Life exam Colorado
What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act?
$2,500
An insurer who frequently misses deadlines to respond to inquiries from the division of insurance may be fined for each violation as much as
$5,000
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
Which of the following is NOT true regarding notice regarding replacement
A copy must be sent to the existing insurer
Which of the following persons is required to hold a producer license?
A person who negotiates insurance contracts
To which of the following situations has replacement occurred?
A policyowner borrows 25% of their cash value to buy a new policy
Who can make a fully deductible contribution to a traditional IRA?
An individual not covered by an employer-sponsored plan who has earned income
Employer contributions made to a qualified plan
Are subject to vesting requirements
Which of the following is a feature of a variable annuity?
Benefit payment amounts are not guaranteed
Which of the following is an eligibility requirement for all SSDI benefits?
Have attained fully insured status
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Insuring clause
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint Life
Which part of the insurance application would contain information regarding the cause of death of the applicants deceased relatives?
Medical information
The policy owner pays for her life insurance annually. Until now she has collected a non taxable dividend check each year. She has decided she would rather use the dividends to help pay her next premium. What option would allow her to do that?
Paid up addition
According to the Colorado fraud statutes, every licensed insurance company doing business in Colorado is required to do all EXCEPT
Pay a fee to the state of Colorado to protect the insurer against fraud
Which of the following is correct concerning taxation of premiums in a key person life insurance policy?
Premiums are not tax deductible as a business expense.
Which of the following determines the length of time that benefits will be received under the fixed amount settlement option?
Size of each installment
Group life insurance policies delivered in Colorado must contain all of the following EXCEPT
Statements on the application are considered warranties
Which of the following would help prevent A universal life policy from lapsing?
Target premium
All of the following employees may use a 403B plan for retirement EXCEPT
The CEO of a private corporation
The contract can be issued without an annuitant
The annuitant must be a natural person
Which is NOT true about beneficiary designations?
The beneficiary must have insurable interest in the insured.
All of the following are true of an annuity owner EXCEPT
The owner must be the party to receive benefits.
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
a) Variable annuity
If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
fixed period