Colorado Life Insurance Exam
Questions and Guide Answers
100% Verified Graded A+
1. A group life insurance policyholder must be given how long a grace period
for premium payment?
A) 14 days
B) 15 days
C) 30 days
D) 31 days
Answer: D) 31 Days
2. An individual who recruits agents to sell insurance within a certain geo-
graphical area is
A) a broker
B) a general agent
C) a special agent
D) a career agent
, Answer: B) a general agent
3. Ben is considering the purchase of a $75,000 whole life policy. Which of the
following options would tend to lower his premiums?
A) The waiver of premium option
B) Paying premiums annually as opposed to monthly
C) The addition of a cost-of-living rider
D) The addition of a guaranteed insurability rider
Answer: B) Paying premiums annually as opposed to monthly
4. An insurance company that pays dividends from a source other than profits
is:
A) guilty of coercion.
B) subject to a maximum fine of $1,000.
C) subject to a maximum fine of $10,000.
D) guilty of rebating.
Answer: B) subject to a maximum fine of $1,000.
5. Which of the following is a required provision in all individual life insurance
policies?
A) Reinstatement
,B) Conversion
C) Open enrollment
D) Notice of claim
Answer:A) Reinstatement
6. ERISA was enacted to
A) provide tax incentives to employers
B) protect the interests of participants in employee benefit and health plans
C) protect the interests of employers in defined pension plans D) distribute
Social Security benefits
Answer: B) protect the interests of participants in employee benefit and health plans
7. All of the following insurance practices are illegal in Colorado EXCEPT
A) soliciting or procuring insurance without a license.
B) replacing one life insurance policy with another.
C) paying a fee for services as an insurance producer to anyone who is not
properly licensed.
D) inquiring about an applicant's sexual orientation in connection with an
application.
Answer: B) replacing one life insurance policy with another.
, 8. What action will an insurer take if it learns that a deceased life insurance
policyholder was actually older than the insurer had believed?
A) The insurer cannot take any action.
B) The face amount will be lowered to reflect the proper amount based on the
correct age.
C) The face amount will be paid to the beneficiary and the employer will be
required to pay the additional premiums owed.
D) The face amount will be increased to reflect the proper amount based on the
correct age.
Answer: B) The face amount will be lowered to reflect the proper amount based on the correct age
9. With individual life insurance, all of the following would factor into the
premium rate EXCEPT
A) the insurer's reserves
B) the insurer's expenses
C) the applicant's mortality
D) the insurer's interest earnings
Answer:A) the insurer's reserves
10. How can an insured access all or a portion of a life insurance benefit to pay
for a long-term illness or life-threatening disease?
Questions and Guide Answers
100% Verified Graded A+
1. A group life insurance policyholder must be given how long a grace period
for premium payment?
A) 14 days
B) 15 days
C) 30 days
D) 31 days
Answer: D) 31 Days
2. An individual who recruits agents to sell insurance within a certain geo-
graphical area is
A) a broker
B) a general agent
C) a special agent
D) a career agent
, Answer: B) a general agent
3. Ben is considering the purchase of a $75,000 whole life policy. Which of the
following options would tend to lower his premiums?
A) The waiver of premium option
B) Paying premiums annually as opposed to monthly
C) The addition of a cost-of-living rider
D) The addition of a guaranteed insurability rider
Answer: B) Paying premiums annually as opposed to monthly
4. An insurance company that pays dividends from a source other than profits
is:
A) guilty of coercion.
B) subject to a maximum fine of $1,000.
C) subject to a maximum fine of $10,000.
D) guilty of rebating.
Answer: B) subject to a maximum fine of $1,000.
5. Which of the following is a required provision in all individual life insurance
policies?
A) Reinstatement
,B) Conversion
C) Open enrollment
D) Notice of claim
Answer:A) Reinstatement
6. ERISA was enacted to
A) provide tax incentives to employers
B) protect the interests of participants in employee benefit and health plans
C) protect the interests of employers in defined pension plans D) distribute
Social Security benefits
Answer: B) protect the interests of participants in employee benefit and health plans
7. All of the following insurance practices are illegal in Colorado EXCEPT
A) soliciting or procuring insurance without a license.
B) replacing one life insurance policy with another.
C) paying a fee for services as an insurance producer to anyone who is not
properly licensed.
D) inquiring about an applicant's sexual orientation in connection with an
application.
Answer: B) replacing one life insurance policy with another.
, 8. What action will an insurer take if it learns that a deceased life insurance
policyholder was actually older than the insurer had believed?
A) The insurer cannot take any action.
B) The face amount will be lowered to reflect the proper amount based on the
correct age.
C) The face amount will be paid to the beneficiary and the employer will be
required to pay the additional premiums owed.
D) The face amount will be increased to reflect the proper amount based on the
correct age.
Answer: B) The face amount will be lowered to reflect the proper amount based on the correct age
9. With individual life insurance, all of the following would factor into the
premium rate EXCEPT
A) the insurer's reserves
B) the insurer's expenses
C) the applicant's mortality
D) the insurer's interest earnings
Answer:A) the insurer's reserves
10. How can an insured access all or a portion of a life insurance benefit to pay
for a long-term illness or life-threatening disease?
