COLORADO INSURANCE EXAM-LIFE
What is the purpose of settlement options? - Answers - They determine how death
proceeds will be paid.
The minimum interest rate on an equity indexed annuity is often based on - Answers -
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. - Answers -
decreasing term policy
What may last for the lifetime of the annuitant. - Answers - annuity period
The paid-up addition option uses the dividend - Answers - To purchase a smaller
amount of the same type of insurance as the original policy.
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? - Answers - The Producer
In a survivorship life policy, when does the insurer pay the death benefit? - Answers -
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? -
Answers - Reduction of premium
Employer contributions made to a qualified plan - Answers - 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? - Answers - 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? - Answers - the annuitant
must be a natural person
What are the two components of a universal policy? - Answers - 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? -
Answers - 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 - Answers - Conditional
A company purchases a life insurance policy on their manager, who is an important part
of the operation.
When an insured purchased a new home, the insured made an absolute assignment of
a life insurance policy to the mortgage company.
An insured couple purchases a life insurance policy insuring the life of their grandson.
these are all examples of what? - Answers - third-party ownership of a life policy
Benefit payment amounts are not guaranteed is a feature of what? - Answers - Variable
Annuity
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premiums must be paid - Answers - For 20 years or until death,
whichever occurs first
Which policy components contains the company's promise to pay? - Answers - insuring
clause
An insurer who willfully violates a single provision of an unfair trade practice regulation
may be fined - Answers - 30,000$
What is required to be licensed as an insurance producer? - Answers - a salaried
employee who advertises and solicits insurance
An insurer devises an intimidation strategy in order to corner a large portion of the
insurance market. What best describes this practice? - Answers - illegal
When a policy is being replaced, the producer of the new policy must notify - Answers -
the replacement company
What's NOT a legal example of insurable interest? - Answers - STOLI agreement
Failing to adopt and implement reasonable standards for settling claims.
Failing to acknowledge pertinent communication pertaining to a claim.
Refusing to pay claims without conducting a reasonable investigation. - Answers -
Unfair claims settlement practices
The Governor has asked the Commissioner to examine an insurance company after a
group of insureds has filed several complaints against the company. Who will pay for
this examination? - Answers - The Insurance Company
What is the purpose of settlement options? - Answers - They determine how death
proceeds will be paid.
The minimum interest rate on an equity indexed annuity is often based on - Answers -
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. - Answers -
decreasing term policy
What may last for the lifetime of the annuitant. - Answers - annuity period
The paid-up addition option uses the dividend - Answers - To purchase a smaller
amount of the same type of insurance as the original policy.
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? - Answers - The Producer
In a survivorship life policy, when does the insurer pay the death benefit? - Answers -
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? -
Answers - Reduction of premium
Employer contributions made to a qualified plan - Answers - 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? - Answers - 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? - Answers - the annuitant
must be a natural person
What are the two components of a universal policy? - Answers - 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? -
Answers - 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 - Answers - Conditional
A company purchases a life insurance policy on their manager, who is an important part
of the operation.
When an insured purchased a new home, the insured made an absolute assignment of
a life insurance policy to the mortgage company.
An insured couple purchases a life insurance policy insuring the life of their grandson.
these are all examples of what? - Answers - third-party ownership of a life policy
Benefit payment amounts are not guaranteed is a feature of what? - Answers - Variable
Annuity
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a
beneficiary, the premiums must be paid - Answers - For 20 years or until death,
whichever occurs first
Which policy components contains the company's promise to pay? - Answers - insuring
clause
An insurer who willfully violates a single provision of an unfair trade practice regulation
may be fined - Answers - 30,000$
What is required to be licensed as an insurance producer? - Answers - a salaried
employee who advertises and solicits insurance
An insurer devises an intimidation strategy in order to corner a large portion of the
insurance market. What best describes this practice? - Answers - illegal
When a policy is being replaced, the producer of the new policy must notify - Answers -
the replacement company
What's NOT a legal example of insurable interest? - Answers - STOLI agreement
Failing to adopt and implement reasonable standards for settling claims.
Failing to acknowledge pertinent communication pertaining to a claim.
Refusing to pay claims without conducting a reasonable investigation. - Answers -
Unfair claims settlement practices
The Governor has asked the Commissioner to examine an insurance company after a
group of insureds has filed several complaints against the company. Who will pay for
this examination? - Answers - The Insurance Company
