COLORADO LIFE INSURANCE EXAM 2026 TEST
PAPER SOLVED QUESTIONS AND SOLUTIONS
◉ Other (Additional) Insured Term Rider. Answer: Convertible term
insurance for spouse or immediate family member of primary
insured (spouse or children's rider), family rider covers both spouse
and children
◉ Long Term Care Rider. Answer: Advance of death benefits while
insured is living, can be used to pay for long term care expenses,
reduces death benefit payable upon death
◉ Accelerated Benefits Rider. Answer: Enables policyowner to apply
for an advance on death benefit during lifetime of insured, insured
must meet certain medical circumstances to be eligible
◉ Interest Income (Only) Settlement Option. Answer: Insurer
retains death benefit and pays stated amount of interest on money,
interest paid to beneficiary at regular intervals, death benefit paid at
later late
◉ Fixed Period Settlement Option. Answer: Pays both an amount of
principal and interest to the beneficiary over certain stated period of
time, if interest is greater than guaranteed rate the final payment
will be larger
,◉ Fixed Amount Settlement Option. Answer: Proceeds will be paid
in a fixed amount over time to beneficiary until both principal and
interest have been completely paid to beneficiary, beneficiary can
increase or decrease payment amount or change settlement plan
altogether, if interest greater than guaranteed rate the length of
payment period will be extended
◉ Life Income Settlement Option. Answer: Similar to annuity,
beneficiary guaranteed to receive an income for the rest of their life
and can be shared with another individual
- Life only - pay largest amount as long as they live, stops when they
die
- Life with period certain - chooses a payment period, if they die in
that period payments continue to be made to another person until
the period end
- Life with refund - total payments guaranteed to be death benefit
amount, payments continue to another person if death occurs before
benefits end
- Joint-and-survivor life - 2 beneficiaries will receive payments as
long as either lives, if one dies payment to other may be reduced
◉ Policy Loans. Answer: Policy loan provision- access cash value
without surrendering the policy, no credit check, lower interest rate,
any repayment plan, policy lapses when loan and interest exceed
cash value
, ◉ Automatic Premium Loan Provision. Answer: If insured fails to
pay policy premium by end of grace period, insurer will pay
premium with policy loan until the cash value falls below premium
amount, then policy will lapse
◉ Withdrawals/Partial Surrenders. Answer: Cannot be repaid,
reduction of cash value and cash amount, only allowed on universal
life, charges/fees apply
◉ Policy Dividends. Answer: Participating life policies, refund of
portion of premium, not guaranteed, not taxable
- life policies without dividends are nonparticipating
- difference between gross premium charged and actual experience
of insurer
- options - CARPPO
◉ CARPPO. Answer: Cash
Accumulate interest - left with insurer to earn interest
Reduced premium
Paid up additions - annual dividends used to purchase additional
amount of life insurance
Paid up insurance - applied to annual premium
PAPER SOLVED QUESTIONS AND SOLUTIONS
◉ Other (Additional) Insured Term Rider. Answer: Convertible term
insurance for spouse or immediate family member of primary
insured (spouse or children's rider), family rider covers both spouse
and children
◉ Long Term Care Rider. Answer: Advance of death benefits while
insured is living, can be used to pay for long term care expenses,
reduces death benefit payable upon death
◉ Accelerated Benefits Rider. Answer: Enables policyowner to apply
for an advance on death benefit during lifetime of insured, insured
must meet certain medical circumstances to be eligible
◉ Interest Income (Only) Settlement Option. Answer: Insurer
retains death benefit and pays stated amount of interest on money,
interest paid to beneficiary at regular intervals, death benefit paid at
later late
◉ Fixed Period Settlement Option. Answer: Pays both an amount of
principal and interest to the beneficiary over certain stated period of
time, if interest is greater than guaranteed rate the final payment
will be larger
,◉ Fixed Amount Settlement Option. Answer: Proceeds will be paid
in a fixed amount over time to beneficiary until both principal and
interest have been completely paid to beneficiary, beneficiary can
increase or decrease payment amount or change settlement plan
altogether, if interest greater than guaranteed rate the length of
payment period will be extended
◉ Life Income Settlement Option. Answer: Similar to annuity,
beneficiary guaranteed to receive an income for the rest of their life
and can be shared with another individual
- Life only - pay largest amount as long as they live, stops when they
die
- Life with period certain - chooses a payment period, if they die in
that period payments continue to be made to another person until
the period end
- Life with refund - total payments guaranteed to be death benefit
amount, payments continue to another person if death occurs before
benefits end
- Joint-and-survivor life - 2 beneficiaries will receive payments as
long as either lives, if one dies payment to other may be reduced
◉ Policy Loans. Answer: Policy loan provision- access cash value
without surrendering the policy, no credit check, lower interest rate,
any repayment plan, policy lapses when loan and interest exceed
cash value
, ◉ Automatic Premium Loan Provision. Answer: If insured fails to
pay policy premium by end of grace period, insurer will pay
premium with policy loan until the cash value falls below premium
amount, then policy will lapse
◉ Withdrawals/Partial Surrenders. Answer: Cannot be repaid,
reduction of cash value and cash amount, only allowed on universal
life, charges/fees apply
◉ Policy Dividends. Answer: Participating life policies, refund of
portion of premium, not guaranteed, not taxable
- life policies without dividends are nonparticipating
- difference between gross premium charged and actual experience
of insurer
- options - CARPPO
◉ CARPPO. Answer: Cash
Accumulate interest - left with insurer to earn interest
Reduced premium
Paid up additions - annual dividends used to purchase additional
amount of life insurance
Paid up insurance - applied to annual premium
