Colorado Life Insurance Final Exam /95 Questions with Complete Answers

The life insurance rider that pays the face amount plus the total premiums paid into the policy is known as: - Return of premium What kind of company can the Commissioner file a complaint to enjoin and restrain from continuing violations of the insurance regulations of Colorado? - Foreign or alien Does a loan on the cash value of a life insurance policy accrue interest, and if so, how is the interest handled? - Yes, the interest can be paid annually, or added to the loan. 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? - Needs A decreasing term life policy would be the most appropriate for: - 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) A producer or business entity shall report to the Commissioner any administrative action taken against the producer within: - 30 days 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? - Assignment 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. - Term policy 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? - November 7 Insurance producers must complete how many hours of continuing education each licensing period? - 24 hours 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? - Risk classification If the cash values of an annuity are invested in securities, it is a: - Variable annuity 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: - Defamation An agent has a fiduciary responsibility to all the following, EXCEPT: - Other agents Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the policy? - Cash surrender Investment risk is completely taken by the policyowner is what type policy? - Variable universal life