- Kentucky Life Insurance Exam 2025
update|comprehensive questions and verified answers
(complete solutions) ASSURED SUCCESS|GRADE A+!!
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
answer-
4 Types of Life Insurance - answer-Permanent, Term, Industrial, Group
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)
update|comprehensive questions and verified answers
(complete solutions) ASSURED SUCCESS|GRADE A+!!
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
answer-
4 Types of Life Insurance - answer-Permanent, Term, Industrial, Group
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)
