Life Guaranteed Exam
If an insurance company uses HIV testing as part of its underwriting, when must an applicant be notified of the procedure
prior to performance of the test
The guaranteed insurability rider allows the owner to purchase additional amounts of insurance without proof of insurability at all the following EXCEPT
purchase a new home
Which of the following would NOT trigger the payment of Accelerated Death Benefits
being permanently disabled
In replacement, an existing insurer must provide policy owners with a policy summary for existing life insurance within how many days of receiving the written communication and replacement
5 business days
How long is the grace period for an individual life insurance policy
1 month
Variable insurance and variable annuities are regulated by
SEC, FINRA, and Departments of Insurance
Which of the following elements of insurance contract requires payment of premium
consideration
A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will
continue to increase
When a whole life policy is surrendering for its nonforfeiture value, what is the automatic option
extended term
Which of the following is an correct statement about annuities
fixed annuities do not provide protection against inflation
Which of the following is guaranteed under a variable whole life insurance policy
min death benefit
Which of the following are characteristics of term life insurance
temporary protection, renewability, no cash value
Which of the following statement regarding HIV testing is NOT true
test results must be sent to the Department of Insurance
All of the following are true of the Survivorship Life policy EXCEPT
the premium is based on the age of each insured
A first time license does NOT have to comply with continuing education requirements until
the second continuation then every 2 yrs thereafter
An insured decided to replace his life insurance policy with one offered by a new insure. After receiving the policy, he is unsatisfied with the provision and decided to return it. Within how many days must he return the policy in order to receive a full premium refund
30
A company transacting insurance in this state is required to obtain which of the following documents
certificate of authority
Life insurance and Annuity Replacement regulation applies to all of the following types of life products EXCEPT
group life
Which of the following is NOT true regarding a deferred annuity
income payments begin within 1 year from the date of purchase
All group life policies issued in CO must contain all of the following provisions EXCEPT
incontestability after 1 year
Which of the following statements describes one of the reasons individuals purchase life insurance
it creates an immediate estate
The entire contract includes all of the following EXCEPT
a buyer's guide
Where are premiums from fixed annuities invested
a general account
An aleatory contract is based on what kind of exchange
unequal exchange of values
What is the most common name for a single policy that is designed to insure two or more lives with a standard premium, and that pays the death benefit upon the first death
joint life
All of the following are true about key-person insurance EXCEPT
the death benefit is taxable to the business
An insured decides to surrender the Whole Life insurance policy. The cash value at surrender is higher than the premiums paid into the policy, due to interest. What part of the surrender would be income taxable?
the difference between the premiums paid and the cash value
With Adjustable Life the owner can change all of the following EXCEPT
the insured
What is the difference between straight life policy and a 20-pay whole life policy
premium payment period
S set up an individual retirement account that her employer is now contributing to. Her employer's contributions are not included in her gross income. What kind of retirement plan does S have
simplified employee provision (SEP)
What is the cost of coverage based on for group life insurance
the average age and the ratio of men and women
An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive
$70,000
If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the max civil penalty
2,500
In a replacement situation, all the following are prohibited practices EXCEPT
borrowing 50% of a policy's cash value to find a new life insurance contract
Guaranteeing future dividends is considered to be an unfair or deceptive act known as
misrepresentation
Considering the purpose of liquidity, how would the policy owner use today's cash values in a life insurance policy
use it for emergency expense
Replacement regulations are designed to protect whom
Consumers
The aggregate commissions for controlled business written by a producer are calculated for what period of time
12 months
A producer holds a life insurance license. How many continuing education hours must the producer complete on the subject of life insurance each renewal period
18 hrs
An insurer who receives an Examination Request Form from the Division of Insurance must provide a complete response within
10 calendar days
According to the life insurance replacement regulations, which of the following would be an example of policy replacement
a policy is reissued with a reduction in cash value
Use of all of the following terms is prohibited in a life insurance advertisement EXCEPT
variable life insurance
All premiums received from insurers to a producer's account must be credited on the insured's account within
30 days
A distribution from an employer-sponsored retirement plan or from an IRA is eligible for a tax-free rollover if it is reinstated in an IRA within
60 days
Which of the following statements is true regarding a nonresident license
a license issued to a nonresident person will confer the same rights and privileges as those afforded a resident license
In an insurer does not pay the death benefit within 30 days after receipt of acceptable proof of loss, the insurer will be required to do which of the following
pay increased interest rate on the proceeds
In order to reinstate a life insurance policy, the insured must do all of the following EXCEPT
pay next year's premium in advance
A loss resulting from which of the following would qualify for the accidental death rider coverage
an automobile accident
An individual is considering applying for an insurance license. Which of the following statements is true regarding the relicensing requirement
an individual seeking an insurance producer license of life insurance must complete 50 hrs of an approved course in life insurance
What effect will the long-term care (LTC) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured
reduce the death benefit
All of the following are consideration in the insurance policy EXCEPT
the cash value in the policy
Insurance contracts are unilateral in nature. What does that mean
only one party makes a promise
