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Colorado Life & Health Insurance Exam Questions Containing 107 Terms with Definitive Solutions 2024. $20.99
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Colorado Life & Health Insurance Exam Questions Containing 107 Terms with Definitive Solutions 2024.

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Colorado Life & Health Insurance Exam Questions Containing 107 Terms with Definitive Solutions 2024.

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  • March 2, 2024
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  • Colorado Life & Health Insurance Exm Quesions Co
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Life & Health Insurance Exam Colorado




Colorado Life & Health Insurance Exam
Questions Containing 107 Terms with
Definitive Solutions 2024.
Traditional Whole Life - Answer: -Ordinary (Straight) Life
-Limited-Pay & Single-Premium Whole Life
-Adjustable Whole Life


Ordinary (Straight) Life - Answer: -Until 100 or Death, whichever comes first
-Permanent Protection
-Rates & benefits based on law of large numbers (Mortality Rate)

, Life & Health Insurance Exam Colorado


-Guaranteed, tax-deferred interest rate
-Premium level, company's risk goes down as cash value goes up
-Insurer keeps the cash value if death to offset risk
-Lowest net cost in long run
-Client has access to cash through cash surrender or policy loan
-Rates are per unit of protection (1,000 is 1 unit)---TEST
-Cash value is guaranteed
-Cash value will equal face amount at policy maturity


Limited-Pay & Single-Premium Whole Life - Answer: -Premium paying period is
shorter
-Cash value still equals face amount at age 100
-20 pay life will be paid up in 20 years PL
-Life Paid up at age 65, will be paid up at 65 LP
-A single premium policy will have an immediate cash value (1-pay life)---TEST


Adjustable Whole Life----TEST - Answer: -Sold to clients with fluctuating
incomes----TEST
-Combination of term and whole life----TEST
-Coverage may not be increased without physical exam---TEST


Interest/Market Sensitive Whole Life Products - Answer: -Universal Whole life
-Variable Whole life
-Variable/Universal Whole life
-Equity-Indexed Life

, Life & Health Insurance Exam Colorado




Universal Whole life - Answer: -Guaranteed minimum interest rates
-Extreme flexibility regarding premium PMTs----TEST
-Most flexible product
-Target premium based on projected earnings
-Option A UL has level death benefits
-Option B UL will pay beneficiary both face amount + cash value


Variable Whole life - Answer: -Cash value deposited into a separate account
-Requires FINRA series 6 or 7 to sell
-Used to be called NASD
-Regulated by SEC
-Regulated by FINRA (Financial Industry Regulatory Authority)
-NYSE license not required
-Minimum death benefit (face amount) is guaranteed---TEST
-Has fixed premium---TEST


Variable/Universal Whole life - Answer: -Requires Finra(series 6 or 7) licenses to
sell
-Allows client to self-direct cash values into sub-account---TEST
-Flexible premium


Equity-Indexed Life - Answer: -cash value, where minimum death benefit is
guaranteed as well as the minimum earning on the cash value in the general
account

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