examination N/A $73

ALL FEES ARE NON-TRANSFERABLE AND NON-REFUNDABLE

ADDRESSES for the submission locations listed above:

1) Pearson VUE/Colorado Division of Insurance3131 S Vaughn Way Ste. 205Aurora, CO 80014www.pearsonvue.com

2) Colorado Divisionof Insurance (DOI)1560 Broadway, Suite 850Denver, CO 80202www.dora.state.co.us/insurance

3) www.sircon.com/colorado 4) www.licenseregistry.com



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Q. WHAT DOES COLORADOS CONTINUING

EDUCATION (CE) LAW REQUIRE?

A. In 1992 the Colorado General Assembly passed HB 92-1076, mandating continuing education for insuranceproducers. Amendments were made to the CE statutes

with the passage of SB 01-34 in the 2001 session of theGeneral Assembly. e current law requires all residentproducers to complete twenty-four hours of Colorado-approved continuing education courses every two years.SB 04-105, effective August 4, 2004, requires that three(3) of the twenty-four (24) credits be in ethics.

Colorado will consider non-residents in compliance withthe CE requirement if they have satised the continuing

education requirements of their home state. Producersholding the Health Maintenance Organization (HMO)or Non-Prot Hospital Surgical Medical Services (NP)authorities will not be required to complete CE unlessthey let these licenses lapse and do not reinstate within atwelve-month period. In this case they would be requiredto obtain the major line of authority (HMO and NPlicenses will not be reissued and are no longer availableto new applicants) and would be required to comply withthe CE requirement. ere are two exceptions to the CErequirement: 1) rst-time licensees will have until theirsecond continuation cycle to comply; 2) producers holdinga limited or restricted license (e.g., travel ticket, bail, title,

credit) are not required to complete CE as long as theirlicense is in good standing with the Division of Insuranceand no complaints have been led against the licensee.

Q. WHEN WILL I BE REQUIRED TO COMPLY

WITH THE CE REQUIREMENT?

A. First-time licensees will not have to comply until theirsecond continuation, and then every two years thereafter.If you have already gone through a continuation, you mustcomply by your next continuation, and then every twoyears.

Q. I HAVE MORE THAN ONE COLORADO

INSURANCE AUTHORITY. WILL I NEED 24CREDIT HOURS FOR EACH AUTHORITY?

A. No. e statute requires a total of twenty-four credit hoursevery two years.

Q. WHEN CAN I BEGIN ACCUMULATING CREDIT

HOURS?

A. Producers have the period between their last continuationand their next continuation date to accumulate the requiredCE credits for their next continuation. First-time licenseeshave until their second continuation cycle to comply withthe CE requirement. e accumulation period for a rst-time licensee is the two years prior to their second licensecontinuation period. Any credits earned prior to that time

will not count toward the second continuation.

Example: Licensees second continuation is January 1,2005 and the accumulation period is January 1, 2003through December 31, 2004. Any credits earned prior

to January 1, 2003 will not apply toward the January1, 2005 license continuation.

Q. CAN I CARRY OVER EXTRA CE CREDIT HOURS?

A. Producers whose licenses are due to continue prior toMay 1, 2004 and after August 4, 2004, who complete morehours than their CE requirement may carry over to theirnext continuation up to 12 credit hours if the courses weretaken in the nal 120 days of the license continuation cycle.(Carry-over credits do not apply to rst-time licensees. Seeprevious questions.)

B. Due to law changes, producers whose licenses were due tocontinue between May 1, 2004 and August 4, 2004, who

completed more hours than their CE requirement will notbe able to carry-over additional hours to their next licensecontinuation cycle.

Q. DO I NEED CONTINUING EDUCATION FOR MY

AGENCY LICENSE?

A. No.

Q. IF THE ONLY AUTHORITY I HAVE IS LIFE,

VARIABLE LIFE AND VARIABLE ANNUITY

PRODUCTS, ACCIDENT AND HEALTH, WHICH

CLASSES CAN I TAKE FOR CE CREDIT?

A. At least eighteen (18) hours must be in the Life/Health

category with the balance in the Life/Health or Property/Casualty categories. Please remember: out of the required24 hours, three (3) hours must be in ethics. Only coursespreviously approved by the Division of Insurance prior toyour completion date are eligible for CE credit.

FREQUENTLY ASKED QUESTIONS

CONTINUING EDUCATION REQUIREMENTS FOR INSURANCE PRODUCERSRevised January 2007


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Q. IF THE ONLY AUTHORITY I HAVE IS PROPERTY

OR CASUALTY, WHICH CLASSES CAN I TAKE

FOR CE CREDIT?

A. At least eighteen (18) hours must be in the Property/Casualty category with the balance in Property/Casualtyor Life/Health categories. Please remember: out of therequired 24 hours, three (3) hours must be in ethics. Onlycourses previously approved by the Division of Insuranceprior to your completion date are eligible for CE credit.

Q. IF I HAVE A COMBINATION OF AUTHORITIES

SUCH AS LIFE, VARIABLE LIFE AND VARIABLE

ANNUITY PRODUCTS, ACCIDENT AND HEALTH,

AND PROPERTY AND CASUALTY, WHICH

CLASSES CAN I TAKE FOR CE CREDIT?

A. Since you have a combination in Life/Health and Property/

Casualty, you can take Life/Health or Property/Casualtyapproved courses. Please remember: out of the required 24hours, three (3) hours must be in ethics. You may split thehours between both categories or you can accrue all hoursin one category. Only courses approved by the Divisionof Insurance prior to your completion date are eligible forCE credit.

Q. ARE PRODUCERS WITH PROFESSIONAL

DESIGNATIONS EXEMPT?

A. No.

Q. I AM A NON-RESIDENT LICENSE HOLDER.

AM I REQUIRED TO COMPLY WITH

COLORADOS CE REQUIREMENTS?

A. If you have satised the continuing education requirementsof your home state, Colorado will consider that assatisfaction of the continuing education requirements,as long as your home state recognizes the satisfaction ofits continuing education requirements imposed uponproducers from Colorado on the same basis.

Q. WHAT IF IM LATE PAYING MY CONTINUATION

FEE?

A. An insurance producer license is a perpetual licenseas long as the continuation fee is paid and continuing

education requirements are met. If the fee is not paid, thelicense is not valid and it will be considered expired as ofthe renewal date. After your license is expired, you willhave to pay new license fees in order to reinstate it. If yourlicense is expired for more than one year, you will have tocomplete all pre-licensing requirements in order to have itreinstated.

Q. WHAT IF IM LATE COMPLETING MY CE

HOURS?

A. If you have paid your continuation fee on time but have

not complied with the continuing education requirements,your license cannot be renewed. You will be required tosubmit a new license reinstatement application after youhave completed the continuing education credits. If youhave been granted an extension by the Colorado Divisionof Insurance, you will have until your extension date tocomplete the continuing education requirements for therenewal of your license. You may request a temporarylicense for the extension period. Extensions will only begranted for good cause.

Please refer to Colorado Bulletin B-1.14 or you can callPearson VUE at (303) 733-9395 or (800) 275-8247 torequest further information.

Q. WHERE CAN I FIND A LIST OF APPROVED

PROVIDERS OF CE COURSES?

A. A list of approved course providers can be found on theSircon website (http://www.sircon.com/index.html).Under Quick Start for Agents click on Look UpEducational Courses/Credits.

Q. WHAT KIND OF COURSES CAN I TAKE?

A. Continuing education credits can be earned only throughColorado-approved self-study/correspondence courses,classes, lectures, or seminars conducted or offered byapproved Colorado CE course providers.

Q. CAN A COURSE BE REPEATED?

A. A producer who successfully completes an approvedcourse may not repeat the course and count it toward therequired hours within two years of its original completiondate, except for courses that deal with statutory updates.

All eligible courses will have a different course number.



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Q. I AM MARKETING LONG-TERM CARE

PRODUCTS, IS SPECIAL TRAINING REQUIRED?

A. Resident producers wishing to offer LTC products

beginning January 1, 2009 must complete the followingrequirements. e one-time LTC training required shallbe no less than sixteen hours, eight of which shall consistof the general Long-Term Care Section, and eight hours of

which shall be specic to the Long-Term Care Partnershipsin a classroom setting. e ongoing training required bythis section shall be no less than ve hours in a classroomsetting for each continuing education cycle.

Q. I AM MARKETING CLAIMS-MADE POLICIES,

IS SPECIAL TRAINING REQUIRED?

A. All resident producers engaged in the sale, consultation,or adjustment of claims-made policies must complete

continuing education training as covered in Section 10-4-419 (2) (g), C.R.S. Producers must complete the followingtraining:

1. Completion of a one-time, two-hour approvedclassroom course, lecture or seminar devoted to claims-made policies and receive a certicate of completion;or

2. Completion of a one-time approved self-study programof claims-made policies equivalent to two hours. Uponcompletion of the program the participant executes acerticate of completion.

If the provider of the course has requested approval prior

to completion, the training can apply toward the 24-hourcontinuing education requirement.

Q. HOW ARE CONTINUING EDUCATION CREDITS

REPORTED?

A. Effective January 1, 2007, course providers must enter this

information through the Sircon website.Producers are not required to submit their CE credits toPearson VUE but they must keep course completion certicatesin their les in case there is a discrepancy on continuingeducation transcripts. Prior to the producers continuationdate, Pearson VUE will provide the producer with the numberof reported credits completed for the cycle. Producers can viewtheir course transcripts online at www.sircon.com/colorado.It is the producers responsibility to verify the transcript andadvise Pearson VUE of any discrepancy.

Q. WHAT DO I DO WITH COURSE COMPLETION

CERTIFICATES?

A. Within 15 business days of successful completion of acourse the course provider will issue the producer a coursecompletion certicate that will contain the Coloradocourse approval number for that course and the numberof approved credits.An approved Colorado course providermust complete the course completion certicate. Producers willneed the course completion certicate to verify their CEtranscript prior to continuation of their license. Producersmust keep the course completion certicate in their lesfor a minimum of ve years. DO NOT FORWARD THISCERTIFICATE TO THE DIVISION OF INSURANCENOR TO Pearson VUE.



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PHONE RESERVATIONS

Call Pearson VUE at (800) 274-2616* to make a reservation.

CALL CENTER HOURSMonday Friday 6 am 9 pm

Saturday 6 am 3 pm

Sunday 8 am 2 pm


Before calling, you should have the following: Legal name, address, Social Security number, daytime telephone number,

and date of birth e name of the examination(s) e preferred examination date and test center location (a list of test

centers appears on the back cover of this handbook) A failing score report (if retaking an examination)

A call center representative will help you select a convenient examination date andlocation, and will answer questions.

If you wish to make a phone reservation you should do so at least one (1) businessday before the desired examination date.

FAX RESERVATIONS

Fax the Fax Reservation Form (from Appendix) to (888) 204-6291, 24 hours a day,7 days a week. A conrmation of the reservation will be returned by fax within 24hours of receipt of the faxed request.

If you wish to make a fax reservation you should do so at least four (4) days before

the desired examination date.

AMERICANS WITH DISABILITIES ACT (ADA)

Pearson VUE complies with the provisions of the Americans with Disabilities Act(42 U.S.C. 12101 et seq.) and Title VII of the Civil Rights Act, as amended(42 U.S.C. 2000e et seq.), in accommodating disabled candidates who need specialarrangements to take an examination.

Candidates who require special arrangements due to impaired sensory, manual orspeaking skills, or other disability, should fax the Special Accommodations RequestForm (found in the back of this handbook) to Pearson VUE.

e form must be accompanied by supporting documentation from a physician orother qualied professional reecting a diagnosis of the candidates condition and anexplanation of examination aids or modications. Pearson VUE will provide auxiliaryaids and services, except where such may fundamentally alter the examination orresults, or result in an undue burden. e examination will be scheduled upon receiptof all required information by Pearson VUE.

Candidates who have additional questions concerning ADA arrangements may contactthe ADA Coordinator at (800) 274-3707. However, the Special AccommodationsRequest Form, along with the required supporting documentation, mustbe submittedto Pearson VUE before any special examination arrangements can be nalized.

EXAM RESERVATIONS

*TELECOMMUNICATION

DEVICES

FOR THE DEAF

Pearson VUE is equipped

with TDD (TelecommunicationDevices for the Deaf) to assist

deaf and hearing-impaired

candidates. TDD calling is

available during

Pearson VUE business hours

toll-free at (800) 274-2617.

This TDD phone option is for

individuals equipped with

compatible TDD machinery.

Walk-in examinations

are not available, so

you must make a

reservation

You are responsible

for knowing

which examination

you must take.


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Pearson VUE will determine the time and place of specially arranged examinationsand will conrm these arrangements directly with the candidate. Candidates whoneed to retake an examination should notify Pearson VUE that special arrangements

were used for the previous examination.Due to the unique nature of each special request, Pearson VUE recommends thatcandidates request special services as early as possible. Pearson VUE will make aconcerted effort to provide reasonable accommodations as permitted by state licensingagencies and individual test center capabilities.

NON-SATURDAY EXAMS

If, for religious reasons, you cannot take the examination offered only on Saturdays,you may request a non-Saturday examination. is request must be in writing onofficial stationery by your religious advisor and faxed or mailed to Pearson VUE at theaddress given on the inside front cover of this handbook. Non-Saturday examinations

are available only on a pre-arranged basis.

EXAM FEES

You must pay the examination fee ($73) at the time of reservation by credit card,debit card, voucher or electronic check. Fees will not be accepted at the test center.Examination fees are non-refundable and non-transferable, except as detailed in theChange/Cancel Policy. Refer to the back cover for actual fees and allowable examinationcombinations.

You are individually liable for the full amount of the examination fee once you havemade a reservation, whether individually or by third party.

You are responsible for knowing all regulations regarding fees and examination

scheduling as presented here, without exception.

Electronic Checks

If you choose to pay the examination fee by electronic check you must have a personalchecking account, and must be prepared to provide to Pearson VUE at the time ofreservation the following information:

Bank name Account number Routing number Social Security number or drivers license number Name and address on the account

Using this information, Pearson VUE can request payment from your bank account

just as if you had submitted an actual paper check.

Vouchers

You may pre-pay examination fees and receive a voucher to use when you contactPearson VUE to make an examination reservation. e number listed on the voucher

will be accepted by Pearson VUE as payment for the examination fee.

To purchase a voucher, send a Voucher Request Form (found in the back of thishandbook), along with proper payment. Pearson VUE will process voucher requests

within one (1) week of receipt. Vouchers are valid for one (1) year from the issue date,and may be renewed or refunded.


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CHANGE/CANCEL POLICY

Call Pearson VUE at (800) 274-2616 at least two (2) business days before theexamination to change or cancel a reservation. If you change or cancel a reservation with

proper notice you may either transfer the fee to a new reservation or request a refund.If you change or cancel a reservation without proper notice you will forfeit theexamination fee.

You are individually liable for part of the examination fee once a reservation has beenmade, whether individually or by a third party.

ABSENCE/LATENESS POLICY

Candidates who are absent from or late to an examination may be excused for thefollowing reasons:

Illness of the candidate or that of the candidates immediate familymember

Death in the immediate family Disabling traffic accident Court appearance or jury duty Military duty Weather emergency

Candidates who are absent from or late to an examination and have not changed orcanceled the reservation according to Change/Cancel Policywill not be admittedto the examination and will forfeit the examination fee.Written verication andsupporting documentation for excused absences must be submitted to Pearson VUE

within fourteen (14) days of the original examination date.

WEATHER CANCELLATIONS AND DELAYS

If severe weather or a natural disaster makes the test center inaccessible or unsafe,the examination may be delayed or canceled. You should contact Pearson VUE at(800) 274-2615 for details on delays and cancellations during severe weather.

RETAKING AN EXAM

To make a reservation for reexamination, follow the procedures outlined in thishandbook for making an standard reservation. Reservations for reexaminationcannot be made at the test center, andyou must wait twenty-four (24) hours beforemaking one.

RETAKING AN EXAM

Candidates who fail oneportion of the examination

and pass the other need

only retake the portion that

they failed and do so within

one (1) year of passing the

first portion in order to pass

the entire examination. If

the candidate does not pass

both portions within one (1)

year, he/she must retake

the entire examination.


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WHAT TO BRING

Take with you to the test center on examination day the following:

Your conrmation number

Proof of Completion of Prelicensing training Two forms of current, government-issued signature identication, one of

which must be photo-bearing (One of these forms of identication mustinclude your Social Security number.)

Failing score report if retaking an examination. Proof of legal residency in the United States. Secure and Veriable

documents that are accepted as proof of legal residency include thefollowing:

1. Any Colorado Driver License, Colorado Driver Permit or ColoradoIdentication Card, expired less than one year. (Temporary paperlicense with invalid Colorado Driver License, Colorado DriverPermit, or Colorado Identication Card, expired less than one year isconsidered acceptable.)

2. Out-of-state issued Drivers License or photo identication card, photodrivers permit expired less than one year.

3. Valid foreign passport with I-94 or valid Processed For 1551 stamps.

4. Valid I-94 issued by Canadian government with L1 or R1 status and avalid Canadian drivers license or valid Canadian identication card.

5. Valid 1551 Resident Alien/Permanent Resident card. NO bordercrosser or USA B1/B2 Visa/BCC cards.

6. Valid 1688 Temporary Resident Card, 1688B and 1766 EmploymentAuthorization Card.

7. Valid US Military ID (active duty, dependent, retired, reserve andNational Guard).

8. Tribal Identication Card with intact photo (U.S. or Canadian).

9. Certicate of Naturalization with intact photo.

10. Certicate of (U.S.) Citizenship with intact photo.

If you do not present all of these items, you will be denied admission to theexamination, considered absent, and you will forfeit the examination fee.

EXAM PROCEDURES

Report to the test center thirty (30) minutes before the examination and check in withthe test center administrator. e candidates identication and other documentation

will be reviewed and they will be photographed for the score report.

If the Candidate Rules Agreement is not followed and/or cheating or tamperingwith the examination is suspected it will be reported as such, and the appropriateaction will be taken. e examination fee will not be refunded, the exam may bedetermined invalid, and/or the state may take further action such as decertication.

You will have an opportunity to take a tutorial on the PC on which the examinationwill be administered. e time spent on this tutorial will not reduce the examinationtime. e examination administrators will answer questions, but you should be awarethat the administrators are not familiar with the content of the examinations or withthe states licensing requirements. Examination administrators have been instructednot to advise candidates on requirements for licensure.

REQUIRED MATERIALS

If you do not present all of

the required materials, youwill be denied admission to

the examination, considered

absent, and you will forfeit

the examination fee.

EXAM DAY


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You may begin the examination once you are familiar with the PC. e examinationbegins the moment you look at the rst examination question, and you will have3 1/2 hours to complete all the examinations you are scheduled to take. After this time

has expired, the examination will automatically end. You will leave the test centerwith an official score in hand.

TEST CENTER POLICIES

e following policies are observed at each test center. Candidates who violateany of these policies will not be permitted to nish the examination and will bedismissed from the test center, forfeiting the examination fee.

No personal items are allowed in the testing room. Personal itemsinclude but are not limited to: cellular phones, hand-held computers/personal digital assistants (PDAs) or other electronic devices, pagers,

watches, wallets, purses, rearms or other weapons, hats, bags, coats,

books, and/or notes, pens, or pencils. Candidates must store all personal items in a secure area as indicated bythe administrator or return items to their vehicle. All electronic devicesmust be turned off before storing them in a locker. e test center is notresponsible for lost, stolen, or misplaced personal items.

Studyingisnotallowed in the test center. Visitors, children, family, orfriends are notallowed in the test center.

Dictionaries, books, papers (including scratch paper), and referencematerials are not permitted in the examination room (unless permitted bythe exam sponsor), and candidates are strongly urged not to bring suchmaterials to the test center. Upon entering and being seated in the testingroom, the test administrator will provide the candidate with materialsto make notes or calculations and any other items specied by the exam

sponsor. e candidate may not write on these items before the exambegins or remove these items from the testing room.

Eating, drinking, or chewing gum, smoking, and/or making noise thatcreates a disturbance for other candidates is prohibited during the exam.

Break policies are established by the exam sponsor. Most sponsors allowunscheduled breaks. To request an unscheduled break, the candidate mustraise their hand to get the administrators attention. e exam clock willnot stop while the candidate is taking a break.

Candidates must leave the testing room for all breaks. However,candidates are not permitted to leave the oor or building for anyreason during this time, unless specied by the administrator andthe exam sponsor. If a candidate is discovered to have left the oor orbuilding they will not be permitted to proceed with the examination and

may forfeit the exam fees. If necessary, while taking a break, candidates are permitted to access

personal items that are being stored during the exam for example,personal medication that must be taken at a specic time. However, acandidate must receive permission from the administrator prior toaccessing personal items that have been stored. Candidates are notallowed access to other items, including but not limited to, cellularphones, PDAs, exam notes, and study guides, unless the exam sponsorspecically permits this.


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Any candidate discovered causing a disturbance of any kind or engagingin any kind of misconductgiving or receiving help; using notes,books, or other aids; taking part in an act of impersonation; or removing

examination materials or notes from the examination roomwill besummarily dismissed from the examination and will be reported to thestate licensing agency. Decisions regarding disciplinary measures are theresponsibility of the state licensing agency.

EXAM SECURITY

Pearson VUE is obligated to report scores that accurately reect the performance ofthe candidates. For this reason, Pearson VUE maintains examination administrationand security standards designed to ensure that all candidates are given the sameopportunity to demonstrate their abilities and to prevent some candidates fromgaining an unfair advantage over others because of testing irregularities or misconduct.Pearson VUE routinely reviews irregularities and examination scores believed to be

earned under unusual or nonstandard circumstances.Pearson VUE maintains the right to question any examination score whose validityis in doubt because the score may have been obtained unfairly. Pearson VUE rstundertakes a condential review of the circumstances giving rise to the questionsabout score validity. en, if there is sufficient cause to question the score, PearsonVUE will refer the matter to the Division of Insurance, which will make the naldecision on whether or not to cancel the score.

e performance of all candidates is monitored and may be analyzed statisticallyfor the purpose of detecting and verifying fraud. If it is determined that a score hasquestionable validity, the state licensing agency will be so notied and will determine

whether the candidates scores will be released.

EXAMINATION

QUESTIONS

Please note that allexamination questions, each

form of the examination,

and all other examination

materials are copyrighted and

the property of Pearson VUE.

Consequently, any distribution

of the examination content

or materials through any

form or reproduction or oral

or written communication

is strictly prohibited and

punishable by law.

For security reasons,

examination material

is not available tocandidates for review.


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UNDERSTANDING YOUR SCORE REPORT

e passing score required for each examination is established by the ColoradoDivision of Insurance, not by Pearson VUE.

If you pass all parts of an examination, your score report indicates pass; no numericscore is reported. For those candidates who fail one or more parts of the examination,a separate numeric score for each failed part will be reported.

Numeric scores on the examinations are scaled scores, not percentage scores or thenumber of questions answered correctly. Equating and scaling are discussed later.

Candidates who fail Part 1 of an examination receive general diagnostic informationrelevant to each major content area of the examination. Diagnostic information isintended to help failing candidates identify their areas of strength and weakness inorder to prepare for future examinations. Use the content outlines in this handbookto interpret the diagnostic information on a failing score report. Examination scoresare valid for a period of one year from the examination date.

If you fail Part 2 of an examination, you will receive a numeric score.

Your examination results are condential and are released only to you and the statelicensing agency.

To protect your privacy and to maintain the condentiality of examination results,Pearson VUE does not give score information over the telephone.

DUPLICATE SCORE REPORTS

You may request a duplicate score report from Pearson VUE by completing the formin the back of this handbook and submitting it with the proper fee.

SCORE REPORTING


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PRETEST QUESTIONS

Your examination may contain pretest questions. ese are questions for whichPearson VUE is collecting statistical data for use in future examinations. Pretest

questions are not identied and do not affect your score.

EXAM STRUCTURE AND CONTENT

Each major lines examination (Life, Accident & Health, Property, Casualty PersonalLines) is given in a multiple-choice format and consists of two parts. Part 1 deals

with basic insurance product knowledge. Part 2 deals with insurance laws, rules,regulations, and practices that are unique to Colorado.

Part 1 consists of 50 questions that count toward your score, and 10 pretest questionsthat do not count toward your score.

e length of Part 2 of the major lines examinations can be found by referring to thecontent outlines (see separate supplement). In addition to the number of questionslisted in the outlines, the examination may contain pretest question as well. Pretestquestions account for twenty percent of the total number of Part 2 questions.

Pearson VUE administers limited lines examinations in addition to the major linesexaminations. See the back cover of this handbook for a list of other examinationsoffered. e length and format of these examinations vary, but they are usuallyone-part examinations covering both product knowledge and state laws, rules, andregulations.

e blueprints from which the examinations have been constructed are theexamination content outlines available as a separate supplement. e examinationcontent outlines list the topics covered in each examination. Be sure that yourprogram of study covers all the topics listed in these content outlines.

Scores on each examination are based on the number of questions answered correctly.Even if you are uncertain about the correct answer to a question, you may be able toeliminate one or more of the answer choices as incorrect. It is always better to guessat the correct answer than to not answer a question because there is no penalty forincorrect answers.

PREPARING FOR THE EXAM


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HOW YOUR REPORTED NUMERIC SCORE IS DETERMINED

ere are multiple versions of each of the insurance licensing examinations. eseversions are known as forms. Although all forms of an examination are developed

based on the content outlines available as a separate supplement, the difficulty of theforms of an examination may vary slightly because different questions appear on eachform. To ensure that no candidate is put at an unfair advantage or disadvantage dueto the particular form of an examination that he or she is given, a statistical procedureknown as equatingis used to correct for differences in form difficulty.

For example, in a life insurance examination with two forms, Form A and FormB, the state licensing agency determines that answering 30 questions correctly onForm A demonstrates the minimum amount of knowledge necessary to be licensed.It is further determined through the equating process that Form B contains slightlymore difficult questions than Form A; therefore, answering 30 questions correctly onForm A would indicate the same level of knowledge as answering only 28 questionscorrectly on Form B. Under this set of circumstances, a score of 30 questions correct

would be used as the passing score on Form A whereas a score of 28 questions correctwould be used as the passing score on Form B.

A second statistical procedure known as scalingis used to determine the numericalscore to report for each candidate. Scaling is used to place araw score(the number ofquestions a candidate answers correctly on a particular form) on a common reportingscale on which each scaled score represents a given level of knowledge regardless ofthe difficulty of the form on which the raw scorewas achieved.

To illustrate how scaling works, suppose that in the life insurance examinationexample used above, the state licensing agency decides to use a score of 500 as thepassing score for reporting purposes (note that the score selected to be used as thereported passing score is not related to, and has no bearing on, the difficulty of theexamination ). Based on the information provided above, a raw score of 30 on Form

A would translate to a scaled score of 500; a raw score of 28 on Form B would alsotranslate to a scaled score of 500 since a raw score of 30 on Form A represents thesame level of knowledge as a raw score of 28 on Form B.

Your state licensing agency has selected 70 as the major lines passing score forreporting purposes. e limited lines passing score is 75. Raw scores are convertedinto scaled scores that can range from a low of 50 to a high of 100. To avoid misuseof score information, numeric scores are only reported to failing candidates.

e scaled score that is reported to you is neither the number of questions youanswered correctly nor the percentage of questions you answered correctly.

STUDY MANUALS, SCHOOLS, AND PROGRAMS

e content outlines available as a separate supplement are the blueprints used toconstruct the examinations. You should be sure that the training materials you use toprepare for your examination cover all the topics included in the content outlines.

e Division of Insurance does not issue study material for use in preparation forlicensing examinations. However, actual state insurance laws and regulations providean invaluable source of information in preparation for Part 2 of the major lineexaminations, and current insurance textbooks and policy forms provide the basesfor preparation for Part 1 of the major line examinations. In addition, a number

EQUATING AND SCALING


29/36


of publishers and suppliers training courses are available. Neither the Division ofInsurance nor Pearson VUE can recommend or endorse any particular manual orcourse or provide information regarding costs or fees. For further information about

publications or training courses, please contact sources directly.Neither the Division of Insurance nor Pearson VUE takes any responsibility forinaccurate, misleading, incomplete, or outdated study materials.

Colorado Study Manuals/Training Courses

Study manuals and/or training courses for the producer licensing examinations arenot furnished or available at the Division of Insurance or Pearson VUE. A list ofprelicensing course providers is available as a supplement to this handbook, or byvisiting www.pearsonvue.com. e Colorado Division of Insurance or Pearson VUEneither recommends or endorses any particular manual or course, nor can they provideinformation regarding costs or fees. Please contact the approved course providersdirectly for further information regarding their courses and study materials.

You may also visit the Division of Insurance web site at www.dora.state.co.us/insuranceto access the Colorado Revised Statutes and regulations links which may assist you inthe state law portion of the exam.

PUBLISHER STUDY MANUALSNOT AVAILABLE ON THE

COURSE PROVIDER LIST

Prot Strategies Inc.

6200 S. Troy Circle, #210

Englewood, CO 80111

(303) 799-1957


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Click here for detailed

content outlines.
http://www.asisvcs.com/publications/pdf/120606.pdfhttp://www.asisvcs.com/publications/pdf/120606.pdfhttp://www.asisvcs.com/publications/pdf/120606.pdf


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FAX RESERVATION FORM

Todays Date: Time of Day: Candidate/Sponsor Signature:

Last Name:

First Name:

Date of Birth: Social Security Number: Your Fax Number:

Address:

City: State: ZIP: Telephone:

Test Center Code: Exam Session: am pm Exam Date:

1st Exam Code: 2nd Exam Code: 2nd Choice: am pm 2nd Date:

School Code: May we register you for the next exam date if your two choices are taken? Yes No

May we email your confirmation? Yes No

If so, include email address:

Credit Card Payments: Electronic Check Payments:

MasterCard Visa AmExpress Discover Bank Name:

Card #: Next Available Check #:

Expiration Date: Account #:

Signature: Routing #:

Name/Address on Account: (if different from above)

FOR PEARSON VUE USE ONLY

Pearson VUE ID# Assigned:

Reservation Date: Time: TC#:

Pearson VUE Representative:

Fax to Pearson VUE at (888) 204-6291.


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VOUCHER REQUEST FORM

PLEASE PRINT CLEARLY

Date:

Last Name:

First Name: M.I.:

Address:

City: State: ZIP:

Daytime Telephone: Evening Phone:

Email Address (if you would like Pearson VUE to email the voucher#):

Payment Type: Money Order Company Check Cashiers Check

Name of Examination:

Make all checks payable to Pearson VUE and mail this form to:

Pearson VUE, c/o AP Voucher Program, PO Box 41508, Philadelphia, PA 19101-1508.

Overnight Address:

Pearson VUE, c/o AP Voucher Program, 3 Bala Plaza West, Suite 300, Bala Cynwyd, PA 19004.


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DUPLICATE SCORE REQUEST

DIRECTIONS: You may use this form to request that Pearson VUE send a duplicate copy of your score to you.Please print or type all information on this form.

Please enclose cashiers check or money order made payable to Pearson VUE. DO NOT SEND CASH.

FEE: For scores less than one year old there is a $10.00 charge.

For scores one or more years old there is a $25.00 charge.

SEND TO: Pearson VUE

COLORADO INSURANCE

DUPLICATE SCORE

PO Box 8588

Philadelphia, PA 19101-8588 Amount Enclosed: $ _____________

I hereby authorize Pearson VUE to send to me at the address below a duplicate of my scores from the

insurance examination.

Signature Date

Please complete the following form with your current name and address.

Name:

Address:

City: State: Zip:

Exam Taken: Date Taken:

Date of Birth: Confirmation Number:

Licensing Jurisdiction:

If the above information was different at the time you tested, please indicate original information.

Name:

Address:

City: State: Zip:


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SPECIAL ACCOMMODATIONS

REQUEST FORM

Any individual who has a physical or mental impairment or limitation described as a disability under theAmericans with Disabilities Act (ADA), or for whom English is a second language (ESL), may request special

examination arrangements.

Candidates who wish to request special accommodations for ADA or ESL should fax this form to

Pearson VUE at (610) 617-9397. Certain documentation must be faxed along with this form, as detailed

on page 7. All requests must first be approved by Pearson VUE. Candidates must wait for

confirmation of the approval before scheduling an examination.

PLEASE PRINT CLEARLY

Date:

Last Name:

First Name: M.I.:

Address:

City: State: Zip:

Daytime Telephone: Email address:

Description of Disability:

Large-print written exam Marker Additional time Reader Separate testing room

Sign language interpreter

Other equipment or accommodation (please explain):

Accommodations previously provided to you (list accommodation and purpose, such as sign language

interpreter for SAT examination):

English as a second language

Candidates should contact Pearson VUE with questions about special accommodations.

Pearson VUE Special Accommodations 3 Bala Plaza West, Suite 300 Bala Cynwyd, PA 19004

Phone (800) 274-3707 TDD (800) 274-2617 Fax (610) 617-9397

Note: Only candidates who require special examination accommodations should use this form.


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PEARSON VUE HOLIDAY SCHEDULE

No exams on the following holidays:

New Years Day Memorial Day Labor Day Christmas Day

Martin Luther King, Jr. Day Independence Day Thanksgiving Day

GENERAL INFORMATION

CANDIDATES MAY CALL (800) 274-2616 TO MAKE AN EXAM RESERVATION.

TEST CENTERS

CODE LOCATION SCHEDULE

0627 Bayfield 2nd and 4th Saturday of the month

0623 Colorado Springs Tuesday, Thursday through Saturday

0625 Greenwood Village Tuesday through Saturday

0629 Greeley Tuesday, Thursday and Saturday

0624 Grand Junction Wednesday, Thursday and Saturday

0626 Pueblo Friday and Saturday

0628 Wheat Ridge Tuesday through Saturday

Locations and schedules are subject to change.

AVAILABLE EXAMS

MAJOR LINES LIMITED LINES

01 Life and Health Producer 30 Limited Lines Credit Insurance

02 Accident and Health 83 Title

03 Property 31 Crop Hail

04 Casualty 23 Bail Bonding Agent

55 Personal Lines 14 Public Insurance Adjusters

82 Surplus

Candidates may take up to two examinations at one session for a single fee of $73.

EXAM FEES

The fee for one examination session ($73) must be paid at the time of reservation by credit card, debit card,

voucher or electronic check.

Colorado Insurance Handbook

Documents

Transcript of Colorado Insurance Handbook