COLORADO LIFE AND HEALTH PRACTICE
SET 2026 COVERAGE AND BENEFITS
QUESTIONS HIGH YIELD A+
◉ Surplus Lines Insurance.
Answer: Nontraditional insurance only available from a surplus lines
insurer. They offer coverage for substandard or unusual risks not
available through private or commercial carriers.
◉ Underwriting Department.
Answer: The department within an insurance company responsible
for reviewing applications, approving or declining applications, and
assigning risk classifications.
◉ Adhesion.
Answer: describes a contract that has been prepared by one party
with no negotiation between the applicant and the insurer
◉ agent.
Answer: represents themselves and the insurer at the time of
application
◉ aleatory.
,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.
◉ Apparent Authority.
Answer: The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of
circumstances the principal created.
◉ Competent Party.
Answer: all parties must be of legal competence, meaning they must
be of legal age, mentally capable of understanding the terms and not
be under the influence
◉ Concealment.
Answer: The failure of the applicant to disclose a known material
fact when applying for insurance
◉ conditional.
Answer: the insurers promise to pay if the condition occurs (ie
death)
◉ Consideration.
, Answer: The part of an insurance contract setting forth the amount
of initial and renewal premiums and frequency of future payments.
◉ applicants.
Answer: provide the insurer with a completed application and initial
premium as consideration for insurance.
◉ Estoppel.
Answer: A legal impediment to denying a fact or restoring a right
that has been previously waived.
◉ Express Authority.
Answer: the authority of an agent, stated in the document or
agreement creating the agency
◉ Fiduciary.
Answer: The responsibility an insurance producer has to account for
all premiums collected and provide sound financial advice to clients.
A fiduciary is in a position of trust with regards to the funds of their
clients and the insurer.
◉ fraud.
Answer: A deliberate deception intended to secure an unfair or
unlawful gain
SET 2026 COVERAGE AND BENEFITS
QUESTIONS HIGH YIELD A+
◉ Surplus Lines Insurance.
Answer: Nontraditional insurance only available from a surplus lines
insurer. They offer coverage for substandard or unusual risks not
available through private or commercial carriers.
◉ Underwriting Department.
Answer: The department within an insurance company responsible
for reviewing applications, approving or declining applications, and
assigning risk classifications.
◉ Adhesion.
Answer: describes a contract that has been prepared by one party
with no negotiation between the applicant and the insurer
◉ agent.
Answer: represents themselves and the insurer at the time of
application
◉ aleatory.
,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.
◉ Apparent Authority.
Answer: The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of
circumstances the principal created.
◉ Competent Party.
Answer: all parties must be of legal competence, meaning they must
be of legal age, mentally capable of understanding the terms and not
be under the influence
◉ Concealment.
Answer: The failure of the applicant to disclose a known material
fact when applying for insurance
◉ conditional.
Answer: the insurers promise to pay if the condition occurs (ie
death)
◉ Consideration.
, Answer: The part of an insurance contract setting forth the amount
of initial and renewal premiums and frequency of future payments.
◉ applicants.
Answer: provide the insurer with a completed application and initial
premium as consideration for insurance.
◉ Estoppel.
Answer: A legal impediment to denying a fact or restoring a right
that has been previously waived.
◉ Express Authority.
Answer: the authority of an agent, stated in the document or
agreement creating the agency
◉ Fiduciary.
Answer: The responsibility an insurance producer has to account for
all premiums collected and provide sound financial advice to clients.
A fiduciary is in a position of trust with regards to the funds of their
clients and the insurer.
◉ fraud.
Answer: A deliberate deception intended to secure an unfair or
unlawful gain
