Colorado Life Insurance License Final
Exam () Qs & Ans to Pass the
Exam, 100% Verified
Question 1
If an annuity application was NOT taken in person, an insurer must provide the applicant a
Buyer's Guide:
• a) at the time of application
• b) within 5 days of the insurer receiving the application
• c) at the time of policy issue
• d) at the time of policy delivery
✔✔✔CORRECT ANSWER✔✔ B) within 5 days of the insurer receiving the application
Rationale: Colorado regulations require that when an annuity application is not taken in person,
the Buyer's Guide must be provided within 5 business days after the insurer receives the
application .
Question 2
An incomplete life insurance application submitted to an insurer will result in which of these
actions?
, • a) application will be returned to the writing agent
• b) application will be approved with restrictions
• c) application will be pending until a MIB report is sent to the insurer
• d) application will be automatically declined
✔✔✔CORRECT ANSWER✔✔ A) application will be returned to the writing agent
Rationale: Incomplete applications cannot be processed and are returned to the writing agent
for completion before underwriting can proceed .
Question 3
An employee with $25,000 group term life coverage was recently fired. This employee's group
coverage may be converted to a:
• a) $125,000 individual whole life policy
• b) $25,000 modified whole life policy
• c) $25,000 individual term life policy
• d) $25,000 individual whole life policy
✔✔✔CORRECT ANSWER✔✔ D) $25,000 individual whole life policy
Rationale: Upon termination of employment, group term life coverage can be converted to an
individual whole life policy for the same face amount without evidence of insurability .
Question 4
When an employee is terminated, which statement about a group term life conversion is TRUE?
• a) employee must convert group term life coverage into an individual term life policy
, • b) employee must provide evidence of insurability for conversion
• c) policy proceeds will be paid if the employee dies during the conversion period
• d) policy proceeds will NOT be paid if the employee dies during the conversion period
✔✔✔CORRECT ANSWER✔✔ C) policy proceeds will be paid if the employee dies during the
conversion period
Rationale: If the employee dies during the conversion period, the full death benefit is payable as
if the policy had been converted .
Question 5
A(n) _________ rider may be used to include coverage for children under their parents' life
insurance policy.
• a) payor
• b) term
• c) conversion
• d) parent
✔✔✔CORRECT ANSWER✔✔ B) term
Rationale: A term rider (also called a children's term rider) provides coverage for children under
a parent's life insurance policy .
Question 6
The automatic premium loan provision is designed to:
• a) avoid a policy lapse
, • b) pay the beneficiary in the event of a missed premium
• c) extend the grace period
• d) provide paid-up insurance
✔✔✔CORRECT ANSWER✔✔ A) avoid a policy lapse
Rationale: The automatic premium loan provision automatically borrows from the policy's cash
value to pay premiums if the policyowner fails to pay, preventing the policy from lapsing .
Question 7
Which of these is NOT a type of term life insurance?
• a) Annually renewable term
• b) Level term
• c) Increasing term
• d) Adjustable whole life
✔✔✔CORRECT ANSWER✔✔ D) Adjustable whole life
Rationale: Adjustable whole life is a permanent life insurance product, not a type of term
insurance. Term policies include annually renewable, level, decreasing, and increasing term .
Question 8
A producer has been convicted of a felony. Within how many days must the producer report this
to the Commissioner?
• a) 10 days
• b) 30 days
Exam () Qs & Ans to Pass the
Exam, 100% Verified
Question 1
If an annuity application was NOT taken in person, an insurer must provide the applicant a
Buyer's Guide:
• a) at the time of application
• b) within 5 days of the insurer receiving the application
• c) at the time of policy issue
• d) at the time of policy delivery
✔✔✔CORRECT ANSWER✔✔ B) within 5 days of the insurer receiving the application
Rationale: Colorado regulations require that when an annuity application is not taken in person,
the Buyer's Guide must be provided within 5 business days after the insurer receives the
application .
Question 2
An incomplete life insurance application submitted to an insurer will result in which of these
actions?
, • a) application will be returned to the writing agent
• b) application will be approved with restrictions
• c) application will be pending until a MIB report is sent to the insurer
• d) application will be automatically declined
✔✔✔CORRECT ANSWER✔✔ A) application will be returned to the writing agent
Rationale: Incomplete applications cannot be processed and are returned to the writing agent
for completion before underwriting can proceed .
Question 3
An employee with $25,000 group term life coverage was recently fired. This employee's group
coverage may be converted to a:
• a) $125,000 individual whole life policy
• b) $25,000 modified whole life policy
• c) $25,000 individual term life policy
• d) $25,000 individual whole life policy
✔✔✔CORRECT ANSWER✔✔ D) $25,000 individual whole life policy
Rationale: Upon termination of employment, group term life coverage can be converted to an
individual whole life policy for the same face amount without evidence of insurability .
Question 4
When an employee is terminated, which statement about a group term life conversion is TRUE?
• a) employee must convert group term life coverage into an individual term life policy
, • b) employee must provide evidence of insurability for conversion
• c) policy proceeds will be paid if the employee dies during the conversion period
• d) policy proceeds will NOT be paid if the employee dies during the conversion period
✔✔✔CORRECT ANSWER✔✔ C) policy proceeds will be paid if the employee dies during the
conversion period
Rationale: If the employee dies during the conversion period, the full death benefit is payable as
if the policy had been converted .
Question 5
A(n) _________ rider may be used to include coverage for children under their parents' life
insurance policy.
• a) payor
• b) term
• c) conversion
• d) parent
✔✔✔CORRECT ANSWER✔✔ B) term
Rationale: A term rider (also called a children's term rider) provides coverage for children under
a parent's life insurance policy .
Question 6
The automatic premium loan provision is designed to:
• a) avoid a policy lapse
, • b) pay the beneficiary in the event of a missed premium
• c) extend the grace period
• d) provide paid-up insurance
✔✔✔CORRECT ANSWER✔✔ A) avoid a policy lapse
Rationale: The automatic premium loan provision automatically borrows from the policy's cash
value to pay premiums if the policyowner fails to pay, preventing the policy from lapsing .
Question 7
Which of these is NOT a type of term life insurance?
• a) Annually renewable term
• b) Level term
• c) Increasing term
• d) Adjustable whole life
✔✔✔CORRECT ANSWER✔✔ D) Adjustable whole life
Rationale: Adjustable whole life is a permanent life insurance product, not a type of term
insurance. Term policies include annually renewable, level, decreasing, and increasing term .
Question 8
A producer has been convicted of a felony. Within how many days must the producer report this
to the Commissioner?
• a) 10 days
• b) 30 days
