Colorado Life Insurance Exam | 130+
Questions and Verified Answers |
Graded A+ | 2025/2026 Guide
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?
- Correct Answer - Assignment
A producer or business entity shall report to the Commissioner any
administrative action taken against the producer within:
- Correct Answer - 30 days
A decreasing term life policy would be the most appropriate for:
- Correct Answer - a 41 year old who wants a policy to pay his mortgage
if he dies (decreasing term life generally is used as mortgage
insurance)***
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?
- Correct Answer - Needs
,Does a loan on the cash value of a life insurance policy accrue interest,
and if so, how is the interest handled?
- Correct Answer - Yes, the interest can be paid annually, or added to the
loan
What kind of company can the Commissioner file a complaint to enjoin
and restrain from continuing violations of the insurance regulations of
Colorado?
- Correct Answer - Foreign or Alien
The life insurance rider that pays the face amount plus the total
premiums paid into the policy is known as:
- Correct Answer - Return of Premium
P wants to name her husband as the beneficiary of her life policy.
However, she wishes to retain all of the rights of ownership. P should
have her husband named as the:
- Correct Answer - Revocable Beneficiary
A contract that has as its basic function the systematic liquidation of
accumulated assets through periodic payments is called an:
- Correct Answer - Annuity
, An insurance producer takes an application for a life insurance policy but
does not collect the initial premium. On delivery of the policy to the
proposed insured, the producer must collect the initial premium and
which of the following?
- Correct Answer - the insured's signed statement of continued good
health
An employer can deduct premium payments as an ordinary business
expense for which of the following life coverages?
- Correct Answer - Group
A producer takes applications from identical twins who want to buy the
same type of policy in the same amount. The insurer issues the policies
as applied for, but charges a 25 percent higher premium for one of the
policies. The difference in premiums is probably due to which of the
following factors?
- Correct Answer - Risk Classification
In the event of an insured's death, which of the following provides an
income for the family during a designated period of time followed by a
lump sum death benefit?
- Correct Answer - Family Income Rider
Which of the following statements is CORRECT about Group Life
conversion privileges?
Questions and Verified Answers |
Graded A+ | 2025/2026 Guide
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?
- Correct Answer - Assignment
A producer or business entity shall report to the Commissioner any
administrative action taken against the producer within:
- Correct Answer - 30 days
A decreasing term life policy would be the most appropriate for:
- Correct Answer - a 41 year old who wants a policy to pay his mortgage
if he dies (decreasing term life generally is used as mortgage
insurance)***
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?
- Correct Answer - Needs
,Does a loan on the cash value of a life insurance policy accrue interest,
and if so, how is the interest handled?
- Correct Answer - Yes, the interest can be paid annually, or added to the
loan
What kind of company can the Commissioner file a complaint to enjoin
and restrain from continuing violations of the insurance regulations of
Colorado?
- Correct Answer - Foreign or Alien
The life insurance rider that pays the face amount plus the total
premiums paid into the policy is known as:
- Correct Answer - Return of Premium
P wants to name her husband as the beneficiary of her life policy.
However, she wishes to retain all of the rights of ownership. P should
have her husband named as the:
- Correct Answer - Revocable Beneficiary
A contract that has as its basic function the systematic liquidation of
accumulated assets through periodic payments is called an:
- Correct Answer - Annuity
, An insurance producer takes an application for a life insurance policy but
does not collect the initial premium. On delivery of the policy to the
proposed insured, the producer must collect the initial premium and
which of the following?
- Correct Answer - the insured's signed statement of continued good
health
An employer can deduct premium payments as an ordinary business
expense for which of the following life coverages?
- Correct Answer - Group
A producer takes applications from identical twins who want to buy the
same type of policy in the same amount. The insurer issues the policies
as applied for, but charges a 25 percent higher premium for one of the
policies. The difference in premiums is probably due to which of the
following factors?
- Correct Answer - Risk Classification
In the event of an insured's death, which of the following provides an
income for the family during a designated period of time followed by a
lump sum death benefit?
- Correct Answer - Family Income Rider
Which of the following statements is CORRECT about Group Life
conversion privileges?
