Colorado Health Insurance Exam Questions and
Answers Latest Updated 2024/2025 (Graded A+)
Producer---ASNWERS---Usually includes agents and brokers
Applicant or proposed insured---ASNWERS---A person applying for insurance
Consent---ASNWERS---permission to do something
Agent---ASNWERS---Agents are the agents of the insurer
Insurable Interest---ASNWERS---The policy owner must face the possibility of losing money or something
of value in the event of loss
insurance policy---ASNWERS---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---ASNWERS---Person covered by the insurance policy, may or may not be the policy holder.
Insurer (principal)---ASNWERS---the company who issues an insurance policy
Policyowner---ASNWERS---the person entitled to exercise the rights and privileges in the policy
Premium---ASNWERS---the money paid to the insurance company for the insurance policy
Contracts to be legally binding:---ASNWERS---Agreement- Offer and acceptance
Consideration
,Competent parties
Legal Purpose
Offer---ASNWERS---needs to be by one party and the other party accepts offer in exact terms.
Applicant---ASNWERS---usually makes the offer when submitting the application.
Acceptance---ASNWERS---takes place when an insurer's underwriter approves the application and issues
a policy
Consideration---ASNWERS---Is the value that each party gives each other.
Insured---ASNWERS---person who makes payment of premium and rpresents made in the application
Insurer---ASNWERS---Promise to pay in the event of a loss
T/F Insurers considerations is the promise to pay for losses, insureds consideration is the premium and
statements on the application---ASNWERS---True
Parties to a contract---ASNWERS---Must be capable of entering into a contract in the eyes of the law.
Both parties need to be legal age, mentally competent and not under the influence of drugs/alcohol.
Legal---ASNWERS---Must have both insurable interest and consent.
Insurable interest---ASNWERS---Proven by love and affection, economic or financial loss required at the
time of policy insurance. Must experience financial loss due to an accident or sickness that befalls the
insured.
Warranty---ASNWERS---True statements of validity of the insurance policy depend.
, Breach of Warranty---ASNWERS---can be considered grounds for voiding policy or a return of premium.
Representations---ASNWERS---statements believed to be true to the best of one's knowledge, but they
are not guaranteed to be true
Untrue statements---ASNWERS---statements on an application that are considered misrepresentations
and could void contract.
Material Misrepresentation---ASNWERS---Discovered after underwriting decision of the insurance
company.
If material misrepresentations are intentional---ASNWERS---They are considered fraud.
Conditional Contract---ASNWERS---Requires that certain conditions must be met by the policyowner and
the company in order for the contract to be executed, and before each party fulfills its obligations.
Unilateral Contract---ASNWERS---only one of the parties to the contract is legally bound to do anything.
Insured makes no legally binding promises, insurer is legally bound to pay losses covered by policy to
force.
No legal actions for cancellation---ASNWERS---When someone loses job, unemployment and premiums
are current insure can't refuse to pay death benefit.
Contract of adhesion---ASNWERS---prepared by one of the parties (insurer) and accepted or rejected by
the other party (insured)
Insurance policies are---ASNWERS---drawn up as take it or leave it
Aleatory exchange---ASNWERS---unequal amounts or values and uneven exchange of values.
Insurance contracts are?---ASNWERS---aleatory
Answers Latest Updated 2024/2025 (Graded A+)
Producer---ASNWERS---Usually includes agents and brokers
Applicant or proposed insured---ASNWERS---A person applying for insurance
Consent---ASNWERS---permission to do something
Agent---ASNWERS---Agents are the agents of the insurer
Insurable Interest---ASNWERS---The policy owner must face the possibility of losing money or something
of value in the event of loss
insurance policy---ASNWERS---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---ASNWERS---Person covered by the insurance policy, may or may not be the policy holder.
Insurer (principal)---ASNWERS---the company who issues an insurance policy
Policyowner---ASNWERS---the person entitled to exercise the rights and privileges in the policy
Premium---ASNWERS---the money paid to the insurance company for the insurance policy
Contracts to be legally binding:---ASNWERS---Agreement- Offer and acceptance
Consideration
,Competent parties
Legal Purpose
Offer---ASNWERS---needs to be by one party and the other party accepts offer in exact terms.
Applicant---ASNWERS---usually makes the offer when submitting the application.
Acceptance---ASNWERS---takes place when an insurer's underwriter approves the application and issues
a policy
Consideration---ASNWERS---Is the value that each party gives each other.
Insured---ASNWERS---person who makes payment of premium and rpresents made in the application
Insurer---ASNWERS---Promise to pay in the event of a loss
T/F Insurers considerations is the promise to pay for losses, insureds consideration is the premium and
statements on the application---ASNWERS---True
Parties to a contract---ASNWERS---Must be capable of entering into a contract in the eyes of the law.
Both parties need to be legal age, mentally competent and not under the influence of drugs/alcohol.
Legal---ASNWERS---Must have both insurable interest and consent.
Insurable interest---ASNWERS---Proven by love and affection, economic or financial loss required at the
time of policy insurance. Must experience financial loss due to an accident or sickness that befalls the
insured.
Warranty---ASNWERS---True statements of validity of the insurance policy depend.
, Breach of Warranty---ASNWERS---can be considered grounds for voiding policy or a return of premium.
Representations---ASNWERS---statements believed to be true to the best of one's knowledge, but they
are not guaranteed to be true
Untrue statements---ASNWERS---statements on an application that are considered misrepresentations
and could void contract.
Material Misrepresentation---ASNWERS---Discovered after underwriting decision of the insurance
company.
If material misrepresentations are intentional---ASNWERS---They are considered fraud.
Conditional Contract---ASNWERS---Requires that certain conditions must be met by the policyowner and
the company in order for the contract to be executed, and before each party fulfills its obligations.
Unilateral Contract---ASNWERS---only one of the parties to the contract is legally bound to do anything.
Insured makes no legally binding promises, insurer is legally bound to pay losses covered by policy to
force.
No legal actions for cancellation---ASNWERS---When someone loses job, unemployment and premiums
are current insure can't refuse to pay death benefit.
Contract of adhesion---ASNWERS---prepared by one of the parties (insurer) and accepted or rejected by
the other party (insured)
Insurance policies are---ASNWERS---drawn up as take it or leave it
Aleatory exchange---ASNWERS---unequal amounts or values and uneven exchange of values.
Insurance contracts are?---ASNWERS---aleatory
