6.- Colorado Statutes, Rules & Regulations Pertinent to Life Only

As part of the continuing education (CE) requirement, what is the minimum number of hours of CE specific to annuities that must be completed for each license renewal period?

4 hours

In which of the following situations has replacement occurred?

A policyowner borrows 25% of their cash value to buy a new policy

Which of the following statements is correct regarding the replacement of an existing life insurance policy?

A replacement notice must be given out before taking the application

When an application for an annuity contract is taken face-to-face with the consumer, the producer must give all required disclosure documents

At or before the time of application

What is the suicide exclusion designed to do?

Exclude suicide committed during the first policy year

Large group insurance underwriting takes all of the following into consideration EXCEPT

The level of health of each individual

Which of the following terms will be permissible in describing a life insurance policy in company advertisements?

Variable plan

When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy for

5 years

Before marketing an annuity contract to the consumer, an agent has a responsibility to determine whether the annuity is suitable for a client by

Questioning the client regarding her investments and other insurance products

All of the following are the duties of the replacing producer where replacement is involved EXCEPT

Send a letter to the policyowner of the right to receive information regarding the existing policy.

A purchaser of life insurance policy has the right to return the policy for a full refund of the premium if done within

15 days of its delivery

Which of the following is NOT true regarding the Notice Regarding Replacement?

A copy must be sent to the existing insurer *The Notice must be provided at the time of policy replacement, must be signed by both the producer and the applicant and a copy must be provided to the applicant. The Notice is not required for the existing insurer.

Which of the following would be considered a violation of life insurance advertising regulations?

Calling a variable insurance policy an investment plan *insurance policies may not be sold as investment plans; their sole purpose is for insurance

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Replacement rule

When an insured terminated membership in the insured group, the insured can convert to

Whole life without proof of insurability

When an insurance producer receives an application for an annuity contract, the producer must give the applicant a copy of which of the following documents?

All disclosure documents and the Buyer's Guide

Who has the right to assign incidents of ownership under a group life insurance policy?

The individual insured

Under what circumstance will the proceeds payable under an employee's group life be taken to pay to a creditor of the employee?

When the creditor is named as the beneficiary of the proceeds by the insured employee

An insurer that does not pay a death benefit in a timely manner as required by state law, will be required ro

Pay to the beneficiary an interest penalty from the date of the insured's death

Group life insurance policies delivered in Colorado must contain all of the following EXCEPT

**A.- statements on the applicant are considered warranties *no policy of group life insurance can be delivered in Colorado unless it contains the following provisions, among others: The policyholder is entitled to a grace period of 31 days for the payment of any premium; The validity of the policy can not be contested, except for nonpayment if premiums, after it has been in force for 2 years; an adjustment of premiums or benefits or both in the event of misstatement of age; a copy of the application must be attached to the policy.

At the time of application for an annuity, a producer did not provide a buyer's guide and disclosure statements to the contract owner. In this situation, the contract owner is entitled to a free-look period of at least how many days?

15 days

The term "employer" with respects to group insurance policy coverage includes all of the following EXCEPT

Condominium owners in a sub-division *The term employer includes counties, cities, incorporated towns, school districts, and other political subdivisions of this state

Which of the following would NOT constitute a policy replacement?

Converting group coverage to individual coverage. *Lapses or terminates- New Policy; Reissued as- Reduction in cash value; and Converted to- reduced paid-up or extended term insurance. All this constitute a policy replacement

Under an employer-sponsored group plan, if the insurance on a person covered under the policy ceases because of termination of employment, which of the following is true?

The certificate owner is entitled to convert coverage to an individual policy without evidence of insurability

All of the following could own group life insurance EXCEPT

A group formed specifically to purchase insurance *Eligible groups may include creditor-debtor groups, labor unions, credit unions or employer groups

An individual with a legal interest in the continued life of the insured defines the principle known as

Insurable interest