COLORADO LIFE AND HEALTH EXAM
2026 QUESTIONS AND ANSWERS 100%
ACCURATE
⩥ he interest earned on policy dividends is Answer: taxable
⩥ During partial withdrawal from a universal life policy, which portion
will be taxed? Answer: Interest
⩥ A 60-year-old participant in a 401(k) plan takes a distribution and rolls
it over to an IRA within 60 days. Which of the following is true?
Answer: The amount of the distribution is reduced by the amount of a
20% withholding tax
⩥ What is the other term for the cash payment settlement option?
Answer: Lump sum
⩥ The premium of a survivorship life policy compared with that of a
joint life policy would be Answer: lower
⩥ Which rider, when attached to a permanent life insurance policy,
provides an amount of insurance on every family member? Answer:
family term rider
, ⩥ An insurer neglects to pay a legitimate claim that is covered under the
terms of the policy. Which of the following insurance principles has the
insurer violated? Answer: consideration
⩥ Which of the following protects the insured from an unintentional
policy lapse due to a nonpayment of premium? Answer: automatic
premium loan
⩥ An insurance contract requires that both the insured and the insurer
meet certain conditions in order for the contract to be enforceable. What
contract characteristic does this describe? Answer: conditonal
⩥ who is the owner and who is the beneficiary on a Key Person Life
Insurance policy? Answer: The employer is the owner and beneficiary
⩥ Who is the owner and who is the beneficiary on a Key Person Life
Insurance policy? Answer: The employer is the owner and beneficiary
⩥ An insurance contract requires that both the insured and the insurer
meet certain conditions in order for the contract to be enforceable. What
contract characteristic does this describe? Answer: Conditional
⩥ According to the Entire Contract provision, a policy must contain
Answer: A copy of the original application for insurance.
2026 QUESTIONS AND ANSWERS 100%
ACCURATE
⩥ he interest earned on policy dividends is Answer: taxable
⩥ During partial withdrawal from a universal life policy, which portion
will be taxed? Answer: Interest
⩥ A 60-year-old participant in a 401(k) plan takes a distribution and rolls
it over to an IRA within 60 days. Which of the following is true?
Answer: The amount of the distribution is reduced by the amount of a
20% withholding tax
⩥ What is the other term for the cash payment settlement option?
Answer: Lump sum
⩥ The premium of a survivorship life policy compared with that of a
joint life policy would be Answer: lower
⩥ Which rider, when attached to a permanent life insurance policy,
provides an amount of insurance on every family member? Answer:
family term rider
, ⩥ An insurer neglects to pay a legitimate claim that is covered under the
terms of the policy. Which of the following insurance principles has the
insurer violated? Answer: consideration
⩥ Which of the following protects the insured from an unintentional
policy lapse due to a nonpayment of premium? Answer: automatic
premium loan
⩥ An insurance contract requires that both the insured and the insurer
meet certain conditions in order for the contract to be enforceable. What
contract characteristic does this describe? Answer: conditonal
⩥ who is the owner and who is the beneficiary on a Key Person Life
Insurance policy? Answer: The employer is the owner and beneficiary
⩥ Who is the owner and who is the beneficiary on a Key Person Life
Insurance policy? Answer: The employer is the owner and beneficiary
⩥ An insurance contract requires that both the insured and the insurer
meet certain conditions in order for the contract to be enforceable. What
contract characteristic does this describe? Answer: Conditional
⩥ According to the Entire Contract provision, a policy must contain
Answer: A copy of the original application for insurance.
