COLORADO LIFE INSURANCE FINAL
EXAM 2026 POLICY SCRIPT SOLVED
QUESTIONS VERIFIED ANSWERS A+
◉ The minimum interest rate on an equity indexed annuity is often
based on Answer: An index like Standard & Poor's 500.
◉ 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. Answer: decreasing term policy
◉ What may last for the lifetime of the annuitant. Answer: annuity
period
◉ The paid-up addition option uses the dividend Answer: To purchase a
smaller amount of the same type of insurance as the original policy.
◉ The employer pays 100% of the premiums.
They help to reduce adverse selection against the insurer.
They require 100% employee participation. Answer: noncontributory
group plan
◉ 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
◉ 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.
◉ 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? Answer: A policy
summary
◉ 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
◉ Methods used to pay the death benefits to a beneficiary upon the
insured's death are called Answer: Settlement Options
◉ It transfers rights of ownership from the owner to another person.
Answer: policy assignment
◉ 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? Answer: The Producer
EXAM 2026 POLICY SCRIPT SOLVED
QUESTIONS VERIFIED ANSWERS A+
◉ The minimum interest rate on an equity indexed annuity is often
based on Answer: An index like Standard & Poor's 500.
◉ 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. Answer: decreasing term policy
◉ What may last for the lifetime of the annuitant. Answer: annuity
period
◉ The paid-up addition option uses the dividend Answer: To purchase a
smaller amount of the same type of insurance as the original policy.
◉ The employer pays 100% of the premiums.
They help to reduce adverse selection against the insurer.
They require 100% employee participation. Answer: noncontributory
group plan
◉ 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
◉ 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.
◉ 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? Answer: A policy
summary
◉ 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
◉ Methods used to pay the death benefits to a beneficiary upon the
insured's death are called Answer: Settlement Options
◉ It transfers rights of ownership from the owner to another person.
Answer: policy assignment
◉ 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? Answer: The Producer
