KY Life Insurance Exam
whether an insurable interest exists between the individuals - Answer-if an applicant for a life insurance
policy and person to be insured by the policy are two different people, the underwriter would be
concerned about what
pay a reduced death benefit - Answer-an insured has had a life insurance policy that he purchased 3
years ago when he was forty years old. he is killed in an automobile accident and it is discovered that he
is actually 45 years old, not 43, as stated on the app. what will the company do?
family income policy - Answer-which special policy combines decreasing term insurance with whole life
insurance to provide the insured's family with a monthly income upon the death of the insured, while
maintaining permanent coverage until the end of the income payments
require evidence of insurability - Answer-if an employee wants to enter the group outside of the open
enrollment period, to reduce the adverse selection, the insurer may
guaranteed insurability option - Answer-an individual is purchasing a life insurance policy with a face
value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that
additional coverage will be available in the future. which of the following options should be included in
the policy?
the cost of coverage is based on the ratio of men and women in the group - Answer-which of the
following statements about group life is correct
,reduced paid-up - Answer-which nonforfeiture option provides coverage for the longest period of time
cash values can be borrowed at any time - Answer-what does "liquidity" refer to in a life insurance
policy
whether an insurable interest exists between the individuals - Answer-if an applicant for a life insurance
policy and person to be insured by the policy are two different people, the underwriter would be
concerned about
cost of living rider - Answer-a rider that may be attached to a life insurance policy that will adjust the
face amount based upon a specific index, such as the consumer price index, is called
mortality - Answer-fewer of L&D insurance's insureds died than were actuarially projected this year,
therefore, fewer death claims were paid. when l&d insurance uses the money saved on death claims to
pay life insurance dividends, it is called
misrepresentation - Answer-during sales presentation a producer intentionally makes a statement
which may mislead the insurance applicant. this describes what
funding against general company financial loss - Answer-all of the following are business uses of life
insurance except
agents - Answer-solicitors are employed by
workers compensation - Answer-which of the following is not an example of a business use of life
insurance
debtor in creditor - Answer-which of the following is not an example of an insurable interest
, coverage until death or age 100 - Answer-what characteristic makes whole life permanent protection
depends on the performance of a separate account - Answer-the death benefit in a variable universal
life policy
it is a period during which payments into the annuity grow tax deferred - Answer-which of the following
is true regarding the accumulation period of an annuity
19 years and 8 months - Answer-a 20 year family income policy was purchased effective April 1, 2001.
the insured died four months later on August 1, 2001. the beneficiary receives monthly income for
the period of time during which accumulated money is converted into income payments - Answer-
which of the following best describes what the annuity period is
the donor must give all rights of ownership to the charity - Answer-when making a charitable gift of a
life insurance policy, what must the donor do to receive the tax advantages available
2 years - Answer-the validity of coverage under a life insurance policy may not be contested, except for
nonpayment of premium, after the policy has been in force for at least how many years
decreases - Answer-if an insured changes his payment plan from monthly to annually what happens to
the total premium
3 - Answer-under SIMPLE plans, participating employees may defer up to a specified amount each year,
and the employer then makes a matching contribution up to an amount equal to what percent of the
employee's annual wages
creating an estate - Answer-which of the following will not be an appropriate use of a deferred annuity
whether an insurable interest exists between the individuals - Answer-if an applicant for a life insurance
policy and person to be insured by the policy are two different people, the underwriter would be
concerned about what
pay a reduced death benefit - Answer-an insured has had a life insurance policy that he purchased 3
years ago when he was forty years old. he is killed in an automobile accident and it is discovered that he
is actually 45 years old, not 43, as stated on the app. what will the company do?
family income policy - Answer-which special policy combines decreasing term insurance with whole life
insurance to provide the insured's family with a monthly income upon the death of the insured, while
maintaining permanent coverage until the end of the income payments
require evidence of insurability - Answer-if an employee wants to enter the group outside of the open
enrollment period, to reduce the adverse selection, the insurer may
guaranteed insurability option - Answer-an individual is purchasing a life insurance policy with a face
value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that
additional coverage will be available in the future. which of the following options should be included in
the policy?
the cost of coverage is based on the ratio of men and women in the group - Answer-which of the
following statements about group life is correct
,reduced paid-up - Answer-which nonforfeiture option provides coverage for the longest period of time
cash values can be borrowed at any time - Answer-what does "liquidity" refer to in a life insurance
policy
whether an insurable interest exists between the individuals - Answer-if an applicant for a life insurance
policy and person to be insured by the policy are two different people, the underwriter would be
concerned about
cost of living rider - Answer-a rider that may be attached to a life insurance policy that will adjust the
face amount based upon a specific index, such as the consumer price index, is called
mortality - Answer-fewer of L&D insurance's insureds died than were actuarially projected this year,
therefore, fewer death claims were paid. when l&d insurance uses the money saved on death claims to
pay life insurance dividends, it is called
misrepresentation - Answer-during sales presentation a producer intentionally makes a statement
which may mislead the insurance applicant. this describes what
funding against general company financial loss - Answer-all of the following are business uses of life
insurance except
agents - Answer-solicitors are employed by
workers compensation - Answer-which of the following is not an example of a business use of life
insurance
debtor in creditor - Answer-which of the following is not an example of an insurable interest
, coverage until death or age 100 - Answer-what characteristic makes whole life permanent protection
depends on the performance of a separate account - Answer-the death benefit in a variable universal
life policy
it is a period during which payments into the annuity grow tax deferred - Answer-which of the following
is true regarding the accumulation period of an annuity
19 years and 8 months - Answer-a 20 year family income policy was purchased effective April 1, 2001.
the insured died four months later on August 1, 2001. the beneficiary receives monthly income for
the period of time during which accumulated money is converted into income payments - Answer-
which of the following best describes what the annuity period is
the donor must give all rights of ownership to the charity - Answer-when making a charitable gift of a
life insurance policy, what must the donor do to receive the tax advantages available
2 years - Answer-the validity of coverage under a life insurance policy may not be contested, except for
nonpayment of premium, after the policy has been in force for at least how many years
decreases - Answer-if an insured changes his payment plan from monthly to annually what happens to
the total premium
3 - Answer-under SIMPLE plans, participating employees may defer up to a specified amount each year,
and the employer then makes a matching contribution up to an amount equal to what percent of the
employee's annual wages
creating an estate - Answer-which of the following will not be an appropriate use of a deferred annuity
