Colorado Life Insurance Final Exam

• / 6

Colorado Life Insurance Final Exam Containing 95 Questions and Answers A+ Score Guide

• What approach calculates the amount of money a family needs immediately

upon the death of the insured to pay for their expenses and basic necessi- ties?Answer> Needs

• A decreasing term life policy would be the most appropriate for

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)

• A producer or business entity shall report to the Commissioner any admin-

istrative action taken against the producer within Answer> 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?Answer> 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.Answer> Term policy

• / 2

• / 6

• 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?Answer> November 7

• Insurance producers must complete how many hours of continuing edu-

cation each licensing period?Answer> 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?Answer> Risk classification

• The life insurance rider that pays the face amount plus the total premiums

paid into the policy is known as Answer> 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?-

Answer> 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?Answer> Yes, the interest can be paid annually, or added to the loan.

• If the cash values of an annuity are invested in securities, it is a

Answer> Variable annuity

• / 2