Colorado State Life Laws Retention Questions

An agent replacing a life policy or annuity must give the applicant and the insurer a: a. Signed replacement notice only b. Copy of all material only c. Signed replacement notice and copy of all sales material d. Refund

c. Signed replacement notice and copy of all sales material

Which of the following is true regarding interest on life insurance proceeds? a. An insurer must pay interest on death benefits from the date of the insured's death through the 30th day following the date the insurer receives the claim, unless the beneficiary elects not to receive the interest b. An insurer must pay interest on death benefits from the date of the insured's death through the 30th day following the date the insurer receives the claim, unless the beneficiary elects not to receive the proceeds in a lump sum c. An insurer must pay interest on death benefits from the date of the insured's death through the 60th day following the date the insurer receives the claim, unless the beneficiary elects not to receive the proceeds in a lump sum d. The rate of interest is the prime rate

b. An insurer must pay interest on death benefits from the date of the insured's death through the 30th day following the date the insurer receives the claim, unless the beneficiary elects not to receive the proceeds in a lump sum

Which of the following statements is true? a. An advertisement may say that purchasers pay a lower price for a policy sold by direct response because no agent is involved in the sale b. When an enrollment period ends, a new one may begin in 3 months c. The mail-in date for an application must be between 10-40 days after the initial advertisement of an enrollment period d. An insurer may describe an enrollment period as "special" events if it usually sells its policies by successive enrollment periods

c. The mail-in date for an application must be between 10-40 days after the initial advertisement of an enrollment period

Which of the following is true regarding the duties of replacing and existing insurers? a. The existing insurer must notify the replacing insurer of a policy being replaced within 5 days b. The replacing insurer and existing insurer must retain records relating to replacements for 5 years c. The replacing insurer and existing insurer must retain records relating to replacements for 3 years d. Replacement requirements do not apply to the existing insurer

b. The replacing insurer and existing insurer must retain records relating to replacements for 5 years

Which of the following is not true regarding group life insurance? a. Coverage may be issued to a group formed for the purpose of obtaining insurance b. Group coverage may cover dependents c. When group life proceeds are paid, they are not subject to creditors d. An insurance under a group life policy may assign all or part of any ownership he/she has in the policy

a. Coverage may be issued to a group formed for the purpose of obtaining insurance

The free look period for which a life policy may be returned and the full premium refunded to the applicant is: a. 10 days b. 15 days c. 30 days d. 45 days

b. 15 days

In order for a person to be the beneficiary of a life insurance policy covering the life of another individual, such person needs to have an insurable interest in the insured: a. At the time of the insured's death b. At the time the policy is issued c. Within 1 year prior to the insured's death d. At the time since there is not a specific time at which the insurable interest must exist

b. At the time the policy is issued

Which of the following is correct with respect to annuity Disclosure Requirements? a. An applicant for annuity must be given a Buyer's Guide within 15 days after the producer receives the application b. An applicant must be given the Buyer's Guide in hard copy. An insurer may not use an electronic copy of the Buyer's Guide on its website to comply with this requirement c. If the sale of annuity is not made face-to-face, the applicant must be advised that he/she may contact the Division or the insurer for a free copy of the Buyer's Guide d. For a deferred annuity in the accumulation period, the insurer must provide the annuitant with a status report at least once every 2 years

c. If the sale of annuity is not made face-to-face, the applicant must be advised that he/she may contact the Division or the insurer for a free copy of the Buyer's Guide

Which of the following is true about group life insurance death benefits? a. If a person dies during the conversion period and no premium has been paid, no death benefit will be paid b. If no beneficiaries is named on a policy, the death benefit will not pay for the burial expense c. Proceeds held by an insurer are not liable to garnishment or debts without the insured's directive d. A beneficiary of a group life policy must share the proceeds with creditors

c. Proceeds held by an insurer are not liable to garnishment or debts without the insured's directive

An individual who is related within the _______ degree or closer either by blood or marriage to the insured may have an insurable interest in the insured's life. a. 2nd b. 3rd c. 4th d. 5th

d. 5th

Who among the following would not have an insurable interest in an insured under a life insurance policy? a. A corporation on the life of directors, officers or key employees of such corporation b. A lender on the life of a borrower c. Individual on the life of his/her spouse d. Employee on the life of his/her employer

d. Employee on the life of his/her employer

Which of the following types of annuities is subject to the Disclosure Requirements? a. Structured Settlement annuities b. Charitable Gift annuities c. Variable annuities d. Equity Indexed annuities

d. Equity Indexed annuities

All of the following are true regarding life insurance advertising, except: a. Insurers must be responsible for and control all advertising content b. Insurers must keep every advertisement on file for at least 5 years after its use c. The Commissioner may require an insurer to submit advertisements for review and approval d. The Commissioner may not require a producer to submit advertisements for review and approval

d. The Commissioner may not require a producer to submit advertisements for review and approval