3/14/25, 8:59 AM Kentucky Life Insurance Exam 2025 update|comprehensive questions and verified answers (complete solutions) ASSURED S…
Kentucky Life Insurance Exam 2025
update|comprehensive questions and verified
answers (complete solutions) ASSURED
SUCCESS|GRADE A+!!
Save
Terms in this set (213)
Competent parties, legal purpose, offer and
Elements of a Contract
acceptance, consideration
Voluntary giving up of a known right or privilege,
Waiver
can be express or implied
A person is prohibited by virtue of his own past
actions from claiming a right that would work to the
Estoppel
detriment of another who relied on the past
conduct
a contract where the values exchanged may not be
Aleatory Contract
equal but depend on an uncertain event
One-sided in regards to preparation (prepared by
Contracts of Adhesion
the insurer)
Both parties bargain in good faith when forming and
entering into the contract. The two parties rely upon
Contract of Utmost Good
the statements and promises of the other and
Faith
assume no attempt to conceal or deceive has been
made.
Executory Contract A contract that has not yet been fully performed.
https://quizlet.com/1018165700/kentucky-life-insurance-exam-2025-updatecomprehensive-questions-and-verified-answers-complete-solutions-a… 1/23
,3/14/25, 9:00 AM Kentucky Life Insurance Exam 2025 update|comprehensive questions and verified answers (complete solutions) ASSURED S…
Determined by dividing the average number of
people who will die each year at each age by the
Mortality Rate
entire population of people that age (1980 CSO
table)
Create an immediate estate, requires no
Functions of Life
management or physical upkeep, paid in
Insurance
installments, can be used as collateral
Final Expenses Medical and funeral expenses, outstanding debts
Totaling the amount required to pay for current and
Total Needs Approach
future expenses
Living Benefits of Life Loan value (can be used as collateral,) retirement
Insurance benefits
Human Life Value The monetary value of an individual's life
Tax Advantages of Life Cash value earnings accumulate tax free, proceeds
Insurance at death pass income tax free
4 Types of Life Insurance Permanent, Term, Industrial, Group
Accumulates cash value, insurance protection
Permanent Life Insurance
decreases as cash value increases
Accumulates no cash value, only provides death
Term Life Insurance
benefits
A permanent policy for which you pay a specified
Whole Life Insurance premium each year for the rest of your life, cash
value accumulates, endows at age 100
Premiums are paid to a specified age or for a
Limited-Pay Life Policies specified number of years and then stop. Protection
remains for the rest of the insured's life.
As of 1984, no policy can endow before age 95
Endowment Policies
because the CV and DB would be taxed
Policy is completely paid up after one premium,
Single Premium Whole
policyholder pays less than if premiums stretched
Life
out over several years
https://quizlet.com/1018165700/kentucky-life-insurance-exam-2025-updatecomprehensive-questions-and-verified-answers-complete-solutions-a… 2/23
, 3/14/25, 9:00 AM Kentucky Life Insurance Exam 2025 update|comprehensive questions and verified answers (complete solutions) ASSURED S…
TAMRA: All single premium policies, any policy that
does not satisfy the 7-pay test // money taken from
Modified Endowment
the policy is taxed as ordinary income // if policy
Contract (MEC)
owner is younger than 59 1/2 and not disabled 10%
penalty is assigned
First-to-die, contract comes to an end at the first
Joint Life Policies death, no further insurance protection for the other
person or persons covered by the policy
Second-to-die, covers 2 lives and guarantees
Survivorship Policies
payment only when second insured dies
Policyholder can adjust face amount of policy,
Adjustable Life Policies amount/frequency of premium payments, period of
insurance protection
Flexible premium, adjustable death benefits,
accumulates cash values: earlier models have front-
Universal Life Insurance end load, later models have back end load.
Insurance costs are debited and guaranteed and
excess interest are credited.
Level death benefit throughout life of policy (can be
Universal Life Death
increased with proof of insurability, can also be
Benefit Option A
reduced.)
Universal Life Death Increasing death benefit made up of the policy face
Benefit Option B value plus cash value account
The minimum separation between the cash value
Risk Corridor
and death benefit.
Permanent deduction of the cash value and cannot
Partial Withdrawal be reversed, no interest credited or paid, repayment
treated as premium payment
Cash Value of ULP $0 Contract expires, policy goes into grace period,
Securities based, whole life, NASD registration
required, separate account holds assets, fluctuating
Variable Life death benefit but never below a guaranteed
minimum (face amount of policy,) but no guaranteed
CV, traditionally a fixed premium
https://quizlet.com/1018165700/kentucky-life-insurance-exam-2025-updatecomprehensive-questions-and-verified-answers-complete-solutions-a… 3/23
Kentucky Life Insurance Exam 2025
update|comprehensive questions and verified
answers (complete solutions) ASSURED
SUCCESS|GRADE A+!!
Save
Terms in this set (213)
Competent parties, legal purpose, offer and
Elements of a Contract
acceptance, consideration
Voluntary giving up of a known right or privilege,
Waiver
can be express or implied
A person is prohibited by virtue of his own past
actions from claiming a right that would work to the
Estoppel
detriment of another who relied on the past
conduct
a contract where the values exchanged may not be
Aleatory Contract
equal but depend on an uncertain event
One-sided in regards to preparation (prepared by
Contracts of Adhesion
the insurer)
Both parties bargain in good faith when forming and
entering into the contract. The two parties rely upon
Contract of Utmost Good
the statements and promises of the other and
Faith
assume no attempt to conceal or deceive has been
made.
Executory Contract A contract that has not yet been fully performed.
https://quizlet.com/1018165700/kentucky-life-insurance-exam-2025-updatecomprehensive-questions-and-verified-answers-complete-solutions-a… 1/23
,3/14/25, 9:00 AM Kentucky Life Insurance Exam 2025 update|comprehensive questions and verified answers (complete solutions) ASSURED S…
Determined by dividing the average number of
people who will die each year at each age by the
Mortality Rate
entire population of people that age (1980 CSO
table)
Create an immediate estate, requires no
Functions of Life
management or physical upkeep, paid in
Insurance
installments, can be used as collateral
Final Expenses Medical and funeral expenses, outstanding debts
Totaling the amount required to pay for current and
Total Needs Approach
future expenses
Living Benefits of Life Loan value (can be used as collateral,) retirement
Insurance benefits
Human Life Value The monetary value of an individual's life
Tax Advantages of Life Cash value earnings accumulate tax free, proceeds
Insurance at death pass income tax free
4 Types of Life Insurance Permanent, Term, Industrial, Group
Accumulates cash value, insurance protection
Permanent Life Insurance
decreases as cash value increases
Accumulates no cash value, only provides death
Term Life Insurance
benefits
A permanent policy for which you pay a specified
Whole Life Insurance premium each year for the rest of your life, cash
value accumulates, endows at age 100
Premiums are paid to a specified age or for a
Limited-Pay Life Policies specified number of years and then stop. Protection
remains for the rest of the insured's life.
As of 1984, no policy can endow before age 95
Endowment Policies
because the CV and DB would be taxed
Policy is completely paid up after one premium,
Single Premium Whole
policyholder pays less than if premiums stretched
Life
out over several years
https://quizlet.com/1018165700/kentucky-life-insurance-exam-2025-updatecomprehensive-questions-and-verified-answers-complete-solutions-a… 2/23
, 3/14/25, 9:00 AM Kentucky Life Insurance Exam 2025 update|comprehensive questions and verified answers (complete solutions) ASSURED S…
TAMRA: All single premium policies, any policy that
does not satisfy the 7-pay test // money taken from
Modified Endowment
the policy is taxed as ordinary income // if policy
Contract (MEC)
owner is younger than 59 1/2 and not disabled 10%
penalty is assigned
First-to-die, contract comes to an end at the first
Joint Life Policies death, no further insurance protection for the other
person or persons covered by the policy
Second-to-die, covers 2 lives and guarantees
Survivorship Policies
payment only when second insured dies
Policyholder can adjust face amount of policy,
Adjustable Life Policies amount/frequency of premium payments, period of
insurance protection
Flexible premium, adjustable death benefits,
accumulates cash values: earlier models have front-
Universal Life Insurance end load, later models have back end load.
Insurance costs are debited and guaranteed and
excess interest are credited.
Level death benefit throughout life of policy (can be
Universal Life Death
increased with proof of insurability, can also be
Benefit Option A
reduced.)
Universal Life Death Increasing death benefit made up of the policy face
Benefit Option B value plus cash value account
The minimum separation between the cash value
Risk Corridor
and death benefit.
Permanent deduction of the cash value and cannot
Partial Withdrawal be reversed, no interest credited or paid, repayment
treated as premium payment
Cash Value of ULP $0 Contract expires, policy goes into grace period,
Securities based, whole life, NASD registration
required, separate account holds assets, fluctuating
Variable Life death benefit but never below a guaranteed
minimum (face amount of policy,) but no guaranteed
CV, traditionally a fixed premium
https://quizlet.com/1018165700/kentucky-life-insurance-exam-2025-updatecomprehensive-questions-and-verified-answers-complete-solutions-a… 3/23
