Colorado Life Insurance Final Exam
The life insurance rider that pays the face amount plus the total premiums paid into the policy is
known as: - ANS-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? - ANS-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? - ANS-Yes, the interest can be paid annually, or added to the loan.
What approach calculates the amount of money a family needs immediately upon the death of
the insured to pay for their expenses and basic necessities? - ANS-Needs
A decreasing term life policy would be the most appropriate for: - ANS-A 41 year old lawyer who
wants a policy to pay his mortgage if he dies (decreasing term life generally is used as
mortgage insurance)
A producer or business entity shall report to the Commissioner any administrative action taken
against the producer within: - ANS-30 days
Richard is thinking about transferring some of the ownership rights of his policy to his brother
Randy. What term is used for this type of transfer? - ANS-Assignment
Jeff has limited financial resources, but finds himself in a position where he needs a good deal
of protection. A __________would probably best suit his needs at this time. - ANS-Term policy
On November 5, Zoe fills out an application for a life policy. On November 6, the agent accepts
the premium for the policy. The policy is delivered on November 7. Which date does the Free
Look period start? - ANS-November 7
Insurance producers must complete how many hours of continuing education each licensing
period? - ANS-24 hours
Jacob, James and Jonathan are triplets, and all applied for the same type of insurance
coverage at the same time. For James and Jonathan the rates were the same. Jacob's rate was
quite a bit higher. What is the most likely reason for this difference? - ANS-Risk classification
If the cash values of an annuity are invested in securities, it is a: - ANS-Variable annuity
, If an agent were to publish literature that is false or maliciously critical of another insurer
calculated to injure a person engaged in the business of insurance, the agent would be
committing: - ANS-Defamation
An agent has a fiduciary responsibility to all the following, EXCEPT: - ANS-Other agents
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the
policy? - ANS-Cash surrender
Investment risk is completely taken by the policyowner is what type policy? - ANS-Variable
universal life
Jennifer made an additional premium payment on her Adjustable Life policy. Which of the
following is not a way that her policy is affected by this payment? - ANS-The value of
nonforfeiture options may decrease.
What type group plan requires 75% participation? - ANS-Contributory
If more than one beneficiary is named, who is the first in line? - ANS-Primary
Application - ANS-In life insurance, insurable interest must be present at the time of:
Over-funded life insurance policies where the proceeds are subject to taxation are called: -
ANS-MECs (Modified Endowment Contracts)
After what policy year of any life insurance policy, can suicide of the policyowner not be used as
defense against the payment of benefits? - ANS-First
In Colorado, what is the minimum number of individuals a group life policy will cover? - ANS-3
individuals
Which of the following is a duty of the Commissioner? - ANS-Examining applications and issuing
certificates of authority to insurance companies to transact insurance business
Dylan is looking at buying an equity-indexed life policy; it will likely be tied to: - ANS-Dow Jones
Industrial Average.
Who has the right to change the beneficiary on a life policy? - ANS-The policyowner
What guarantees Jason the right to question the source and validity of consumer information
used to rate a policy? - ANS-Fair Credit Reporting Act
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