Kentucky Life Focused Review
Don was born in March 1973 and got his license in February 2008. When would he have to complete
continuing education requirements? - Answer-By the end of March 2009
A licensee's requirements must be completed by the end of his or her birth month in the odd- or even-
numbered year (depending on the year of birth) AFTER HIS or HER 1-YEAR anniversary of licensing.
The provision that sets forth the basic agreement between the insurer and the insured and states the
insurer's promise to pay the death benefit upon the insured's death is called the - Answer-Insuring
clause
The insuring clause states the insurer promise to pay the death benefit upon the insured's death and
sets forth the basic agreement between the insurer and the insured.
For which of the following violations is revocation of an agent's license required by law? - Answer-a)
Rebating.
b) Misrepresentation.
c) Using license to place business solely on an agent's own property.
d) All of the above.
, D.
Rebating and misrepresentation are unfair trade practices; using a license to write only your own
insurance is called "controlled business" and is prohibited by the Code.
Which is INCORRECT concerning a Section 457 Deferred Compensation plan? - Answer-It has a vesting
requirement.
Since the employee forfeits the amount deferred if he/she leaves the employment, it has no vesting
requirement.
Which of the following policies would have an IRS required corridor or gap between the cash value and
the death benefit? - Answer-Universal Life - Option A
Universal Life Option A (Level Death Benefit option) policy must maintain a specified "CORRIDOR" or gap
between the cash value and the death benefit, as required by the IRS. If this corridor is not maintained,
the policy is no longer defined as life insurance for tax purposes
A graded premium life insurance policy is a modified form of - Answer-Whole Life.
Graded premium is a whole life policy with premiums that increase annually over the first 5 to 10 years.
What is the name of the tax that is levied by the federal government on the right to transfer property at
the time of death? - Answer-Federal Estate Tax
The Federal Estate Tax is a transfer tax that is levied by the federal government on the right to transfer
property at the time of death.
The life insurance policy clause that prevents an insurance company from denying payment of a death
claim after a specified period of time is known as the - Answer-Incontestability clause
Don was born in March 1973 and got his license in February 2008. When would he have to complete
continuing education requirements? - Answer-By the end of March 2009
A licensee's requirements must be completed by the end of his or her birth month in the odd- or even-
numbered year (depending on the year of birth) AFTER HIS or HER 1-YEAR anniversary of licensing.
The provision that sets forth the basic agreement between the insurer and the insured and states the
insurer's promise to pay the death benefit upon the insured's death is called the - Answer-Insuring
clause
The insuring clause states the insurer promise to pay the death benefit upon the insured's death and
sets forth the basic agreement between the insurer and the insured.
For which of the following violations is revocation of an agent's license required by law? - Answer-a)
Rebating.
b) Misrepresentation.
c) Using license to place business solely on an agent's own property.
d) All of the above.
, D.
Rebating and misrepresentation are unfair trade practices; using a license to write only your own
insurance is called "controlled business" and is prohibited by the Code.
Which is INCORRECT concerning a Section 457 Deferred Compensation plan? - Answer-It has a vesting
requirement.
Since the employee forfeits the amount deferred if he/she leaves the employment, it has no vesting
requirement.
Which of the following policies would have an IRS required corridor or gap between the cash value and
the death benefit? - Answer-Universal Life - Option A
Universal Life Option A (Level Death Benefit option) policy must maintain a specified "CORRIDOR" or gap
between the cash value and the death benefit, as required by the IRS. If this corridor is not maintained,
the policy is no longer defined as life insurance for tax purposes
A graded premium life insurance policy is a modified form of - Answer-Whole Life.
Graded premium is a whole life policy with premiums that increase annually over the first 5 to 10 years.
What is the name of the tax that is levied by the federal government on the right to transfer property at
the time of death? - Answer-Federal Estate Tax
The Federal Estate Tax is a transfer tax that is levied by the federal government on the right to transfer
property at the time of death.
The life insurance policy clause that prevents an insurance company from denying payment of a death
claim after a specified period of time is known as the - Answer-Incontestability clause
