©THESTAR 2024/2025 ALL RIGHTS RESERVED 3:09PM.
Colorado Life and Health Insurance Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Actuarial Department - Answer✔calculates policy rates, reserves, and dividends
Alien Insurer - Answer✔An insurer domiciled in a country other than the United States.
Admitted Insurer - Answer✔An insurer to which a state insurance department has granted a
license to do business within that state.
Broker - Answer✔represents themselves and the insured
Captive Insurer - Answer✔an insurer owned by a parent firm for the purpose of insuring the
parent firm's loss exposures
Certificate Authority - Answer✔A license issued to an insurer by a department of insurance (or
equivalent state agency), which authorizes that company to conduct insurance business in that
particular state.
Claims Department - Answer✔responsible for processing, investigating, and paying claims
Divisible Surplus - Answer✔the amount of earnings paid to policyowners as dividends after the
insurance company sets aside funds required to cover reserves, operating expenses, and
general business purposes
Domestic Insurer - Answer✔an insurer with its principal or home office in a state where it is
authorized
Foreign Insurer - Answer✔insurer with its principal office or domicile location in a state
different from the state it is transacting insurance business
Fraternal Benefit Society - Answer✔nonprofit benevolent organizations that provide insurance
to its members
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 3:09PM.
Industrial Insurer - Answer✔make up a specialized branch of the industry, primarily providing
policies with small face amounts with weekly premiums. Other names for industrial insurers
include home service or debit insurers.
insurance - Answer✔The transfer of risk through the pooling or accumulation of funds.
insured - Answer✔the customer receiving insurance protection under an insurance policy
insurer - Answer✔insurance company
Lloyd's of London - Answer✔NOT an insurer, but a group of individuals and companies that
underwrite unusual insurance
Multi-line insurer - Answer✔an insurance company or independent agent that provides a one-
stop shop for businesses or individuals seeking coverage for all their insurance needs. For
example, many large insurers offer individual policies for automobile, homeowner, long-term
care, life and health insurance needs.
Mutual Insurance Company - Answer✔insurance companies characterized by having no capital
stock, being owned by its policy owners, and usually issue participating insurance
Non-admitted Insurer - Answer✔an insurer not licensed to do business in the state
nonparticipating policy - Answer✔typically issued by stock companies, do not allow
policyowners to participate in dividends or electing the board of directors
participating plan - Answer✔an insurance policy under which the policy owners share in the
company's earnings through receipt of dividends and also elect the company's board of
directors
Private (Commercial) Insurer - Answer✔Private or commercial insurance companies are
companies owned by private citizens or groups that offer one or more insurance lines.
Commercial insurers are NOT government-owned.
Reciprocal Insurers - Answer✔unincorporated groups of people that provide insurance for one
another through individual indemnity agreements
reinsurance - Answer✔Acceptance by one or more insurers, called reinsurers, of a portion of
the risk underwritten by another insurer who has contracted for the entire coverage.
Reinsurer - Answer✔a company that provides financial protection to insurance companies.
Reinsurers handle risks that are too large for insurance companies to handle on their own and
make it possible for insurers to obtain more business than they would otherwise be able to.
Risk Retention Group - Answer✔A group-owned liability insurer which assumes and spread
product liability and other forms of commercial liability risks among its members
Self-Insurers - Answer✔A self-funded plan to cover potential losses instead of transferring the
risk to an insurance company.
2
Colorado Life and Health Insurance Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Actuarial Department - Answer✔calculates policy rates, reserves, and dividends
Alien Insurer - Answer✔An insurer domiciled in a country other than the United States.
Admitted Insurer - Answer✔An insurer to which a state insurance department has granted a
license to do business within that state.
Broker - Answer✔represents themselves and the insured
Captive Insurer - Answer✔an insurer owned by a parent firm for the purpose of insuring the
parent firm's loss exposures
Certificate Authority - Answer✔A license issued to an insurer by a department of insurance (or
equivalent state agency), which authorizes that company to conduct insurance business in that
particular state.
Claims Department - Answer✔responsible for processing, investigating, and paying claims
Divisible Surplus - Answer✔the amount of earnings paid to policyowners as dividends after the
insurance company sets aside funds required to cover reserves, operating expenses, and
general business purposes
Domestic Insurer - Answer✔an insurer with its principal or home office in a state where it is
authorized
Foreign Insurer - Answer✔insurer with its principal office or domicile location in a state
different from the state it is transacting insurance business
Fraternal Benefit Society - Answer✔nonprofit benevolent organizations that provide insurance
to its members
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 3:09PM.
Industrial Insurer - Answer✔make up a specialized branch of the industry, primarily providing
policies with small face amounts with weekly premiums. Other names for industrial insurers
include home service or debit insurers.
insurance - Answer✔The transfer of risk through the pooling or accumulation of funds.
insured - Answer✔the customer receiving insurance protection under an insurance policy
insurer - Answer✔insurance company
Lloyd's of London - Answer✔NOT an insurer, but a group of individuals and companies that
underwrite unusual insurance
Multi-line insurer - Answer✔an insurance company or independent agent that provides a one-
stop shop for businesses or individuals seeking coverage for all their insurance needs. For
example, many large insurers offer individual policies for automobile, homeowner, long-term
care, life and health insurance needs.
Mutual Insurance Company - Answer✔insurance companies characterized by having no capital
stock, being owned by its policy owners, and usually issue participating insurance
Non-admitted Insurer - Answer✔an insurer not licensed to do business in the state
nonparticipating policy - Answer✔typically issued by stock companies, do not allow
policyowners to participate in dividends or electing the board of directors
participating plan - Answer✔an insurance policy under which the policy owners share in the
company's earnings through receipt of dividends and also elect the company's board of
directors
Private (Commercial) Insurer - Answer✔Private or commercial insurance companies are
companies owned by private citizens or groups that offer one or more insurance lines.
Commercial insurers are NOT government-owned.
Reciprocal Insurers - Answer✔unincorporated groups of people that provide insurance for one
another through individual indemnity agreements
reinsurance - Answer✔Acceptance by one or more insurers, called reinsurers, of a portion of
the risk underwritten by another insurer who has contracted for the entire coverage.
Reinsurer - Answer✔a company that provides financial protection to insurance companies.
Reinsurers handle risks that are too large for insurance companies to handle on their own and
make it possible for insurers to obtain more business than they would otherwise be able to.
Risk Retention Group - Answer✔A group-owned liability insurer which assumes and spread
product liability and other forms of commercial liability risks among its members
Self-Insurers - Answer✔A self-funded plan to cover potential losses instead of transferring the
risk to an insurance company.
2
