COLORADO HEALTH INSURANCE EXAM 2026
LIKELY QUESTIONS WITH ANSWER
EXPLANATIONS
◉ Ordinary (Straight) Life. Answer: -Until 100 or Death, whichever
comes first
-Permanent Protection
-Rates & benefits based on law of large numbers (Mortality Rate)
-Guaranteed, tax-deferred interest rate
-Premium level, company's risk goes down as cash value goes up
-Insurer keeps the cash value if death to offset risk
-Lowest net cost in long run
-Client has access to cash through cash surrender or policy loan
-Rates are per unit of protection (1,000 is 1 unit)---TEST
-Cash value is guaranteed
-Cash value will equal face amount at policy maturity
◉ Limited-Pay & Single-Premium Whole Life. Answer: -Premium
paying period is shorter
-Cash value still equals face amount at age 100
-20 pay life will be paid up in 20 years PL
-Life Paid up at age 65, will be paid up at 65 LP
,-A single premium policy will have an immediate cash value (1-pay
life)---TEST
◉ Adjustable Whole Life----TEST. Answer: -Sold to clients with
fluctuating incomes----TEST
-Combination of term and whole life----TEST
-Coverage may not be increased without physical exam---TEST
◉ Interest/Market Sensitive Whole Life Products. Answer: -
Universal Whole life
-Variable Whole life
-Variable/Universal Whole life
-Equity-Indexed Life
◉ Universal Whole life. Answer: -Guaranteed minimum interest
rates
-Extreme flexibility regarding premium PMTs----TEST
-Most flexible product
-Target premium based on projected earnings
-Option A UL has level death benefits
-Option B UL will pay beneficiary both face amount + cash value
,◉ Variable Whole life. Answer: -Cash value deposited into a separate
account
-Requires FINRA series 6 or 7 to sell
-Used to be called NASD
-Regulated by SEC
-Regulated by FINRA (Financial Industry Regulatory Authority)
-NYSE license not required
-Minimum death benefit (face amount) is guaranteed---TEST
-Has fixed premium---TEST
◉ Variable/Universal Whole life. Answer: -Requires Finra(series 6
or 7) licenses to sell
-Allows client to self-direct cash values into sub-account---TEST
-Flexible premium
◉ Equity-Indexed Life. Answer: -cash value, where minimum death
benefit is guaranteed as well as the minimum earning on the cash
value in the general account
-Securities license is not required
-Fixed Premium
◉ Term Life. Answer: -Level Term
-Decreasing Term
, -Increasing Term
◉ General Features of Term Insurance. Answer: -Premium goes up
every year
-May be converted to whole life at current attained age regardless of
health
-May be renewable up to certain age without physical
◉ Level Term. Answer: Both premium and face amount are level for
period of time
◉ Decreasing Term. Answer: -Face amount goes down but premium
remains the same
-Usually convertible to whole life regardless of health
-Premium stays the same but cost increases as face amount
decreases
◉ Increasing Term. Answer: -Face amount goes up instead of down
-Allows beneficiary to receive the face amount + premiums or cash
values
-Also known as Universal Life option B
LIKELY QUESTIONS WITH ANSWER
EXPLANATIONS
◉ Ordinary (Straight) Life. Answer: -Until 100 or Death, whichever
comes first
-Permanent Protection
-Rates & benefits based on law of large numbers (Mortality Rate)
-Guaranteed, tax-deferred interest rate
-Premium level, company's risk goes down as cash value goes up
-Insurer keeps the cash value if death to offset risk
-Lowest net cost in long run
-Client has access to cash through cash surrender or policy loan
-Rates are per unit of protection (1,000 is 1 unit)---TEST
-Cash value is guaranteed
-Cash value will equal face amount at policy maturity
◉ Limited-Pay & Single-Premium Whole Life. Answer: -Premium
paying period is shorter
-Cash value still equals face amount at age 100
-20 pay life will be paid up in 20 years PL
-Life Paid up at age 65, will be paid up at 65 LP
,-A single premium policy will have an immediate cash value (1-pay
life)---TEST
◉ Adjustable Whole Life----TEST. Answer: -Sold to clients with
fluctuating incomes----TEST
-Combination of term and whole life----TEST
-Coverage may not be increased without physical exam---TEST
◉ Interest/Market Sensitive Whole Life Products. Answer: -
Universal Whole life
-Variable Whole life
-Variable/Universal Whole life
-Equity-Indexed Life
◉ Universal Whole life. Answer: -Guaranteed minimum interest
rates
-Extreme flexibility regarding premium PMTs----TEST
-Most flexible product
-Target premium based on projected earnings
-Option A UL has level death benefits
-Option B UL will pay beneficiary both face amount + cash value
,◉ Variable Whole life. Answer: -Cash value deposited into a separate
account
-Requires FINRA series 6 or 7 to sell
-Used to be called NASD
-Regulated by SEC
-Regulated by FINRA (Financial Industry Regulatory Authority)
-NYSE license not required
-Minimum death benefit (face amount) is guaranteed---TEST
-Has fixed premium---TEST
◉ Variable/Universal Whole life. Answer: -Requires Finra(series 6
or 7) licenses to sell
-Allows client to self-direct cash values into sub-account---TEST
-Flexible premium
◉ Equity-Indexed Life. Answer: -cash value, where minimum death
benefit is guaranteed as well as the minimum earning on the cash
value in the general account
-Securities license is not required
-Fixed Premium
◉ Term Life. Answer: -Level Term
-Decreasing Term
, -Increasing Term
◉ General Features of Term Insurance. Answer: -Premium goes up
every year
-May be converted to whole life at current attained age regardless of
health
-May be renewable up to certain age without physical
◉ Level Term. Answer: Both premium and face amount are level for
period of time
◉ Decreasing Term. Answer: -Face amount goes down but premium
remains the same
-Usually convertible to whole life regardless of health
-Premium stays the same but cost increases as face amount
decreases
◉ Increasing Term. Answer: -Face amount goes up instead of down
-Allows beneficiary to receive the face amount + premiums or cash
values
-Also known as Universal Life option B
