Colorado Health Insurance
Comprehensive Resource To Help You Ace Exams Includes
Frequently Tested Questions With ELABORATED 100%
Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. Who has the right to change the beneficiary on a life policy? -
CORRECT ANSWER The policyowner
2. What guarantees Jason the right to question the source and validity
of consumer information used to rate a policy? - CORRECT
ANSWER Fair Credit Reporting Act
3. If an applicant states their age is 30 on an application for life
insurance, when they were actually 37, what is the insurer likely to
do? - CORRECT ANSWER Pay the death benefit based on the
applicant's actual age.
4. Which of the following must happen before an HIV test is performed
on an applicant? - CORRECT ANSWER A consent form must be
signed by the applicant prior to the test.
5. Which rider on Diane's life policy will help her out when she is
confined to a nursing home with a terminal illness? - CORRECT
ANSWER Accelerated benefit rider
6. Life insurance death benefits that can be accessed tax-free when the
insured is still alive are called: - CORRECT ANSWER Accelerated
benefits
7. Which of the following would NOT be considered unfair
discrimination? - CORRECT ANSWER Discrimination abased on
occupation
,8. All of the following must be listed in the notice regarding replacement,
EXCEPT: - CORRECT ANSWER Statement identifying preprinted
sales materials
9. How many days does an insurance producer have to report to the
Commissioner any administrative action taken against them as well
as any criminal prosecution that occurs in another jurisdiction? -
CORRECT ANSWER 30 days
10. When Jason filled out his application his statements had to be
______________ to be considered legal. - CORRECT ANSWER
Representations
11. Phil and Sarah bought a life policy in which both are insured.
Sarah dies before Phil. If the policy pays the death benefit after Phil
dies, it is a: - CORRECT ANSWER Survivorship life
12. The policyowner's obligation to pay the premium is the: -
CORRECT ANSWER Consideration Clause
13. The fact that the application is part of the policy is stated in: -
CORRECT ANSWER The entire contract
14. Insurance producers must provide any applicant who has
existing policies with a written notice of the replacement regulations
which must be signed by: - CORRECT ANSWER Both the applicant
and the producer
15. A license is considered to be used for controlled business if the
total amount of premiums on controlled business would exceed the
total amount of premiums on all other insurance business during any:
- CORRECT ANSWER 12-month period
16. The Beauty Shop Cosmetic Company purchases a life
insurance policy on Anna, the company's leading salesperson. Which
business continuation plan does this company have? - CORRECT
ANSWER Key person insurance
17. Blake died 20 days after his group life insurance coverage was
terminated. He did not apply for individual coverage. Which of the
, following is true? - CORRECT ANSWER His beneficiary will receive
the full death benefit.
18. Life insurance applications require a signature from -
CORRECT ANSWER A life insurance application requires the agent,
proposed insured, and the policy owner if different from the insured to
sign it.
19. The manner in which the proceeds of a life policy are handled
are specified in what provision? - CORRECT ANSWER Settlement
options
20. If a license is revoked, an insurance producer will not be eligible
to apply for a new license: - CORRECT ANSWER For 2 years
21. The rider that you would pick if you want to be able to add
coverage in the future, without having to show proof of insurability: -
CORRECT ANSWER Guaranteed insurability
22. From the date of death to the date of the claim settlement, the
annual rate of interest paid on death benefits is what percentage
above the federal discount rate? - CORRECT ANSWER 2%
23. Jamie has a renewable term policy. Which of the following is
not an incorrect statement about this type of policy. - CORRECT
ANSWER Renewability is the insurer's option.
24. What is the biggest source of information used in underwriting?
- CORRECT ANSWER Application
25. Which of the following factors does not influence the amount
that an individual receives as monthly income under Social Security?
- CORRECT ANSWER Sex
26. On January 3, an application is submitted without the initial
premium. The insurer requires a medical exam, and it is completed
on January 15. On January 20, the insurer issued the policy standard,
and the producer delivers it on January 22. When is coverage
effective? - CORRECT ANSWER January 22, after the statement of
good health is signed, and the initial premium is paid.
Comprehensive Resource To Help You Ace Exams Includes
Frequently Tested Questions With ELABORATED 100%
Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. Who has the right to change the beneficiary on a life policy? -
CORRECT ANSWER The policyowner
2. What guarantees Jason the right to question the source and validity
of consumer information used to rate a policy? - CORRECT
ANSWER Fair Credit Reporting Act
3. If an applicant states their age is 30 on an application for life
insurance, when they were actually 37, what is the insurer likely to
do? - CORRECT ANSWER Pay the death benefit based on the
applicant's actual age.
4. Which of the following must happen before an HIV test is performed
on an applicant? - CORRECT ANSWER A consent form must be
signed by the applicant prior to the test.
5. Which rider on Diane's life policy will help her out when she is
confined to a nursing home with a terminal illness? - CORRECT
ANSWER Accelerated benefit rider
6. Life insurance death benefits that can be accessed tax-free when the
insured is still alive are called: - CORRECT ANSWER Accelerated
benefits
7. Which of the following would NOT be considered unfair
discrimination? - CORRECT ANSWER Discrimination abased on
occupation
,8. All of the following must be listed in the notice regarding replacement,
EXCEPT: - CORRECT ANSWER Statement identifying preprinted
sales materials
9. How many days does an insurance producer have to report to the
Commissioner any administrative action taken against them as well
as any criminal prosecution that occurs in another jurisdiction? -
CORRECT ANSWER 30 days
10. When Jason filled out his application his statements had to be
______________ to be considered legal. - CORRECT ANSWER
Representations
11. Phil and Sarah bought a life policy in which both are insured.
Sarah dies before Phil. If the policy pays the death benefit after Phil
dies, it is a: - CORRECT ANSWER Survivorship life
12. The policyowner's obligation to pay the premium is the: -
CORRECT ANSWER Consideration Clause
13. The fact that the application is part of the policy is stated in: -
CORRECT ANSWER The entire contract
14. Insurance producers must provide any applicant who has
existing policies with a written notice of the replacement regulations
which must be signed by: - CORRECT ANSWER Both the applicant
and the producer
15. A license is considered to be used for controlled business if the
total amount of premiums on controlled business would exceed the
total amount of premiums on all other insurance business during any:
- CORRECT ANSWER 12-month period
16. The Beauty Shop Cosmetic Company purchases a life
insurance policy on Anna, the company's leading salesperson. Which
business continuation plan does this company have? - CORRECT
ANSWER Key person insurance
17. Blake died 20 days after his group life insurance coverage was
terminated. He did not apply for individual coverage. Which of the
, following is true? - CORRECT ANSWER His beneficiary will receive
the full death benefit.
18. Life insurance applications require a signature from -
CORRECT ANSWER A life insurance application requires the agent,
proposed insured, and the policy owner if different from the insured to
sign it.
19. The manner in which the proceeds of a life policy are handled
are specified in what provision? - CORRECT ANSWER Settlement
options
20. If a license is revoked, an insurance producer will not be eligible
to apply for a new license: - CORRECT ANSWER For 2 years
21. The rider that you would pick if you want to be able to add
coverage in the future, without having to show proof of insurability: -
CORRECT ANSWER Guaranteed insurability
22. From the date of death to the date of the claim settlement, the
annual rate of interest paid on death benefits is what percentage
above the federal discount rate? - CORRECT ANSWER 2%
23. Jamie has a renewable term policy. Which of the following is
not an incorrect statement about this type of policy. - CORRECT
ANSWER Renewability is the insurer's option.
24. What is the biggest source of information used in underwriting?
- CORRECT ANSWER Application
25. Which of the following factors does not influence the amount
that an individual receives as monthly income under Social Security?
- CORRECT ANSWER Sex
26. On January 3, an application is submitted without the initial
premium. The insurer requires a medical exam, and it is completed
on January 15. On January 20, the insurer issued the policy standard,
and the producer delivers it on January 22. When is coverage
effective? - CORRECT ANSWER January 22, after the statement of
good health is signed, and the initial premium is paid.
