Kentucky Life Insurance State Exam Practice
Questions With Correct Answers
The premiums paid by an employer for his employee's group life
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insurance are usually considered to be - CORRECT ANSWER✔✔-Tax-
| | | | | | | |
deductible to the employer | | |
Which of these is NOT considered to be a cost connected with an
| | | | | | | | | | | | |
individual's death? - CORRECT ANSWER✔✔-Business expenses
| | | | |
These are all accurate statements regarding universal life insurance
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EXCEPT - CORRECT ANSWER✔✔-Policy loans are not permitted
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Which of these is NOT relevant when determining the amount of
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personal life insurance needed? - CORRECT ANSWER✔✔-Local
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unemployment rate |
Who elects the governing body of a mutual insurance company? -
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CORRECT ANSWER✔✔-Policyholders
|
,Why would evidence of insurability be required for a person insured
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with a variable universal life policy? - CORRECT ANSWER✔✔-The face
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amount is increased | |
At what point are death proceeds paid in a joint life policy? - CORRECT
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ANSWER✔✔-When the first insured dies | | | |
What is considered a valid reason for small businesses to insure the lives
| | | | | | | | | | | |
of its major shareholders? - CORRECT ANSWER✔✔-Fund a buy-sell
| | | | | | | | | |
agreement
Which action will trigger a penalty tax on premature distributions from
| | | | | | | | | | |
a modified endowment contract (MEC)? - CORRECT ANSWER✔✔-Policy
| | | | | | | |
loans
Dividends from a mutual insurance company are paid to whom? -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Policyowners |
Traditional individual retirement annuity (IRA) distributions must start
| | | | | | | |
by - CORRECT ANSWER✔✔-April 1st of the year following the year the
| | | | | | | | | | | |
participant attains age 70 1/2 | | | |
How are Roth IRA distributions normally taxed? - CORRECT
| | | | | | | | |
ANSWER✔✔-Distributions are received tax-free | | |
, How can an insurance company minimize exposure to loss? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Reinsurance
All of the following statements about traditional individual retirement
| | | | | | | | |
accounts are false EXCEPT - CORRECT ANSWER✔✔-10% penalty is
| | | | | | | | |
applied to withdrawals before age 59 1/2
| | | | | |
All of these statements concerning universal life insurance are false
| | | | | | | | | |
EXCEPT - CORRECT ANSWER✔✔-Policy indicates how much of the
| | | | | | | | |
premium is used toward company expenses
| | | | |
A 55 year old recently received a $30,000 distribution from a previous
| | | | | | | | | | | |
employer's 401k plan, minus $10,000 withholding. Which federal taxes
| | | | | | | | |
apply if none of the funds were rolled over? - CORRECT ANSWER✔✔-
| | | | | | | | | | |
Income taxes plus a 10% penalty tax on $30,000
| | | | | | | |
For insurance purposes, similar objects which are exposed to the same
| | | | | | | | | | |
perils are referred to as - CORRECT ANSWER✔✔-Homogeneous
| | | | | | | |
exposure units |
In an individual retirement account (IRA), rollover contributions are -
| | | | | | | | | |
CORRECT ANSWER✔✔-Not limited by dollar amount
| | | | |
Questions With Correct Answers
The premiums paid by an employer for his employee's group life
| | | | | | | | | | |
insurance are usually considered to be - CORRECT ANSWER✔✔-Tax-
| | | | | | | |
deductible to the employer | | |
Which of these is NOT considered to be a cost connected with an
| | | | | | | | | | | | |
individual's death? - CORRECT ANSWER✔✔-Business expenses
| | | | |
These are all accurate statements regarding universal life insurance
| | | | | | | | |
EXCEPT - CORRECT ANSWER✔✔-Policy loans are not permitted
| | | | | | |
Which of these is NOT relevant when determining the amount of
| | | | | | | | | | |
personal life insurance needed? - CORRECT ANSWER✔✔-Local
| | | | | | |
unemployment rate |
Who elects the governing body of a mutual insurance company? -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Policyholders
|
,Why would evidence of insurability be required for a person insured
| | | | | | | | | | |
with a variable universal life policy? - CORRECT ANSWER✔✔-The face
| | | | | | | | | |
amount is increased | |
At what point are death proceeds paid in a joint life policy? - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-When the first insured dies | | | |
What is considered a valid reason for small businesses to insure the lives
| | | | | | | | | | | |
of its major shareholders? - CORRECT ANSWER✔✔-Fund a buy-sell
| | | | | | | | | |
agreement
Which action will trigger a penalty tax on premature distributions from
| | | | | | | | | | |
a modified endowment contract (MEC)? - CORRECT ANSWER✔✔-Policy
| | | | | | | |
loans
Dividends from a mutual insurance company are paid to whom? -
| | | | | | | | | | |
CORRECT ANSWER✔✔-Policyowners |
Traditional individual retirement annuity (IRA) distributions must start
| | | | | | | |
by - CORRECT ANSWER✔✔-April 1st of the year following the year the
| | | | | | | | | | | |
participant attains age 70 1/2 | | | |
How are Roth IRA distributions normally taxed? - CORRECT
| | | | | | | | |
ANSWER✔✔-Distributions are received tax-free | | |
, How can an insurance company minimize exposure to loss? - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Reinsurance
All of the following statements about traditional individual retirement
| | | | | | | | |
accounts are false EXCEPT - CORRECT ANSWER✔✔-10% penalty is
| | | | | | | | |
applied to withdrawals before age 59 1/2
| | | | | |
All of these statements concerning universal life insurance are false
| | | | | | | | | |
EXCEPT - CORRECT ANSWER✔✔-Policy indicates how much of the
| | | | | | | | |
premium is used toward company expenses
| | | | |
A 55 year old recently received a $30,000 distribution from a previous
| | | | | | | | | | | |
employer's 401k plan, minus $10,000 withholding. Which federal taxes
| | | | | | | | |
apply if none of the funds were rolled over? - CORRECT ANSWER✔✔-
| | | | | | | | | | |
Income taxes plus a 10% penalty tax on $30,000
| | | | | | | |
For insurance purposes, similar objects which are exposed to the same
| | | | | | | | | | |
perils are referred to as - CORRECT ANSWER✔✔-Homogeneous
| | | | | | | |
exposure units |
In an individual retirement account (IRA), rollover contributions are -
| | | | | | | | | |
CORRECT ANSWER✔✔-Not limited by dollar amount
| | | | |
