CO LIFE PRODUCER LICENSE
A domestic insurer issuing variable contracts must establish one or more? - answer-separate
accounts
A insured may reject the policy all together or accept, this is called? - answer-adhesion
a lender is requiring that a borrower purchases an insurance policy thought a particular insurer as a
condition to the extension of credit. What is this called? - answer-unfair practice of coercion
a participant in a 401K plan takes a distrubiton and rolls inover to an IRA within 60 days. Is the
amount taxed or withheld? - answer-the amount is reduced by 20% withholding tax since he rolled
into IRA instead of making a trustee to trustee roll over
a policy owner plans to change insurance coverage from one insurer to another. If the insurer starts
a conservation effort, the insurer is doing what? - answer-discouraging policy owners from dropping
existing policies
a policy will pay the death benefit if the insured dies during the 20 year premium paying period and
nothing if death occurs after the 20 year period. what type of policy is this? - answer-level term (20
year term policy)
a producer intentionally makes a statement which may mislead the insurance applicant, what is that
called? - answer-misrepresentation
a producer is required to remit premiums from a trust account to the insurer within how many days
of receipt? - answer-45 days
a producer wants to start using an assumed name for his business, what is required? - answer-
register name with commissioner
a purchaser of life insurance policy has the right to return the policy for a full refund of premium if
done with in - answer-15 days of delivery
after a client signs a disclosure statement regarding additional fees charged by a producer, the
producer must keep a copy of the statement for at least how many years - answer-3 years from date
of completion of services
agents selling variable life must have what 3 things? - answer-registered with FINRA, securities and
producers license
all insurance companies must maintain all books, documents, and other business records for how
long? - answer-current calendar year plus 2 prior calendar year
all of the following information about the applicant is identified in the general information section of
a life insurance application except? - answer-education
an advertisement cannot use a word or phrase for an annuity contract that uses the word... -
answer-"annuity" unless accompanied by other clear language
an annuity is designed to provide which of the following financial features?
, 1. liquidation of principal and interest
2. favorable tax treatment
3. liquidation of estate - answer-2 and 3
an employee quits her job where she has 10,000 in her qualified plan. It was paid directly to her. If
she decided to rollover to a traditional IRA, how much can she receive and how long does she have
to complete the tax free rollover? - answer-8,000 and 60 days (rollovers must be completed within
60 days from time the money is taken out of the first plan. If distribution from the first plan is paid
directly to the participant, 20% of $ is withheld by payor)
an individual applied for insurance and paid premium. five days later the applicant takes exam.
When is policy effective date? - answer-date of exam
an insurer may not transact insurance in this state with out with of the following? - answer-C of A
an unfair trade practice of defamation is considered? - answer-Misdemeanor
any insurance producer using an assumed name under which the producer conducts business, must
register the name with commissioner when? - answer-prior to using assumed name
are employees considered to be policyholders in group life? - answer-no
Are illustrations required to be apart of the contract? - answer-NO
are life insurance illustrations required to be apart of the contract? - answer-yes
are premiums tax deductible to the employee as a business expense for group coverage? - answer-
yes
as a fiduciary, all premiums received must be remitted to the insurer within how many days of
receipt? - answer-45 days
as a fiduciary, all returned premiums recieved from insurers must be remitted or credited to account
of the person entitled within how many days of receipt? - answer-30 days
Can cash value exceed death benefit in universal life option A? - answer-no. if cash value exceeds,
the policy isnt defined as life insurance for tax purposes and loses tax advantages.
can insurance premiums or refunds received by producer be applied to any other obligation owed by
insured to the producer? - answer-no. must be applied according to their original purpose
Define accidental death rider - answer-pays multiple (double or triple indemnity) of face amount if
death is accident and death must occur within 90 days
define coercion - answer-require as a condition to a loan that the applicant purchase insurance from
a specific insurer
Define GIR (guaranteed insurability rider) - answer-purchase additional coverage at future dates or
events without evidence of insurability. Cannot be modified or defeated by existence of other riders
A domestic insurer issuing variable contracts must establish one or more? - answer-separate
accounts
A insured may reject the policy all together or accept, this is called? - answer-adhesion
a lender is requiring that a borrower purchases an insurance policy thought a particular insurer as a
condition to the extension of credit. What is this called? - answer-unfair practice of coercion
a participant in a 401K plan takes a distrubiton and rolls inover to an IRA within 60 days. Is the
amount taxed or withheld? - answer-the amount is reduced by 20% withholding tax since he rolled
into IRA instead of making a trustee to trustee roll over
a policy owner plans to change insurance coverage from one insurer to another. If the insurer starts
a conservation effort, the insurer is doing what? - answer-discouraging policy owners from dropping
existing policies
a policy will pay the death benefit if the insured dies during the 20 year premium paying period and
nothing if death occurs after the 20 year period. what type of policy is this? - answer-level term (20
year term policy)
a producer intentionally makes a statement which may mislead the insurance applicant, what is that
called? - answer-misrepresentation
a producer is required to remit premiums from a trust account to the insurer within how many days
of receipt? - answer-45 days
a producer wants to start using an assumed name for his business, what is required? - answer-
register name with commissioner
a purchaser of life insurance policy has the right to return the policy for a full refund of premium if
done with in - answer-15 days of delivery
after a client signs a disclosure statement regarding additional fees charged by a producer, the
producer must keep a copy of the statement for at least how many years - answer-3 years from date
of completion of services
agents selling variable life must have what 3 things? - answer-registered with FINRA, securities and
producers license
all insurance companies must maintain all books, documents, and other business records for how
long? - answer-current calendar year plus 2 prior calendar year
all of the following information about the applicant is identified in the general information section of
a life insurance application except? - answer-education
an advertisement cannot use a word or phrase for an annuity contract that uses the word... -
answer-"annuity" unless accompanied by other clear language
an annuity is designed to provide which of the following financial features?
, 1. liquidation of principal and interest
2. favorable tax treatment
3. liquidation of estate - answer-2 and 3
an employee quits her job where she has 10,000 in her qualified plan. It was paid directly to her. If
she decided to rollover to a traditional IRA, how much can she receive and how long does she have
to complete the tax free rollover? - answer-8,000 and 60 days (rollovers must be completed within
60 days from time the money is taken out of the first plan. If distribution from the first plan is paid
directly to the participant, 20% of $ is withheld by payor)
an individual applied for insurance and paid premium. five days later the applicant takes exam.
When is policy effective date? - answer-date of exam
an insurer may not transact insurance in this state with out with of the following? - answer-C of A
an unfair trade practice of defamation is considered? - answer-Misdemeanor
any insurance producer using an assumed name under which the producer conducts business, must
register the name with commissioner when? - answer-prior to using assumed name
are employees considered to be policyholders in group life? - answer-no
Are illustrations required to be apart of the contract? - answer-NO
are life insurance illustrations required to be apart of the contract? - answer-yes
are premiums tax deductible to the employee as a business expense for group coverage? - answer-
yes
as a fiduciary, all premiums received must be remitted to the insurer within how many days of
receipt? - answer-45 days
as a fiduciary, all returned premiums recieved from insurers must be remitted or credited to account
of the person entitled within how many days of receipt? - answer-30 days
Can cash value exceed death benefit in universal life option A? - answer-no. if cash value exceeds,
the policy isnt defined as life insurance for tax purposes and loses tax advantages.
can insurance premiums or refunds received by producer be applied to any other obligation owed by
insured to the producer? - answer-no. must be applied according to their original purpose
Define accidental death rider - answer-pays multiple (double or triple indemnity) of face amount if
death is accident and death must occur within 90 days
define coercion - answer-require as a condition to a loan that the applicant purchase insurance from
a specific insurer
Define GIR (guaranteed insurability rider) - answer-purchase additional coverage at future dates or
events without evidence of insurability. Cannot be modified or defeated by existence of other riders
