COLORADO LIFE INSURANCE EXAM |
QUESTIONS AND CORRECT
ANSWERS RATED A+ | 100%
CORRECT | 2025/2026 GUIDE
The right to change a beneficiary designation is reserved for the:
A. beneficiary
B. policyowner
C. insurer
D. insured - Correct Answer - B
Federal income tax laws generally treat proceeds of life insurance
policies as:
A. graduated taxes
B. deferred taxes
C. nontaxable
D. tax credits - Correct Answer - C
,A type of annuity in which the cash values are invested in securities is
called:
A. Variable
B. Deferred
C. Fixed
D. Joint and survivorship - Correct Answer - A
A contract that promises to pay an income to an insured until his/her
death is called:
A. Family Income
B. Modified Endowment
C. Survivorship Life
D. Life Annuity - Correct Answer - D
The PRIMARY purpose of an inspection report is to assess an
applicant's:
A. credit rating
B. personal characteristics
C. job performance
D. health profile - Correct Answer - B
, In the event of an insured's death, which of the following provides an
income for the family during a designated period of time followed by a
lump sum death benefit?
A. Family Income rider
B. Survivorship Life policy
C. Joint Life policy
D. Modified Life policy - Correct Answer - A
If an Adjustable Life policyowner makes an additional premium payment,
the policy may be affected in all of the following ways EXCEPT the:
A. premium paying period may decrease
B. value of the Nonforfeiture Options may decrease
C. face amount may increase
D. length of coverage may increase
- Correct Answer - B
Which of the following statements is CORRECT about the Paid-Up
Additions in a participating Whole Life policy?
A. They are subject to underwriting approval.
B. They do not generate dividends.
QUESTIONS AND CORRECT
ANSWERS RATED A+ | 100%
CORRECT | 2025/2026 GUIDE
The right to change a beneficiary designation is reserved for the:
A. beneficiary
B. policyowner
C. insurer
D. insured - Correct Answer - B
Federal income tax laws generally treat proceeds of life insurance
policies as:
A. graduated taxes
B. deferred taxes
C. nontaxable
D. tax credits - Correct Answer - C
,A type of annuity in which the cash values are invested in securities is
called:
A. Variable
B. Deferred
C. Fixed
D. Joint and survivorship - Correct Answer - A
A contract that promises to pay an income to an insured until his/her
death is called:
A. Family Income
B. Modified Endowment
C. Survivorship Life
D. Life Annuity - Correct Answer - D
The PRIMARY purpose of an inspection report is to assess an
applicant's:
A. credit rating
B. personal characteristics
C. job performance
D. health profile - Correct Answer - B
, In the event of an insured's death, which of the following provides an
income for the family during a designated period of time followed by a
lump sum death benefit?
A. Family Income rider
B. Survivorship Life policy
C. Joint Life policy
D. Modified Life policy - Correct Answer - A
If an Adjustable Life policyowner makes an additional premium payment,
the policy may be affected in all of the following ways EXCEPT the:
A. premium paying period may decrease
B. value of the Nonforfeiture Options may decrease
C. face amount may increase
D. length of coverage may increase
- Correct Answer - B
Which of the following statements is CORRECT about the Paid-Up
Additions in a participating Whole Life policy?
A. They are subject to underwriting approval.
B. They do not generate dividends.
