Kentucky Life Insurance Exam
equal to or less than - Answer-As long as the amount of premium paid by the donor, plus all other gifts
made during the same year to the same donee is ___ the annual gift tax exclusion, the donor should not
incur federal gift tax liability.
Convert or exchange temporary protection (term) for some form of permanent protection without
evidence of insurability - Answer-A convertible term policy allows... what?
Attained age - Answer-A convertible term policy's premium after being converted is based on what?
Renewable term - it is issued for a specified term and may be renewed at the end of that term without
evidence of insurability. May be limited in the number of renewals or to a specified age. The premium
will be based on attained age. - Answer-A step-rate premium is evident in what type of policy and how?
rebating - Answer-giving a gift of $25+ in exchange for an insurance application
indemnity - Answer-The individuals present and future earning power.
The proceeds will be paid to the beneficiary in the policy if the company would have issued the policy if
he had been living, however the proceeds will not be paid if the company would not have issued the
policy instead the premium will be returned. - Answer-If a conditional receipt was given to the proposed
insured and they died before the policy was issued, what would happen?
, human life value - Answer-focuses on an individuals future stream of income. considers: annual salary
and expenses, years remaining until retirement and the future value of current dollars. "how much will
the insured make"
Needs Approach - Answer-Focuses on the needs of survivors. considers: funeral expenses, final illness,
continuing family income needs, childrens education, and spousal retirement income. "how much will
the survivor need"
issued a policy but an aviation rider or exclusion will be added to it. - Answer-A private pilot will be
special class risk - Answer-amateur pilots are considered a
life insurance - Answer-What creates an immediate estate
Annuities - Answer-what has a principal function of liquidating an estate
credit agents - Answer-who doesn't need an insurance license
Dividends are not taxed and not guaranteed. They are a return of premium. - Answer-how are dividends
taxed and why?
As policy dividends are declared they are used to purchase additional paid up insurance. as the paid up
insurance is added, an equal amount of term insurance is removed from the policy, thus maintaining the
full-face amount at no additional cost. - Answer-How does paid-up insurance work in an economatic
policy?
policy that pays dividends such as a mutual insurer. - Answer-a participating policy is a
equal to or less than - Answer-As long as the amount of premium paid by the donor, plus all other gifts
made during the same year to the same donee is ___ the annual gift tax exclusion, the donor should not
incur federal gift tax liability.
Convert or exchange temporary protection (term) for some form of permanent protection without
evidence of insurability - Answer-A convertible term policy allows... what?
Attained age - Answer-A convertible term policy's premium after being converted is based on what?
Renewable term - it is issued for a specified term and may be renewed at the end of that term without
evidence of insurability. May be limited in the number of renewals or to a specified age. The premium
will be based on attained age. - Answer-A step-rate premium is evident in what type of policy and how?
rebating - Answer-giving a gift of $25+ in exchange for an insurance application
indemnity - Answer-The individuals present and future earning power.
The proceeds will be paid to the beneficiary in the policy if the company would have issued the policy if
he had been living, however the proceeds will not be paid if the company would not have issued the
policy instead the premium will be returned. - Answer-If a conditional receipt was given to the proposed
insured and they died before the policy was issued, what would happen?
, human life value - Answer-focuses on an individuals future stream of income. considers: annual salary
and expenses, years remaining until retirement and the future value of current dollars. "how much will
the insured make"
Needs Approach - Answer-Focuses on the needs of survivors. considers: funeral expenses, final illness,
continuing family income needs, childrens education, and spousal retirement income. "how much will
the survivor need"
issued a policy but an aviation rider or exclusion will be added to it. - Answer-A private pilot will be
special class risk - Answer-amateur pilots are considered a
life insurance - Answer-What creates an immediate estate
Annuities - Answer-what has a principal function of liquidating an estate
credit agents - Answer-who doesn't need an insurance license
Dividends are not taxed and not guaranteed. They are a return of premium. - Answer-how are dividends
taxed and why?
As policy dividends are declared they are used to purchase additional paid up insurance. as the paid up
insurance is added, an equal amount of term insurance is removed from the policy, thus maintaining the
full-face amount at no additional cost. - Answer-How does paid-up insurance work in an economatic
policy?
policy that pays dividends such as a mutual insurer. - Answer-a participating policy is a
