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Colorado Life Insurance Final Exam – 95 Official-Style Questions with Answers 2025, Exams of Nursing

Western Colorado University(WCU)Nursing

Master the Colorado Life Insurance licensing exam with this complete guide featuring 95 multiple-choice questions and accurate answers. Covers policy types, annuities, state regulations, taxation, riders, and underwriting—ideal for pre-licensing and final exam preparation. colorado insurance exam, life insurance questions, state licensure prep, insurance final test, life insurance practice, insurance producer exam, insurance regulation quiz, annuities exam review, insurance prep printable, colorado life license

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2024/2025

Available from 07/16/2025

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COLORADO

LIFE INSURANCE FINAL EXAM PREP

400 Questions + (with 4 Practice Exams)

Each Exam Consist of 100 Multiple choice Questions with Answers

The Ultimate Study Guide to Pass Your Exam Without Breaking a Sweat

Inside, you'll get:

• Complete Exam Coverage —all the essential topics, laid out clearly and concisely.

• Real Practice Tests —updated to match the latest exam format and difficulty.

• Insider Tips —learn from a seasoned pro, with strategies that give you a winning edge.

• Simplified Explanations —no jargon, no confusion—just clear, simple language.

• Be Exam-Ready —enter the exam room fully prepared and armed with the confidence to succeed.

Partial preview of the text

Download Colorado Life Insurance Final Exam – 95 Official-Style Questions with Answers 2025 and more Exams Nursing in PDF only on Docsity!

1 / 61

COLORADO

LIFE INSURANCE FINAL EXAM PREP

400 Questions + (with 4 Practice Exams)

Each Exam Consist of 100 Multiple choice Questions with Answers

The Ultimate Study Guide to Pass Your Exam Without Breaking a Sweat

Inside, you'll get:

Complete Exam Coverage —all the essential topics, laid out clearly and concisely.
Real Practice Tests —updated to match the latest exam format and difficulty.
Insider Tips —learn from a seasoned pro, with strategies that give you a winning edge.
Simplified Explanations —no jargon, no confusion—just clear, simple language.
Be Exam-Ready —enter the exam room fully prepared and armed with the confidence to succeed.

2 /
Colorado Life Insurance Practice Test set 1………………………………
Colorado Life Insurance Practice Test set 2………………………………
Colorado Life Insurance Practice Test set 3………………………………
Colorado Life Insurance Practice Test set 4………………………………

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The annuity that represents the largest possible monthly payment to an individual annuitant is a(n): a) cash refund b) installment refund c) straight life annuity d) life annuity with period certain Answer: c) straight life annuity
All of these statements about the Waiver of Premium provision are correct EXCEPT a) awaiting period must pass before becoming eligible for benefits b) waiver of premium is available on both permanent and term insurance policies c) insured must be eligible for Social Security disability for claim to be accept- ed d) insured must be disabled to qualify Answer: c) insured must be eligible for Social Security disability for claim to be accepted
One becomes eligible for Social Security disability benefits after having been disabled for a) 3 months b) 5 months c) 6 months d) 12 months Answer: B) 5 months
Which of the following life insurance policies combine term insurance with a

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investment element? a) increasing term life b) decreasing term life c) universal life d) graded life Answer: c) universal life

A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following? a) critical illness b) terminal illness c) inability of the insured to perform more than 2 Activities of Daily Living (ADL's) d) inability of the insured to maintain insurance premiums due to umemploy- ment Answer: c) inability of the insured to perform more than 2 Activities of Daily Living (ADL's)
C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most? a) the cost b) the nonforfeiture options c) the contestable period d) the assignment of ownership Answer: A) the cost
A policyowner's rights are limited under which beneficiary designation? a) revocable b) tertiary c) contingent

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c) at the time of policy issue d) at the time of policy delivery Answer: B) within 5 days of the insurer receiving the application

An incomplete life insurance application submitted to an insurer will result in which of these actions? a) application will be returned to the writing agent b) application will be approved with restrictions c) application will be pending until a MIB report is sent to the insurer d) application will be automatically declined Answer: A) application will be returned to the writing agent
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a a) $125,000 individual whole life policy b) $25,000 modified whole life policy c) $25,000 individual term life policy d) $25,000 individual whole life policy Answer: D) $25,000 individual whole life policy
When an employee is terminated, which statement about a group term life conversion is true? a) employee must convert group term life coverage into an individual term life policy b) employee must provide evidence of insurability for conversion c) policy proceeds will be paid if the employee dies during the conversion period d) policy proceeds will NOT be paid if the employee dies during the conversion period Answer: c) policy proceeds will be paid if the employee dies during the conversion

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period

A(n) rider may be used to include coverage for children under their parents' life insurance policy. a) payor b) term c) conversion d) parent Answer: B) term
The automatic premium loan provision is designed to a) avoid a policy lapse b) allow a policyowner to take out additional coverage without evidence of insurability c) allow a policyowner to request a policy loan d) provide a source of revenue to the insurance company Answer: A) avoid a policy lapse
What is the purpose of the U.S.A Patriot Act? a) detect and deter fraud b) detect and deter alien insurance companies c) detect and deter terrorism d) detect and deter misrepresentation Answer: c) detect and deter terrorism
The part of a life insurance policy guaranteed to be true is called a(n): a) representation b) exclusion c) warranty d) waiver

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b) $ c) $ d) $ Answer: B) $

Which provision prevents an insurer from changing the terms of the con- tract with the policyowner by referring to documents not found within the policy itself? a) policy exclusion b) incontestable c) entire contract provision d) assignment Answer: c) entire contract provision
Which tax would an IRA participant be subjected to on distributions re- ceived prior to age 59 1/2? a) 10% tax penalty for early withdrawal b) capital gains tax c) ordinary income tax and a 10% tax penalty for early withdrawal d) ordinary income tax 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. What does each employee covered under this plan receive? a) master policy b) receipt of coverage c) individual policy d) certificate of insurance Answer: D) certificate of insurance

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What action should a producer take if the initial premium is NOT submitted with the application? a) keep the application until premium is paid b) forward the application to the insurer after giving the applicant a binding receipt c) forward the application to the insurer without the initial premium d) forward the application to the insurer after giving the applicant a conditional receipt Answer: c) forward the application to the insurer without the initial premium
Credit Life insurance is: a) issued in any amount at the discretino of the applicant b) used in the event of loss of income c) issued in an amount not to exceed the amount of the loan d) coverage that waives the premiums on a loan payment in the event of total disability Answer: c) issued in an amount not to exceed the amount of the loan
If a producer chooses to conduct business under an assumed name, when must notification be given to the Commissioner? a) no notice is required b) no later than 30 days after using the assumed name c) prior to using the assumed name d) at the time of license renewal Answer: c) prior to using the assumed name
An underwriter determines that a life insurance risk should be reclassified due to a health issue. This policy may be issued with a(n) a) extra premium b) concealment clause

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c) issued by the insurer d) issued by the Department of Insurance Answer: c) issued by the insurer

Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary? a) split-dollar plan b) employer purchase plan c) key employee plan d) deffered compensation plan Answer: A) split-dollar plan
The Consideration clause in a life insurance contract contrains what per- tinent information? a) summary of benefits b) offer and acceptance c) entire contract d) amount of premium payments and when they are due Answer: D) amount of premium payments and when they are due
A(n) Life policy offers the owner investment in products such as money -market funds, long-term bonds and equities. a) adjustable b) term c) universal d) variable Answer: D) variable

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Colorado's replacement rules apply to all of the following types of insur- ance EXCEPT a) 1-year term b) 10-year term c) 20-year term d) single premium whole life Answer: D) single premium whole life
Which of the following potential insurance sales would be subject to replacement regulation? a) a new policy issued by the same insurer as part of a conversion privilege b) a new policy that casues an existing life insurance policy to be surrendered c) a credit life insurance policy that causes an existing credit life insurance policy to be forfeited d) a new group life policy that is replacing an existing group life policy Answer: B) a new policy that casues an existing life insurance policy to be surrendered
A policy that becomes a Modified Endowment Contract (MEC) a) will no longer allow for policy loans b) must be placed in an irrevocable trust c) can never be reinstated after a lapse d) will lose many of its tax advantages Answer: D) will lose many of its tax advantages
Upon request, when must the Colorado Supplement to the Summary of Benefits and Coverage Form be provided? a) within 7 business days b) within 10 business days c) within 15 business days d) within 30 business days

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C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true? a) C is the policyowner, the insured, and the beneficiary b) ABC is the policyowner, C is the insured, and ABC is the beneficiary c) C is the policyowner and the insured, and ABC is the beneficiary d) ABC is the policyowner, C is the insured, and her husband is the beneficia- ry Answer: B) ABC is the policyowner, C is the insured, and ABC is the beneficiary
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary? a) $100, b) $50, c) refund of preiums paid plus interest d) no claim will be paid becasue casue of death was from narual causes Answer: B) $50,
When does a life insurance contract become effective if the initial premium is not collected during the application process? a) after all medical and personal information has been evaluated b) when insurer receives initial premium from the producer c) when producer delivers policy and collects initial premium d) after application has been approved by the underwriters Answer: c) when producer delivers policy and collects initial premium
Who makes the legally enforceable promises in a unilateral insurance policy? a) beneficiary b) insurance company

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c) insured d) applicant Answer: B) insurance company

Typically a life insurance death benefit is paid by a lump-sum payment. A(n) option is a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum payment. a) settlement b) dividend c) conversion d) aleatory Answer: A) settlement
Ultimately, who is responsible for a producer-generated advertisement? a) producer b) insurer c) the Department of Insurance d) Life and Health Guaranty Association Answer: B) insurer
Whose life is covered on a life insurance policy that contains a payor benefit clause? a) parent b) beneficiary c) child d) spouse Answer: c) child
A Nonforfeiture clause gives the policyowner a) lifetime income b) guaranteed values even if the policy has lapsed c) umemployment benefits d) cost of living allowances

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premium then increases in year 6 and stays level thereafter, all the while the

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death benefit remains the same. What kind of policy is this? a) variable life b) adjustable life c) graded premium whole life d) modified whole life Answer: D) modified whole life

In Colorado, which of the following is true regarding the commingling of an insured's funds with the funds of the producer? a) it is okay with the insured's written approval b) it is okay with the insuser's written approval c) it is never okay d) it is okay if records are kept on the transaction Answer: c) it is never okay
S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? a) accelerated death benefit rider b) return of premium rider c) family income rider d) term rider Answer: B) return of premium rider
When may the Commissioner conduct an examination of an insurance company? a) maxium once per year b) maximum every 3 years c) maximum every 5 years d) as often as deemed necessary Answer: D) as often as deemed necessary
T is the policyowner for a Life Insurance policy with an Irrevocable ben- eficiary designation. If T wishes to change the beneficiary, T must obtain

Colorado Life Insurance Final Exam – 95 Official-Style Questions with Answers 2025, Exams of Nursing

Related documents

Partial preview of the text

Download Colorado Life Insurance Final Exam – 95 Official-Style Questions with Answers 2025 and more Exams Nursing in PDF only on Docsity!

COLORADO

LIFE INSURANCE FINAL EXAM PREP

400 Questions + (with 4 Practice Exams)

Each Exam Consist of 100 Multiple choice Questions with Answers

The Ultimate Study Guide to Pass Your Exam Without Breaking a Sweat

Inside, you'll get:

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