COLORADO LIFE INSURANCE FINAL EXAM
SCRIPT COMPLETE QUESTIONS AND
ANSWERS EXPERT CERTIFIED FULL
SOLUTION GRADED A+
⩥ Which type of life policy would best suite someone who
retires in good health with a large amount of cash, whose
investment goals are conservative?
Answer: Single premium whole life insurance
⩥ If James has an increasing term policy, which of the following
must increase?
Answer: the death benefit
⩥ The producer realizes that the prospective client omitted
information about a prior illness. What should the producer do?
Answer: tell the prospective client that a claim might be rejected
later due to the omission
⩥ At what age would a qualified retirement plan distribution be
premature?
,Answer: 59 and 1/2
⩥ Insurable interest exists only for those related within the:
Answer: 5th degree or closer
⩥ Greg recently purchased one-year term insurance policy. At
the end of the year, he can purchase an identical policy without
having to show proof of insurability. What type of policy did he
purchase?
Answer: Renewable Term
⩥ When an insurance producer recommends a suitable annuity
product to a customer, on what should the producer base their
recommendation?
Answer: Consumer's insurable needs and financial objectives
⩥ All life insurance policies have a free look back period of how
many days?
Answer: 15
⩥ What unfair trade practice manipulates through the prospect
of something desireable?
,Answer: Coercion
⩥ What kind of contract pays an income to an insured until the
insured dies?
Answer: Life Annuity
⩥ Which of the following statements is NOT true about the tax
liabilities for individual life insurance policies?
Answer: Policy loans are taxable as income
⩥ All money received by a licensee is received in what type of
capacity?
Answer: Fiduciary
⩥ Riders covering additional insurers can be added to life
policies and cover all but which ?
Answer: younger siblings of the policyholder
⩥ What type of premium payment can employers deduct as an
ordinary business expense?
Answer: Group
, ⩥ Unauthorized practice of insurance is a:
Answer: Class 1 Misdemeanor
⩥ An insurance application is not complete unless it has:
Answer: the signature of the insured (unless not an adult), and
the agent
⩥ Becky is 31 years old and knows she needs to start a
retirement plan. She currently works at a bakery and is worried
about how inflation would affect her retirement plan. Which
annuity would be a good fit for her needs?
Answer: Flexible premium deferred annuity
⩥ which of the following is NOT an unfair claim settlement or
compromise practice?
Answer: asking for the insured's signature on claim documents
⩥ In a life policy, a statement of good health is needed when:
Answer: the application does not include the premium
SCRIPT COMPLETE QUESTIONS AND
ANSWERS EXPERT CERTIFIED FULL
SOLUTION GRADED A+
⩥ Which type of life policy would best suite someone who
retires in good health with a large amount of cash, whose
investment goals are conservative?
Answer: Single premium whole life insurance
⩥ If James has an increasing term policy, which of the following
must increase?
Answer: the death benefit
⩥ The producer realizes that the prospective client omitted
information about a prior illness. What should the producer do?
Answer: tell the prospective client that a claim might be rejected
later due to the omission
⩥ At what age would a qualified retirement plan distribution be
premature?
,Answer: 59 and 1/2
⩥ Insurable interest exists only for those related within the:
Answer: 5th degree or closer
⩥ Greg recently purchased one-year term insurance policy. At
the end of the year, he can purchase an identical policy without
having to show proof of insurability. What type of policy did he
purchase?
Answer: Renewable Term
⩥ When an insurance producer recommends a suitable annuity
product to a customer, on what should the producer base their
recommendation?
Answer: Consumer's insurable needs and financial objectives
⩥ All life insurance policies have a free look back period of how
many days?
Answer: 15
⩥ What unfair trade practice manipulates through the prospect
of something desireable?
,Answer: Coercion
⩥ What kind of contract pays an income to an insured until the
insured dies?
Answer: Life Annuity
⩥ Which of the following statements is NOT true about the tax
liabilities for individual life insurance policies?
Answer: Policy loans are taxable as income
⩥ All money received by a licensee is received in what type of
capacity?
Answer: Fiduciary
⩥ Riders covering additional insurers can be added to life
policies and cover all but which ?
Answer: younger siblings of the policyholder
⩥ What type of premium payment can employers deduct as an
ordinary business expense?
Answer: Group
, ⩥ Unauthorized practice of insurance is a:
Answer: Class 1 Misdemeanor
⩥ An insurance application is not complete unless it has:
Answer: the signature of the insured (unless not an adult), and
the agent
⩥ Becky is 31 years old and knows she needs to start a
retirement plan. She currently works at a bakery and is worried
about how inflation would affect her retirement plan. Which
annuity would be a good fit for her needs?
Answer: Flexible premium deferred annuity
⩥ which of the following is NOT an unfair claim settlement or
compromise practice?
Answer: asking for the insured's signature on claim documents
⩥ In a life policy, a statement of good health is needed when:
Answer: the application does not include the premium
