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COLORADO LIFE INSURANCE FINAL EXAM LATEST 2025
ACTUAL EXAM| COMPLETE 250 ACCURATE QUESTIONS
AND VERIFIED ANSWERS (100% CORRECT ANSWERS)
ALREADY GRADED A+
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
- Term to specified age
- Ordinary life policy
- Limited pay whole life
- Level term - Correct Answer- D) Level term
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
- Flexible life
- Variable life
- Adjustable life
- Universal life - Correct Answer- D) Universal life
All of the following are true about variable products EXCEPT
- The cash value is not guaranteed.
- Policyowners bear the investment risk.
- The premiums are invested in the insurer's general account. 1 / 4
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- The minimum death benefit is guaranteed. - Correct Answer- C) The
premiums are invested in the insurer's general account.
The main difference between immediate and deferred annuities is
- The number of insureds.
- The amount of each payment.
- When the income payments begin.
- How the annuity is purchased. - Correct Answer- C) When the income
payments begin.
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
- Term life
- Limited pay
- Universal life
- Adjustable life - Correct Answer- C) Universal life (2)
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option?
- It does not guarantee that the entire principal amount will be paid out.
- It is a life contingency option.
- The beneficiary receives the remainder of the principal amount upon the
- Payments can be made in installments and as a single cash refund. -
annuitant's death.
Correct Answer- A) It does not guarantee that the entire principal amount will be paid out. 2 / 4
pg. 3 During partial withdrawal from a universal life policy, which portion will be taxed?
- Principal
- Loan
- Interest
- Cash value - Correct Answer- C) Interest
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
- Variable life
- Universal life
- Whole life
- Decreasing term - Correct Answer- D) Decreasing term
Which of the following types of policies will provide permanent protection?
- Credit life
- Term life
- Group life
- Whole life - Correct Answer- D) Whole life
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this? (2)
- Term to specified age
- Ordinary life policy
- Limited pay whole life 3 / 4
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- Level term - Correct Answer- D) Level term (2)
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option? (2)
- Payments can be made in installments and as a single cash refund.
- It does not guarantee that the entire principal amount will be paid out.
- It is a life contingency option.
- The beneficiary receives the remainder of the principal amount upon the
annuitant's death. - Correct Answer- B) It does not guarantee that the entire principal amount will be paid out. (2)
What license or licenses are required to sell variable annuities?
- Only a securities license
- No license is required
- Both a life insurance license and a securities license
- Only a life insurance license - Correct Answer- C) Both a life insurance
license and a securities license
What characteristic makes whole life permanent protection?
- Living benefits
- Coverage until death or age 100
- Guaranteed death benefit
- Guaranteed level premium - Correct Answer- B) Coverage until death or
age 100
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
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