QUESTIONS AND CORRECT ANSWER S -

Colorado Life insurance ACTUAL EXAM 250

QUESTIONS AND CORRECT ANSWER S -

, MOST TESTED QUESTIONS

COVERED

Which of the following retirement plans is tax-qualified?A.Key-person B.Defined contribution C.Section 457 deferred compensation D.Split dollar life insurance - CORRECT ANSWER-B

Which of the following statements is CORRECT about the Paid-Up Additions in a participating Whole Life policy?A.They are subject to underwriting approval.B.They do not generate dividends.C.They are considered Term policies.D.They are purchased on an attained age basis. - CORRECT ANSWER-D

Which of the following provisions in a life policy specifies the manner in which proceeds will be paid to a beneficiary on the death of the insured?A.Nonforfeiture Options B.Settlement Options C.Conditions D.Modes of Payment - CORRECT ANSWER-B

If life insurance policy applicant is classified as a substandard risk, the insurance company will MOST

likely:

A.issue the policy with riders B.charge an extra premium C.require an annual medical examination D.lower the rate per thousand charged - CORRECT ANSWER-B

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If a policy contains a Guaranteed Insurability rider, the insured has the right to purchase: A.additional coverage when the insured reaches retirement age B.additional coverage whenever the insured changes jobs C.additional coverage at specified ages D.coverage on the insured's children within thirty-one days after they are born - CORRECT ANSWER- C

A policyowner names his wife as the primary beneficiary of his Universal Life policy on a revocable basis. He also names his three children as his secondary beneficiaries and his estate as his tertiary beneficiary. If the policyowner's wife predeceases him, and then he dies, who will receive the policy proceeds?A.The children B.The policyowner's estate C.The primary beneficiary's estate D.The tertiary beneficiary - CORRECT ANSWER-A

Which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another?A.Nonforfeiture B.Endorsement C.Transfer for value D.Assignment - CORRECT ANSWER-D

The PRIMARY reason for selecting a Variable Whole Life policy instead of a traditional Whole Life

policy is that the Variable Whole Life policy:

A.provides flexible premium payments B.allows the policyowner to borrow a larger percentage of the cash value C.has the potential to earn a higher rate of return on the cash value D.allows the policyowner more flexibility in naming and changing beneficiaries - CORRECT ANSWER- C

Which of the following statements about a Renewable Term policy is CORRECT?A.It is renewable at the option of the insurer. 2 / 3

B.It is renewable at the option of the insured.C.It is renewable at the option of the insurer, with proof of insurability.D.It is renewable at the option of the insured, with proof of insurability. - CORRECT ANSWER-B

An insurance producer takes an application for a life insurance policy but does not collect the initial premium. On delivery of the policy to the proposed insured, the producer must collect the initial premium and which of the following?A.A copy of the MIB report B.The insured's signed statement of continued good health C.A copy of the conditional receipt D.A copy of the temporary insurance agreement that covered the period between the application date and the delivery date. - CORRECT ANSWER-B

Which of the following annuities would BEST suit the needs of a 35-year-old factory worker who is concerned about inflation and wants to establish a retirement plan?A.A Single Premium Deferred Annuity B.A Single Premium Immediate Annuity C.A Level Premium Fixed Annuity D.A Flexible Premium Variable Annuity - CORRECT ANSWER-D

Under the Social Security Retirement Benefits, all of the following factors will influence how much a retiring individual will receive as a monthly income benefit EXCEPT the individual's: A.age B."primary insurance amount" C."fully insured" or "currently insured" status D.sex - CORRECT ANSWER-D

In life insurance, the Free Look provision begins on the:

A.effective date of coverage B.policy delivery date C.date of application D.date that the insurer issues the policy - CORRECT ANSWER-B

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