AD Banker Colorado State Law Exam -

AD Banker Colorado State Law Exam - PearsonVue

An insurer replacing a life policy must notify the existing insurer of the proposed replacement within how many days of receiving an application?

• 10 business days
• 5 calendar days
• 10 calendar days
• 5 business days - CORRECT ANSWER -d. 5 business days

Which of the following is not a mandated health coverage in Colorado?

• Mental Disorders
• Vision
• Pediatric Dental
• Preventative Care - CORRECT ANSWER -b. Vision

Admitted life insurers must pay interest at a rate of specified by law, on death benefits from the date of the insured's death, through how many days following the date the insurer receives the claim?

• 20 days
• 31 days
• 30 days
• 15 days - CORRECT ANSWER -c. 30 days

Making a statement that is misleading about a policy, its dividends, or its share of surplus receivable or paid in the past, defines which of the following?

• Defamation
• Coercion
• Misrepresentation
• Redlining - CORRECT ANSWER -c. Misrepresentation

The grace period under a group life policy must be ____ days?

• 30
• 31
• 60
• 61 - CORRECT ANSWER -a. 30

All of the following are powers and duties of the Commissioner, except:

• Issuing, denying, revoking, or suspending insurance licenses
• Enforcing state insurance laws
• Ensuring the insurance rates are adequate 1 / 2

• Performing all duties in the best interest of independent insurance agents -

CORRECT ANSWER -d. Performing all duties in the best interest of independent insurance agents

Replacement is defined in which of the following statements?

• Colorado does not regulate replacement
• Replacement is any attempt by the existing insurer or producer to keep a policy in

force where replacement is contemplated

• Replacement is any explanation of changes in the policy, such as a death benefits or

cash value, due to a long-term care benefits being paid out

• Replacement is any transaction in which new life insurance or an annuity is to be

purchased, and it is known, or should be known to the producer that the existing contracts will be lapse, forfeited, surrendered, or terminated - CORRECT ANSWER -d.Replacement is any transaction in which new life insurance or an annuity is to be purchased, and it is known, or should be known to the producer that the existing contracts will be lapse, forfeited, surrendered, or terminated

Group life death benefits may be assigned to a party other than the beneficiary by:

• The insured, only
• Neither the insured not the insurer
• The insured or the insurer
• The insurer, only - CORRECT ANSWER -a. The insured, only

In Colorado, the Free Look period for life policies is set at how many days?

• 20
• 5
• 15
• 10 - CORRECT ANSWER -b. 15

What is the primary purpose of licensing?

• To protect the Board of Directors
• To protect the Commissioner of Insurance
• To protect the general public
• To protect the NAIC - CORRECT ANSWER -c. To protect the general public

The definition of a Colorado producer includes which of the following?

• A person who solicits or negotiates membership enrollments in a health care plan
• A nonresident licensed to sell or negotiate commercial property and casualty

insurance policies in another state

• An insurer
• An employer, association, or trustee administering its own employee benefit program

that uses insurance - CORRECT ANSWER -a. A person who solicits or negotiates membership enrollments in a health care plan

• / 2