Free Life Policy Provisions Options and Riders Practice Questions
Colorado Life, Accident & Health exam — 116 practice questions.
Subtopics: Ownership rights, Collateral assignment, Spendthrift clause, Suicide clause, Consideration clause, Insuring clause, Convertible term, Renewable term, Dividend options, Child rider, Cash surrender, Return of premium rider, Suicide, Incontestability, Grace period, Entire contract, Misstatement of age, Policy loans, Legal actions, Final expense disclosure, Lapse notice, Interest on proceeds, Free look, Free look - replacement, Nonforfeiture, Cash surrender deferral, Spendthrift, Accelerated benefits, Illustrations, Standard provisions, Assignment, Beneficiaries, Beneficiary clauses, Settlement options, Nonforfeiture options, Riders, Reinstatement, Incontestable clause, Primary beneficiary, Irrevocable beneficiary, Minor beneficiary, Per capita, Estate as beneficiary, Dividend option cash, Dividend option reduce premium, Dividend option accumulate at interest, Dividend option one-year term, Joint and survivor settlement, Guaranteed insurability rider, Cost of living rider, Payor benefit rider, Child term rider, War exclusion, Aviation and avocation exclusions, Exclusions, Dividends, Premium modes, Change of owner
Read the Life Policy Provisions Options and Riders study guide
Sample questions & answers
1. The owner of a life insurance policy generally has the right to:
Name the beneficiary and assign the policy
The policyowner holds the ownership rights, including naming or changing the beneficiary, assigning the policy, and electing options.
2. A policyowner who assigns a life policy to a bank as security for a loan has made a:
Collateral assignment
A collateral assignment transfers only a portion of policy rights to a lender as security, leaving the rest with the owner.
3. A spendthrift clause in a life insurance settlement is designed to:
Protect retained proceeds from creditors
C.R.S. 10-7-106 lets a policy bar a beneficiary from commuting, anticipating, encumbering, or assigning retained proceeds and protect them from the beneficiary's debts.
4. Under Colorado law, an insurer may raise the insured's suicide as a defense to paying a life policy only if the suicide occurs:
Within the first policy year
C.R.S. 10-7-109 provides that suicide after the first policy year is not a defense to payment, whether the insured was sane or insane.
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Practice: Life Policy Provisions Options and Riders
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
