Life Health Insurance Exam Colorado Latest

Life & Health Insurance Exam Colorado Latest Update - Source with 110 Questions and 100% Verified Detailed Correct Answers Guaranteed

Accelerated Death Benefits - CORRECT ANSWER: -Also known as Living Benefits

Rider, 12 months or less -Apply when insured gets a terminal illness -Insurer will pay out a portion of death benefit -Face amount paid to beneficiary at death is reduced by the amount paid out while living -Money must be used to pay hospital bills

Accidental Death Benefit Rider - CORRECT ANSWER: -Type of Insurance Rider

-Death must occur within 90 days of accident or it is assumed to be form of natural causes -Doesn't cover death due to sickness only accidents

Adjustable Whole Life----TEST - CORRECT ANSWER: -Sold to clients with fluctuating incomes----TEST -Combination of term and whole life----TEST -Coverage may not be increased without physical exam---TEST

Annuity Pay-Out Options - CORRECT ANSWER: -Contractual; cannot be changed once

selected -Amount received in excess of cost are taxable as ordinary income -For life -Cash surrender under age 59.5 subject to IRS 10% penalty -Non-qualified=Funded with after tax dollars

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Assignments - CORRECT ANSWER: -Absolute assignment is permanent change of

ownership--TEST -Collateral assignment is temporary -Often used when insurance is required as a condition to a loan---TEST

Beneficiary Designations - CORRECT ANSWER: -Primary beneficiary receives

proceeds when insured dies -Can have as many primaries as wanted -Guardian must be appointed for children -Company may designate irrevocable beneficiary -Common disaster clause -Applies if insured and primary beneficiary both day as a result of the same accident -Insured always dies last even if not the case -Primary beneficiary must die within 10 days for clause to be enacted

Business Disability Buyout Policy - CORRECT ANSWER: -Utilizes buy-sell agreement -Lump Sum -Paid to able partner -Premiums not tax deductible -Proceeds not taxable

Business Overhead Expense Policy (BOE) - CORRECT ANSWER: -Includes on going

business expenses ex. rent, wages, utilities -Premiums tax deductible

Changes in the Application - CORRECT ANSWER: Can never make changes unless

the applicants initials have changed

COAL - CORRECT ANSWER: -Four elements required to have a legal contract

-C=Consideration 2 / 3

-O=Offer -A=Acceptance -L=Legal

Collecting Initial Premiums & Issuing Conditional Receipts - CORRECT ANSWER: - Producers gives applicant a conditional receipt -C.O.D. Collect on delivery submittal applications -No coverage exists since no premium has been paid -Producer delivers policy and collects premium, now the coverage begins -Producer also obtains a statement of good health -Life and health producers never use binders-verbal agreement, they are not allowed

Combination Plans & Life Insurance Policy Variations - CORRECT ANSWER: -Joint Life Policy -Survivorship Life Policy

Consequences of Accepting an Incomplete Application - CORRECT ANSWER: -

Constitutes a waiver, the voluntary act of giving up legal rights -Estoppel- Inability to enforce legal rights once given up - 2 years

Consideration - CORRECT ANSWER: -Required for legal contract

-Applicant's consideration is the premium paid + applicant's statements on application -Insurer's consideration is their promise to provide coverage in return

Consideration Clause - CORRECT ANSWER: -An exchange of values

-Pays first premium then answers questions on application -Representation is truth to the best of your knowledge -Company agrees to provide coverage in exchange -No coverage unless premium is paid

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