COLORADO HEALTH
INSURANCE EXAM QUESTIONS
AND CORRECT ANSWERS
2024/2025 GRADED A+ .
,1. Agent: Agents are the agents of the insurer
2. Producer: Usually includes agents and brokers
3. Applicant or proposed insured: A person applying for insurance
4. Consent: permission to do something
5. Insurable Interest: The policy owner must face the possibility of losing money orsomething of value in the event of
loss
6. insurance policy: a contract between a policyowner (and/or insured) and aninsurance company which agrees to
pay the insured or the beneficiary for loss caused by specific events
7. Insured: Person covered by the insurance policy, may or may not be the policyholder.
8. Insurer (principal): the company who issues an insurance policy
9. Policyowner: the person entitled to exercise the rights and privileges in the policy
10. Premium: the money paid to the insurance company for the insurance policy
11. Contracts to be legally binding:: Agreement- Offer and acceptanceConsideration
Competent partiesLegal
Purpose
12. Offer: needs to be by one party and the other party accepts offer in exact terms.
13. Applicant: usually makes the offer when submitting the application.
14. Acceptance: takes place when an insurer's underwriter approves the applica-tion and issues a policy
15. Consideration: Is the value that each party gives each other.
16. Insured: person who makes payment of premium and rpresents made in theapplication
17. Insurer: Promise to pay in the event of a loss
18. T/F Insurers considerations is the promise to pay for losses, insuredsconsideration is the premium and
statements on the application: True
19. Parties to a contract: Must be capable of entering into a contract in the eyes of the law. Both parties need to be
legal age, mentally competent and not under theinfluence of drugs/alcohol.
20. Legal: Must have both insurable interest and consent.
, 21. Insurable interest: Proven by love and affection, economic or financial lossrequired at the time of policy
insurance. Must experience financial loss due to anaccident or sickness that befalls the insured.
22. Warranty: True statements of validity of the insurance policy depend.
23. Breach of Warranty: can be considered grounds for voiding policy or a returnof premium.
24. Representations: statements believed to be true to the best of one's knowl-edge, but they are not guaranteed to
be true
25. Untrue statements: statements on an application that are considered misrep-resentations and could void contract.
26. Material Misrepresentation: Discovered after underwriting decision of the in-surance company.
27. If material misrepresentations are intentional: They are considered fraud.
28. Conditional Contract: Requires that certain conditions must be met by the policyowner and the company in
order for the contract to be executed, and beforeeach party fulfills its obligations.
29. Unilateral Contract: only one of the parties to the contract is legally bound to do anything. Insured makes no
legally binding promises, insurer is legally bound topay losses covered by policy to force.
30. No legal actions for cancellation: When someone loses job, unemploymentand premiums are current insure can't
refuse to pay death benefit.
31. Contract of adhesion: prepared by one of the parties (insurer) and acceptedor rejected by the other party
(insured)
32. Insurance policies are: drawn up as take it or leave it
33. Aleatory exchange: unequal amounts or values and uneven exchange of val-ues.
34. Insurance contracts are?: aleatory
35. T/F If Jons paid $100 of his 100,000 life insurance policy and he dies hisbeneficiary will receive the total
100,000?: True
36. T/F if a mistake occurs on application have client draw line and initial thecorrect answer.: True
37. An application is. form completed by the agent as questions are askedof the applicant, responses are
recorded. It then submitted to insurance company for approval or rejection. If policy is issued a copy of
application
INSURANCE EXAM QUESTIONS
AND CORRECT ANSWERS
2024/2025 GRADED A+ .
,1. Agent: Agents are the agents of the insurer
2. Producer: Usually includes agents and brokers
3. Applicant or proposed insured: A person applying for insurance
4. Consent: permission to do something
5. Insurable Interest: The policy owner must face the possibility of losing money orsomething of value in the event of
loss
6. insurance policy: a contract between a policyowner (and/or insured) and aninsurance company which agrees to
pay the insured or the beneficiary for loss caused by specific events
7. Insured: Person covered by the insurance policy, may or may not be the policyholder.
8. Insurer (principal): the company who issues an insurance policy
9. Policyowner: the person entitled to exercise the rights and privileges in the policy
10. Premium: the money paid to the insurance company for the insurance policy
11. Contracts to be legally binding:: Agreement- Offer and acceptanceConsideration
Competent partiesLegal
Purpose
12. Offer: needs to be by one party and the other party accepts offer in exact terms.
13. Applicant: usually makes the offer when submitting the application.
14. Acceptance: takes place when an insurer's underwriter approves the applica-tion and issues a policy
15. Consideration: Is the value that each party gives each other.
16. Insured: person who makes payment of premium and rpresents made in theapplication
17. Insurer: Promise to pay in the event of a loss
18. T/F Insurers considerations is the promise to pay for losses, insuredsconsideration is the premium and
statements on the application: True
19. Parties to a contract: Must be capable of entering into a contract in the eyes of the law. Both parties need to be
legal age, mentally competent and not under theinfluence of drugs/alcohol.
20. Legal: Must have both insurable interest and consent.
, 21. Insurable interest: Proven by love and affection, economic or financial lossrequired at the time of policy
insurance. Must experience financial loss due to anaccident or sickness that befalls the insured.
22. Warranty: True statements of validity of the insurance policy depend.
23. Breach of Warranty: can be considered grounds for voiding policy or a returnof premium.
24. Representations: statements believed to be true to the best of one's knowl-edge, but they are not guaranteed to
be true
25. Untrue statements: statements on an application that are considered misrep-resentations and could void contract.
26. Material Misrepresentation: Discovered after underwriting decision of the in-surance company.
27. If material misrepresentations are intentional: They are considered fraud.
28. Conditional Contract: Requires that certain conditions must be met by the policyowner and the company in
order for the contract to be executed, and beforeeach party fulfills its obligations.
29. Unilateral Contract: only one of the parties to the contract is legally bound to do anything. Insured makes no
legally binding promises, insurer is legally bound topay losses covered by policy to force.
30. No legal actions for cancellation: When someone loses job, unemploymentand premiums are current insure can't
refuse to pay death benefit.
31. Contract of adhesion: prepared by one of the parties (insurer) and acceptedor rejected by the other party
(insured)
32. Insurance policies are: drawn up as take it or leave it
33. Aleatory exchange: unequal amounts or values and uneven exchange of val-ues.
34. Insurance contracts are?: aleatory
35. T/F If Jons paid $100 of his 100,000 life insurance policy and he dies hisbeneficiary will receive the total
100,000?: True
36. T/F if a mistake occurs on application have client draw line and initial thecorrect answer.: True
37. An application is. form completed by the agent as questions are askedof the applicant, responses are
recorded. It then submitted to insurance company for approval or rejection. If policy is issued a copy of
application
