Kentucky Life Insurance State Exam
Practice Exam And All Correct Answers.
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
In an individual retirement account (IRA), rollover contributions are - Answer Not limited by dollar
amount
What is the maximum number of employees (earning at least $5,000) that an employer can have in
order to start a SIMPLE retirement plan? - Answer 100
Which statement concerning a decreasing term life policy is accurate? - Answer Face amount decreases
over time
All of these are considered features of whole life insurance EXCEPT - Answer Initial premium is lower
than for an equivalent amount of term insurance
Practice Exam And All Correct Answers.
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
In an individual retirement account (IRA), rollover contributions are - Answer Not limited by dollar
amount
What is the maximum number of employees (earning at least $5,000) that an employer can have in
order to start a SIMPLE retirement plan? - Answer 100
Which statement concerning a decreasing term life policy is accurate? - Answer Face amount decreases
over time
All of these are considered features of whole life insurance EXCEPT - Answer Initial premium is lower
than for an equivalent amount of term insurance
