Colorado Life & Health Insurance Exam Questions & Answers Already Solved

What is the purpose of settlement options? - Answer They determine how death proceeds will be paid. The minimum interest rate on an equity indexed annuity is often based on - Answer An index like Standard & Poor's 500. The death benefit is $0 at the end of the policy term. The contract pays only in the event of death during the term and there is no cash value. The face amount steadily declines throughout the duration of the contract. - Answer decreasing term policy What may last for the lifetime of the annuitant. - Answer annuity period The paid-up addition option uses the dividend - Answer To purchase a smaller amount of the same type of insurance as the original policy. The employer pays 100% of the premiums. They help to reduce adverse selection against the insurer. They require 100% employee participation. - Answer noncontributory group plan An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation? - Answer Decreasing term A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy - Answer Required a premium increase each renewal. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years? - Answer A policy summary If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than - Answer With the policy Methods used to pay the death benefits to a beneficiary upon the insured's death are called - Answer Settlement Options It transfers rights of ownership from the owner to another person. - Answer policy assignment The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom? - Answer The Producer In a survivorship life policy, when does the insurer pay the death benefit? - Answer Upon the last death The policyowner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this? - Answer Reduction of premium Employer contributions made to a qualified plan - Answer Are subject to vesting requirements. Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? - Answer 3 The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true? - Answer the annuitant must be a natural person What are the two components of a universal policy? - Answer Insurance and cash account An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision? - Answer Common Disaster When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is - Answer Conditional