Kentucky Life Insurance State Exam
Practice With 100% Correct Answers
A+Graded.
The premiums paid by an employer for his employee's group life insurance are usually considered to be -
h h h h h h h h h h h h h h h h h
CORRECT ANSWER✔✔Tax-deductible to the employer
h h h h h
Which of these is NOT considered to be a cost connected with an individual's death? - CORRECT ANSWER✔
h h h h h h h h h h h h h h h h h
✔Business expenses h
These are all accurate statements regarding universal life insurance EXCEPT - CORRECT ANSWER✔✔Policy
h h h h h h h h h h h h
loans are not permitted
h h h h
, Which of these is NOT relevant when determining the amount of personal life insurance needed? -
h h h h h h h h h h h h h h h
CORRECT ANSWER✔✔Local unemployment rate
h h h h
Who elects the governing body of a mutual insurance company? - CORRECT ANSWER✔✔Policyholders
h h h h h h h h h h h h
Why would evidence of insurability be required for a person insured with a variable universal life policy? -
h h h h h h h h h h h h h h h h h
CORRECT ANSWER✔✔The face amount is increased
h h h h h h
At what point are death proceeds paid in a joint life policy? - CORRECT ANSWER✔✔When the first insured
h h h h h h h h h h h h h h h h h
dies
h
What is considered a valid reason for small businesses to insure the lives of its major shareholders? -
h h h h h h h h h h h h h h h h h
CORRECT ANSWER✔✔Fund a buy-sell agreement
h h h h h
Which action will trigger a penalty tax on premature distributions from a modified endowment contract
h h h h h h h h h h h h h h
(MEC)? - CORRECT ANSWER✔✔Policy loans
h h h h h
Dividends from a mutual insurance company are paid to whom? - CORRECT ANSWER✔✔Policyowners
h h h h h h h h h h h h
Traditional individual retirement annuity (IRA) distributions must start by - CORRECT ANSWER✔✔April 1st
h h h h h h h h h h h h
of the year following the year the participant attains age 70 1/2
h h h h h h h h h h h h
How are Roth IRA distributions normally taxed? - CORRECT ANSWER✔✔Distributions are received tax-free
h h h h h h h h h h h h
How can an insurance company minimize exposure to loss? - CORRECT ANSWER✔✔Reinsurance
h h h h h h h h h h h
All of the following statements about traditional individual retirement accounts are false EXCEPT - CORRECT
h h h h h h h h h h h h h h
ANSWER✔✔10% penalty is applied to withdrawals before age 59 1/2
h h h h h h h h h h
Practice With 100% Correct Answers
A+Graded.
The premiums paid by an employer for his employee's group life insurance are usually considered to be -
h h h h h h h h h h h h h h h h h
CORRECT ANSWER✔✔Tax-deductible to the employer
h h h h h
Which of these is NOT considered to be a cost connected with an individual's death? - CORRECT ANSWER✔
h h h h h h h h h h h h h h h h h
✔Business expenses h
These are all accurate statements regarding universal life insurance EXCEPT - CORRECT ANSWER✔✔Policy
h h h h h h h h h h h h
loans are not permitted
h h h h
, Which of these is NOT relevant when determining the amount of personal life insurance needed? -
h h h h h h h h h h h h h h h
CORRECT ANSWER✔✔Local unemployment rate
h h h h
Who elects the governing body of a mutual insurance company? - CORRECT ANSWER✔✔Policyholders
h h h h h h h h h h h h
Why would evidence of insurability be required for a person insured with a variable universal life policy? -
h h h h h h h h h h h h h h h h h
CORRECT ANSWER✔✔The face amount is increased
h h h h h h
At what point are death proceeds paid in a joint life policy? - CORRECT ANSWER✔✔When the first insured
h h h h h h h h h h h h h h h h h
dies
h
What is considered a valid reason for small businesses to insure the lives of its major shareholders? -
h h h h h h h h h h h h h h h h h
CORRECT ANSWER✔✔Fund a buy-sell agreement
h h h h h
Which action will trigger a penalty tax on premature distributions from a modified endowment contract
h h h h h h h h h h h h h h
(MEC)? - CORRECT ANSWER✔✔Policy loans
h h h h h
Dividends from a mutual insurance company are paid to whom? - CORRECT ANSWER✔✔Policyowners
h h h h h h h h h h h h
Traditional individual retirement annuity (IRA) distributions must start by - CORRECT ANSWER✔✔April 1st
h h h h h h h h h h h h
of the year following the year the participant attains age 70 1/2
h h h h h h h h h h h h
How are Roth IRA distributions normally taxed? - CORRECT ANSWER✔✔Distributions are received tax-free
h h h h h h h h h h h h
How can an insurance company minimize exposure to loss? - CORRECT ANSWER✔✔Reinsurance
h h h h h h h h h h h
All of the following statements about traditional individual retirement accounts are false EXCEPT - CORRECT
h h h h h h h h h h h h h h
ANSWER✔✔10% penalty is applied to withdrawals before age 59 1/2
h h h h h h h h h h
