KY Life Insurance Exam Questions with 100% Correct Answers

Important Contractual Concepts: Executory Contract Correct Answer Contract that is not completed immediately; some future act remains to be done to consummate the contract Important Contractual Concepts: Contracts of Adhesion Correct Answer one sided contract -- no negotiating Important Contractual Concepts: Aleatory Correct Answer unequal contract -- one person/party will receive more than another Important Contractual Concepts: Parol Evidence Rule Correct Answer Everything agreed upon must in the written agreement, including oral agreements Important Contractual Concepts: Estoppel Correct Answer Precendence set by actions; must continue that practice Elements of a legal contract Correct Answer 1. Competent Parties 2. Legal Purpose 3. Offer & Acceptance 4. Consideration Life Insurance Correct Answer Spreading among many persons the financial loss resulting from an individual's death so that the cost for each individual is small Law of Large Numbers Correct Answer The larger the number of people and deaths recorded, the more reliably one can predict how many will dies at a specific age in the entire population of insured of that age. If the records are kept for many millions of people of all ages over a long period of time, the predictability becomes very reliable. Mortality Correct Answer Life insurance Obligations at death Correct Answer medical and funeral expenses, plus debts or current bills, taxes Methods of Estate Building Correct Answer savings account/plan, investments, life insurance Living Benefits of Life Insurance Correct Answer loan values, retirement income, cash withdrawals, dividends Human Life Value Correct Answer =salary x #years to retirement Needs Approach Correct Answer (most popular approach to determining life ins need)