COLORADO INSURANCE EXAM-LIFE
A company purchases a life insurance policy on their manager, who is an important part of the
operation.
When an insured purchased a new home, the insured made an absolute assignment of a life
insurance policy to the mortgage company.
An insured couple purchases a life insurance policy insuring the life of their grandson.
these are all examples of what? - answer-third-party ownership of a life policy
A licensee has met licensing qualifications for Life, Health, Property, and Casualty insurance. How
many separate licenses will the Department of Insurance issue? - answer-1
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional
protection until his children finished college. He discovered that his policy - answer-Required a
premium increase each renewal.
A producer is subject to criminal prosecution in another jurisdiction. Within what time frame must
the producer report this fact to the Commissioner? - answer-within 30 days after the initial pre-trial
hearing
A rider attached to a life insurance policy that provides coverage on the insured's family members is
called the - answer-other insured rider
All insurers that terminate employment with a producer are required to notify the Commissioner
within how many days following the effective date of the termination? - answer-30 days
An applicant is denied insurance because of information found on a consumer report. Which of the
following requires that the insurance company supply the applicant with the name and address of
the consumer reporting company? - answer-Fair Credit Reporting Act
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring
monthly payments. What type of life insurance policy would be best suited to this situation? -
answer-Decreasing term
An individual with a legal interest in the continued life of the insured defines the principle known as -
answer-insurable interest
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the
wife dies 15 days later. The company pays the death benefit to the estate of the insured. This
indicates that the life insurance policy had what provision? - answer-Common Disaster
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also
contains renewability and convertibility options. When the insured renews the policy in 5 years,
what will happen to the premium? - answer-it will increase because the insured will be 5 years older
than when the policy was originally purchased
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old.
He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43,
as stated on the application. What will the company do?` - answer-pay a reduced death benefit
, An insured is diagnosed with cancer and needs help paying for her medical treatment would qualify
them for what kind of benefits? - answer-accelerated
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and
exercise the extended term option for the policy's cash value, which is currently $20,000. What
would be the face amount of the new term policy? - answer-50,000$
An insurer devises an intimidation strategy in order to corner a large portion of the insurance
market. What best describes this practice? - answer-illegal
An insurer receives an Examination Request Form dated June 2 from the Division of Insurance. The
insurer must respond by - answer-June 12
An insurer who willfully violates a single provision of an unfair trade practice regulation may be fined
- answer-30,000$
Annually renewable term policies provide a level death benefit for a premium that - answer-
increases annually
Believing a producer has violated provisions of the Insurance Code, the Commissioner will schedule a
hearing - answer-to allow the producer to show why the penalties should not be assessed
Benefit payment amounts are not guaranteed is a feature of what? - answer-Variable Annuity
Collecting interest on customer balances held in a producer's trust account is an example of -
answer-using fiduciary funds
dividends are participating policies are - answer-dividends are not taxable
Employer contributions made to a qualified plan - answer-Are subject to vesting requirements.
Equity indexed annuities - answer-seek higher returns
Failing to adopt and implement reasonable standards for settling claims.
Failing to acknowledge pertinent communication pertaining to a claim.
Refusing to pay claims without conducting a reasonable investigation. - answer-Unfair claims
settlement practices
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined
as - answer-Coercion
How long is the free-look period for life insurance policies issued in Colorado? - answer-15 days
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the
applicant no later than - answer-With the policy
In a survivorship life policy, when does the insurer pay the death benefit? - answer-Upon the last
death
Incontestability period of 2 years.
A company purchases a life insurance policy on their manager, who is an important part of the
operation.
When an insured purchased a new home, the insured made an absolute assignment of a life
insurance policy to the mortgage company.
An insured couple purchases a life insurance policy insuring the life of their grandson.
these are all examples of what? - answer-third-party ownership of a life policy
A licensee has met licensing qualifications for Life, Health, Property, and Casualty insurance. How
many separate licenses will the Department of Insurance issue? - answer-1
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional
protection until his children finished college. He discovered that his policy - answer-Required a
premium increase each renewal.
A producer is subject to criminal prosecution in another jurisdiction. Within what time frame must
the producer report this fact to the Commissioner? - answer-within 30 days after the initial pre-trial
hearing
A rider attached to a life insurance policy that provides coverage on the insured's family members is
called the - answer-other insured rider
All insurers that terminate employment with a producer are required to notify the Commissioner
within how many days following the effective date of the termination? - answer-30 days
An applicant is denied insurance because of information found on a consumer report. Which of the
following requires that the insurance company supply the applicant with the name and address of
the consumer reporting company? - answer-Fair Credit Reporting Act
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring
monthly payments. What type of life insurance policy would be best suited to this situation? -
answer-Decreasing term
An individual with a legal interest in the continued life of the insured defines the principle known as -
answer-insurable interest
An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the
wife dies 15 days later. The company pays the death benefit to the estate of the insured. This
indicates that the life insurance policy had what provision? - answer-Common Disaster
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also
contains renewability and convertibility options. When the insured renews the policy in 5 years,
what will happen to the premium? - answer-it will increase because the insured will be 5 years older
than when the policy was originally purchased
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old.
He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43,
as stated on the application. What will the company do?` - answer-pay a reduced death benefit
, An insured is diagnosed with cancer and needs help paying for her medical treatment would qualify
them for what kind of benefits? - answer-accelerated
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and
exercise the extended term option for the policy's cash value, which is currently $20,000. What
would be the face amount of the new term policy? - answer-50,000$
An insurer devises an intimidation strategy in order to corner a large portion of the insurance
market. What best describes this practice? - answer-illegal
An insurer receives an Examination Request Form dated June 2 from the Division of Insurance. The
insurer must respond by - answer-June 12
An insurer who willfully violates a single provision of an unfair trade practice regulation may be fined
- answer-30,000$
Annually renewable term policies provide a level death benefit for a premium that - answer-
increases annually
Believing a producer has violated provisions of the Insurance Code, the Commissioner will schedule a
hearing - answer-to allow the producer to show why the penalties should not be assessed
Benefit payment amounts are not guaranteed is a feature of what? - answer-Variable Annuity
Collecting interest on customer balances held in a producer's trust account is an example of -
answer-using fiduciary funds
dividends are participating policies are - answer-dividends are not taxable
Employer contributions made to a qualified plan - answer-Are subject to vesting requirements.
Equity indexed annuities - answer-seek higher returns
Failing to adopt and implement reasonable standards for settling claims.
Failing to acknowledge pertinent communication pertaining to a claim.
Refusing to pay claims without conducting a reasonable investigation. - answer-Unfair claims
settlement practices
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined
as - answer-Coercion
How long is the free-look period for life insurance policies issued in Colorado? - answer-15 days
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the
applicant no later than - answer-With the policy
In a survivorship life policy, when does the insurer pay the death benefit? - answer-Upon the last
death
Incontestability period of 2 years.
