Colorado Life Insurance Exam Study
Guide | Questions and Answers Rated A+ |
2025/2026 Guide
Jack and his wife Lyn just purchased a home with a 15-year mortgage.
Wanting to make sure that Lyn would be able to pay off the mortgage
balance in the event of Jack's death, Jack had a "temporary" need for
life insurance. What type of policy should Jack purchase?
a. Whole Life Insurance
b. Term Life Insurance
c. Variable Life Insurance
d. A Viatical Settlement - Correct Answer - Term Life Insurance
Which type of life insurance is considered to be more risky based on its
investment component?
a. Level Term Life Insurance
b. Whole Life Insurance
c. Decreasing Term Life Insurance
d. Variable Life Insurance - Correct Answer - Variable life insurance
John, who had a life insurance policy with a death benefit, died on
August 31st, after a long bout with cancer. He had been hospitalized for
, a month before his death. His wife contacted the insurance company to
file her claim for the death benefit on September 5th, after John's burial,
and after she had time to collect her emotions to deal with her personal
loss. The insurance agent filed the papers to process the claim with his
supervisor, and the death benefit was settled on October 30th. Were any
laws violated in this scenario?
a. No, the agent filed the paperwork within 30 days of the claim.
b. Yes, the claim was not settled within 30 days of the claim.
c. No, there are suspicions around the death of John.
d. Yes, the claim was not settled within 15 days of the claim. - Correct
Answer - Yes, the claim was not settled within 30 days of the claim.
Living benefits on a life insurance policy can be typically be accessed
via:
a. Lump sum
b. Regular installments
c. Loan
d. All of the above
e. Both a and b - Correct Answer - Both a and b
Contributory - Correct Answer - A group insurance plan that requires the
employees to pay part of the premium.
Non-contributory - Correct Answer - employer bears the entire cost
Guide | Questions and Answers Rated A+ |
2025/2026 Guide
Jack and his wife Lyn just purchased a home with a 15-year mortgage.
Wanting to make sure that Lyn would be able to pay off the mortgage
balance in the event of Jack's death, Jack had a "temporary" need for
life insurance. What type of policy should Jack purchase?
a. Whole Life Insurance
b. Term Life Insurance
c. Variable Life Insurance
d. A Viatical Settlement - Correct Answer - Term Life Insurance
Which type of life insurance is considered to be more risky based on its
investment component?
a. Level Term Life Insurance
b. Whole Life Insurance
c. Decreasing Term Life Insurance
d. Variable Life Insurance - Correct Answer - Variable life insurance
John, who had a life insurance policy with a death benefit, died on
August 31st, after a long bout with cancer. He had been hospitalized for
, a month before his death. His wife contacted the insurance company to
file her claim for the death benefit on September 5th, after John's burial,
and after she had time to collect her emotions to deal with her personal
loss. The insurance agent filed the papers to process the claim with his
supervisor, and the death benefit was settled on October 30th. Were any
laws violated in this scenario?
a. No, the agent filed the paperwork within 30 days of the claim.
b. Yes, the claim was not settled within 30 days of the claim.
c. No, there are suspicions around the death of John.
d. Yes, the claim was not settled within 15 days of the claim. - Correct
Answer - Yes, the claim was not settled within 30 days of the claim.
Living benefits on a life insurance policy can be typically be accessed
via:
a. Lump sum
b. Regular installments
c. Loan
d. All of the above
e. Both a and b - Correct Answer - Both a and b
Contributory - Correct Answer - A group insurance plan that requires the
employees to pay part of the premium.
Non-contributory - Correct Answer - employer bears the entire cost
