Kentucky Life Insurance State Exam Practice Questions with Certified Answers

Kentucky Life Insurance State Exam Practice Questions with Certified Answers The premiums paid by an employer for his employee's group life insurance are usually considered to be Tax-deductible to the employer Which of these is NOT considered to be a cost connected with an individual's death? Business expenses These are all accurate statements regarding universal life insurance EXCEPT Policy loans are not permitted Which of these is NOT relevant when determining the amount of personal life insurance needed? Local unemployment rate Who elects the governing body of a mutual insurance company? Policyholders Why would evidence of insurability be required for a person insured with a variable universal life policy? The face amount is increased At what point are death proceeds paid in a joint life policy? When the first insured dies What is considered a valid reason for small businesses to insure the lives of its major shareholders? Fund a buy-sell agreement Which action will trigger a penalty tax on premature distributions from a modified endowment contract (MEC)? Policy loans Dividends from a mutual insurance company are paid to whom? Policyowners Traditional individual retirement annuity (IRA) distributions must start by April 1st of the year following the year the participant attains age 70 1/2 How are Roth IRA distributions normally taxed? Distributions are received tax-free How can an insurance company minimize exposure to loss? Reinsurance All of the following statements about traditional individual retirement accounts are false EXCEPT 10% penalty is applied to withdrawals before age 59 1/2 All of these statements concerning universal life insurance are false EXCEPT 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? 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 Homogeneous exposure units In an individual retirement account (IRA), rollover contributions are Not limited by dollar amount What is the maximum number of employees (earning at least $5,000) that an employer can have in order to start a SIMPLE retirement plan? 100 Which