Under Colorado law, a life insurance policy becomes incontestable, except for nonpayment of premium, after it has been in force during the insured's lifetime for how long from its date?
A. One year
B. Two years
C. Five years
D. It is never contestable once issued
Source: C.R.S. § 10-7-102
A short period after an annuity contract is delivered during which the owner may cancel the contract and receive a refund is called the:
A. Grace period
B. Free-look period
C. Contestable period
D. Accumulation period
Source: General insurance principle
Which type of life insurance provides coverage for a specified period, has no cash value, and generally offers the lowest initial premium for a given death benefit?
A. Whole life insurance
B. Term life insurance
C. Universal life insurance
D. Variable life insurance
Source: General insurance principle
A whole life policy that allows the policyowner to adjust the premium amount and timing, and to adjust the death benefit within limits, while crediting interest to an unbundled cash value account, is best described as which product?
A. Term life insurance
B. Traditional whole life insurance
C. Universal life insurance
D. Credit life insurance
Source: General insurance principle
In a variable life insurance policy, the cash value and, potentially, the death benefit fluctuate based on which factor?
A. The insurer's dividend scale approved by the board of directors
B. The performance of separate account investment subaccounts chosen by the policyowner
C. The Colorado Division of Insurance's annual interest rate bulletin
D. The insured's health status at each policy anniversary
Source: General insurance principle
