Colorado Life Insurance Final Exam
Questions And Answers
Return of premium - Correct Answer-The life insurance rider that pays the face amount
plus the total premiums paid into the policy is known as:
Foreign or alien - Correct Answer-What kind of company can the Commissioner file a
complaint to enjoin and restrain from continuing violations of the insurance regulations
of Colorado?
Yes, the interest can be paid annually, or added to the loan. - Correct Answer-Does a
loan on the cash value of a life insurance policy accrue interest, and if so, how is the
interest handled?
Needs - Correct Answer-What approach calculates the amount of money a family needs
immediately upon the death of the insured to pay for their expenses and basic
necessities?
A 41 year old lawyer who wants a policy to pay his mortgage if he dies (decreasing term
life generally is used as mortgage insurance) - Correct Answer-A decreasing term life
policy would be the most appropriate for:
30 days - Correct Answer-A producer or business entity shall report to the
Commissioner any administrative action taken against the producer within:
Assignment - Correct Answer-Richard is thinking about transferring some of the
ownership rights of his policy to his brother Randy. What term is used for this type of
transfer?
Term policy - Correct Answer-Jeff has limited financial resources, but finds himself in a
position where he needs a good deal of protection. A __________would probably best
suit his needs at this time.
November 7 - Correct Answer-On November 5, Zoe fills out an application for a life
policy. On November 6, the agent accepts the premium for the policy. The policy is
delivered on November 7. Which date does the Free Look period start?
24 hours - Correct Answer-Insurance producers must complete how many hours of
continuing education each licensing period?
Risk classification - Correct Answer-Jacob, James and Jonathan are triplets, and all
applied for the same type of insurance coverage at the same time. For James and
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, Jonathan the rates were the same. Jacob's rate was quite a bit higher. What is the most
likely reason for this difference?
Variable annuity - Correct Answer-If the cash values of an annuity are invested in
securities, it is a:
Defamation - Correct Answer-If an agent were to publish literature that is false or
maliciously critical of another insurer calculated to injure a person engaged in the
business of insurance, the agent would be committing:
Other agents - Correct Answer-An agent has a fiduciary responsibility to all the
following, EXCEPT:
Cash surrender - Correct Answer-Alex's life policy lapsed, which Nonforfeiture option
would the insurer send him the value of the policy?
Variable universal life - Correct Answer-Investment risk is completely taken by the
policyowner is what type policy?
The value of nonforfeiture options may decrease. - Correct Answer-Jennifer made an
additional premium payment on her Adjustable Life policy. Which of the following is not
a way that her policy is affected by this payment?
Contributory - Correct Answer-What type group plan requires 75% participation?
Primary - Correct Answer-If more than one beneficiary is named, who is the first in line?
In life insurance, insurable interest must be present at the time of: - Correct Answer-
Application
MECs (Modified Endowment Contracts) - Correct Answer-Over-funded life insurance
policies where the proceeds are subject to taxation are called:
First - Correct Answer-After what policy year of any life insurance policy, can suicide of
the policyowner not be used as defense against the payment of benefits?
3 individuals - Correct Answer-In Colorado, what is the minimum number of individuals
a group life policy will cover?
Examining applications and issuing certificates of authority to insurance companies to
transact insurance business - Correct Answer-Which of the following is a duty of the
Commissioner?
Dow Jones Industrial Average. - Correct Answer-Dylan is looking at buying an equity-
indexed life policy; it will likely be tied to:
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Questions And Answers
Return of premium - Correct Answer-The life insurance rider that pays the face amount
plus the total premiums paid into the policy is known as:
Foreign or alien - Correct Answer-What kind of company can the Commissioner file a
complaint to enjoin and restrain from continuing violations of the insurance regulations
of Colorado?
Yes, the interest can be paid annually, or added to the loan. - Correct Answer-Does a
loan on the cash value of a life insurance policy accrue interest, and if so, how is the
interest handled?
Needs - Correct Answer-What approach calculates the amount of money a family needs
immediately upon the death of the insured to pay for their expenses and basic
necessities?
A 41 year old lawyer who wants a policy to pay his mortgage if he dies (decreasing term
life generally is used as mortgage insurance) - Correct Answer-A decreasing term life
policy would be the most appropriate for:
30 days - Correct Answer-A producer or business entity shall report to the
Commissioner any administrative action taken against the producer within:
Assignment - Correct Answer-Richard is thinking about transferring some of the
ownership rights of his policy to his brother Randy. What term is used for this type of
transfer?
Term policy - Correct Answer-Jeff has limited financial resources, but finds himself in a
position where he needs a good deal of protection. A __________would probably best
suit his needs at this time.
November 7 - Correct Answer-On November 5, Zoe fills out an application for a life
policy. On November 6, the agent accepts the premium for the policy. The policy is
delivered on November 7. Which date does the Free Look period start?
24 hours - Correct Answer-Insurance producers must complete how many hours of
continuing education each licensing period?
Risk classification - Correct Answer-Jacob, James and Jonathan are triplets, and all
applied for the same type of insurance coverage at the same time. For James and
CELESTINE808
, Jonathan the rates were the same. Jacob's rate was quite a bit higher. What is the most
likely reason for this difference?
Variable annuity - Correct Answer-If the cash values of an annuity are invested in
securities, it is a:
Defamation - Correct Answer-If an agent were to publish literature that is false or
maliciously critical of another insurer calculated to injure a person engaged in the
business of insurance, the agent would be committing:
Other agents - Correct Answer-An agent has a fiduciary responsibility to all the
following, EXCEPT:
Cash surrender - Correct Answer-Alex's life policy lapsed, which Nonforfeiture option
would the insurer send him the value of the policy?
Variable universal life - Correct Answer-Investment risk is completely taken by the
policyowner is what type policy?
The value of nonforfeiture options may decrease. - Correct Answer-Jennifer made an
additional premium payment on her Adjustable Life policy. Which of the following is not
a way that her policy is affected by this payment?
Contributory - Correct Answer-What type group plan requires 75% participation?
Primary - Correct Answer-If more than one beneficiary is named, who is the first in line?
In life insurance, insurable interest must be present at the time of: - Correct Answer-
Application
MECs (Modified Endowment Contracts) - Correct Answer-Over-funded life insurance
policies where the proceeds are subject to taxation are called:
First - Correct Answer-After what policy year of any life insurance policy, can suicide of
the policyowner not be used as defense against the payment of benefits?
3 individuals - Correct Answer-In Colorado, what is the minimum number of individuals
a group life policy will cover?
Examining applications and issuing certificates of authority to insurance companies to
transact insurance business - Correct Answer-Which of the following is a duty of the
Commissioner?
Dow Jones Industrial Average. - Correct Answer-Dylan is looking at buying an equity-
indexed life policy; it will likely be tied to:
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