KENTUCKY LIFE INSURANCE EXAM NEWEST UPDATE
2025/2026 WITH ACTUAL
QUESTIONS AND CORRECT VERIFIED ANSWERS/ WELL
ANALYSED, ALREADY GRADED A+ (100%GUARANTEED
PASS! )
Elements of a Contract - CORRECT ANSWER-Competent parties, legal
purpose, offer and acceptance, consideration
Waiver - CORRECT ANSWER-Voluntary giving up of a known right or privilege,
can be express or implied
Estoppel - CORRECT ANSWER-A person is prohibited by virtue of his own past
actions from claiming a right that would work to the detriment of another who
relied on the past conduct
Aleatory Contract - CORRECT ANSWER-a contract where the values
exchanged may not be equal but depend on an uncertain event
,Contracts of Adhesion - CORRECT ANSWER-One-sided in regards to
preparation (prepared by the insurer)
Term Life Insurance - CORRECT ANSWER-Accumulates no cash value, only
provides death benefits
Whole Life Insurance - CORRECT ANSWER-A permanent policy for which you
pay a specified premium each year for the rest of your life, cash value
accumulates, endows at age 100
Limited-Pay Life Policies - CORRECT ANSWER-Premiums are paid to a
specified age or for a specified number of years and then stop. Protection
remains for the rest of the insured's life.
Endowment Policies - CORRECT ANSWER-As of 1984, no policy can endow
before age 95 because the CV and DB would be taxed
Single Premium Whole Life - CORRECT ANSWER-Policy is completely paid up
after one premium, policyholder pays less than if premiums stretched out over
several years
Modified Endowment Contract (MEC) - CORRECT ANSWER-TAMRA: All single
premium policies, any policy that does not satisfy the 7-pay test // money
taken from the policy is taxed as ordinary income // if policy owner is younger
than 59 1/2 and not disabled 10% penalty is assigned
Joint Life Policies - CORRECT ANSWER-First-to-die, contract comes to an end
at the first death, no further insurance protection for the other person or
persons covered by the policy
, Survivorship Policies - CORRECT ANSWER-Second-to-die, covers 2 lives and
guarantees payment only when second insured dies
Adjustable Life Policies - CORRECT ANSWER-Policyholder can adjust face
amount of policy, amount/frequency of premium payments, period of
insurance protection
Universal Life Insurance - CORRECT ANSWER-Flexible premium, adjustable
death benefits, accumulates cash values: earlier models have front-end load,
later models have back end load. Insurance costs are debited and guaranteed
and excess interest are credited.
Universal Life Death Benefit Option A - CORRECT ANSWER-Level death
benefit throughout life of policy (can be increased with proof of insurability,
can also be reduced.)
Universal Life Death Benefit Option B - CORRECT ANSWER-Increasing death
benefit made up of the policy face value plus cash value account
Risk Corridor - CORRECT ANSWER-The minimum separation between the
cash value and death benefit.
Partial Withdrawal - CORRECT ANSWER-Permanent deduction of the cash
value and cannot be reversed, no interest credited or paid, repayment treated
as premium payment
Cash Value of ULP $0 - CORRECT ANSWER-Contract expires, policy goes into
grace period,
2025/2026 WITH ACTUAL
QUESTIONS AND CORRECT VERIFIED ANSWERS/ WELL
ANALYSED, ALREADY GRADED A+ (100%GUARANTEED
PASS! )
Elements of a Contract - CORRECT ANSWER-Competent parties, legal
purpose, offer and acceptance, consideration
Waiver - CORRECT ANSWER-Voluntary giving up of a known right or privilege,
can be express or implied
Estoppel - CORRECT ANSWER-A person is prohibited by virtue of his own past
actions from claiming a right that would work to the detriment of another who
relied on the past conduct
Aleatory Contract - CORRECT ANSWER-a contract where the values
exchanged may not be equal but depend on an uncertain event
,Contracts of Adhesion - CORRECT ANSWER-One-sided in regards to
preparation (prepared by the insurer)
Term Life Insurance - CORRECT ANSWER-Accumulates no cash value, only
provides death benefits
Whole Life Insurance - CORRECT ANSWER-A permanent policy for which you
pay a specified premium each year for the rest of your life, cash value
accumulates, endows at age 100
Limited-Pay Life Policies - CORRECT ANSWER-Premiums are paid to a
specified age or for a specified number of years and then stop. Protection
remains for the rest of the insured's life.
Endowment Policies - CORRECT ANSWER-As of 1984, no policy can endow
before age 95 because the CV and DB would be taxed
Single Premium Whole Life - CORRECT ANSWER-Policy is completely paid up
after one premium, policyholder pays less than if premiums stretched out over
several years
Modified Endowment Contract (MEC) - CORRECT ANSWER-TAMRA: All single
premium policies, any policy that does not satisfy the 7-pay test // money
taken from the policy is taxed as ordinary income // if policy owner is younger
than 59 1/2 and not disabled 10% penalty is assigned
Joint Life Policies - CORRECT ANSWER-First-to-die, contract comes to an end
at the first death, no further insurance protection for the other person or
persons covered by the policy
, Survivorship Policies - CORRECT ANSWER-Second-to-die, covers 2 lives and
guarantees payment only when second insured dies
Adjustable Life Policies - CORRECT ANSWER-Policyholder can adjust face
amount of policy, amount/frequency of premium payments, period of
insurance protection
Universal Life Insurance - CORRECT ANSWER-Flexible premium, adjustable
death benefits, accumulates cash values: earlier models have front-end load,
later models have back end load. Insurance costs are debited and guaranteed
and excess interest are credited.
Universal Life Death Benefit Option A - CORRECT ANSWER-Level death
benefit throughout life of policy (can be increased with proof of insurability,
can also be reduced.)
Universal Life Death Benefit Option B - CORRECT ANSWER-Increasing death
benefit made up of the policy face value plus cash value account
Risk Corridor - CORRECT ANSWER-The minimum separation between the
cash value and death benefit.
Partial Withdrawal - CORRECT ANSWER-Permanent deduction of the cash
value and cannot be reversed, no interest credited or paid, repayment treated
as premium payment
Cash Value of ULP $0 - CORRECT ANSWER-Contract expires, policy goes into
grace period,
