Colorado Life Insurance Final Exam
Questions and Guide Answers
100% Verified Graded A+
1. The life insurance rider that pays the face amount plus the total premiums
paid into the policy is known as
Answer: Return of premium
2. What kind of company can the Commissioner file a complaint to enjoin and
restrain from continuing violations of the insurance regulations of Colorado?-
Answer: Foreign or alien
3. Does a loan on the cash value of a life insurance policy accrue interest, and if
so, how is the interest handled?
Answer: Yes, the interest can be paid annually, or added to the loan.
4. What approach calculates the amount of money a family needs immediately
upon the death of the insured to pay for their expenses and basic necessities?-
,Answer: Needs
5. A decreasing term life policy would be the most appropriate for
Answer: A 41 year old lawyer who wants a policy to pay his mortgage if he dies (decreasing term life
generally is used as mortgage insurance)
6. A producer or business entity shall report to the Commissioner any admin-
istrative action taken against the producer within
Answer: 30 days
7. Richard is thinking about transferring some of the ownership rights of his
policy to his brother Randy. What term is used for this type of transfer?
Answer: Assign-ment
8. Jeff has limited financial resources, but finds himself in a position where he
needs a good deal of protection. A would probably best suit his
needs at this time.
Answer: Term policy
9. On November 5, Zoe fills out an application for a life policy. On November
6, the agent accepts the premium for the policy. The policy is delivered on
November 7. Which date does the Free Look period start?
Answer: November 7
10. Insurance producers must complete how many hours of continuing educa-
, tion each licensing period?
Answer: 24 hours
11. Jacob, James and Jonathan are triplets, and all applied for the same type of
insurance coverage at the same time. For James and Jonathan the rates were
the same. Jacob's rate was quite a bit higher. What is the most likely reason
for this difference?
Answer: Risk classification
12. If the cash values of an annuity are invested in securities, it is a
Answer: Variable annuity
13. If an agent were to publish literature that is false or maliciously critical
of another insurer calculated to injure a person engaged in the business of
insurance, the agent would be committing
Answer: Defamation
14. An agent has a fiduciary responsibility to all the following, EXCEPT
Answer: Other agents
15. Alex's life policy lapsed, which Nonforfeiture option would the insurer send
him the value of the policy?
Answer: Cash surrender
Questions and Guide Answers
100% Verified Graded A+
1. The life insurance rider that pays the face amount plus the total premiums
paid into the policy is known as
Answer: Return of premium
2. What kind of company can the Commissioner file a complaint to enjoin and
restrain from continuing violations of the insurance regulations of Colorado?-
Answer: Foreign or alien
3. Does a loan on the cash value of a life insurance policy accrue interest, and if
so, how is the interest handled?
Answer: Yes, the interest can be paid annually, or added to the loan.
4. What approach calculates the amount of money a family needs immediately
upon the death of the insured to pay for their expenses and basic necessities?-
,Answer: Needs
5. A decreasing term life policy would be the most appropriate for
Answer: A 41 year old lawyer who wants a policy to pay his mortgage if he dies (decreasing term life
generally is used as mortgage insurance)
6. A producer or business entity shall report to the Commissioner any admin-
istrative action taken against the producer within
Answer: 30 days
7. Richard is thinking about transferring some of the ownership rights of his
policy to his brother Randy. What term is used for this type of transfer?
Answer: Assign-ment
8. Jeff has limited financial resources, but finds himself in a position where he
needs a good deal of protection. A would probably best suit his
needs at this time.
Answer: Term policy
9. On November 5, Zoe fills out an application for a life policy. On November
6, the agent accepts the premium for the policy. The policy is delivered on
November 7. Which date does the Free Look period start?
Answer: November 7
10. Insurance producers must complete how many hours of continuing educa-
, tion each licensing period?
Answer: 24 hours
11. Jacob, James and Jonathan are triplets, and all applied for the same type of
insurance coverage at the same time. For James and Jonathan the rates were
the same. Jacob's rate was quite a bit higher. What is the most likely reason
for this difference?
Answer: Risk classification
12. If the cash values of an annuity are invested in securities, it is a
Answer: Variable annuity
13. If an agent were to publish literature that is false or maliciously critical
of another insurer calculated to injure a person engaged in the business of
insurance, the agent would be committing
Answer: Defamation
14. An agent has a fiduciary responsibility to all the following, EXCEPT
Answer: Other agents
15. Alex's life policy lapsed, which Nonforfeiture option would the insurer send
him the value of the policy?
Answer: Cash surrender
