Colorado Life Insurance Exam |
Questions and Answers Graded A+
Latest 2025/2026
The policyowner pays for her life insurance annually. Until now, she has
collected a non taxable dividend check each year. She has decided that
she would rather use the dividends to help pay for her next premium.
What option would allow her to do this?
- Correct Answer - reduction of premium
An individual with a legal interest in the continued life of the insured
defines the principle known as
- Correct Answer - insurable interest
Reflecting a premium received as a business asset on the producer's
financial statement
Using balances in customer accounts as collateral for a loan to a
producer
Remitting a return premium to an insured 31 days after the producer
received it from the insurer - Correct Answer - fiduciary funds
A producer is subject to criminal prosecution in another jurisdiction.
Within what time frame must the producer report this fact to the
, Commissioner? - Correct Answer - within 30 days after the initial pre-trial
hearing
Under what circumstance will the proceeds payable under an
employee's group life be taken to pay to a creditor of the employee? -
Correct Answer - When the creditor is named as the beneficiary of the
proceeds by the insured employee
Who is responsible for giving the Notice to the replacing insurer in a
replacement life transaction? - Correct Answer - the producer
Who has the right to assign incidents of ownership under a group life
insurance policy? - Correct Answer - the individual insured
The Division of Insurance has requested information regarding an
insurer's underwriting policies via e-mail. How many days does the
insurer have to respond to this request? - Correct Answer - 20 days
Forcing a client to buy insurance from a particular lender as a condition
of granting a loan is defined as - Correct Answer - Coercion
Producers who wish to sell variable life insurance in this state must be
registered with what entity? - Correct Answer - FINRA
Questions and Answers Graded A+
Latest 2025/2026
The policyowner pays for her life insurance annually. Until now, she has
collected a non taxable dividend check each year. She has decided that
she would rather use the dividends to help pay for her next premium.
What option would allow her to do this?
- Correct Answer - reduction of premium
An individual with a legal interest in the continued life of the insured
defines the principle known as
- Correct Answer - insurable interest
Reflecting a premium received as a business asset on the producer's
financial statement
Using balances in customer accounts as collateral for a loan to a
producer
Remitting a return premium to an insured 31 days after the producer
received it from the insurer - Correct Answer - fiduciary funds
A producer is subject to criminal prosecution in another jurisdiction.
Within what time frame must the producer report this fact to the
, Commissioner? - Correct Answer - within 30 days after the initial pre-trial
hearing
Under what circumstance will the proceeds payable under an
employee's group life be taken to pay to a creditor of the employee? -
Correct Answer - When the creditor is named as the beneficiary of the
proceeds by the insured employee
Who is responsible for giving the Notice to the replacing insurer in a
replacement life transaction? - Correct Answer - the producer
Who has the right to assign incidents of ownership under a group life
insurance policy? - Correct Answer - the individual insured
The Division of Insurance has requested information regarding an
insurer's underwriting policies via e-mail. How many days does the
insurer have to respond to this request? - Correct Answer - 20 days
Forcing a client to buy insurance from a particular lender as a condition
of granting a loan is defined as - Correct Answer - Coercion
Producers who wish to sell variable life insurance in this state must be
registered with what entity? - Correct Answer - FINRA
