COLORADO LIFE INSURANCE FINAL EXAM
QUESTIONS WITH VERIFIED ANSWERS 2026 |
Study Guide | A+
• accelerated benefits. CORRECT ANSWER: Riders attached to life insurance policies
which allow death benefits to be used to cover nursing or convalescent home expenses.
• accidental death benefits. CORRECT ANSWER: A policy rider that states that the
cause of death will be analyzed to determine if it complies with the policy description of
accidental death.
• accidental death insurance. CORRECT ANSWER: An insurance policy that provides
payment if the insured's death is the result of an accident.
• Accumulation Period. CORRECT ANSWER: The time before an annuitant's retirement
during which the annuitant is making payments or investments in an annuity.
• actual cash value ACV. CORRECT ANSWER: The required amount to pay damages
or for property loss, which is calculated based on the property's current replacement
value minus depreciation.
• Adhesion. CORRECT ANSWER: A contract offered on a take-it-or-leave-it basis by an
insurer, in which the insured's only option is to either accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured.
• Adjustable Life. CORRECT ANSWER: Life insurance which permits changes in the
face amount, premium amount, period of protection, and the duration of the premium
payment period.
• Adjuster. CORRECT ANSWER: A representative of an insurance company who
investigates and acts on the behalf of the company to obtain agreements for the amount
of the insurance claim.
• administrator. CORRECT ANSWER: an individual appointed by a court as a fiduciary
to settle the financial affairs an estate of a deceased person
• Admitted (authorized) insurer. CORRECT ANSWER: An insurance company
authorized and licensed to transact business in a particular state.
• adverse selection. CORRECT ANSWER: the tendency of risks with higher probability
of loss to purchase and maintain Insurance more often than the risk Who present lower
probability
• agency. CORRECT ANSWER: an insurance sales office or company
, • Agent. CORRECT ANSWER: an individual who is licensed to sell, negotiate, or affect
insurance contracts on behalf of the insurer
• agent appointment. CORRECT ANSWER: the authorization of an agent to act for or
represent an insurer
• Agent's Authority. CORRECT ANSWER: Special powers granted to an agent by his or
her agency contract.
• Aleatory Contract. CORRECT ANSWER: a contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will pay in the event of
a loss.
• Alien Insurer. CORRECT ANSWER: An insurance company that is incorporated
outside the United States.
• annual statement. CORRECT ANSWER: A detailed financial report that an insurance
company must submit every year to the insurance department of state(s) in which it
conducts business.
• annuity. CORRECT ANSWER: a contract that provides income for a specified period
of years, or for life.
• Apparent Authority. CORRECT ANSWER: The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because of
circumstances the principal created.
• applicant. CORRECT ANSWER: a person making application for, or offering himself,
herself or another to be insured under an insurance contract.
• application. CORRECT ANSWER: a document that provides information for
underwriting purposes. After the policy is issued, any unanswered questions are
considered waived by the insurer.
• assignment. CORRECT ANSWER: the transfer of ownership rights of a life insurance
policy from one person to another.
• Attained Age. CORRECT ANSWER: The age of the insured at a determined date.
• attending physician statement APS. CORRECT ANSWER: A statement usually
obtained from the applicant's doctor.
• authorized (admitted) insurer. CORRECT ANSWER: An insurance company
authorized and licensed to transact business in a particular state.
QUESTIONS WITH VERIFIED ANSWERS 2026 |
Study Guide | A+
• accelerated benefits. CORRECT ANSWER: Riders attached to life insurance policies
which allow death benefits to be used to cover nursing or convalescent home expenses.
• accidental death benefits. CORRECT ANSWER: A policy rider that states that the
cause of death will be analyzed to determine if it complies with the policy description of
accidental death.
• accidental death insurance. CORRECT ANSWER: An insurance policy that provides
payment if the insured's death is the result of an accident.
• Accumulation Period. CORRECT ANSWER: The time before an annuitant's retirement
during which the annuitant is making payments or investments in an annuity.
• actual cash value ACV. CORRECT ANSWER: The required amount to pay damages
or for property loss, which is calculated based on the property's current replacement
value minus depreciation.
• Adhesion. CORRECT ANSWER: A contract offered on a take-it-or-leave-it basis by an
insurer, in which the insured's only option is to either accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured.
• Adjustable Life. CORRECT ANSWER: Life insurance which permits changes in the
face amount, premium amount, period of protection, and the duration of the premium
payment period.
• Adjuster. CORRECT ANSWER: A representative of an insurance company who
investigates and acts on the behalf of the company to obtain agreements for the amount
of the insurance claim.
• administrator. CORRECT ANSWER: an individual appointed by a court as a fiduciary
to settle the financial affairs an estate of a deceased person
• Admitted (authorized) insurer. CORRECT ANSWER: An insurance company
authorized and licensed to transact business in a particular state.
• adverse selection. CORRECT ANSWER: the tendency of risks with higher probability
of loss to purchase and maintain Insurance more often than the risk Who present lower
probability
• agency. CORRECT ANSWER: an insurance sales office or company
, • Agent. CORRECT ANSWER: an individual who is licensed to sell, negotiate, or affect
insurance contracts on behalf of the insurer
• agent appointment. CORRECT ANSWER: the authorization of an agent to act for or
represent an insurer
• Agent's Authority. CORRECT ANSWER: Special powers granted to an agent by his or
her agency contract.
• Aleatory Contract. CORRECT ANSWER: a contract in which participating parties
exchange unequal amounts. Insurance contracts are aleatory in that the amount the
insured will pay in premiums is unequal to the amount the insurer will pay in the event of
a loss.
• Alien Insurer. CORRECT ANSWER: An insurance company that is incorporated
outside the United States.
• annual statement. CORRECT ANSWER: A detailed financial report that an insurance
company must submit every year to the insurance department of state(s) in which it
conducts business.
• annuity. CORRECT ANSWER: a contract that provides income for a specified period
of years, or for life.
• Apparent Authority. CORRECT ANSWER: The appearance or the assumption of
authority based on the actions, words, or deeds of the principal or because of
circumstances the principal created.
• applicant. CORRECT ANSWER: a person making application for, or offering himself,
herself or another to be insured under an insurance contract.
• application. CORRECT ANSWER: a document that provides information for
underwriting purposes. After the policy is issued, any unanswered questions are
considered waived by the insurer.
• assignment. CORRECT ANSWER: the transfer of ownership rights of a life insurance
policy from one person to another.
• Attained Age. CORRECT ANSWER: The age of the insured at a determined date.
• attending physician statement APS. CORRECT ANSWER: A statement usually
obtained from the applicant's doctor.
• authorized (admitted) insurer. CORRECT ANSWER: An insurance company
authorized and licensed to transact business in a particular state.
