Life Insurance Exam Kentucky Questions with Correct Answers

A. All the incidents of ownership in the policy belong to the donee. Correct Answer In an outright gift of life insurance to a charity A. All the incidents of ownership in the policy belong to the donee. B. The donor retains the right to name a new beneficiary. C. The cash values in the policy belong to the donor. D. The premiums paid by the donor are not tax deductible. C. Making a formal request to the company for an insurance policy. Correct Answer When signing the application form, the proposed insured is, A. Certifying his or her good health and the company should issue the policy. B. Swearing to the accuracy of the information contained in the application. C. Making a formal request to the company for a life insurance policy. D. Certifying ability to make the premium payments necessary to keep the policy in force. B. An annuity contract exchanged for a life contract. Correct Answer Which of the following would NOT be permitted as a Section 1035 policy exchange? A. A life contract exchanged for a another life contract. B. An annuity contract exchanged for a life contact. C. An annuity contract exchanged for another annuity contract. D. An endowment contract exchanged for an annuity contract. A. A minor may not sign an application. Correct Answer In applying forgive insurance protection A. A minor my not sign an application. B. A minor may sign the application. C. No one under age 18 may sign an application. D. No one under 21 may sign an application C. An insurable interest in the life of the insured Correct Answer The applicant, if other than the proposed insured must have A. No relationship with the insured B. An insurable interest in the life of the policyowner C. An insurable interest in the life of the insured D. A blood relationship with the insured D. It is not obligated to supply applicants with information it holds about them. Correct Answer Which of the following statements regarding the Medical Information Bureau is NOT true? A. It is a nonprofit agency established by the life insurance companies to aid their underwriting. B. It supplies member companies with information concerning insurability of proposed insureds. C .It must be authorized by the applicant to give the information to member companies. D. It is not obligated to supply applicants with information it holds about them. B. Rating Up Correct Answer Establishing premiums for special class risks by using a regular mortality table, but assuming proposed insured are a few years older than they actually are is called. A. The multiple extra premium method B. Rating Up C. The Lien Plan D. The Flat extra premium charge method C. Applicants right to information held about them to any reporting agency Correct Answer The fair credit reporting act guarantees which of the following? A. Equitable insurance rates B. Full disclosure of policy benefits C. Applicants' right to information held about them to any reporting agency D. Full disclosure of an insurers financial condition.