COLORADO LIFE EXAM QUESTIONS AND ANSWERS
Which of these describe a participating life insurance policy? - Answers - Policy owners
are entitle to receive dividends
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to it's policyholders is called: - Answers - Reserves
Which of the following requires insurers to disclose when an applicants consumer or
credit history is being investigated: - Answers - 1970 - Fair Credit Reporting Act
What year was the McCarran-Ferguson Act enacted? - Answers - 1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of it's members is known as: - Answers - A fraternal benefit society
Which of these is considered a statement that is assured to be true in every respect? -
Answers - Warranty
Life and health insurance policies are: - Answers - Unilateral contracts
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called: - Answers - Representations
Which of the following consists of an offer, acceptance, and consideration? - Answers -
Contract
Who makes the legally enforceable promises in a unilateral insurance policy? - Answers
- Insurance Company
What is the consideration given by an insurer in the Consideration clause of a life
policy? - Answers - Promise to pay a death benefit to a named beneficiary
At what point does an informal contract become binding? - Answers - When one party
makes an offer and the other party accepts that offer
When must insurable interest be present in order for a life insurance policy to be valid? -
Answers - When the application is made
Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of
the following contractual elements? - Answers - Legal Purpose (Insurable Interest)
All of the following are considered to be typical characteristics describing the nature of
an insurance contract: - Answers - Unilateral, Aleatory, and Adhesion
Which of these describe a participating life insurance policy? - Answers - Policy owners
are entitle to receive dividends
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to it's policyholders is called: - Answers - Reserves
Which of the following requires insurers to disclose when an applicants consumer or
credit history is being investigated: - Answers - 1970 - Fair Credit Reporting Act
What year was the McCarran-Ferguson Act enacted? - Answers - 1945
A nonprofit incorporated society that does not have capital stock and operates for the
sole benefit of it's members is known as: - Answers - A fraternal benefit society
Which of these is considered a statement that is assured to be true in every respect? -
Answers - Warranty
Life and health insurance policies are: - Answers - Unilateral contracts
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called: - Answers - Representations
Which of the following consists of an offer, acceptance, and consideration? - Answers -
Contract
Who makes the legally enforceable promises in a unilateral insurance policy? - Answers
- Insurance Company
What is the consideration given by an insurer in the Consideration clause of a life
policy? - Answers - Promise to pay a death benefit to a named beneficiary
At what point does an informal contract become binding? - Answers - When one party
makes an offer and the other party accepts that offer
When must insurable interest be present in order for a life insurance policy to be valid? -
Answers - When the application is made
Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of
the following contractual elements? - Answers - Legal Purpose (Insurable Interest)
All of the following are considered to be typical characteristics describing the nature of
an insurance contract: - Answers - Unilateral, Aleatory, and Adhesion
