2024 COLORADO LIFE INSURANCE EXAM (A,B,C)
WITH 200+ QUESTIONS & CORRECT ANSWERS
A
The life insurance rider that pays the face amount plus the total premiums paid into
the policy is known as: - ANSWER-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? -
ANSWER-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? - ANSWER-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? -
ANSWER-Needs
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)
A producer or business entity shall report to the Commissioner any administrative
action taken against the producer within: - ANSWER-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? - ANSWER-
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. - ANSWER-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? - ANSWER-November 7
Insurance producers must complete how many hours of continuing education each
licensing period? - ANSWER-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? - ANSWER-Risk classification
If the cash values of an annuity are invested in securities, it is a: - ANSWER-
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: - ANSWER-Defamation
An agent has a fiduciary responsibility to all the following, EXCEPT: - ANSWER-
Other agents
,Alex's life policy lapsed, which Nonforfeiture option would the insurer send him
the value of the policy? - ANSWER-Cash surrender
Investment risk is completely taken by the policyowner is what type policy? -
ANSWER-Variable universal life
Jennifer made an additional premium payment on her Adjustable Life policy.
Which of the following is not a way that her policy is affected by this payment? -
ANSWER-The value of nonforfeiture options may decrease.
What type group plan requires 75% participation? - ANSWER-Contributory
If more than one beneficiary is named, who is the first in line? - ANSWER-
Primary
Application - ANSWER-In life insurance, insurable interest must be present at the
time of:
Over-funded life insurance policies where the proceeds are subject to taxation are
called: - ANSWER-MECs (Modified Endowment Contracts)
After what policy year of any life insurance policy, can suicide of the policyowner
not be used as defense against the payment of benefits? - ANSWER-First
In Colorado, what is the minimum number of individuals a group life policy will
cover? - ANSWER-3 individuals
, Which of the following is a duty of the Commissioner? - ANSWER-Examining
applications and issuing certificates of authority to insurance companies to transact
insurance business
Dylan is looking at buying an equity-indexed life policy; it will likely be tied to: -
ANSWER-Dow Jones Industrial Average.
Who has the right to change the beneficiary on a life policy? - ANSWER-The
policyowner
What guarantees Jason the right to question the source and validity of consumer
information used to rate a policy? - ANSWER-Fair Credit Reporting Act
If an applicant states their age is 30 on an application for life insurance, when they
were actually 37, what is the insurer likely to do? - ANSWER-Pay the death
benefit based on the applicant's actual age.
Which of the following must happen before an HIV test is performed on an
applicant? - ANSWER-A consent form must be signed by the applicant prior to the
test.
Which rider on Diane's life policy will help her out when she is confined to a
nursing home with a terminal illness? - ANSWER-Accelerated benefit rider
Life insurance death benefits that can be accessed tax-free when the insured is still
alive are called: - ANSWER-Accelerated benefits
Which of the following would NOT be considered unfair discrimination? -
ANSWER-Discrimination abased on occupation
WITH 200+ QUESTIONS & CORRECT ANSWERS
A
The life insurance rider that pays the face amount plus the total premiums paid into
the policy is known as: - ANSWER-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? -
ANSWER-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? - ANSWER-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? -
ANSWER-Needs
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)
A producer or business entity shall report to the Commissioner any administrative
action taken against the producer within: - ANSWER-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? - ANSWER-
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. - ANSWER-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? - ANSWER-November 7
Insurance producers must complete how many hours of continuing education each
licensing period? - ANSWER-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? - ANSWER-Risk classification
If the cash values of an annuity are invested in securities, it is a: - ANSWER-
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: - ANSWER-Defamation
An agent has a fiduciary responsibility to all the following, EXCEPT: - ANSWER-
Other agents
,Alex's life policy lapsed, which Nonforfeiture option would the insurer send him
the value of the policy? - ANSWER-Cash surrender
Investment risk is completely taken by the policyowner is what type policy? -
ANSWER-Variable universal life
Jennifer made an additional premium payment on her Adjustable Life policy.
Which of the following is not a way that her policy is affected by this payment? -
ANSWER-The value of nonforfeiture options may decrease.
What type group plan requires 75% participation? - ANSWER-Contributory
If more than one beneficiary is named, who is the first in line? - ANSWER-
Primary
Application - ANSWER-In life insurance, insurable interest must be present at the
time of:
Over-funded life insurance policies where the proceeds are subject to taxation are
called: - ANSWER-MECs (Modified Endowment Contracts)
After what policy year of any life insurance policy, can suicide of the policyowner
not be used as defense against the payment of benefits? - ANSWER-First
In Colorado, what is the minimum number of individuals a group life policy will
cover? - ANSWER-3 individuals
, Which of the following is a duty of the Commissioner? - ANSWER-Examining
applications and issuing certificates of authority to insurance companies to transact
insurance business
Dylan is looking at buying an equity-indexed life policy; it will likely be tied to: -
ANSWER-Dow Jones Industrial Average.
Who has the right to change the beneficiary on a life policy? - ANSWER-The
policyowner
What guarantees Jason the right to question the source and validity of consumer
information used to rate a policy? - ANSWER-Fair Credit Reporting Act
If an applicant states their age is 30 on an application for life insurance, when they
were actually 37, what is the insurer likely to do? - ANSWER-Pay the death
benefit based on the applicant's actual age.
Which of the following must happen before an HIV test is performed on an
applicant? - ANSWER-A consent form must be signed by the applicant prior to the
test.
Which rider on Diane's life policy will help her out when she is confined to a
nursing home with a terminal illness? - ANSWER-Accelerated benefit rider
Life insurance death benefits that can be accessed tax-free when the insured is still
alive are called: - ANSWER-Accelerated benefits
Which of the following would NOT be considered unfair discrimination? -
ANSWER-Discrimination abased on occupation
