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Colorado Life Insurance Final Exam Containing 95 Questions with Answers A+ Score Guide
- If an annuity application was not taken in person, an insurer must provide
- at the time of application
- within 5 days of the insurer receiving the application
- at the time of policy issue
- at the time of policy delivery
the applicant a Buyer's Guide
Answer: B) within 5 days of the insurer receiving the application
- An incomplete life insurance application submitted to an insurer will result
- application will be returned to the writing agent
- application will be approved with restrictions
- application will be pending until a MIB report is sent to the insurer
- application will be automatically declined
in which of these actions?
Answer: A) application will be returned to the writing agent
- An employee with $25,000 group term life coverage was recently fired. This
- $125,000 individual whole life policy
- $25,000 modified whole life policy
- $25,000 individual term life policy
- $25,000 individual whole life policy 1 / 4
employee's group coverage may be converted to a
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Answer: D) $25,000 individual whole life policy
- When an employee is terminated, which statement about a group term life
- employee must convert group term life coverage into an individual term life
- employee must provide evidence of insurability for conversion
- policy proceeds will be paid if the employee dies during the conversion
- policy proceeds will NOT be paid if the employee dies during the conversion
conversion is true?
policy
period
period Answer: c) policy proceeds will be paid if the employee dies during the conversion period
- A(n) rider may be used to include coverage for children under their
- payor
- term
- conversion
- parent
parents' life insurance policy.
Answer: B) term
- The automatic premium loan provision is designed to
- avoid a policy lapse
- allow a policyowner to take out additional coverage without evidence of
- allow a policyowner to request a policy loan
- provide a source of revenue to the insurance company
insurability
Answer: A) avoid a policy lapse
- What is the purpose of the U.S.A Patriot Act?
- detect and deter fraud
- detect and deter alien insurance companies 2 / 4
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- detect and deter terrorism
- detect and deter misrepresentation
Answer: c) detect and deter terrorism
8. The part of a life insurance policy guaranteed to be true is called a(n):
- representation
- exclusion
- warranty
- waiver
Answer: c) warranty
- G purchased a Family Income policy at age 40, The policy has a 20-year
- 5 years
- 10 years
- 15 years
- 20 years
rider period. If G were to die at age 50, how long would G's family receive an income?
Answer: B) 10 years
10. The Consideration clause of an insurance contract includes:
- the buyer's guide
- a summary of the coverage provided
- the named beneficiaries
- the schedule and amount of premium payments
Answer: D) the schedule and amount of premium payments
- Three law partners form a Cross-Purchase Buy and Sell agreement. This
- 12
- 6 3 / 4
agreement is funded with individual life insurance. How many total life policies are needed for this agreement?
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- 3
- 1
Answer: B) 6
- An producer who violates a cease and desist order may, after a hearing, be
- $250
- $500
- $750
- $1000
fined up to
Answer: B) $500
- Which provision prevents an insurer from changing the terms of the con-
- policy exclusion
- incontestable
- entire contract provision
- assignment
tract with the policyowner by referring to documents not found within the policy itself?
Answer: c) entire contract provision
- Which tax would an IRA participant be subjected to on distributions re-
- 10% tax penalty for early withdrawal
- capital gains tax
- ordinary income tax and a 10% tax penalty for early withdrawal
- ordinary income tax
ceived prior to age 59 1/2?
Answer: c) ordinary income tax and a 10% tax penalty for early withdrawal
- Company XYZ offers a group Term Life insurance plan to its employees.
- master policy
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What does each employee covered under this plan receive?