COLORADO LIFE INSURANCE UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS
GRADED A PLUS
Question:
accidental death benefits.
Answer:
A policy rider that states that the cause of death will be analyzed to determine if it complies with the
policy description of accidental death.
Question:
accidental death insurance.
Answer:
An insurance policy that provides payment if the insured's death is the result of an accident.
Question:
Accumulation Period.
Answer:
The time before an annuitant's retirement during which the annuitant is making payments or
investments in an annuity.
Question:
actual cash value ACV.
Answer:
The required amount to pay damages or for property loss, which is calculated based on the
property's current replacement value minus depreciation.
,Question:
Adhesion.
Answer:
A contract offered on a take-it-or-leave-it basis by an insurer, in which the insured's only option is to
either accept or reject the contract. Any ambiguities in the contract will be settled in favor of the
insured.
Question:
Adjustable Life.
Answer:
Life insurance which permits changes in the face amount, premium amount, period of protection,
and the duration of the premium payment period.
Question:
Adjuster.
Answer:
A representative of an insurance company who investigates and acts on the behalf of the company to
obtain agreements for the amount of the insurance claim.
Question:
administrator.
Answer:
an individual appointed by a court as a fiduciary to settle the financial affairs an estate of a deceased
person
Question:
Admitted (authorized) insurer.
Answer:
,An insurance company authorized and licensed to transact business in a particular state.
Question:
adverse selection.
Answer:
the tendency of risks with higher probability of loss to purchase and maintain Insurance more often
than the risk Who present lower probability
Question:
agency.
Answer:
an insurance sales office or company
Question:
Agent.
Answer:
an individual who is licensed to sell, negotiate, or affect insurance contracts on behalf of the insurer
Question:
agent appointment.
Answer:
the authorization of an agent to act for or represent an insurer
Question:
Agent's Authority.
Answer:
Special powers granted to an agent by his or her agency contract.
, Question:
Aleatory Contract.
Answer:
a contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory
in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in
the event of a loss.
Question:
Alien Insurer.
Answer:
An insurance company that is incorporated outside the United States.
Question:
annual statement.
Answer:
A detailed financial report that an insurance company must submit every year to the insurance
department of state(s) in which it conducts business.
Question:
annuity.
Answer:
a contract that provides income for a specified period of years, or for life.
Question:
Apparent Authority.
Answer:
GRADED A PLUS
Question:
accidental death benefits.
Answer:
A policy rider that states that the cause of death will be analyzed to determine if it complies with the
policy description of accidental death.
Question:
accidental death insurance.
Answer:
An insurance policy that provides payment if the insured's death is the result of an accident.
Question:
Accumulation Period.
Answer:
The time before an annuitant's retirement during which the annuitant is making payments or
investments in an annuity.
Question:
actual cash value ACV.
Answer:
The required amount to pay damages or for property loss, which is calculated based on the
property's current replacement value minus depreciation.
,Question:
Adhesion.
Answer:
A contract offered on a take-it-or-leave-it basis by an insurer, in which the insured's only option is to
either accept or reject the contract. Any ambiguities in the contract will be settled in favor of the
insured.
Question:
Adjustable Life.
Answer:
Life insurance which permits changes in the face amount, premium amount, period of protection,
and the duration of the premium payment period.
Question:
Adjuster.
Answer:
A representative of an insurance company who investigates and acts on the behalf of the company to
obtain agreements for the amount of the insurance claim.
Question:
administrator.
Answer:
an individual appointed by a court as a fiduciary to settle the financial affairs an estate of a deceased
person
Question:
Admitted (authorized) insurer.
Answer:
,An insurance company authorized and licensed to transact business in a particular state.
Question:
adverse selection.
Answer:
the tendency of risks with higher probability of loss to purchase and maintain Insurance more often
than the risk Who present lower probability
Question:
agency.
Answer:
an insurance sales office or company
Question:
Agent.
Answer:
an individual who is licensed to sell, negotiate, or affect insurance contracts on behalf of the insurer
Question:
agent appointment.
Answer:
the authorization of an agent to act for or represent an insurer
Question:
Agent's Authority.
Answer:
Special powers granted to an agent by his or her agency contract.
, Question:
Aleatory Contract.
Answer:
a contract in which participating parties exchange unequal amounts. Insurance contracts are aleatory
in that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in
the event of a loss.
Question:
Alien Insurer.
Answer:
An insurance company that is incorporated outside the United States.
Question:
annual statement.
Answer:
A detailed financial report that an insurance company must submit every year to the insurance
department of state(s) in which it conducts business.
Question:
annuity.
Answer:
a contract that provides income for a specified period of years, or for life.
Question:
Apparent Authority.
Answer:
