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