STATE OF COLORADO SALES LICENSE EVALUATION TEST
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔Occasional care for a long-term care patient in the home in order to give relief to the
primary caregivers (usually the family) - ✔✔Respite care is WHICH of the following?
✔✔A single deductible that is applied to multiple health insurance policies at once. -
✔✔What is an integrated deductible?
✔✔Residual Disability - ✔✔A factory worker is disabled in a way that does not prevent
him from performing the substantial "material" duties of his occupation. However, the
resulting disability does force him to cut back the hours on the job which cause is
income to drop by 40%. What is the term for this kind of disability?
✔✔On the date of the medical exam - ✔✔An applicant of health insurance requires a
medical examination as part of the approval process. Assuming the application is
approved and the applicant is paid the initial premium at the time of the application,
what would coverage from the policy begin with?
✔✔This provision sets the maximum dollar limit on coinsurance - ✔✔What is the
purpose of a Stop Loss provision?
✔✔Elimination period - ✔✔Rather than a deductible, most disability income policies
have a set period of time that must pass before the policy will pay out benefits. What is
the term for this period of time?
✔✔A document that allows an insurer to sell policies in PA - ✔✔What is a certificate of
authority?
✔✔Premium = Mortality Factor + Expenses - Interest - ✔✔What is the standard
equation for calculating insurance premium?
✔✔Primary Care Physician - ✔✔All the medical services used by individuals enrolled in
HMOs are coordinated through a single physician known as the..
✔✔Rehabilitation benefit rider - ✔✔Which of the following pays for vocational or other
job training for a disabled worker who is attempting to start a new occupation?
✔✔The policyholder and the insurer - ✔✔After an insurer turns 65, who is permitted to
cancel a health insurance policy with a noncancelable provision?
✔✔Mary's group plan as the primary insurer and John's group plan as the secondary
insurer. - ✔✔John was born on May 21, 1962 and Mary was born on January 7, 1965.
, They have 2 children and each has employer based group health insurance. Coverage
for the children is provided by..
✔✔A contract of adhesion - ✔✔An insurance policy is which type of contract?
✔✔Medical Expense, Loss of income to disability, Accidental Dismemberment (all of the
above) - ✔✔Which of the following types of losses is not covered under health
insurance?
✔✔Uniform required provisions have to be included in an individual health insurance
policy for it to be valid - ✔✔What differentiates a uniform required provision from a
uniform optional provision?
✔✔The insurance company is the principal and the producer acts as the company's
agent - ✔✔In the agency relationship formed between an insurance company and a
producer, who is the agent and who is the principle?
✔✔at least one year of uninterrupted care in a facility other than an acute care hospital
setting - ✔✔To be considered long-term care policy, the policy must offer coverage for...
✔✔Upon first gaining eligibility or during the annual "open enrollment" period. -
✔✔Seniors are advised to apply for Medigap coverage...
✔✔HMO and PPO - ✔✔POS plans combine what type of insurance plan features
✔✔Accidental Death and Dismemberment - ✔✔A painter who wishes extra
reimbursement if he loses his eyesight would be served well by what type of policy?
✔✔A business disability buyout policy - ✔✔A boat tours company is owned by a
partnership of five people. One of the partners becomes disabled and is forced to leave
the company. Which kind of business disability policy would be right for this situation?
✔✔$3,500 - ✔✔An individual sets up a long-term care policy for herself with a benefit
period of 10 years and a benefit amount of $420,000. How much does the insured of
this policy expect to need on a monthly basis? (Benefit Amount = Benefit period in
months x Monthly financial need)
✔✔Consideration - ✔✔When an insurance contract is formed the insured agrees to pay
the premium to the insurer an the insurer agrees to pay money to the insured in the
event of a covered loss. What is the term for what is being exchanged in this situation?
✔✔Income Replacement policy - ✔✔What kind of policy provides for payment of
benefits only to match the insured's income before the disability?
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔Occasional care for a long-term care patient in the home in order to give relief to the
primary caregivers (usually the family) - ✔✔Respite care is WHICH of the following?
✔✔A single deductible that is applied to multiple health insurance policies at once. -
✔✔What is an integrated deductible?
✔✔Residual Disability - ✔✔A factory worker is disabled in a way that does not prevent
him from performing the substantial "material" duties of his occupation. However, the
resulting disability does force him to cut back the hours on the job which cause is
income to drop by 40%. What is the term for this kind of disability?
✔✔On the date of the medical exam - ✔✔An applicant of health insurance requires a
medical examination as part of the approval process. Assuming the application is
approved and the applicant is paid the initial premium at the time of the application,
what would coverage from the policy begin with?
✔✔This provision sets the maximum dollar limit on coinsurance - ✔✔What is the
purpose of a Stop Loss provision?
✔✔Elimination period - ✔✔Rather than a deductible, most disability income policies
have a set period of time that must pass before the policy will pay out benefits. What is
the term for this period of time?
✔✔A document that allows an insurer to sell policies in PA - ✔✔What is a certificate of
authority?
✔✔Premium = Mortality Factor + Expenses - Interest - ✔✔What is the standard
equation for calculating insurance premium?
✔✔Primary Care Physician - ✔✔All the medical services used by individuals enrolled in
HMOs are coordinated through a single physician known as the..
✔✔Rehabilitation benefit rider - ✔✔Which of the following pays for vocational or other
job training for a disabled worker who is attempting to start a new occupation?
✔✔The policyholder and the insurer - ✔✔After an insurer turns 65, who is permitted to
cancel a health insurance policy with a noncancelable provision?
✔✔Mary's group plan as the primary insurer and John's group plan as the secondary
insurer. - ✔✔John was born on May 21, 1962 and Mary was born on January 7, 1965.
, They have 2 children and each has employer based group health insurance. Coverage
for the children is provided by..
✔✔A contract of adhesion - ✔✔An insurance policy is which type of contract?
✔✔Medical Expense, Loss of income to disability, Accidental Dismemberment (all of the
above) - ✔✔Which of the following types of losses is not covered under health
insurance?
✔✔Uniform required provisions have to be included in an individual health insurance
policy for it to be valid - ✔✔What differentiates a uniform required provision from a
uniform optional provision?
✔✔The insurance company is the principal and the producer acts as the company's
agent - ✔✔In the agency relationship formed between an insurance company and a
producer, who is the agent and who is the principle?
✔✔at least one year of uninterrupted care in a facility other than an acute care hospital
setting - ✔✔To be considered long-term care policy, the policy must offer coverage for...
✔✔Upon first gaining eligibility or during the annual "open enrollment" period. -
✔✔Seniors are advised to apply for Medigap coverage...
✔✔HMO and PPO - ✔✔POS plans combine what type of insurance plan features
✔✔Accidental Death and Dismemberment - ✔✔A painter who wishes extra
reimbursement if he loses his eyesight would be served well by what type of policy?
✔✔A business disability buyout policy - ✔✔A boat tours company is owned by a
partnership of five people. One of the partners becomes disabled and is forced to leave
the company. Which kind of business disability policy would be right for this situation?
✔✔$3,500 - ✔✔An individual sets up a long-term care policy for herself with a benefit
period of 10 years and a benefit amount of $420,000. How much does the insured of
this policy expect to need on a monthly basis? (Benefit Amount = Benefit period in
months x Monthly financial need)
✔✔Consideration - ✔✔When an insurance contract is formed the insured agrees to pay
the premium to the insurer an the insurer agrees to pay money to the insured in the
event of a covered loss. What is the term for what is being exchanged in this situation?
✔✔Income Replacement policy - ✔✔What kind of policy provides for payment of
benefits only to match the insured's income before the disability?
