Kentucky Life Insurance State Exam Practice Questions with Answers (new 2024)
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 Kentucky Life Insurance State Exam Practice Questions with Answers (new 2024)
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 Kentucky Life Insurance State Exam Practice Questions with Answers (new 2024)
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
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 Kentucky Life Insurance State Exam Practice Questions with Answers (new 2024)
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 Kentucky Life Insurance State Exam Practice Questions with Answers (new 2024)
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
