COLORADO LIFE INSURANCE FINAL
EXAM | QUESTIONS AND ANSWERS
RATED A+ | 100% CORRECT |
2025/2026 GUIDE
An agent has a fiduciary responsibility to all the following, EXCEPT:
- Correct Answer - Other agents
Alex's life policy lapsed, which Nonforfeiture option would the insurer
send him the value of the policy?
- Correct Answer - Cash surrender
Investment risk is completely taken by the policyowner is what type
policy? - Correct Answer - Variable universal life
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? - Correct Answer - The value of nonforfeiture options may
decrease.
What type group plan requires 75% participation?
- Correct Answer - Contributory
,If more than one beneficiary is named, who is the first in line?
- Correct Answer - Primary
Application - Correct Answer - In life insurance, insurable interest must
be present at the time of:
Over-funded life insurance policies where the proceeds are subject to
taxation are called: - Correct Answer - MECs (Modified Endowment
Contracts)
After what policy year of any life insurance policy, can suicide of the
policyowner not be used as defense against the payment of benefits?
- Correct Answer - First
In Colorado, what is the minimum number of individuals a group life
policy will cover? - Correct Answer - 3 individuals
Which of the following is a duty of the Commissioner?
- Correct Answer - Examining applications and issuing certificates of
authority to insurance companies to transact insurance business
Dylan is looking at buying an equity-indexed life policy; it will likely be
tied to: - Correct Answer - Dow Jones Industrial Average.
, Who has the right to change the beneficiary on a life policy?
- Correct Answer - The policyowner
What guarantees Jason the right to question the source and validity of
consumer information used to rate a policy?
- Correct Answer - Fair Credit Reporting Act
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?
- Correct Answer - Pay the death benefit based on the applicant's actual
age.
Which of the following must happen before an HIV test is performed on
an applicant? - Correct Answer - A consent form must be signed by the
applicant prior to the test.
Which rider on Diane's life policy will help her out when she is confined
to a nursing home with a terminal illness? - Correct Answer - Accelerated
benefit rider
How often can the Commissioner conduct a financial examination of a
licensed insurer? - Correct Answer - As often as he deems necessary
EXAM | QUESTIONS AND ANSWERS
RATED A+ | 100% CORRECT |
2025/2026 GUIDE
An agent has a fiduciary responsibility to all the following, EXCEPT:
- Correct Answer - Other agents
Alex's life policy lapsed, which Nonforfeiture option would the insurer
send him the value of the policy?
- Correct Answer - Cash surrender
Investment risk is completely taken by the policyowner is what type
policy? - Correct Answer - Variable universal life
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? - Correct Answer - The value of nonforfeiture options may
decrease.
What type group plan requires 75% participation?
- Correct Answer - Contributory
,If more than one beneficiary is named, who is the first in line?
- Correct Answer - Primary
Application - Correct Answer - In life insurance, insurable interest must
be present at the time of:
Over-funded life insurance policies where the proceeds are subject to
taxation are called: - Correct Answer - MECs (Modified Endowment
Contracts)
After what policy year of any life insurance policy, can suicide of the
policyowner not be used as defense against the payment of benefits?
- Correct Answer - First
In Colorado, what is the minimum number of individuals a group life
policy will cover? - Correct Answer - 3 individuals
Which of the following is a duty of the Commissioner?
- Correct Answer - Examining applications and issuing certificates of
authority to insurance companies to transact insurance business
Dylan is looking at buying an equity-indexed life policy; it will likely be
tied to: - Correct Answer - Dow Jones Industrial Average.
, Who has the right to change the beneficiary on a life policy?
- Correct Answer - The policyowner
What guarantees Jason the right to question the source and validity of
consumer information used to rate a policy?
- Correct Answer - Fair Credit Reporting Act
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?
- Correct Answer - Pay the death benefit based on the applicant's actual
age.
Which of the following must happen before an HIV test is performed on
an applicant? - Correct Answer - A consent form must be signed by the
applicant prior to the test.
Which rider on Diane's life policy will help her out when she is confined
to a nursing home with a terminal illness? - Correct Answer - Accelerated
benefit rider
How often can the Commissioner conduct a financial examination of a
licensed insurer? - Correct Answer - As often as he deems necessary
