COLORADO LIFE INSURANCE FINAL EXAM
QUESTIONS WITH ALL CORRECT & VERIFIED
ANSWERS (LATEST EXAM)
Return of premium Correct answer-The life insurance rider that pays the face amount plus the
total premiums paid into the policy is known as:
Foreign or alien Correct 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. Correct answer-Does a loan on the
cash value of a life insurance policy accrue interest, and if so, how is the interest handled?
Needs Correct 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) Correct answer-A decreasing term life policy would be the most
appropriate for:
30 days Correct answer-A producer or business entity shall report to the Commissioner any
administrative action taken against the producer within:
Assignment Correct 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 Correct 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 Correct 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 Correct answer-Insurance producers must complete how many hours of continuing
education each licensing period?
Risk classification Correct 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 Correct answer-If the cash values of an annuity are invested in securities, it is a:
Defamation Correct 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 Correct answer-An agent has a fiduciary responsibility to all the following, EXCEPT:
, Cash surrender Correct answer-Alex's life policy lapsed, which Nonforfeiture option would the
insurer send him the value of the policy?
Variable universal life Correct answer-Investment risk is completely taken by the policyowner is
what type policy?
The value of nonforfeiture options may decrease. Correct 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 Correct answer-What type group plan requires 75% participation?
Primary Correct 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: Correct answer-Application
MECs (Modified Endowment Contracts) Correct answer-Over-funded life insurance policies where
the proceeds are subject to taxation are called:
First Correct 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 Correct 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 Correct answer-Which of the following is a duty of the Commissioner?
Dow Jones Industrial Average. Correct answer-Dylan is looking at buying an equity-indexed life
policy; it will likely be tied to:
The policyowner Correct answer-Who has the right to change the beneficiary on a life policy?
Fair Credit Reporting Act Correct 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. Correct 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. Correct answer-Which of the
following must happen before an HIV test is performed on an applicant?
Accelerated benefit rider Correct answer-Which rider on Diane's life policy will help her out when
she is confined to a nursing home with a terminal illness?
Accelerated benefits Correct answer-Life insurance death benefits that can be accessed tax-free
when the insured is still alive are called:
Discrimination abased on occupation Correct answer-Which of the following would NOT be
considered unfair discrimination?
QUESTIONS WITH ALL CORRECT & VERIFIED
ANSWERS (LATEST EXAM)
Return of premium Correct answer-The life insurance rider that pays the face amount plus the
total premiums paid into the policy is known as:
Foreign or alien Correct 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. Correct answer-Does a loan on the
cash value of a life insurance policy accrue interest, and if so, how is the interest handled?
Needs Correct 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) Correct answer-A decreasing term life policy would be the most
appropriate for:
30 days Correct answer-A producer or business entity shall report to the Commissioner any
administrative action taken against the producer within:
Assignment Correct 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 Correct 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 Correct 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 Correct answer-Insurance producers must complete how many hours of continuing
education each licensing period?
Risk classification Correct 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 Correct answer-If the cash values of an annuity are invested in securities, it is a:
Defamation Correct 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 Correct answer-An agent has a fiduciary responsibility to all the following, EXCEPT:
, Cash surrender Correct answer-Alex's life policy lapsed, which Nonforfeiture option would the
insurer send him the value of the policy?
Variable universal life Correct answer-Investment risk is completely taken by the policyowner is
what type policy?
The value of nonforfeiture options may decrease. Correct 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 Correct answer-What type group plan requires 75% participation?
Primary Correct 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: Correct answer-Application
MECs (Modified Endowment Contracts) Correct answer-Over-funded life insurance policies where
the proceeds are subject to taxation are called:
First Correct 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 Correct 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 Correct answer-Which of the following is a duty of the Commissioner?
Dow Jones Industrial Average. Correct answer-Dylan is looking at buying an equity-indexed life
policy; it will likely be tied to:
The policyowner Correct answer-Who has the right to change the beneficiary on a life policy?
Fair Credit Reporting Act Correct 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. Correct 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. Correct answer-Which of the
following must happen before an HIV test is performed on an applicant?
Accelerated benefit rider Correct answer-Which rider on Diane's life policy will help her out when
she is confined to a nursing home with a terminal illness?
Accelerated benefits Correct answer-Life insurance death benefits that can be accessed tax-free
when the insured is still alive are called:
Discrimination abased on occupation Correct answer-Which of the following would NOT be
considered unfair discrimination?
