Life & Health Insurance Exam Colorado
Questions with expert verified Correct
Detailed Answers latest updated version
2025-2026
Indexed Annuity --- correct precise answer ----Pays 2% on cash value
-Securities license not required
-Cash accumulation usually linked to an index (S&P)
-If index outperforms guaranteed interest rate, difference credited to
cash value
-Premiums do not change
Combination Plans & Life Insurance Policy Variations --- correct
precise answer ----Joint Life Policy
-Survivorship Life Policy
Joint Life Policy (First to Die) --- correct precise answer ----Type of
Combination Plans & Life Insurance Policy Variations
-Covers 2+ on same policy
-No further coverage for remaining party
,Survivorship Life Policy (Last to Die) --- correct precise answer ----
Usually used to pay estate taxes
-Used in estate planning--TEST
Life Insurance Policy Riders --- correct precise answer ----Waiver of
Premium & Waiver of Premium with Disability Income(WP)
-Guaranteed Insurability Rider(GIR)
-Payor Benefit Rider
-Accidental Death Benefit Rider
-Term Insurance Rider
-Long-Term Care Rider
-Other Insured Rider
-Return of Premium Rider
Waiver of Premium & Waiver of Premium with Disability Income (WP)
--- correct precise answer ----Type of Insurance Rider=Add on to
coverage
-Disability income insurance added to a life policy
-6-month waiting period; if satisfy waiting period insurer will
reimburse insured for paid premiums within that period
,-Premiums waived, and policy still enforced as long as insured is
disable
-If added with disability income, policy pays insured's net income
during disability
Guaranteed Insurability Rider(GIR) --- correct precise answer ----
Type of Insurance Rider
-Enables insured to increase coverage later regardless of health
-Option dates usually occur at 2 or 3 year intervals, if skipped the date
is lost
-At each increase, rates are based upon current age
Payor Benefit Rider --- correct precise answer ----Type of Insurance
Rider
-Added to policy on child
-Waives premium if payor dies or becomes disabled
-Expires when child reaches age 18-----TEST
Accidental Death Benefit Rider --- correct precise answer ----Type of
Insurance Rider
-Death must occur within 90 days of accident or it is assumed to be
form of natural causes
, -Doesn't cover death due to sickness only accidents
Term Insurance Rider --- correct precise answer ----Type of Insurance
Rider
-Often added to whole life policy to increase coverage
-Some whole, some term
-Term portion will not cover unless insured dies within the term
period
Other Insured Rider---TEST --- correct precise answer ----Type of
Insurance Rider
-Added to whole life policy under certain circumstances
-Adds coverage for new spouse on whole life
-Subject to insurability (Physical Exam)
-Could be used to add coverage on newborn, on current policy, term
insurance rider on child
Long-Term Care Rider --- correct precise answer ----Type of
Insurance Rider
-Costs extra and may be added to a cash value policy
Questions with expert verified Correct
Detailed Answers latest updated version
2025-2026
Indexed Annuity --- correct precise answer ----Pays 2% on cash value
-Securities license not required
-Cash accumulation usually linked to an index (S&P)
-If index outperforms guaranteed interest rate, difference credited to
cash value
-Premiums do not change
Combination Plans & Life Insurance Policy Variations --- correct
precise answer ----Joint Life Policy
-Survivorship Life Policy
Joint Life Policy (First to Die) --- correct precise answer ----Type of
Combination Plans & Life Insurance Policy Variations
-Covers 2+ on same policy
-No further coverage for remaining party
,Survivorship Life Policy (Last to Die) --- correct precise answer ----
Usually used to pay estate taxes
-Used in estate planning--TEST
Life Insurance Policy Riders --- correct precise answer ----Waiver of
Premium & Waiver of Premium with Disability Income(WP)
-Guaranteed Insurability Rider(GIR)
-Payor Benefit Rider
-Accidental Death Benefit Rider
-Term Insurance Rider
-Long-Term Care Rider
-Other Insured Rider
-Return of Premium Rider
Waiver of Premium & Waiver of Premium with Disability Income (WP)
--- correct precise answer ----Type of Insurance Rider=Add on to
coverage
-Disability income insurance added to a life policy
-6-month waiting period; if satisfy waiting period insurer will
reimburse insured for paid premiums within that period
,-Premiums waived, and policy still enforced as long as insured is
disable
-If added with disability income, policy pays insured's net income
during disability
Guaranteed Insurability Rider(GIR) --- correct precise answer ----
Type of Insurance Rider
-Enables insured to increase coverage later regardless of health
-Option dates usually occur at 2 or 3 year intervals, if skipped the date
is lost
-At each increase, rates are based upon current age
Payor Benefit Rider --- correct precise answer ----Type of Insurance
Rider
-Added to policy on child
-Waives premium if payor dies or becomes disabled
-Expires when child reaches age 18-----TEST
Accidental Death Benefit Rider --- correct precise answer ----Type of
Insurance Rider
-Death must occur within 90 days of accident or it is assumed to be
form of natural causes
, -Doesn't cover death due to sickness only accidents
Term Insurance Rider --- correct precise answer ----Type of Insurance
Rider
-Often added to whole life policy to increase coverage
-Some whole, some term
-Term portion will not cover unless insured dies within the term
period
Other Insured Rider---TEST --- correct precise answer ----Type of
Insurance Rider
-Added to whole life policy under certain circumstances
-Adds coverage for new spouse on whole life
-Subject to insurability (Physical Exam)
-Could be used to add coverage on newborn, on current policy, term
insurance rider on child
Long-Term Care Rider --- correct precise answer ----Type of
Insurance Rider
-Costs extra and may be added to a cash value policy
