Colorado Insurance Exam-Life
What bis bthe bpurpose bof bsettlement boptions? b- bcorrect banswers✔✔They bdetermine
bhow bdeath bproceeds bwill bbe bpaid.
The bminimum binterest brate bon ban bequity bindexed bannuity bis boften bbased bon b-
bcorrect banswers✔✔An bindex blike bStandard b& bPoor's b500.
The bdeath bbenefit bis b$0 bat bthe bend bof bthe bpolicy bterm.
The bcontract bpays bonly bin bthe bevent bof bdeath bduring bthe bterm band bthere bis bno
bcash bvalue.
The bface bamount bsteadily bdeclines bthroughout bthe bduration bof bthe bcontract. b-
bcorrect banswers✔✔decreasing bterm bpolicy
What bmay blast bfor bthe blifetime bof bthe bannuitant. b- bcorrect banswers✔✔annuity
bperiod
The bpaid-up baddition boption buses bthe bdividend b- bcorrect banswers✔✔To bpurchase
ba bsmaller bamount bof bthe bsame btype bof binsurance bas bthe boriginal bpolicy.
The bemployer bpays b100% bof bthe bpremiums.
They bhelp bto breduce badverse bselection bagainst bthe binsurer.
They brequire b100% bemployee bparticipation. b- bcorrect banswers✔✔noncontributory
bgroup bplan
An bindividual bhas bjust bborrowed b$10,000 bfrom bhis bbank bon ba b5-year binstallment
bloan brequiring bmonthly bpayments. bWhat btype bof blife binsurance bpolicy bwould bbe
bbest bsuited bto bthis bsituation? b- bcorrect banswers✔✔Decreasing bterm
A bman bdecided bto bpurchase ba b$100,000 bAnnually bRenewable bTerm bLife bpolicy bto
bprovide badditional bprotection buntil bhis bchildren bfinished bcollege. bHe bdiscovered
bthat bhis bpolicy b- bcorrect banswers✔✔Required ba bpremium bincrease beach brenewal.
Which bof bthe bfollowing bdocuments bdelivered bto bthe bpolicyowner bincludes
binformation babout bpremium bamounts, bcash bvalues, bsurrender bvalues band bdeath
bbenefits bfor bspecific bpolicy byears? b- bcorrect banswers✔✔A bpolicy bsummary
If ba bpolicy bincludes ba bfree-look bperiod bof bat bleast b10 bdays, bthe bBuyer's bGuide
bmay bbe bdelivered bto bthe bapplicant bno blater bthan b- bcorrect banswers✔✔With bthe
bpolicy
, Methods bused bto bpay bthe bdeath bbenefits bto ba bbeneficiary bupon bthe binsured's
bdeath bare bcalled b- bcorrect banswers✔✔Settlement bOptions
It btransfers brights bof bownership bfrom bthe bowner bto banother bperson. b- bcorrect
banswers✔✔policy bassignment
The bresponsibility bof bmaking bcertain bthat ban bapplication bfor binsurance bis bfilled bout
bcompletely, bcorrectly, band bto bthe bbest bof bhis bor bher bknowledge bis bthe
bresponsibility bof bwhom? b- bcorrect banswers✔✔The bProducer
In ba bsurvivorship blife bpolicy, bwhen bdoes bthe binsurer bpay bthe bdeath bbenefit? b-
bcorrect banswers✔✔Upon bthe blast bdeath
The bpolicyowner bpays bfor bher blife binsurance bannually. bUntil bnow, bshe bhas
bcollected ba bnontaxable bdividend bcheck beach byear. bShe bhas bdecided bthat bshe
bwould brather buse bthe bdividends bto bhelp bpay bfor bher bnext bpremium. bWhat boption
bwould ballow bher bto bdo bthis? b- bcorrect banswers✔✔Reduction bof bpremium
Employer bcontributions bmade bto ba bqualified bplan b- bcorrect banswers✔✔Are bsubject
bto bvesting brequirements.
Within bhow bmany bdays bof brequesting ban binvestigative bconsumer breport bmust ban
binsurer bnotify bthe bconsumer bin bwriting bthat bthe breport bwill bbe bobtained? b- bcorrect
banswers✔✔3
The bpresident bof ba bcompany bis bstarting ban bannuity band bdecides bthat bhis
bcorporation bwill bbe bthe bannuitant. bWhich bof bthe bfollowing bstatements bis btrue? b-
bcorrect banswers✔✔the bannuitant bmust bbe ba bnatural bperson
What bare bthe btwo bcomponents bof ba buniversal bpolicy? b- bcorrect
banswers✔✔Insurance band bcash baccount
An binsured band bhis bwife bare bboth binvolved bin ba bhead-on bcollision. bThe bhusband
bdies binstantly, band bthe bwife bdies b15 bdays blater. bThe bcompany bpays bthe bdeath
bbenefit bto bthe bestate bof bthe binsured. bThis bindicates bthat bthe blife binsurance bpolicy
bhad bwhat bprovision? b- bcorrect banswers✔✔Common bDisaster
When bboth bparties bto ba bcontract bmust bperform bcertain bduties band bfollow brules bof
bconduct bto bmake bthe bcontract benforceable, bthe bcontract bis b- bcorrect
banswers✔✔Conditional
A bcompany bpurchases ba blife binsurance bpolicy bon btheir bmanager, bwho bis ban
bimportant bpart bof bthe boperation.
When ban binsured bpurchased ba bnew bhome, bthe binsured bmade ban babsolute
bassignment bof ba blife binsurance bpolicy bto bthe bmortgage bcompany.
What bis bthe bpurpose bof bsettlement boptions? b- bcorrect banswers✔✔They bdetermine
bhow bdeath bproceeds bwill bbe bpaid.
The bminimum binterest brate bon ban bequity bindexed bannuity bis boften bbased bon b-
bcorrect banswers✔✔An bindex blike bStandard b& bPoor's b500.
The bdeath bbenefit bis b$0 bat bthe bend bof bthe bpolicy bterm.
The bcontract bpays bonly bin bthe bevent bof bdeath bduring bthe bterm band bthere bis bno
bcash bvalue.
The bface bamount bsteadily bdeclines bthroughout bthe bduration bof bthe bcontract. b-
bcorrect banswers✔✔decreasing bterm bpolicy
What bmay blast bfor bthe blifetime bof bthe bannuitant. b- bcorrect banswers✔✔annuity
bperiod
The bpaid-up baddition boption buses bthe bdividend b- bcorrect banswers✔✔To bpurchase
ba bsmaller bamount bof bthe bsame btype bof binsurance bas bthe boriginal bpolicy.
The bemployer bpays b100% bof bthe bpremiums.
They bhelp bto breduce badverse bselection bagainst bthe binsurer.
They brequire b100% bemployee bparticipation. b- bcorrect banswers✔✔noncontributory
bgroup bplan
An bindividual bhas bjust bborrowed b$10,000 bfrom bhis bbank bon ba b5-year binstallment
bloan brequiring bmonthly bpayments. bWhat btype bof blife binsurance bpolicy bwould bbe
bbest bsuited bto bthis bsituation? b- bcorrect banswers✔✔Decreasing bterm
A bman bdecided bto bpurchase ba b$100,000 bAnnually bRenewable bTerm bLife bpolicy bto
bprovide badditional bprotection buntil bhis bchildren bfinished bcollege. bHe bdiscovered
bthat bhis bpolicy b- bcorrect banswers✔✔Required ba bpremium bincrease beach brenewal.
Which bof bthe bfollowing bdocuments bdelivered bto bthe bpolicyowner bincludes
binformation babout bpremium bamounts, bcash bvalues, bsurrender bvalues band bdeath
bbenefits bfor bspecific bpolicy byears? b- bcorrect banswers✔✔A bpolicy bsummary
If ba bpolicy bincludes ba bfree-look bperiod bof bat bleast b10 bdays, bthe bBuyer's bGuide
bmay bbe bdelivered bto bthe bapplicant bno blater bthan b- bcorrect banswers✔✔With bthe
bpolicy
, Methods bused bto bpay bthe bdeath bbenefits bto ba bbeneficiary bupon bthe binsured's
bdeath bare bcalled b- bcorrect banswers✔✔Settlement bOptions
It btransfers brights bof bownership bfrom bthe bowner bto banother bperson. b- bcorrect
banswers✔✔policy bassignment
The bresponsibility bof bmaking bcertain bthat ban bapplication bfor binsurance bis bfilled bout
bcompletely, bcorrectly, band bto bthe bbest bof bhis bor bher bknowledge bis bthe
bresponsibility bof bwhom? b- bcorrect banswers✔✔The bProducer
In ba bsurvivorship blife bpolicy, bwhen bdoes bthe binsurer bpay bthe bdeath bbenefit? b-
bcorrect banswers✔✔Upon bthe blast bdeath
The bpolicyowner bpays bfor bher blife binsurance bannually. bUntil bnow, bshe bhas
bcollected ba bnontaxable bdividend bcheck beach byear. bShe bhas bdecided bthat bshe
bwould brather buse bthe bdividends bto bhelp bpay bfor bher bnext bpremium. bWhat boption
bwould ballow bher bto bdo bthis? b- bcorrect banswers✔✔Reduction bof bpremium
Employer bcontributions bmade bto ba bqualified bplan b- bcorrect banswers✔✔Are bsubject
bto bvesting brequirements.
Within bhow bmany bdays bof brequesting ban binvestigative bconsumer breport bmust ban
binsurer bnotify bthe bconsumer bin bwriting bthat bthe breport bwill bbe bobtained? b- bcorrect
banswers✔✔3
The bpresident bof ba bcompany bis bstarting ban bannuity band bdecides bthat bhis
bcorporation bwill bbe bthe bannuitant. bWhich bof bthe bfollowing bstatements bis btrue? b-
bcorrect banswers✔✔the bannuitant bmust bbe ba bnatural bperson
What bare bthe btwo bcomponents bof ba buniversal bpolicy? b- bcorrect
banswers✔✔Insurance band bcash baccount
An binsured band bhis bwife bare bboth binvolved bin ba bhead-on bcollision. bThe bhusband
bdies binstantly, band bthe bwife bdies b15 bdays blater. bThe bcompany bpays bthe bdeath
bbenefit bto bthe bestate bof bthe binsured. bThis bindicates bthat bthe blife binsurance bpolicy
bhad bwhat bprovision? b- bcorrect banswers✔✔Common bDisaster
When bboth bparties bto ba bcontract bmust bperform bcertain bduties band bfollow brules bof
bconduct bto bmake bthe bcontract benforceable, bthe bcontract bis b- bcorrect
banswers✔✔Conditional
A bcompany bpurchases ba blife binsurance bpolicy bon btheir bmanager, bwho bis ban
bimportant bpart bof bthe boperation.
When ban binsured bpurchased ba bnew bhome, bthe binsured bmade ban babsolute
bassignment bof ba blife binsurance bpolicy bto bthe bmortgage bcompany.
