COLORADO LIFE INSURANCE EXAMINATION TEST
QUESTIONS AND ANSWERS 2025/2026
✔✔A policyowner names his wife as the primary beneficiary of his Universal Life policy
on a revocable basis. He also names his three children as his secondary beneficiaries
and his estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and
then he dies, who will receive the policy proceeds?
A.The children
B.The policyowner's estate
C.The primary beneficiary's estate
D.The tertiary beneficiary - ✔✔A
✔✔Which of the following terms refers to the transfer of some or all of the ownership
rights of a life insurance policy from one individual to another?
A.Nonforfeiture
B.Endorsement
C.Transfer for value
D.Assignment - ✔✔D
✔✔The PRIMARY reason for selecting a Variable Whole Life policy instead of a
traditional Whole Life policy is that the Variable Whole Life policy:
A.provides flexible premium payments
B.allows the policyowner to borrow a larger percentage of the cash value
C.has the potential to earn a higher rate of return on the cash value
D.allows the policyowner more flexibility in naming and changing beneficiaries - ✔✔C
✔✔Which of the following statements about a Renewable Term policy is CORRECT?
A.It is renewable at the option of the insurer.
B.It is renewable at the option of the insured.
C.It is renewable at the option of the insurer, with proof of insurability.
D.It is renewable at the option of the insured, with proof of insurability. - ✔✔B
, ✔✔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?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
C.A copy of the conditional receipt
D.A copy of the temporary insurance agreement that covered the period between the
application date and the delivery date. - ✔✔B
✔✔Which of the following annuities would BEST suit the needs of a 35-year-old factory
worker who is concerned about inflation and wants to establish a retirement plan?
A.A Single Premium Deferred Annuity
B.A Single Premium Immediate Annuity
C.A Level Premium Fixed Annuity
D.A Flexible Premium Variable Annuity - ✔✔D
✔✔Under the Social Security Retirement Benefits, all of the following factors will
influence how much a retiring individual will receive as a monthly income benefit
EXCEPT the individual's:
A.age
B."primary insurance amount"
C."fully insured" or "currently insured" status
D.sex - ✔✔D
✔✔In life insurance, the Free Look provision begins on the:
A.effective date of coverage
B.policy delivery date
C.date of application
D.date that the insurer issues the policy - ✔✔B
✔✔If an applicant for life insurance submits a completed application to a producer
without paying the first premium, coverage becomes effective when the:
A.producer accepts the application
QUESTIONS AND ANSWERS 2025/2026
✔✔A policyowner names his wife as the primary beneficiary of his Universal Life policy
on a revocable basis. He also names his three children as his secondary beneficiaries
and his estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and
then he dies, who will receive the policy proceeds?
A.The children
B.The policyowner's estate
C.The primary beneficiary's estate
D.The tertiary beneficiary - ✔✔A
✔✔Which of the following terms refers to the transfer of some or all of the ownership
rights of a life insurance policy from one individual to another?
A.Nonforfeiture
B.Endorsement
C.Transfer for value
D.Assignment - ✔✔D
✔✔The PRIMARY reason for selecting a Variable Whole Life policy instead of a
traditional Whole Life policy is that the Variable Whole Life policy:
A.provides flexible premium payments
B.allows the policyowner to borrow a larger percentage of the cash value
C.has the potential to earn a higher rate of return on the cash value
D.allows the policyowner more flexibility in naming and changing beneficiaries - ✔✔C
✔✔Which of the following statements about a Renewable Term policy is CORRECT?
A.It is renewable at the option of the insurer.
B.It is renewable at the option of the insured.
C.It is renewable at the option of the insurer, with proof of insurability.
D.It is renewable at the option of the insured, with proof of insurability. - ✔✔B
, ✔✔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?
A.A copy of the MIB report
B.The insured's signed statement of continued good health
C.A copy of the conditional receipt
D.A copy of the temporary insurance agreement that covered the period between the
application date and the delivery date. - ✔✔B
✔✔Which of the following annuities would BEST suit the needs of a 35-year-old factory
worker who is concerned about inflation and wants to establish a retirement plan?
A.A Single Premium Deferred Annuity
B.A Single Premium Immediate Annuity
C.A Level Premium Fixed Annuity
D.A Flexible Premium Variable Annuity - ✔✔D
✔✔Under the Social Security Retirement Benefits, all of the following factors will
influence how much a retiring individual will receive as a monthly income benefit
EXCEPT the individual's:
A.age
B."primary insurance amount"
C."fully insured" or "currently insured" status
D.sex - ✔✔D
✔✔In life insurance, the Free Look provision begins on the:
A.effective date of coverage
B.policy delivery date
C.date of application
D.date that the insurer issues the policy - ✔✔B
✔✔If an applicant for life insurance submits a completed application to a producer
without paying the first premium, coverage becomes effective when the:
A.producer accepts the application
