10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The CO-LH exam has 181 questions and runs 4 hours.
These 10 free CO-LH questions are organized by exam domain, so you can see how each part of the Colorado Life & Health Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
An indexed universal life segment has a 0% floor, an 80% participation rate, and an 8% cap. The index rises 12% during the segment, and the policy separately deducts monthly mortality and expense charges. Select the accurate result:
Correct answer: C - The segment is credited 8%; charges may still reduce policy value
Two spouses have adequate resources while either is alive. Their principal concern is creating estate liquidity only after both have died. The policy design that most directly matches this objective is:
Correct answer: A - Survivorship life, payable at the second death
A policyowner named an adult child as irrevocable beneficiary. The owner later requests a policy loan that would reduce the child's protected interest, and the child refuses consent. The insurer should:
Correct answer: D - Decline the loan unless the irrevocable beneficiary consents
A whole life policyowner no longer wants to pay premiums. She wants coverage to remain in force for life, accepts a smaller face amount, and does not want cash now. Her election should be:
Correct answer: B - Reduced paid-up insurance
An applicant pays the first premium and receives a conditional receipt stating that coverage begins on the application date only if the proposed insured was insurable as applied for on that date. Underwriting later determines that this condition was not met, and the applicant dies before policy delivery. The receipt produces which result?
Correct answer: A - No temporary coverage; the receipt's insurability condition failed
A producer receives three $2,000 money orders over two days to fund a cash-value life policy. The payor is unrelated to the applicant, refuses to explain the source of funds, and asks whether any government report will be filed. The producer's compliant next step is to:
Correct answer: C - Escalate under AML procedures and do not disclose any SAR decision
A 54-year-old owns a Modified Endowment Contract with $80,000 of basis and $30,000 of gain. She takes a $20,000 policy loan, and no tax exception applies. Federal tax treatment is generally:
Correct answer: B - The $20,000 is taxable gain and may face a 10% additional tax
A Colorado producer receives a client's life premium on June 1 under the ordinary producer-collected-premium rule. The agency agreement requires no earlier remittance. On July 5, the funds remain segregated in the premium trust account and have not been used. Which assessment is most accurate?
Correct answer: D - No 45-day violation has occurred, but the producer should remit promptly
An unlicensed receptionist gives a licensed producer the name of a prospective client. She receives a fixed $25 for each name provided, whether or not insurance is purchased, and she neither discusses policies nor urges anyone to apply. Under Colorado law, this referral arrangement is:
Correct answer: B - Permissible because the fee is fixed and no licensed activity occurs
A Colorado client will use a $12,000 withdrawal from an existing whole life policy to pay the first premium on a new annuity while leaving the old policy technically in force. The transaction should be handled as:
Correct answer: C - A replacement; complete the required notice at application
The CO-LH exam also covers these domains. Drill them in the full free practice test:
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