Colorado Life Insurance Final Exam Questions with Correct Answers

Colorado Life Insurance Final Exam v v v v




QuestionswithCorrectAnswers2025
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The life insurance rider that pays the face amountZplus the total premiums paid into the policy is known a s: -
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CORRECT ANSWER -Return of premium
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What kind of company can the Commissioner file a complaint to enjoinand restrain from continuing viola tions
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of the insurance regulations of Colorado? - CORRECT ANSWERZ-Foreign or alien
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Does a loan on the cash value of a lifeZinsurance policy accrue interest, and if so, how is the interest handl ed? -
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CORRECT ANSWER -Yes, the interest can be paid annually, or added to the loan.
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What approach calculates the amount of money a family needs immediately upon the death of the insur ed to
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pay for their expenses and basic necessities? - CORRECT ANSWER -Needs
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AZdecreasing term life policy would be themost appropriate for: - CORRECT ANSWER - v v v v v v v v v v v v v




A 41 year oldlawyer who wants a policy to pay his mortgage if he dies (decreasingZterm life generally is us ed as
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mortgage insurance)
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AZproduceror business entity shallreport to the Commissioner any administrative action taken against th e
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producer within: - CORRECT ANSWER -30Zdays
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Richard is thinkingZabout transferring some of the ownership rights of his policy to his brother Randy. Wh at
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term is used for thisZtype of transfer? - CORRECT ANSWER -Assignment
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Jeff has limited financial resources, butZfinds himself in a position where heZneeds a good deal of protecti on. A
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would probably best suit his needs at this time. - CORRECT ANSWER -Term policy v v v v v v v v v v v v v




On November 5, Zoe fillsout an applicationfor a life policy. On November 6, theagent accepts the premi um for
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the policy. The policy isZdelivered on November 7. Which date does the Free LookZperiod start? - CORRECT
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ANSWER -November 7
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Insurance producers must complete how many hoursof continuing educationeach licensing period? -
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CORRECT ANSWER -24 hours
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, Jacob, James and Jonathan are triplets, and all applied for the same type of insurance coverage at the sa me
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time. For James and Jonathan the rates were the same. Jacob's rate was quite a bit higher. What is th e most
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likely reason for this difference? - CORRECT ANSWER -Risk classification
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If the cash values of an annuity are invested in securities, it is a: - CORRECT ANSWER -Variable annuity
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If an agent were to publish literature that is false or maliciously critical of another insurer calculated to inj ure a
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person engaged in the businessZof insurance, the agent would be committing: -ZCORRECT ANSWER -
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Defamation
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Anagent hasZafiduciaryresponsibility to allthe following, EXCEPT: -ZCORRECT ANSWER -Otheragents
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Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the policy? -
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CORRECT ANSWER -Cash surrender
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Investment risk isZcompletely taken by the policyowner is what type policy? - CORRECT ANSWER - Variable
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universal life
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Jennifer made an additional premium payment onher Adjustable Life policy. Which of the following is no t a
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way that her policy is affected by this payment? - CORRECT ANSWER -
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The value of nonforfeiture optionsZmay decrease.
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What typegroupplan requires75%Zparticipation?- CORRECT ANSWER-Contributory
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If more thanone beneficiary is named, who is the first in line? - CORRECT ANSWER -Primary
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Application- CORRECT ANSWER -Inlife insurance,insurable interestmust bepresent at thetimeof:
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Over-funded life insurancepolicies where the proceeds are subject to taxationare called: - CORRECT
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ANSWER -MECs (Modified Endowment Contracts)
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