Colorado Life Insurance Final Exam
Questions and Answers100% Correct
Return of premium - ANSWER-The life insurance rider that pays the face amount plus
the total premiums paid into the policy is known as:
Foreign or alien - ANSWER-What kind of company can the Commissioner file a
complaint to enjoin and restrain from continuing violations of the insurance regulations
of Colorado?
Yes, the interest can be paid annually, or added to the loan. - ANSWER-Does a loan on
the cash value of a life insurance policy accrue interest, and if so, how is the interest
handled?
Needs - ANSWER-What approach calculates the amount of money a family needs
immediately upon the death of the insured to pay for their expenses and basic
necessities?
A 41 year old lawyer who wants a policy to pay his mortgage if he dies (decreasing term
life generally is used as mortgage insurance) - ANSWER-A decreasing term life policy
would be the most appropriate for:
30 days - ANSWER-A producer or business entity shall report to the Commissioner any
administrative action taken against the producer within:
Assignment - ANSWER-Richard is thinking about transferring some of the ownership
rights of his policy to his brother Randy. What term is used for this type of transfer?
Term policy - ANSWER-Jeff has limited financial resources, but finds himself in a
position where he needs a good deal of protection. A __________would probably best
suit his needs at this time.
, November 7 - ANSWER-On November 5, Zoe fills out an application for a life policy. On
November 6, the agent accepts the premium for the policy. The policy is delivered on
November 7. Which date does the Free Look period start?
24 hours - ANSWER-Insurance producers must complete how many hours of continuing
education each licensing period?
Risk classification - ANSWER-Jacob, James and Jonathan are triplets, and all applied
for the same type of insurance coverage at the same time. For James and Jonathan the
rates were the same. Jacob's rate was quite a bit higher. What is the most likely reason
for this difference?
Variable annuity - ANSWER-If the cash values of an annuity are invested in securities, it
is a:
Defamation - ANSWER-If an agent were to publish literature that is false or maliciously
critical of another insurer calculated to injure a person engaged in the business of
insurance, the agent would be committing:
Other agents - ANSWER-An agent has a fiduciary responsibility to all the following,
EXCEPT:
Cash surrender - ANSWER-Alex's life policy lapsed, which Nonforfeiture option would
the insurer send him the value of the policy?
Variable universal life - ANSWER-Investment risk is completely taken by the
policyowner is what type policy?
The value of nonforfeiture options may decrease. - ANSWER-Jennifer made an
additional premium payment on her Adjustable Life policy. Which of the following is not
a way that her policy is affected by this payment?
Contributory - ANSWER-What type group plan requires 75% participation?
Questions and Answers100% Correct
Return of premium - ANSWER-The life insurance rider that pays the face amount plus
the total premiums paid into the policy is known as:
Foreign or alien - ANSWER-What kind of company can the Commissioner file a
complaint to enjoin and restrain from continuing violations of the insurance regulations
of Colorado?
Yes, the interest can be paid annually, or added to the loan. - ANSWER-Does a loan on
the cash value of a life insurance policy accrue interest, and if so, how is the interest
handled?
Needs - ANSWER-What approach calculates the amount of money a family needs
immediately upon the death of the insured to pay for their expenses and basic
necessities?
A 41 year old lawyer who wants a policy to pay his mortgage if he dies (decreasing term
life generally is used as mortgage insurance) - ANSWER-A decreasing term life policy
would be the most appropriate for:
30 days - ANSWER-A producer or business entity shall report to the Commissioner any
administrative action taken against the producer within:
Assignment - ANSWER-Richard is thinking about transferring some of the ownership
rights of his policy to his brother Randy. What term is used for this type of transfer?
Term policy - ANSWER-Jeff has limited financial resources, but finds himself in a
position where he needs a good deal of protection. A __________would probably best
suit his needs at this time.
, November 7 - ANSWER-On November 5, Zoe fills out an application for a life policy. On
November 6, the agent accepts the premium for the policy. The policy is delivered on
November 7. Which date does the Free Look period start?
24 hours - ANSWER-Insurance producers must complete how many hours of continuing
education each licensing period?
Risk classification - ANSWER-Jacob, James and Jonathan are triplets, and all applied
for the same type of insurance coverage at the same time. For James and Jonathan the
rates were the same. Jacob's rate was quite a bit higher. What is the most likely reason
for this difference?
Variable annuity - ANSWER-If the cash values of an annuity are invested in securities, it
is a:
Defamation - ANSWER-If an agent were to publish literature that is false or maliciously
critical of another insurer calculated to injure a person engaged in the business of
insurance, the agent would be committing:
Other agents - ANSWER-An agent has a fiduciary responsibility to all the following,
EXCEPT:
Cash surrender - ANSWER-Alex's life policy lapsed, which Nonforfeiture option would
the insurer send him the value of the policy?
Variable universal life - ANSWER-Investment risk is completely taken by the
policyowner is what type policy?
The value of nonforfeiture options may decrease. - ANSWER-Jennifer made an
additional premium payment on her Adjustable Life policy. Which of the following is not
a way that her policy is affected by this payment?
Contributory - ANSWER-What type group plan requires 75% participation?
