COLORADO LIFE INSURANCE EXAM CERTIFICATION EVALUATION TESTED QUESTIONS
FULL SOLUTION GUIDE
Question:
accidental death benefits
Answer:
A policy rider that states that the cause of death will be analyzed to determine if it complies with the
policy description of accidental death.
Question:
accidental death insurance
Answer:
An insurance policy that provides payment if the insured's death is the result of an accident.
Question:
Accumulation Period
Answer:
The time before an annuitant's retirement during which the annuitant is making payments or
investments in an annuity.
Question:
actual cash value ACV
Answer:
The required amount to pay damages or for property loss, which is calculated based on the
property's current replacement value minus depreciation.
,Question:
Adhesion
Answer:
A contract offered on a take-it-or-leave-it basis by an insurer, in which the insured's only option is to
either accept or reject the contract. Any ambiguities in the contract will be settled in favor of the
insured.
Question:
Adjustable Life
Answer:
Life insurance which permits changes in the face amount, premium amount, period of protection,
and the duration of the premium payment period.
Question:
Adjuster
Answer:
A representative of an insurance company who investigates and acts on the behalf of the company to
obtain agreements for the amount of the insurance claim.
Question:
administrator
Answer:
an individual appointed by a court as a fiduciary to settle the financial affairs an estate of a deceased
person
Question:
Admitted (authorized) insurer
Answer:
,An insurance company authorized and licensed to transact business in a particular state.
Question:
adverse selection
Answer:
the tendency of risks with higher probability of loss to purchase and maintain Insurance more often
than the risk Who present lower probability
Question:
agency
Answer:
an insurance sales office or company
Question:
Agent
Answer:
an individual who is licensed to sell, negotiate, or affect insurance contracts on behalf of the insurer
Question:
agent appointment
Answer:
the authorization of an agent to act for or represent an insurer
Question:
Agent's Authority
Answer:
Special powers granted to an agent by his or her agency contract.
, Question:
Aleatory Contract
Answer:
a contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory
in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in
the event of a loss.
Question:
Alien Insurer
Answer:
An insurance company that is incorporated outside the United States.
Question:
annual statement
Answer:
A detailed financial report that an insurance company must submit every year to the insurance
department of state(s) in which it conducts business.
Question:
annuity
Answer:
a contract that provides income for a specified period of years, or for life.
Question:
Apparent Authority
Answer:
FULL SOLUTION GUIDE
Question:
accidental death benefits
Answer:
A policy rider that states that the cause of death will be analyzed to determine if it complies with the
policy description of accidental death.
Question:
accidental death insurance
Answer:
An insurance policy that provides payment if the insured's death is the result of an accident.
Question:
Accumulation Period
Answer:
The time before an annuitant's retirement during which the annuitant is making payments or
investments in an annuity.
Question:
actual cash value ACV
Answer:
The required amount to pay damages or for property loss, which is calculated based on the
property's current replacement value minus depreciation.
,Question:
Adhesion
Answer:
A contract offered on a take-it-or-leave-it basis by an insurer, in which the insured's only option is to
either accept or reject the contract. Any ambiguities in the contract will be settled in favor of the
insured.
Question:
Adjustable Life
Answer:
Life insurance which permits changes in the face amount, premium amount, period of protection,
and the duration of the premium payment period.
Question:
Adjuster
Answer:
A representative of an insurance company who investigates and acts on the behalf of the company to
obtain agreements for the amount of the insurance claim.
Question:
administrator
Answer:
an individual appointed by a court as a fiduciary to settle the financial affairs an estate of a deceased
person
Question:
Admitted (authorized) insurer
Answer:
,An insurance company authorized and licensed to transact business in a particular state.
Question:
adverse selection
Answer:
the tendency of risks with higher probability of loss to purchase and maintain Insurance more often
than the risk Who present lower probability
Question:
agency
Answer:
an insurance sales office or company
Question:
Agent
Answer:
an individual who is licensed to sell, negotiate, or affect insurance contracts on behalf of the insurer
Question:
agent appointment
Answer:
the authorization of an agent to act for or represent an insurer
Question:
Agent's Authority
Answer:
Special powers granted to an agent by his or her agency contract.
, Question:
Aleatory Contract
Answer:
a contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory
in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in
the event of a loss.
Question:
Alien Insurer
Answer:
An insurance company that is incorporated outside the United States.
Question:
annual statement
Answer:
A detailed financial report that an insurance company must submit every year to the insurance
department of state(s) in which it conducts business.
Question:
annuity
Answer:
a contract that provides income for a specified period of years, or for life.
Question:
Apparent Authority
Answer:
