Kentucky Life Insurance Exam Questions With 100% Correct Answers

Kentucky Life Insurance Exam Questions With 100% Correct Answers .4 Types of Life Insurance - Answer-Permanent, Term, Industrial, Group .Absolute, Voluntary, Complete Assignment - Answer-Policy is given as a gift, policy owner has no means of recovering surrendered rights .Accelerated Benefits Rider - Answer-A life insurance rider that allows for the early payment of some portion of the policy's face amount should the insured suffer from a terminal illness or injury. .Accidental Death Rider - Answer-Provides for an additional amount paid to the beneficiary should the insured die as the result of an accident. Excludes death by self-inflicted injury, death while committing a crime, and death as result of war. .Accumulation at Interest Option - Answer-A dividend or settlement option under which the policyholder allows his or her dividends or policy proceeds to accumulate interest with the company. Although the dividends or proceeds are not generally taxable, the interest earned is. .Accumulation Units - Answer-A variable annuity contract owner's interest in the separate account prior to annuitization, bought by the net purchase payment .Adjustable Life Policies - Answer-Policyholder can adjust face amount of policy, amount/frequency of premium payments, period of insurance protection .Advantages of Group Life - Answer-Lower premiums, not required to furnish proof of insurability, employer pays all or part of the premium .Advantages of settlement options - Answer-insurer invests the money, money is safe with insurance company, guaranteed interest earnings .Adverse Selection - Answer-People who are most likely to experience loss are more likely to seek insurance than those who are not .Aleatory Contract - Answer-a contract where the values exchanged may not be equal but depend on an uncertain event .Annuitant - Answer-The person who receives the payments from an annuity .Annuities - Answer-A fixed sum of money paid to someone each year, typically for the rest of their life. .Annuity Unit - Answer-The number of annuity units denotes the share of the funds an annuitant will receive from a variable annuity account after the accumulation period ends and benefits begin. A formula is used to convert accumulation units to annuity units. Fixed number in amount, but payment varies. .Applicant - Answer-Party making the application to the insurance company, may or may not be the proposed insured .Application - Answer-A formal request for an insurance policy that implies that the provided information is true to the best of the applicant's knowledge. .association obligations for any one life - Answer-300,000 in insurance death benefits, no more than 100,000 cash surrender/cash withdrawal values, 100,000 health insurance benefits, 250,000 present value of annuity benefits .Assumptions about Group Insurance - Answer-The group is large, most groups will be healthy, coverage is incidental to the occupation .Automatic Premium Loan Provision - Answer-Authorizes insurer to automatically pay any premium in default at the end of the grace period and charge the amount so paid against the life insurance policy as a policy loan. .Backdating - Answer-The practice of making a policy effective at an earlier date than the present. Permits the insurer to be rated a year younger, premium payment dates correspond to the income pattern of the policyholder, enables the purchase of a policy issues to younger customers .Beneficiary - Answer-Receives any survivor benefits payable under the annuity on the death of the annuitant .Binding Receipt - Answer-Provides coverage as soon as premium is received (before approval) .Buy-Sell Agreement - Answer-Agreement that a deceased business owner's interest will be sold and purchased at a predetermined price or at a price according to a predetermined formula, must include a funding provision .Cash Surrender Value Option - Answer-The policyholder receives the policy's cash value or cash accumulation as a lump sum. Any outstanding policy loans are deducted from the cash payout. .Cash Value of ULP $0 - Answer-Contract expires, policy goes into grace period, .Certificate of Insurance - Answer-Form that certifies the coverage, the benefits, and the beneficiary's name, each member under a group life policy receives one .Change of Policy - Answer-An agent is NEVER permitted to make a change in a policy, whether at the request of the policy owner or for some other reason. Only authorized company officers can make changes or amendments in life insurance policies, and such changes must have the policy owner's acceptance before they take effect. .Changes or Amendments to a Contract - Answer-Riders, endorsements, or amendments .Charitable Uses of Life Insurance - Answer-1) Policy is gifted on life of the donor, in which value of policy is deductible, and 2) donor makes charity the beneficiary and continues to pay premiums (which are not tax deductible)