!!!!!!!!!!!!!!!!!!#######################Colorado
dfColorado Colorado
Life Insurance
Life Insurance
Final Final
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!################################
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!##################################
Life Insurance Final Exam.pdfColorado Life Insurance Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Colorado Life Insurance Final Exam
A decreasing term life policy would be the most appropriate for: - ANS-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)
A license is considered to be used for controlled business if the total amount of premiums on
controlled business would exceed the total amount of premiums on all other insurance business
during any: - ANS-12-month period
A producer or business entity shall report to the Commissioner any administrative action taken
against the producer within: - ANS-30 days
After what policy year of any life insurance policy, can suicide of the policyowner not be used as
defense against the payment of benefits? - ANS-First
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the
policy? - ANS-Cash surrender
All life insurance policies have a free look period of how many days? - ANS-15 days
All money received by a licensee is received in what type of capacity? - ANS-Fiduciary
All of the following must be listed in the notice regarding replacement, EXCEPT: -
ANS-Statement identifying preprinted sales materials
An agent has a fiduciary responsibility to all the following, EXCEPT: - ANS-Other agents
An agent offering to waive the prospective client's first life insurance premium is engaging in
which of the following unfair practices? - ANS-Rebating
An insurance applicant submits an application with a premium. After underwriting, the insurer
sends back the policy, rated, with an impairment rider. What should the producer tell the
applicant at delivery? - ANS-Explain the issue and collect an additional premium.
An insurance application is not complete unless it has: - ANS-The signature of the insured
(unless not an adult), and the agent.
An insurance producer includes which of the following people? - ANS-A person who solicits,
negotiates, effects, procures, delivers, renews, or continues policies of insurance in Colorado
An insurance producer's license is at all times the property of: - ANS-The state
ado
!!!!!!!!!!!!!!!!!!#######################Colorado
LifeColorado
InsuranceLife
Final
Insurance
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!######################################
Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!#######################Colorado
Life Insurance Final Exam.pdfColorado Life Insurance Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Life
,!!!!!!!!!!!!!!!!!!#######################Colorado
dfColorado Colorado
Life Insurance
Life Insurance
Final Final
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!################################
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!##################################
Life Insurance Final Exam.pdfColorado Life Insurance Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Application - ANS-In life insurance, insurable interest must be present at the time of:
At what age would a qualified retirement plan distribution be premature? - ANS-59 1/2
Becky is a 31 years old and knows she needs to start a retirement plan. She currently works in
a bakery and is worried about how inflation would affect her retirement plan. Which annuity
would be a good fit for her needs? - ANS-Flexible premium deferred annuity
Blake died 20 days after his group life insurance coverage was terminated. He did not apply for
individual coverage. Which of the following is true? - ANS-His beneficiary will receive the full
death benefit.
Colorado requires producers to avoid the use of all the following words, EXCEPT: - ANS-Death
Does a loan on the cash value of a life insurance policy accrue interest, and if so, how is the
interest handled? - ANS-Yes, the interest can be paid annually, or added to the loan.
Dylan is looking at buying an equity-indexed life policy; it will likely be tied to: - ANS-Dow Jones
Industrial Average.
Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using which
dividend option? - ANS-Reduction of premium
Errors & Omissions are most likely to occur during: - ANS-Delivery
From the date of death to the date of the claim settlement, the annual rate of interest paid on
death benefits is what percentage above the federal discount rate? - ANS-2%
Gregory recently purchased a one-year term insurance policy. At the end of the year, he can
purchase an identical policy without having to show proof of insurability. Why type of policy did
he purchase? - ANS-Renewable term
How are dividends treated for tax purposes? - ANS-Never taxed
How many days does an insurance producer have to report to the Commissioner any
administrative action taken against them as well as any criminal prosecution that occurs in
another jurisdiction? - ANS-30 days
How much time must a replacing insurer that uses producers be able to produce copies of the
notification regarding replacement? - ANS-At least 5 years or until the next examination by the
Department, whichever is later
ado
!!!!!!!!!!!!!!!!!!#######################Colorado
LifeColorado
InsuranceLife
Final
Insurance
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!######################################
Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!#######################Colorado
Life Insurance Final Exam.pdfColorado Life Insurance Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Life
dfColorado Colorado
Life Insurance
Life Insurance
Final Final
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!################################
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!##################################
Life Insurance Final Exam.pdfColorado Life Insurance Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Colorado Life Insurance Final Exam
A decreasing term life policy would be the most appropriate for: - ANS-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)
A license is considered to be used for controlled business if the total amount of premiums on
controlled business would exceed the total amount of premiums on all other insurance business
during any: - ANS-12-month period
A producer or business entity shall report to the Commissioner any administrative action taken
against the producer within: - ANS-30 days
After what policy year of any life insurance policy, can suicide of the policyowner not be used as
defense against the payment of benefits? - ANS-First
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the
policy? - ANS-Cash surrender
All life insurance policies have a free look period of how many days? - ANS-15 days
All money received by a licensee is received in what type of capacity? - ANS-Fiduciary
All of the following must be listed in the notice regarding replacement, EXCEPT: -
ANS-Statement identifying preprinted sales materials
An agent has a fiduciary responsibility to all the following, EXCEPT: - ANS-Other agents
An agent offering to waive the prospective client's first life insurance premium is engaging in
which of the following unfair practices? - ANS-Rebating
An insurance applicant submits an application with a premium. After underwriting, the insurer
sends back the policy, rated, with an impairment rider. What should the producer tell the
applicant at delivery? - ANS-Explain the issue and collect an additional premium.
An insurance application is not complete unless it has: - ANS-The signature of the insured
(unless not an adult), and the agent.
An insurance producer includes which of the following people? - ANS-A person who solicits,
negotiates, effects, procures, delivers, renews, or continues policies of insurance in Colorado
An insurance producer's license is at all times the property of: - ANS-The state
ado
!!!!!!!!!!!!!!!!!!#######################Colorado
LifeColorado
InsuranceLife
Final
Insurance
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!######################################
Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!#######################Colorado
Life Insurance Final Exam.pdfColorado Life Insurance Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Life
,!!!!!!!!!!!!!!!!!!#######################Colorado
dfColorado Colorado
Life Insurance
Life Insurance
Final Final
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!################################
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!##################################
Life Insurance Final Exam.pdfColorado Life Insurance Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Application - ANS-In life insurance, insurable interest must be present at the time of:
At what age would a qualified retirement plan distribution be premature? - ANS-59 1/2
Becky is a 31 years old and knows she needs to start a retirement plan. She currently works in
a bakery and is worried about how inflation would affect her retirement plan. Which annuity
would be a good fit for her needs? - ANS-Flexible premium deferred annuity
Blake died 20 days after his group life insurance coverage was terminated. He did not apply for
individual coverage. Which of the following is true? - ANS-His beneficiary will receive the full
death benefit.
Colorado requires producers to avoid the use of all the following words, EXCEPT: - ANS-Death
Does a loan on the cash value of a life insurance policy accrue interest, and if so, how is the
interest handled? - ANS-Yes, the interest can be paid annually, or added to the loan.
Dylan is looking at buying an equity-indexed life policy; it will likely be tied to: - ANS-Dow Jones
Industrial Average.
Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using which
dividend option? - ANS-Reduction of premium
Errors & Omissions are most likely to occur during: - ANS-Delivery
From the date of death to the date of the claim settlement, the annual rate of interest paid on
death benefits is what percentage above the federal discount rate? - ANS-2%
Gregory recently purchased a one-year term insurance policy. At the end of the year, he can
purchase an identical policy without having to show proof of insurability. Why type of policy did
he purchase? - ANS-Renewable term
How are dividends treated for tax purposes? - ANS-Never taxed
How many days does an insurance producer have to report to the Commissioner any
administrative action taken against them as well as any criminal prosecution that occurs in
another jurisdiction? - ANS-30 days
How much time must a replacing insurer that uses producers be able to produce copies of the
notification regarding replacement? - ANS-At least 5 years or until the next examination by the
Department, whichever is later
ado
!!!!!!!!!!!!!!!!!!#######################Colorado
LifeColorado
InsuranceLife
Final
Insurance
Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!######################################
Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!#######################Colorado
Life Insurance Final Exam.pdfColorado Life Insurance Final Exam.pdf!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Life
