KENTUCKY LIFE INSURANCE STATE EXAM PRACTICE GRADED
A+ VERIFIED QUESTIONS AND ANSWERS
The premiums paid by an employer for his employee's group
life insurance are usually considered to be -ANSWER-Tax-
deductible to the employer
Which of these is NOT considered to be a cost connected with
an individual's death? -ANSWER-Business expenses
These are all accurate statements regarding universal life
insurance EXCEPT -ANSWER-Policy loans are not permitted
Which of these is NOT relevant when determining the amount
of personal life insurance needed? -ANSWER-Local
unemployment rate
Who elects the governing body of a mutual insurance
company? -ANSWER-Policyholders
Why would evidence of insurability be required for a person
insured with a variable universal life policy? -ANSWER-The face
amount is increased
,At what point are death proceeds paid in a joint life policy? -
ANSWER-When the first insured dies
What is considered a valid reason for small businesses to
insure the lives of its major shareholders? -ANSWER-Fund a
buy-sell agreement
Which action will trigger a penalty tax on premature
distributions from a modified endowment contract (MEC)? -
ANSWER-Policy loans
Dividends from a mutual insurance company are paid to
whom? -ANSWER-Policyowners
Traditional individual retirement annuity (IRA) distributions
must start by -ANSWER-April 1st of the year following the year
the participant attains age 70 1/2
How are Roth IRA distributions normally taxed? -ANSWER-
Distributions are received tax-free
How can an insurance company minimize exposure to loss? -
ANSWER-Reinsurance
, All of the following statements about traditional individual
retirement accounts are false EXCEPT -ANSWER-10% penalty is
applied to withdrawals before age 59 1/2
All of these statements concerning universal life insurance are
false EXCEPT -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? -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 -ANSWER-Homogeneous
exposure units
In an individual retirement account (IRA), rollover
contributions are -ANSWER-Not limited by dollar amount
A+ VERIFIED QUESTIONS AND ANSWERS
The premiums paid by an employer for his employee's group
life insurance are usually considered to be -ANSWER-Tax-
deductible to the employer
Which of these is NOT considered to be a cost connected with
an individual's death? -ANSWER-Business expenses
These are all accurate statements regarding universal life
insurance EXCEPT -ANSWER-Policy loans are not permitted
Which of these is NOT relevant when determining the amount
of personal life insurance needed? -ANSWER-Local
unemployment rate
Who elects the governing body of a mutual insurance
company? -ANSWER-Policyholders
Why would evidence of insurability be required for a person
insured with a variable universal life policy? -ANSWER-The face
amount is increased
,At what point are death proceeds paid in a joint life policy? -
ANSWER-When the first insured dies
What is considered a valid reason for small businesses to
insure the lives of its major shareholders? -ANSWER-Fund a
buy-sell agreement
Which action will trigger a penalty tax on premature
distributions from a modified endowment contract (MEC)? -
ANSWER-Policy loans
Dividends from a mutual insurance company are paid to
whom? -ANSWER-Policyowners
Traditional individual retirement annuity (IRA) distributions
must start by -ANSWER-April 1st of the year following the year
the participant attains age 70 1/2
How are Roth IRA distributions normally taxed? -ANSWER-
Distributions are received tax-free
How can an insurance company minimize exposure to loss? -
ANSWER-Reinsurance
, All of the following statements about traditional individual
retirement accounts are false EXCEPT -ANSWER-10% penalty is
applied to withdrawals before age 59 1/2
All of these statements concerning universal life insurance are
false EXCEPT -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? -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 -ANSWER-Homogeneous
exposure units
In an individual retirement account (IRA), rollover
contributions are -ANSWER-Not limited by dollar amount
