COLORADO LIFE INSURANCE FINAL TEST
BANK 250 PLUS QUESTIONS WITH
COMPLETE ANSWERS ACCURATE REVIEW
MATERIAL GRADED A+
⩥ Adverse Selection (insurance def).
Answer: Insuring the risks that are more prone to losses than the
average risk
⩥ Agent/Producer.
Answer: a legal representative of an insurance company; the
classification of producer usually includes agents and brokers;
agents are the agents of the insurer
⩥ Applicant or proposed insured.
Answer: a person applying for insurance
⩥ Beneficiary.
Answer: A person who receives the benefits of an insurance
policy
,⩥ Death Benefit.
Answer: the amount paid upon the death of the insured in a life
insurance policy
⩥ insurance policy.
Answer: a contract between a policyowner (and/or insured) and
an insurance company which agrees to pay the insured or the
beneficiary for loss caused by specific events
⩥ Insured.
Answer: person covered by the insurance policy; may or may
not be the policy owner
⩥ Insurer (principal).
Answer: the company who issues an insurance policy
⩥ lapse.
Answer: policy termination due to nonpayment of premium
⩥ Policyowner.
, Answer: the person entitled to exercise the rights and privileges
in the policy
⩥ Agent Authority.
Answer: express, implied, apparent
⩥ Express Authority.
Answer: authority declared in clear, direct, and definite terms
⩥ Implied Authority.
Answer: Authority that is not expressed or written into the
contract, but which the agent is assumed to have in order to
transact the business of insurance for the principal.
⩥ Apparent Authority.
Answer: The appearance or the assumption of authority based
on the actions, words, or deeds of the principal or because of
circumstances the principal created.
⩥ Elements of a Legal Contract.
Answer: Agreement (offer and acceptance), consideration,
competent parties, and legal purpose
BANK 250 PLUS QUESTIONS WITH
COMPLETE ANSWERS ACCURATE REVIEW
MATERIAL GRADED A+
⩥ Adverse Selection (insurance def).
Answer: Insuring the risks that are more prone to losses than the
average risk
⩥ Agent/Producer.
Answer: a legal representative of an insurance company; the
classification of producer usually includes agents and brokers;
agents are the agents of the insurer
⩥ Applicant or proposed insured.
Answer: a person applying for insurance
⩥ Beneficiary.
Answer: A person who receives the benefits of an insurance
policy
,⩥ Death Benefit.
Answer: the amount paid upon the death of the insured in a life
insurance policy
⩥ insurance policy.
Answer: a contract between a policyowner (and/or insured) and
an insurance company which agrees to pay the insured or the
beneficiary for loss caused by specific events
⩥ Insured.
Answer: person covered by the insurance policy; may or may
not be the policy owner
⩥ Insurer (principal).
Answer: the company who issues an insurance policy
⩥ lapse.
Answer: policy termination due to nonpayment of premium
⩥ Policyowner.
, Answer: the person entitled to exercise the rights and privileges
in the policy
⩥ Agent Authority.
Answer: express, implied, apparent
⩥ Express Authority.
Answer: authority declared in clear, direct, and definite terms
⩥ Implied Authority.
Answer: Authority that is not expressed or written into the
contract, but which the agent is assumed to have in order to
transact the business of insurance for the principal.
⩥ Apparent Authority.
Answer: The appearance or the assumption of authority based
on the actions, words, or deeds of the principal or because of
circumstances the principal created.
⩥ Elements of a Legal Contract.
Answer: Agreement (offer and acceptance), consideration,
competent parties, and legal purpose
