COLORADO LIFE INSURANCE REVISION EXAMS QUESTIONS
AND ANSWERS 2025/2026
✔✔Agent's Authority - ✔✔Special powers granted to an agent by his or her agency
contract.
✔✔Aleatory Contract - ✔✔a contract in which participating parties exchange unequal
amounts. Insurance contracts are aleatory in that the amount the insured will pay in
premiums is unequal to the amount the insurer will pay in the event of a loss.
✔✔Alien Insurer - ✔✔An insurance company that is incorporated outside the United
States.
✔✔annual statement - ✔✔A detailed financial report that an insurance company must
submit every year to the insurance department of state(s) in which it conducts business.
✔✔annuity - ✔✔a contract that provides income for a specified period of years, or for
life.
✔✔Apparent Authority - ✔✔The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
✔✔applicant - ✔✔a person making application for, or offering himself, herself or another
to be insured under an insurance contract.
✔✔application - ✔✔a document that provides information for underwriting purposes.
After the policy is issued, any unanswered questions are considered waived by the
insurer.
✔✔assignment - ✔✔the transfer of ownership rights of a life insurance policy from one
person to another.
✔✔Attained Age - ✔✔The age of the insured at a determined date.
✔✔attending physician statement APS - ✔✔A statement usually obtained from the
applicant's doctor.
✔✔authorized (admitted) insurer - ✔✔An insurance company authorized and licensed
to transact business in a particular state.
✔✔Avoidance - ✔✔a method of dealing with Risk by deliberately keeping away from it
(E.G. if a person wanted to avoid the risk of being killed in an airplane crash, he or she
might choose to never fly in a plane).
, ✔✔basic illustration - ✔✔A ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements.
✔✔beneficiary - ✔✔the person who receives the proceeds from the policy when the
insured dies.
✔✔Birthday rule - ✔✔The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar year
is designated as primary.
✔✔Broker - ✔✔an individual who represents an insured in the process of purchasing
and negotiating a contract of insurance.
✔✔buy-sell agreement - ✔✔A legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled.
✔✔Buyer's Guide - ✔✔A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
✔✔cash value - ✔✔the amount to which a policy owner is entitled if the policy is
surrendered before maturity.
✔✔certificate - ✔✔a statement or booklet that confirms that a policy has been written
and that describes the coverage in general.
✔✔certificate of authority - ✔✔a document that authorizes a company to start
conducting business and specifies the kind or kinds of insurance a company can
transact. It is illegal for an insurance company to transact insurance without this
certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔a request for payment of the benefits provided by an insurance contract.
✔✔coercion - ✔✔an unfair trade practice in which an agent uses physical or mental
force with the intent of inducing an applicant to purchase insurance.
✔✔co-insurance clause - ✔✔a provision that states that the insurer and the insured will
share the losses covered by the policy in a proportion agreed upon in advance.
AND ANSWERS 2025/2026
✔✔Agent's Authority - ✔✔Special powers granted to an agent by his or her agency
contract.
✔✔Aleatory Contract - ✔✔a contract in which participating parties exchange unequal
amounts. Insurance contracts are aleatory in that the amount the insured will pay in
premiums is unequal to the amount the insurer will pay in the event of a loss.
✔✔Alien Insurer - ✔✔An insurance company that is incorporated outside the United
States.
✔✔annual statement - ✔✔A detailed financial report that an insurance company must
submit every year to the insurance department of state(s) in which it conducts business.
✔✔annuity - ✔✔a contract that provides income for a specified period of years, or for
life.
✔✔Apparent Authority - ✔✔The appearance or the assumption of authority based on
the actions, words, or deeds of the principal or because of circumstances the principal
created.
✔✔applicant - ✔✔a person making application for, or offering himself, herself or another
to be insured under an insurance contract.
✔✔application - ✔✔a document that provides information for underwriting purposes.
After the policy is issued, any unanswered questions are considered waived by the
insurer.
✔✔assignment - ✔✔the transfer of ownership rights of a life insurance policy from one
person to another.
✔✔Attained Age - ✔✔The age of the insured at a determined date.
✔✔attending physician statement APS - ✔✔A statement usually obtained from the
applicant's doctor.
✔✔authorized (admitted) insurer - ✔✔An insurance company authorized and licensed
to transact business in a particular state.
✔✔Avoidance - ✔✔a method of dealing with Risk by deliberately keeping away from it
(E.G. if a person wanted to avoid the risk of being killed in an airplane crash, he or she
might choose to never fly in a plane).
, ✔✔basic illustration - ✔✔A ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements.
✔✔beneficiary - ✔✔the person who receives the proceeds from the policy when the
insured dies.
✔✔Birthday rule - ✔✔The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar year
is designated as primary.
✔✔Broker - ✔✔an individual who represents an insured in the process of purchasing
and negotiating a contract of insurance.
✔✔buy-sell agreement - ✔✔A legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled.
✔✔Buyer's Guide - ✔✔A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
✔✔cash value - ✔✔the amount to which a policy owner is entitled if the policy is
surrendered before maturity.
✔✔certificate - ✔✔a statement or booklet that confirms that a policy has been written
and that describes the coverage in general.
✔✔certificate of authority - ✔✔a document that authorizes a company to start
conducting business and specifies the kind or kinds of insurance a company can
transact. It is illegal for an insurance company to transact insurance without this
certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔a request for payment of the benefits provided by an insurance contract.
✔✔coercion - ✔✔an unfair trade practice in which an agent uses physical or mental
force with the intent of inducing an applicant to purchase insurance.
✔✔co-insurance clause - ✔✔a provision that states that the insurer and the insured will
share the losses covered by the policy in a proportion agreed upon in advance.
