Colorado Life Insurance Final Exam
Containing 95 Questions and Answers
A+ Score Guide
1. What approach calculates the amount of money a family needs immediately
upon the death of the insured to pay for their expenses and basic necessi- ties?
Answer> Needs
2. A decreasing term life policy would be the most appropriate for
Answer> A 41 year old lawyer who wants a policy to pay his mortgage if he dies
(decreasing term life generally is used as mortgage insurance)
3. A producer or business entity shall report to the Commissioner any admin-
istrative action taken against the producer within
Answer> 30 days 1/6
4. Richard is thinking about transferring some of the ownership rights of his
policy to his brother Randy. What term is used for this type of transfer?
Answer> Assignment
5. Jeff has limited financial resources, but finds himself in a position where he
, needs a good deal of protection. A would probably best suit his
needs at this time.
Answer> Term policy
6. On November 5, Zoe fills out an application for a life policy. On November
6, the agent accepts the premium for the policy. The policy is delivered on
November 7. Which date does the Free Look period start?
Answer> November 7
7. Insurance producers must complete how many hours of continuing edu-
cation each licensing period?
Answer> 24 hours
8. Jacob, James and Jonathan are triplets, and all applied for the same type of
insurance coverage at the same time. For James and Jonathan the rates were the
same. Jacob's rate was quite a bit higher. What is the most likely reason for this
difference?
Answer> Risk classification
9. The life insurance rider that pays the2 face
/6 amount plus the total premiums
paid into the policy is known as
Answer> Return of premium
10. What kind of company can the Commissioner file a complaint to enjoin and
restrain from continuing violations of the insurance regulations of Colorado?-
Containing 95 Questions and Answers
A+ Score Guide
1. What approach calculates the amount of money a family needs immediately
upon the death of the insured to pay for their expenses and basic necessi- ties?
Answer> Needs
2. A decreasing term life policy would be the most appropriate for
Answer> A 41 year old lawyer who wants a policy to pay his mortgage if he dies
(decreasing term life generally is used as mortgage insurance)
3. A producer or business entity shall report to the Commissioner any admin-
istrative action taken against the producer within
Answer> 30 days 1/6
4. Richard is thinking about transferring some of the ownership rights of his
policy to his brother Randy. What term is used for this type of transfer?
Answer> Assignment
5. Jeff has limited financial resources, but finds himself in a position where he
, needs a good deal of protection. A would probably best suit his
needs at this time.
Answer> Term policy
6. On November 5, Zoe fills out an application for a life policy. On November
6, the agent accepts the premium for the policy. The policy is delivered on
November 7. Which date does the Free Look period start?
Answer> November 7
7. Insurance producers must complete how many hours of continuing edu-
cation each licensing period?
Answer> 24 hours
8. Jacob, James and Jonathan are triplets, and all applied for the same type of
insurance coverage at the same time. For James and Jonathan the rates were the
same. Jacob's rate was quite a bit higher. What is the most likely reason for this
difference?
Answer> Risk classification
9. The life insurance rider that pays the2 face
/6 amount plus the total premiums
paid into the policy is known as
Answer> Return of premium
10. What kind of company can the Commissioner file a complaint to enjoin and
restrain from continuing violations of the insurance regulations of Colorado?-
