COLORADO LIFE INSURANCE EVALUATION EXAMS TEST
QUESTIONS AND ANSWERS 2025/2026
✔✔Death Benefit - ✔✔The amount payable upon the death of the person whose life is
insured.
✔✔Decreasing Term - ✔✔A type of life insurance that features a level premium and a
death benefit that decreases each year over the duration of the policy.
✔✔Defamation - ✔✔An unfair trade practice in which one agent or insurer makes an
injurious statement about another with the intent of harming the person's or company's
reputation.
✔✔Dependent - ✔✔A person who relies on another for support and maintenance.
✔✔Director - ✔✔The chief executive and administrative officer of the Insurance
Department (in some states, known as Commissioner or Superintendent).
✔✔Disclosure - ✔✔An act of identifying the name of the producer, representative or
firm, limited insurance representative, or temporary insurance producer on any policy
solicitation.
✔✔Domestic Insurer - ✔✔An insurance company that conducts business in the state of
incorporation.
✔✔Domicile of Insurer - ✔✔Insurer's location of incorporation and the legal ability to
write business in a state.
✔✔Earned Premium - ✔✔The amount of the premium for which the policy protection
has been given.
✔✔Effective Date - ✔✔The date when an insurance policy begins (also known as the
inception date).
✔✔Employee Retirement Income Security Act (ERISA) - ✔✔The act that stipulates
federal standards for private pension plans.
✔✔Endorsement - ✔✔A form changing the provisions of and attached to a life
insurance policy (also known as a rider).
✔✔Endow - ✔✔To reach the maturity date or time at which the face amount equals
cash values.
, ✔✔Estoppel - ✔✔A legal impediment to denying a fact or restoring a right that has been
previously waived.
✔✔Excess Insurance - ✔✔Insurance that pays over and above or in addition to basic
policy limits.
✔✔Exclusions - ✔✔Causes of loss, exposures, conditions, etc. listed in the policy for
which the benefits will not be paid.
✔✔Expiration - ✔✔The date specified in the policy as the date of termination.
✔✔Express Authority - ✔✔The authority granted to an agent by means of the agent's
written contract.
✔✔Extension of Benefits - ✔✔A provision that allows coverage to continue beyond the
policy's expiration date for employees who are not actively at work due to disability or
who have dependents hospitalized on that date. This coverage continues only until the
employee returns to work or the dependent leaves the hospital.
✔✔Face - ✔✔The first page of a policy.
✔✔Fair Credit Reporting Act - ✔✔A federal law that established procedures consumer-
reporting agencies must follow in order to ensure that records are confidential, accurate,
relevant and properly used.
✔✔Fiduciary - ✔✔An agent/broker who handles insurer's funds in a trust capacity.
✔✔Fixed Annuity - ✔✔An annuity that offers fixed payments and guarantees a minimum
rate of interest to be credited to the purchase payment or payments.
✔✔Flexible Premium - ✔✔A policy feature that allows the policyholder to vary premium
payments in the amount and/or timing.
✔✔Foreign Insurer - ✔✔An insurance company that is incorporated in another state.
✔✔Fraternal Benefit Societies - ✔✔Life or health insurance companies formed to
provide insurance for members of an affiliated lodge, religious organization, or fraternal
organization with a representative form of government.
✔✔Fraud - ✔✔Intentional misrepresentation or deceit with the intent to induce a person
to part with something of value.
✔✔Free Look - ✔✔A period of time, usually required by law, during which a policy
owner may inspect a newly issued individual life or health insurance policy for a stated
QUESTIONS AND ANSWERS 2025/2026
✔✔Death Benefit - ✔✔The amount payable upon the death of the person whose life is
insured.
✔✔Decreasing Term - ✔✔A type of life insurance that features a level premium and a
death benefit that decreases each year over the duration of the policy.
✔✔Defamation - ✔✔An unfair trade practice in which one agent or insurer makes an
injurious statement about another with the intent of harming the person's or company's
reputation.
✔✔Dependent - ✔✔A person who relies on another for support and maintenance.
✔✔Director - ✔✔The chief executive and administrative officer of the Insurance
Department (in some states, known as Commissioner or Superintendent).
✔✔Disclosure - ✔✔An act of identifying the name of the producer, representative or
firm, limited insurance representative, or temporary insurance producer on any policy
solicitation.
✔✔Domestic Insurer - ✔✔An insurance company that conducts business in the state of
incorporation.
✔✔Domicile of Insurer - ✔✔Insurer's location of incorporation and the legal ability to
write business in a state.
✔✔Earned Premium - ✔✔The amount of the premium for which the policy protection
has been given.
✔✔Effective Date - ✔✔The date when an insurance policy begins (also known as the
inception date).
✔✔Employee Retirement Income Security Act (ERISA) - ✔✔The act that stipulates
federal standards for private pension plans.
✔✔Endorsement - ✔✔A form changing the provisions of and attached to a life
insurance policy (also known as a rider).
✔✔Endow - ✔✔To reach the maturity date or time at which the face amount equals
cash values.
, ✔✔Estoppel - ✔✔A legal impediment to denying a fact or restoring a right that has been
previously waived.
✔✔Excess Insurance - ✔✔Insurance that pays over and above or in addition to basic
policy limits.
✔✔Exclusions - ✔✔Causes of loss, exposures, conditions, etc. listed in the policy for
which the benefits will not be paid.
✔✔Expiration - ✔✔The date specified in the policy as the date of termination.
✔✔Express Authority - ✔✔The authority granted to an agent by means of the agent's
written contract.
✔✔Extension of Benefits - ✔✔A provision that allows coverage to continue beyond the
policy's expiration date for employees who are not actively at work due to disability or
who have dependents hospitalized on that date. This coverage continues only until the
employee returns to work or the dependent leaves the hospital.
✔✔Face - ✔✔The first page of a policy.
✔✔Fair Credit Reporting Act - ✔✔A federal law that established procedures consumer-
reporting agencies must follow in order to ensure that records are confidential, accurate,
relevant and properly used.
✔✔Fiduciary - ✔✔An agent/broker who handles insurer's funds in a trust capacity.
✔✔Fixed Annuity - ✔✔An annuity that offers fixed payments and guarantees a minimum
rate of interest to be credited to the purchase payment or payments.
✔✔Flexible Premium - ✔✔A policy feature that allows the policyholder to vary premium
payments in the amount and/or timing.
✔✔Foreign Insurer - ✔✔An insurance company that is incorporated in another state.
✔✔Fraternal Benefit Societies - ✔✔Life or health insurance companies formed to
provide insurance for members of an affiliated lodge, religious organization, or fraternal
organization with a representative form of government.
✔✔Fraud - ✔✔Intentional misrepresentation or deceit with the intent to induce a person
to part with something of value.
✔✔Free Look - ✔✔A period of time, usually required by law, during which a policy
owner may inspect a newly issued individual life or health insurance policy for a stated
