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CO Health Insurance Exam QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE JUST
RELEASED THIS YEAR
Question: If an agent fails to obtain an applicant's signature on the application, the agent must
A. Send the application to the insurer with a note explaining the absence of signature
B. Return the application to the applicant for a signature
C. Sign the application for the applicant
D. Sign the application, stating it was by the agent - ANSWER✔✔B
Question: Which of the following is NOT one of the 3 basic types of coverage that are available,
based on how the face amount changes during the policy term?
A. Level
B. Increasing
C. Renewable
D. Decreasing - ANSWER✔✔C
Question: A man decided to purchase a $100,000 Annually Renewable Term Life Policy to
provide additional protection until his children finished college. He discovered that his policy
A. Required Proof of Insurability every year
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B. Decreased Death Benefit at each renewal
C. Required Premium Increase each renewal
D. Built Cash Values - ANSWER✔✔C
Question: Which of the following best describes annually renewable term insurance?
A. It provides an annually increasing death benefit.
B. It is level term insurance
C. It requires proof of insurability at each renewal
D. Neither the premium nor the death benefit is affected by the insured's age - ANSWER✔✔B
Question: An individual has just borrowed $10,000 from his bank on a 5 year installment loan
requiring monthly payments. What type of life insurance policy would be best suited to fit this
situation?
A. Whole life
B. Decreasing Term
C. Variable life
D. Universal life - ANSWER✔✔B
Question: A Return of Premium (ROP) Life Policy is written as what type of term coverage?
A. Level
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B. Increasing
C. Decreasing
D. Renewable - ANSWER✔✔B
Question: Which of the following is NOT a type of whole life insurance?
A. Straight life
B. Limited Payment
C. Increasing Term
D. Single Premium - ANSWER✔✔C
Question: Which type of life insurance generates immediate cash value?
A. Level Term
B. Decreasing Term
C. Continuous Premium
D. Single Premium - ANSWER✔✔D
Question: An insured has a life insurance policy that requires him to only pay premiums for a
specified number of years until the policy is paid up. What kind of policy is it?
A. Adjustable life
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B. Graded Premium Life
C. Limited-Pay Life
D. Variable Life - ANSWER✔✔C
Q:In order for an insurer to legally transact insurance it must obtain which of the following?
A. Power of Authority
B. Director's Decree
C. Authorization of Power
D. Certificate of Authority - ANSWER✔✔D
Question: In forming an Insurance Contract, when does acceptance usually occur?
A. When an insurer receives an application
B. When an insured submits an application
C. When an insurer's underwriter approves coverage
D. When an insurer delivers the policy - ANSWER✔✔C
Question: Which of the following is a statement, guaranteed to be true and if untrue, may
breach an insurance contract?
A. Warranty
CO Health Insurance Exam QUESTIONS AND
CORRECT ANSWERS LATEST UPDATE JUST
RELEASED THIS YEAR
Question: If an agent fails to obtain an applicant's signature on the application, the agent must
A. Send the application to the insurer with a note explaining the absence of signature
B. Return the application to the applicant for a signature
C. Sign the application for the applicant
D. Sign the application, stating it was by the agent - ANSWER✔✔B
Question: Which of the following is NOT one of the 3 basic types of coverage that are available,
based on how the face amount changes during the policy term?
A. Level
B. Increasing
C. Renewable
D. Decreasing - ANSWER✔✔C
Question: A man decided to purchase a $100,000 Annually Renewable Term Life Policy to
provide additional protection until his children finished college. He discovered that his policy
A. Required Proof of Insurability every year
, Page 2 of 48
B. Decreased Death Benefit at each renewal
C. Required Premium Increase each renewal
D. Built Cash Values - ANSWER✔✔C
Question: Which of the following best describes annually renewable term insurance?
A. It provides an annually increasing death benefit.
B. It is level term insurance
C. It requires proof of insurability at each renewal
D. Neither the premium nor the death benefit is affected by the insured's age - ANSWER✔✔B
Question: An individual has just borrowed $10,000 from his bank on a 5 year installment loan
requiring monthly payments. What type of life insurance policy would be best suited to fit this
situation?
A. Whole life
B. Decreasing Term
C. Variable life
D. Universal life - ANSWER✔✔B
Question: A Return of Premium (ROP) Life Policy is written as what type of term coverage?
A. Level
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B. Increasing
C. Decreasing
D. Renewable - ANSWER✔✔B
Question: Which of the following is NOT a type of whole life insurance?
A. Straight life
B. Limited Payment
C. Increasing Term
D. Single Premium - ANSWER✔✔C
Question: Which type of life insurance generates immediate cash value?
A. Level Term
B. Decreasing Term
C. Continuous Premium
D. Single Premium - ANSWER✔✔D
Question: An insured has a life insurance policy that requires him to only pay premiums for a
specified number of years until the policy is paid up. What kind of policy is it?
A. Adjustable life
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B. Graded Premium Life
C. Limited-Pay Life
D. Variable Life - ANSWER✔✔C
Q:In order for an insurer to legally transact insurance it must obtain which of the following?
A. Power of Authority
B. Director's Decree
C. Authorization of Power
D. Certificate of Authority - ANSWER✔✔D
Question: In forming an Insurance Contract, when does acceptance usually occur?
A. When an insurer receives an application
B. When an insured submits an application
C. When an insurer's underwriter approves coverage
D. When an insurer delivers the policy - ANSWER✔✔C
Question: Which of the following is a statement, guaranteed to be true and if untrue, may
breach an insurance contract?
A. Warranty
