COLORADO LIFE INSURANCE TEST PAPER EXAMS
QUESTIONS AND ANSWERS 2025/2026
✔✔Insurance contracts are known as _____ because certain future conditions or acts
must occur before any claims can be paid. - ✔✔Conditional
✔✔What requires an offer, acceptance, and consideration? - ✔✔Contract
✔✔The Consideration clause of an insurance contract includes: - ✔✔the schedule and
amount of premium payments
✔✔Stranger Originated Life Insurance (STOLI) has been found to be in violation of what
contractual element? - ✔✔Legal Purpose (Insurable Interest)
✔✔In regards to representations or warranties, what statement is TRUE? - ✔✔If
material to risk, false representations will void a policy.
✔✔What is the consideration given by an insurer in the Consideration clause of a life
policy? - ✔✔Promise to pay a death benefit to a named beneficiary.
✔✔Statements made on an insurance application that are believed to be true to the
best of the applicant's knowledge are called: - ✔✔representations
✔✔When must insurable interest exist for a contract to be valid? - ✔✔At Inception of the
Contract
✔✔Insurance policies are offered on a "take it or leave it" basis, which make them: -
✔✔Contracts of Adhesion
✔✔Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - ✔✔Principal
✔✔T has a term policy that allows him to continue the coverage after expiration of the
initial policy period. What type of term coverage is this? - ✔✔Renewable
✔✔Which policy requires an agent to register with the National Association Securities
Dealers (NASD) before selling? - ✔✔Variable Life
, ✔✔What kind of life insurance starts out as temporary coverage but can be later
modified to permanent coverage without evidence of insurability? - ✔✔Convertible Term
✔✔The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is: - ✔✔The Cost
✔✔Which of these is an element of a Variable Life policy? - ✔✔A fixed, level premium.
✔✔Which statement about a whole life policy is true? - ✔✔Cash value may be borrowed
against
✔✔An architecture firm would stand to lose a lot of money in the event of the death of
its project manager. Which type of policy should the firm purchase on its project
manager? - ✔✔Key Person Insurance
✔✔What type of insurance offers permanent life coverage with premiums that are
payable for life? - ✔✔Whole Life
✔✔A(n) ______ _______ Life policy combines investment choices with a form of Term
coverage. - ✔✔Variable Universal
✔✔Which of the following policies is characterized by a flexible premium and death
benefit and allows policyowner control of the investment aspect of the plan? -
✔✔Variable Universal Life
✔✔Under an Interest Sensitive Whole Life policy, - ✔✔cash values are determined by
interest rates.
✔✔Credit life insurance is typically issued with which of the following types of
coverage? - ✔✔Decreasing Term
✔✔Under a Renewable Term policy, - ✔✔the renewal premium is calculated on the
basis of the insured's attained age.
✔✔A variable insurance policy: - ✔✔does not guarantee a return on its investment
accounts
✔✔What life product is NOT considered interest-sensitive? - ✔✔Modified Whole Life
✔✔What does a Face Amount Plus Cash Value Policy pay upon the insured's death? -
✔✔Face amount plus the policy's cash value.
QUESTIONS AND ANSWERS 2025/2026
✔✔Insurance contracts are known as _____ because certain future conditions or acts
must occur before any claims can be paid. - ✔✔Conditional
✔✔What requires an offer, acceptance, and consideration? - ✔✔Contract
✔✔The Consideration clause of an insurance contract includes: - ✔✔the schedule and
amount of premium payments
✔✔Stranger Originated Life Insurance (STOLI) has been found to be in violation of what
contractual element? - ✔✔Legal Purpose (Insurable Interest)
✔✔In regards to representations or warranties, what statement is TRUE? - ✔✔If
material to risk, false representations will void a policy.
✔✔What is the consideration given by an insurer in the Consideration clause of a life
policy? - ✔✔Promise to pay a death benefit to a named beneficiary.
✔✔Statements made on an insurance application that are believed to be true to the
best of the applicant's knowledge are called: - ✔✔representations
✔✔When must insurable interest exist for a contract to be valid? - ✔✔At Inception of the
Contract
✔✔Insurance policies are offered on a "take it or leave it" basis, which make them: -
✔✔Contracts of Adhesion
✔✔Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - ✔✔Principal
✔✔T has a term policy that allows him to continue the coverage after expiration of the
initial policy period. What type of term coverage is this? - ✔✔Renewable
✔✔Which policy requires an agent to register with the National Association Securities
Dealers (NASD) before selling? - ✔✔Variable Life
, ✔✔What kind of life insurance starts out as temporary coverage but can be later
modified to permanent coverage without evidence of insurability? - ✔✔Convertible Term
✔✔The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is: - ✔✔The Cost
✔✔Which of these is an element of a Variable Life policy? - ✔✔A fixed, level premium.
✔✔Which statement about a whole life policy is true? - ✔✔Cash value may be borrowed
against
✔✔An architecture firm would stand to lose a lot of money in the event of the death of
its project manager. Which type of policy should the firm purchase on its project
manager? - ✔✔Key Person Insurance
✔✔What type of insurance offers permanent life coverage with premiums that are
payable for life? - ✔✔Whole Life
✔✔A(n) ______ _______ Life policy combines investment choices with a form of Term
coverage. - ✔✔Variable Universal
✔✔Which of the following policies is characterized by a flexible premium and death
benefit and allows policyowner control of the investment aspect of the plan? -
✔✔Variable Universal Life
✔✔Under an Interest Sensitive Whole Life policy, - ✔✔cash values are determined by
interest rates.
✔✔Credit life insurance is typically issued with which of the following types of
coverage? - ✔✔Decreasing Term
✔✔Under a Renewable Term policy, - ✔✔the renewal premium is calculated on the
basis of the insured's attained age.
✔✔A variable insurance policy: - ✔✔does not guarantee a return on its investment
accounts
✔✔What life product is NOT considered interest-sensitive? - ✔✔Modified Whole Life
✔✔What does a Face Amount Plus Cash Value Policy pay upon the insured's death? -
✔✔Face amount plus the policy's cash value.
