Page 1 of 111
COLORADO LIFE & HEALTH INSURANCE EXAMS |
QUESTIONS AND VERIFIED ANSWERS | 100%
CORRECT 2025 STUDY BUNDLE WITH COMPLETE
SOLUTION)
accelerated benefits .....ANSWER.....Riders attached to life
insurance policies which allow death benefits to be used to cover
nursing or convalescent home expenses.
accidental death benefits .....ANSWER.....A policy rider that
states that the cause of death will be analyzed to determine if it
complies with the policy description of accidental death.
accidental death insurance .....ANSWER.....An insurance policy
that provides payment if the insured's death is the result of an
accident.
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Accumulation Period .....ANSWER.....The time before an
annuitant's retirement during which the annuitant is making
payments or investments in an annuity.
actual cash value ACV .....ANSWER.....The required amount to
pay damages or for property loss, which is calculated based on
the property's current replacement value minus depreciation.
Adhesion .....ANSWER.....A contract offered on a take-it-or-
leave-it basis by an insurer, in which the insured's only option is to
either accept or reject the contract. Any ambiguities in the
contract will be settled in favor of the insured.
Adjustable Life .....ANSWER.....Life insurance which permits
changes in the face amount, premium amount, period of
protection, and the duration of the premium payment period.
Adjuster .....ANSWER.....A representative of an insurance
company who investigates and acts on the behalf of the
,Page 3 of 111
company to obtain agreements for the amount of the insurance
claim.
administrator .....ANSWER.....an individual appointed by a court
as a fiduciary to settle the financial affairs an estate of a
deceased person
Admitted (authorized) insurer .....ANSWER.....An insurance
company authorized and licensed to transact business in a
particular state.
adverse selection .....ANSWER.....the tendency of risks with higher
probability of loss to purchase and maintain Insurance more
often than the risk Who present lower probability
agency .....ANSWER.....an insurance sales office or company
Agent .....ANSWER.....an individual who is licensed to sell,
negotiate, or affect insurance contracts on behalf of the insurer
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agent appointment .....ANSWER.....the authorization of an agent
to act for or represent an insurer
Agent's Authority .....ANSWER.....Special powers granted to an
agent by his or her agency contract.
Aleatory Contract .....ANSWER.....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 .....ANSWER.....An insurance company that is
incorporated outside the United States.
annual statement .....ANSWER.....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 .....ANSWER.....a contract that provides income for a
specified period of years, or for life.
COLORADO LIFE & HEALTH INSURANCE EXAMS |
QUESTIONS AND VERIFIED ANSWERS | 100%
CORRECT 2025 STUDY BUNDLE WITH COMPLETE
SOLUTION)
accelerated benefits .....ANSWER.....Riders attached to life
insurance policies which allow death benefits to be used to cover
nursing or convalescent home expenses.
accidental death benefits .....ANSWER.....A policy rider that
states that the cause of death will be analyzed to determine if it
complies with the policy description of accidental death.
accidental death insurance .....ANSWER.....An insurance policy
that provides payment if the insured's death is the result of an
accident.
,Page 2 of 111
Accumulation Period .....ANSWER.....The time before an
annuitant's retirement during which the annuitant is making
payments or investments in an annuity.
actual cash value ACV .....ANSWER.....The required amount to
pay damages or for property loss, which is calculated based on
the property's current replacement value minus depreciation.
Adhesion .....ANSWER.....A contract offered on a take-it-or-
leave-it basis by an insurer, in which the insured's only option is to
either accept or reject the contract. Any ambiguities in the
contract will be settled in favor of the insured.
Adjustable Life .....ANSWER.....Life insurance which permits
changes in the face amount, premium amount, period of
protection, and the duration of the premium payment period.
Adjuster .....ANSWER.....A representative of an insurance
company who investigates and acts on the behalf of the
,Page 3 of 111
company to obtain agreements for the amount of the insurance
claim.
administrator .....ANSWER.....an individual appointed by a court
as a fiduciary to settle the financial affairs an estate of a
deceased person
Admitted (authorized) insurer .....ANSWER.....An insurance
company authorized and licensed to transact business in a
particular state.
adverse selection .....ANSWER.....the tendency of risks with higher
probability of loss to purchase and maintain Insurance more
often than the risk Who present lower probability
agency .....ANSWER.....an insurance sales office or company
Agent .....ANSWER.....an individual who is licensed to sell,
negotiate, or affect insurance contracts on behalf of the insurer
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agent appointment .....ANSWER.....the authorization of an agent
to act for or represent an insurer
Agent's Authority .....ANSWER.....Special powers granted to an
agent by his or her agency contract.
Aleatory Contract .....ANSWER.....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 .....ANSWER.....An insurance company that is
incorporated outside the United States.
annual statement .....ANSWER.....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 .....ANSWER.....a contract that provides income for a
specified period of years, or for life.
