1|Page
COLORADO LIFE INSURANCE FINAL
EXAM, PRACTICE EXAM AND
STUDYGUIDE NEWEST 2025 ACTUAL EXAM
COMPLETE 500 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|100% GUARANTEED PASS!!
COLORADO LIFE INSURANCE FINAL EXAM
Which of the following individuals would not qualify as having
an insurable interest in the insured?
A) A stepchild of the insured
B) An individual who has an interest that arises only from the
death of the individual insured
C) An individuals who is a beneficiary under a designated
beneficiary agreement
D) A trustee of a trust - ANSWER-B) An individual who has an
interest that arises only from the death of the individual insured
,2|Page
If the policyowner specifies the time over which all settlement
option installments are to be paid, he/she has chosen which
Settlement Option?
Options: Extended Term, Fixed Period, Fixed Amount, or Life
with Period Certain? - ANSWER-Fixed Period
Who receives the endowment value of a whole life policy?
> producer, policyowner, beneficiary, or insurance company? -
ANSWER-The policyowner
All health policies issued in Colorado must provide coverage for
preventive breast cancer screenings with mammography on an
annual basis for: - ANSWER-Individuals with a family history
of breast cancer, individuals over 40, and individuals with an
increased lifetime risk of breast cancer.
When is commission disclosure required for health policies
issued in Colorado? - ANSWER-Before the service is provided.
Which Medicare Supplement policies have Core Benefits? -
ANSWER-Plans A through N
,3|Page
An insured has a $175,000 permanent life insurance policy and
is having difficulty keeping up with the premium payments.
Which Nonforfeiture Option would allow him to forego the
premiums and retain the same face amount until the cash
surrender value is exhausted?
A) Reduced Paid-Up
B) Premium Reduction
C) Cash Surrender
D) Extended Term - ANSWER-Extended Term
The Commissioner will issue which of the following to all
insurance companies that have complied with Colorado laws
therefore authorizing them to do business? - ANSWER-
Certificate of Authority
Insurance contracts are aleatory contracts. What does "aleatory"
refer to? - ANSWER-Unequal exchange of value
When the physician submits claim information prior to
treatment, to determine in advance if the procedure is covered,
this is called ? - ANSWER-Precertification
, 4|Page
All individual health benefit plans issued to policyholders that
receive federal subsidies under the ACA must contain a
provision for a grace period of: - ANSWER-3 months
Albert owns a printing business in which he, at times, prints
counterfeit money. One day while processing counterfeit bills,
his arm is severely damaged. His insurance will cover or not
cover and why? - ANSWER-Insurance will NOT cover the
claim since he was involved in an illegal act at the time of
injury.
The Commissioner may assign penalties in addition to those
authorized by law, including: fine the producer up to $? for the
violation. - ANSWER-$3,000
Who is required to prepare, implement, and maintain an
insurance anti-fraud plan when transacting insurance in
Colorado? - ANSWER-Every licensed insurer
In Colorado, if a claim submitted for payment of health care
expenses is not clean, it must be paid, denied, or settled within: -
ANSWER-90 days
COLORADO LIFE INSURANCE FINAL
EXAM, PRACTICE EXAM AND
STUDYGUIDE NEWEST 2025 ACTUAL EXAM
COMPLETE 500 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|100% GUARANTEED PASS!!
COLORADO LIFE INSURANCE FINAL EXAM
Which of the following individuals would not qualify as having
an insurable interest in the insured?
A) A stepchild of the insured
B) An individual who has an interest that arises only from the
death of the individual insured
C) An individuals who is a beneficiary under a designated
beneficiary agreement
D) A trustee of a trust - ANSWER-B) An individual who has an
interest that arises only from the death of the individual insured
,2|Page
If the policyowner specifies the time over which all settlement
option installments are to be paid, he/she has chosen which
Settlement Option?
Options: Extended Term, Fixed Period, Fixed Amount, or Life
with Period Certain? - ANSWER-Fixed Period
Who receives the endowment value of a whole life policy?
> producer, policyowner, beneficiary, or insurance company? -
ANSWER-The policyowner
All health policies issued in Colorado must provide coverage for
preventive breast cancer screenings with mammography on an
annual basis for: - ANSWER-Individuals with a family history
of breast cancer, individuals over 40, and individuals with an
increased lifetime risk of breast cancer.
When is commission disclosure required for health policies
issued in Colorado? - ANSWER-Before the service is provided.
Which Medicare Supplement policies have Core Benefits? -
ANSWER-Plans A through N
,3|Page
An insured has a $175,000 permanent life insurance policy and
is having difficulty keeping up with the premium payments.
Which Nonforfeiture Option would allow him to forego the
premiums and retain the same face amount until the cash
surrender value is exhausted?
A) Reduced Paid-Up
B) Premium Reduction
C) Cash Surrender
D) Extended Term - ANSWER-Extended Term
The Commissioner will issue which of the following to all
insurance companies that have complied with Colorado laws
therefore authorizing them to do business? - ANSWER-
Certificate of Authority
Insurance contracts are aleatory contracts. What does "aleatory"
refer to? - ANSWER-Unequal exchange of value
When the physician submits claim information prior to
treatment, to determine in advance if the procedure is covered,
this is called ? - ANSWER-Precertification
, 4|Page
All individual health benefit plans issued to policyholders that
receive federal subsidies under the ACA must contain a
provision for a grace period of: - ANSWER-3 months
Albert owns a printing business in which he, at times, prints
counterfeit money. One day while processing counterfeit bills,
his arm is severely damaged. His insurance will cover or not
cover and why? - ANSWER-Insurance will NOT cover the
claim since he was involved in an illegal act at the time of
injury.
The Commissioner may assign penalties in addition to those
authorized by law, including: fine the producer up to $? for the
violation. - ANSWER-$3,000
Who is required to prepare, implement, and maintain an
insurance anti-fraud plan when transacting insurance in
Colorado? - ANSWER-Every licensed insurer
In Colorado, if a claim submitted for payment of health care
expenses is not clean, it must be paid, denied, or settled within: -
ANSWER-90 days
