Colorado Life & Health Insurance Final Exam With Complete Solution

Return of premium - Answer The life insurance rider that pays the face amount plus the total premiums paid into the policy is known as: Foreign or alien - Answer What kind of company can the Commissioner file a complaint to enjoin and restrain from continuing violations of the insurance regulations of Colorado? Yes, the interest can be paid annually, or added to the loan. - Answer Does a loan on the cash value of a life insurance policy accrue interest, and if so, how is the interest handled? Needs - Answer What approach calculates the amount of money a family needs immediately upon the death of the insured to pay for their expenses and basic necessities? 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) - Answer A decreasing term life policy would be the most appropriate for: 30 days - Answer A producer or business entity shall report to the Commissioner any administrative action taken against the producer within: Assignment - Answer 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? Term policy - Answer 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. November 7 - Answer 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? 24 hours - Answer Insurance producers must complete how many hours of continuing education each licensing period? Risk classification - Answer 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? Variable annuity - Answer If the cash values of an annuity are invested in securities, it is a: Defamation - Answer If an agent were to publish literature that is false or maliciously critical of another insurer calculated to injure a person engaged in the business of insurance, the agent would be committing: Other agents - Answer An agent has a fiduciary responsibility to all the following, EXCEPT: Cash surrender - Answer Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the policy? Variable universal life - Answer Investment risk is completely taken by the policyowner is what type policy? The value of nonforfeiture options may decrease. - Answer Jennifer made an additional premium payment on her Adjustable Life policy. Which of the following is not a way that her policy is affected by this payment? Contributory - Answer What type group plan requires 75% participation? Primary - Answer If more than one beneficiary is named, who is the first in line? In life insurance, insurable interest must be present at the time of: - Answer Application MECs (Modified Endowment Contracts) - Answer Over-funded life insurance policies where the proceeds are subject to taxation are called: First - Answer After what policy year of any life insurance policy, can suicide of the policyowner not be used as defense against the payment of benefits? 3 individuals - Answer In Colorado, what is the minimum number of individuals a group life policy will cover? Examining applications and issuing certificates of authority to insurance companies to transact insurance business - Answer Which of the following is a duty of the Commissioner? Dow Jones Industrial Average. - Answer Dylan is looking at buying an equity-indexed life policy; it will likely be tied to: The policyowner - Answer Who has the right to change the beneficiary on a life policy? Fair Credit Reporting Act - Answer What guarantees Jason the right to question the source and validity of consumer information used to rate a policy? Pay the death benefit based on the applicant's actual age. - Answer If an applicant states their age is 30 on an application for life insurance, when they were actually 37, what is the insurer likely to do? A consent form must be signed by the applicant prior to the test. - Answer Which of the following must happen before an HIV test is performed on an applicant? Accelerated benefit rider - Answer Which rider on Diane's life policy will help her out when she is confined to a nursing home with a terminal illness?