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When Jonas died, it was discovered that he was actually 6 years older than he had claimed when applying for an insurance policy. As a result of this discovery, the insurance company - will pay only the amount of insurance that Jonas' premiums would have purchased at his correct age In a whole life policy - the cash value is greatest at the end of the policy period, and the insurance protection is greatest at the start of the policy An insurance contract is an aleatory contract. This means -...

Which of the following is NOT a goal of risk retention - To minimize the insured's level of liability in the event of a loss What is the maximum age for qualifying for a catastrophic plan? - 30 All of the following are beneficiary designations EXCEPT - Specified Every holder of an insurance license must notify the Commisioner, in writing, of any change of residence address, principal business address, or mailing address within which time parameter - immediately All of the following are ge...

Larger - For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become (Choose from the following options)1. Older. 2. More active. 3. Larger. 4. Smaller. Consideration - An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? (Choose from the following options)1. Consideration2. Good ...

Joint Life Annuity - If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a Exclusions. - Items stipulated in the contract that the insurer will not provide coverage for are found in the Ask her to sign a statement of good health - An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questi...

Concept of insurance - The transfer of risk from one party to another through a legal contract. Law of Large Numbers - The larger the number of risks insured in the same risk pool; the more predictable losses become. Peril - An immediate, specific event that causes a loss. Loss - An unintended, unforeseen reduction, or destruction of financial or economic value. Hazard - Creates an increased possibility that a peril (a cause of a loss) will actually occur. Occurrence - Is any event that cau...

When a life insurance policy exceeds certain IRS table values, the result would create which of the following? A. 1035 Exchange B. An investment C. Modified Endowment Contract (MEC) D. Endowment - C. Modified Endowment Contract (MEC) What kind of life insurance product covers children under their parent's policy? A. Family Maintenance rider B. Term rider C. Family Income rider D. Payor benefit - B. Term Rider Variable Whole Life Insurance can be described as A. both an insurance an...

Level - Face Amount Straight life policy - A level premium for the life of the insured Flexible premium deferred annuity - An annuity purchased with multiple payments that begin income payments after one year from the moment of purchase Annuity - A contract that provides a certain amount of income for the rest of the annuitant's life Joint life annuity - An annuity that provides a set amount of income for two or more persons with the income ceasing upon the first death Option A - A unive...

The life insurance rider that pays the face amount plus the total premiums paid into the policy is known as: - Return of premium What kind of company can the Commissioner file a complaint to enjoin and restrain from continuing violations of the insurance regulations of Colorado? - Foreign or alien Does a loan on the cash value of a life insurance policy accrue interest, and if so, how is the interest handled? - Yes, the interest can be paid annually, or added to the loan. What approach calcul...

Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? - Premiums are not tax deductible as a business expense - Premiums are tax deductible by the key employee - Premiums are tax deductible as a business expense - Premiums are taxable to the employee - - Premiums are not tax deductible as a business expense. The business cannot take a tax deduction for the expense of the premium. However, if the key employee dies, the benefits paid to t...

The commissioner is required to examine every domestic insurer and every licensed rate service organization every _________ - 5 years In addition to any other forfeiture imposed, any person who violates an effective order may be required to pay ______________ - twice the amount of any profit gained from the violation General duties and powers of the insurance commissioner: The maximum penalty the may be assessed to a person for a willful violation of the insurance code of this state is _______...