NSG-3800
Colorado Insurance-Life Exam Questions
with Correct Detailed Answers 2026
1
What is the purpose of settlement options?
They determine how death proceeds will be paid.
2
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500.
3
The death benefit is $0 at the end of the policy term.
The contract pays only in the event of death during the term and there is no cash value.
The face amount steadily declines throughout the duration of the contract.
decreasing term policy
4
What may last for the lifetime of the annuitant.
annuity period
5
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
6
The employer pays 100% of the premiums.
They help to reduce adverse selection against the insurer.
They require 100% employee participation.
noncontributory group plan
7
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?
Decreasing term
8
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
Required a premium increase each renewal.
9
NSG-3800
, NSG-3800
Which of the following documents delivered to the policyowner includes information about
premium amounts, cash values, surrender values and death benefits for specific policy
years?
A policy summary
10
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
With the policy
11
Methods used to pay the death benefits to a beneficiary upon the insured's death are called
Settlement Options
12
It transfers rights of ownership from the owner to another person.
policy assignment
13
The responsibility of making certain that an application for insurance is filled out
completely, correctly, and to the best of his or her knowledge is the responsibility of whom?
The Producer
14
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
15
The policyowner pays for her life insurance annually. Until now, she has collected a
nontaxable dividend check each year. She has decided that she would rather use the
dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
16
Employer contributions made to a qualified plan
Are subject to vesting requirements.
17
Within how many days of requesting an investigative consumer report must an insurer
notify the consumer in writing that the report will be obtained?
3
18
The president of a company is starting an annuity and decides that his corporation will be
the annuitant. Which of the following statements is true?
the annuitant must be a natural person
NSG-3800
Colorado Insurance-Life Exam Questions
with Correct Detailed Answers 2026
1
What is the purpose of settlement options?
They determine how death proceeds will be paid.
2
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500.
3
The death benefit is $0 at the end of the policy term.
The contract pays only in the event of death during the term and there is no cash value.
The face amount steadily declines throughout the duration of the contract.
decreasing term policy
4
What may last for the lifetime of the annuitant.
annuity period
5
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
6
The employer pays 100% of the premiums.
They help to reduce adverse selection against the insurer.
They require 100% employee participation.
noncontributory group plan
7
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?
Decreasing term
8
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
Required a premium increase each renewal.
9
NSG-3800
, NSG-3800
Which of the following documents delivered to the policyowner includes information about
premium amounts, cash values, surrender values and death benefits for specific policy
years?
A policy summary
10
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
With the policy
11
Methods used to pay the death benefits to a beneficiary upon the insured's death are called
Settlement Options
12
It transfers rights of ownership from the owner to another person.
policy assignment
13
The responsibility of making certain that an application for insurance is filled out
completely, correctly, and to the best of his or her knowledge is the responsibility of whom?
The Producer
14
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
15
The policyowner pays for her life insurance annually. Until now, she has collected a
nontaxable dividend check each year. She has decided that she would rather use the
dividends to help pay for her next premium. What option would allow her to do this?
Reduction of premium
16
Employer contributions made to a qualified plan
Are subject to vesting requirements.
17
Within how many days of requesting an investigative consumer report must an insurer
notify the consumer in writing that the report will be obtained?
3
18
The president of a company is starting an annuity and decides that his corporation will be
the annuitant. Which of the following statements is true?
the annuitant must be a natural person
NSG-3800
