Colorado Life and Health Exam Questions and Answers 100% Accurate
Question: What is the life insurance rider that pays the face
amount plus the total premiums paid into the policy known as?
Correct answer: Return of premium
Question: What kind of company can the Commissioner file a
complaint to enjoin and restrain from continuing violations of the insurance regulations of Colorado?
Correct answer: Foreign or alien
Question: Does a loan on the cash value of a life insurance
policy accrue interest, and if so, how is the interest handled?
Correct answer: Yes, the interest can be paid annually, or
added to the loan.
Question: 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?
Correct answer: Needs
Question: A decreasing term life policy would be the most
appropriate for:
Correct answer: 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)
Question: Within how many days shall a producer or business
entity report to the Commissioner any administrative action taken against the producer?
Correct answer: 30 days
Question: What term is used for transferring some of the
ownership rights of a policy to another person, such as Richard transferring to his brother Randy?
Correct answer: Assignment
Question: What type of policy would probably best suit Jeff’s
needs if he has limited financial resources but needs a good deal of protection?
Correct answer: Term policy
Question: On what date does the Free Look period start if Zoe
fills out an application for a life policy on November 5, the agent accepts the premium on November 6, and the policy is delivered on November 7?
Correct answer: November 7
Question: How many hours of continuing education must
insurance producers complete each licensing period?
Correct answer: 24 hours
Question: What is the most likely reason for Jacob’s higher
insurance rate compared to his triplets James and Jonathan, who received the same rates for the same type of insurance coverage applied for at the same time?
Correct answer: Risk classification
Question: If the cash values of an annuity are invested in
securities, what type of annuity is it?
Correct answer: Variable annuity
Question: If an agent publishes literature that is false or
maliciously critical of another insurer calculated to injure a person engaged in the business of insurance, what are they committing?
Correct answer: Defamation
Question: To whom does an agent NOT have a fiduciary
responsibility?
Correct answer: Other agents
Question: Which Nonforfeiture option would the insurer send
Alex the value of the policy if his life policy lapsed?
Correct answer: Cash surrender
Question: What type of policy has the investment risk
completely taken by the policyowner?