CO LIFE INSURANCE EXAM-FX EXAM
QUESTIONS WITH CORRECT ANSWERS 2025
In order for an insurer toZlegally transact insurance it must obtain which of the following?
A. Power of Authority
B. Director's Decree
C. Authorization of Power
D. Certificate of Authority - CORRECT ANSWER -D
In forming an Insurance Contract, when does acceptance usually occur?
A. When an insurer receives an application
B. When an insured submits an application
C. When an insurer's underwriter approves coverage
D. When an insurer delivers the policy - CORRECT ANSWER -C
Which of the following is a statement, guaranteed to be true and if untrue, may breach an insurance cont
ract?
A. Warranty
B. Concealment
C. Indemnity
D. Representation -ZCORRECT ANSWER -A
Which of the following is the basic source of information used by the company in the risk selection proce
ss?
A. Application
B. Agent's Report
C. Warranty
D. Consumer Report - CORRECT ANSWERZ-A
If an agent fails to obtain an applicant's signature on the application, the agent must
,A. Send the application to the insurer with a note explaining the absence of signature
B. Return the application to the applicant for a signature
C. Sign the application for the applicant
D. Sign the application, stating it was by the agent - CORRECT ANSWER -B
Which of the following is NOT one of the 3 basic types of coverage that are available, based on how the fa
ce amount changes during the policy term?
A. Level
B. Increasing
C. Renewable
D. Decreasing -ZCORRECT ANSWER -C
AZman decided to purchase a $100,000 Annually Renewable Term Life Policy to provide additional protect
ion until his children finished college. He discovered that his policy
A. Required Proof of Insurability every year
B. Decreased Death Benefit at each renewal
C. Required Premium Increase each renewal
D. Built Cash Values - CORRECT ANSWER -C
Which of the following best describes annually renewable term insurance?
A. It provides an annually increasing death benefit.
B. It is level term insurance
C. It requires proof of insurability at each renewal
D. Neither the premium nor the death benefit is affected by the insured's age - CORRECT ANSWER -B
An individual has just borrowed $10,000 from his bank on a 5 year installment loan requiring monthly pay
ments. WhatZtype of life insurance policy would be best suited to fit this situation?
A. Whole life
B. Decreasing Term
C. Variable life
, D. Universal life - CORRECT ANSWER -B
AZReturn of Premium (ROP) Life Policy is written as what type of term coverage?
A. Level
B. Increasing
C. Decreasing
D. Renewable - CORRECT ANSWERZ-B
Which of the following is NOT a type of whole life insurance?
A. Straight life
B. Limited Payment
C. Increasing Term
D. Single Premium - CORRECT ANSWER -C
Which type of life insurance generates immediate cash value?
A. Level Term
B. Decreasing Term
C. Continuous Premium
D. Single Premium - CORRECT ANSWER -D
An insured has a life insurance policy that requires him to only pay premiums for a specified number of ye
ars until the policy is paid up. What kind of policy is it?
A. Adjustable life
B. Graded Premium Life
C. Limited-Pay Life
D. Variable Life - CORRECT ANSWER -C
The death protection component of Universal Life Insurance is always
A. Annually Renewable Term
QUESTIONS WITH CORRECT ANSWERS 2025
In order for an insurer toZlegally transact insurance it must obtain which of the following?
A. Power of Authority
B. Director's Decree
C. Authorization of Power
D. Certificate of Authority - CORRECT ANSWER -D
In forming an Insurance Contract, when does acceptance usually occur?
A. When an insurer receives an application
B. When an insured submits an application
C. When an insurer's underwriter approves coverage
D. When an insurer delivers the policy - CORRECT ANSWER -C
Which of the following is a statement, guaranteed to be true and if untrue, may breach an insurance cont
ract?
A. Warranty
B. Concealment
C. Indemnity
D. Representation -ZCORRECT ANSWER -A
Which of the following is the basic source of information used by the company in the risk selection proce
ss?
A. Application
B. Agent's Report
C. Warranty
D. Consumer Report - CORRECT ANSWERZ-A
If an agent fails to obtain an applicant's signature on the application, the agent must
,A. Send the application to the insurer with a note explaining the absence of signature
B. Return the application to the applicant for a signature
C. Sign the application for the applicant
D. Sign the application, stating it was by the agent - CORRECT ANSWER -B
Which of the following is NOT one of the 3 basic types of coverage that are available, based on how the fa
ce amount changes during the policy term?
A. Level
B. Increasing
C. Renewable
D. Decreasing -ZCORRECT ANSWER -C
AZman decided to purchase a $100,000 Annually Renewable Term Life Policy to provide additional protect
ion until his children finished college. He discovered that his policy
A. Required Proof of Insurability every year
B. Decreased Death Benefit at each renewal
C. Required Premium Increase each renewal
D. Built Cash Values - CORRECT ANSWER -C
Which of the following best describes annually renewable term insurance?
A. It provides an annually increasing death benefit.
B. It is level term insurance
C. It requires proof of insurability at each renewal
D. Neither the premium nor the death benefit is affected by the insured's age - CORRECT ANSWER -B
An individual has just borrowed $10,000 from his bank on a 5 year installment loan requiring monthly pay
ments. WhatZtype of life insurance policy would be best suited to fit this situation?
A. Whole life
B. Decreasing Term
C. Variable life
, D. Universal life - CORRECT ANSWER -B
AZReturn of Premium (ROP) Life Policy is written as what type of term coverage?
A. Level
B. Increasing
C. Decreasing
D. Renewable - CORRECT ANSWERZ-B
Which of the following is NOT a type of whole life insurance?
A. Straight life
B. Limited Payment
C. Increasing Term
D. Single Premium - CORRECT ANSWER -C
Which type of life insurance generates immediate cash value?
A. Level Term
B. Decreasing Term
C. Continuous Premium
D. Single Premium - CORRECT ANSWER -D
An insured has a life insurance policy that requires him to only pay premiums for a specified number of ye
ars until the policy is paid up. What kind of policy is it?
A. Adjustable life
B. Graded Premium Life
C. Limited-Pay Life
D. Variable Life - CORRECT ANSWER -C
The death protection component of Universal Life Insurance is always
A. Annually Renewable Term
