KY LIFE EXAM

Family Maintenance

A policy which pays monthly income upon the death of the breadwinner for a predetermined number of years after death, plus a lump sum at death, and combines level term and whole life is known as which policy?

pay the policy only if the company would have issued the policy

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Other Insured Rider this is useful in providing insurance for more than one family member.

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

The insurer will pay the full death benefit from the group policy to the beneficiary The employee usually has a period of 31 days after terminating from the group in order to exercise the conversion option

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

Probationary period

Have to wait to join group life insurance plan at work; what is this period called

Operating Expenses

L&D Insurance's cost of operating for this year was less than they assumed. They can now use the money they saved to pay life insurance dividends, which is called

The annuitant is no longer subject to market risks

Once annuity accumulation units have been converted to annuity units, which of the following statements is incorrect?

Automatic Premium Loan

Person fails to pay his premium, even after the grace period. His policy still remains intact; what provision allows this

Modified Life

Someone buys a car and it will be paid off in X years; They also want to buy life insurance but they are short on cash currently. What type of plan should they get

Applicant Control Clause

The clause that allows a third party to control a policy until a minor reaches the age of majority is called

Minimum Deposit

Under what type of insurance plan is the cash value of a permanent policy used to pay the policy premiums through policy loans?

Conditional

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

a whole life insurance policy is exchanged for a term insurance policy

Which of the following is NOT an allowable 1035 exchange?

It needs IRS approval

Which of the following is NOT true regarding a nonqualified retirement plan?

Money borrowed from the cash value is taxable

Which of the following is NOT true regarding policy loans?

Fair Credit reporting Act

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

Payor Benefit Rider it only pays the premium if the payor is disabled or dies; does not affect the death benefit

Which of the following riders would NOT cause the Death Benefit to increase?

Life expectancy

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

Uni-lateral contract

contract that is one sided one party makes an enforceable promise

Surplus Lines insurance

insurance placed with an unauthorized insurance company

Conditional Receipt

intended to provide coverage on a date earlier than the date of the issuance of the policy

vary over time

the value of annuity units can??

80%

what percentage of the paid out value of a plan is transfered directly into another plan

HR-10 (Keogh Plan)

2 attorneys want to start a retirement for themselves and their employees; what kind of plan should they get

Felony

If the money involved in a fraudulent act is more than $500, the person is guilty of a

6 months

What is the maximum amount of time that an application may be backdated

3

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

Spouse

You buy an annuity but die before it gets paid out. If the money goes to this person, if the beneficiary is this person, the money is tax free

100% minus some stuff??

You cancel a deferred annuity before it starts paying out. What do you get??

Endowment Policy

Your client doesnt care about high premiums; as long as his plan allows for a faster growth of the cash value; what type of plan should you reccommend

Investment experience

invested premiums earn a higher return than was assumed

Limited Life Pay Policy

type of policy premium payments will cease at age 65, but coverage will continue to her death or age 100

Costs of training a replacement

A key person insurance policy can pay for which of the following?

The Guaranty Association

All of the following entities regulate variable life policies EXCEPT

The policy is owned by the company

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

refund the premiums paid

An insured committed suicide one year after his life insurance policy was issued. The insurer will

Illegal under any circumstance

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

2%

An unauthorized producer operating in Kentucky pays a tax of how much of the gross premiums charged?

Issue the policy that is requested the producer does not issue the policy, but delivers the policy.

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT

Misrepresentation

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes

6 months

How long can an insurer delay a request for a policy loan

60 days

How long is the tax-free rollover for

Surrender charge is a percentage of the cash value decreases over time

If a deferred annuity is surrendered prematurely, a surrender charge is imposed. How is the surrender charge determined?

Lloyds Association

Insurance company that doesnt issue insurance but instead acts as a meeting place for underwriters to work

Industrial Life

Insurance is written on an individual basis and in small amounts usually within a face amount of less than $1,000

Probationary Period

Jeri can't join the group life insurance policy at her new job until she has been there for 3 months. This is called

using your license to write only business other than controlled

NOT A VIOLATION OF STATE INSURANCE REGULATIONS

to purchase smaller amounts of the same type of insurance

The paid-up addition option uses the dividend

Signed waiver of premium

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

the amount of contributions made by the employer is determined by an actuarial formula

What characteristics seperates defined benefit plans v/s defined contribution plans

Debtor and Creditor You cant insure debt

What group of people cant insure one another; what cant you insure?? You can insure your own life Family's life Businesses life

Ownership Mutual companies are owned by policyholders Stock companies are owned by stockholders

What is the major difference between a stock company and a mutual company?

Retirement Benefit

What is the primary purpose of qualified plans?

The insurance company's general account

When a fixed annuity owner pays his/her insurance company a monthly annuity premium, where is this money placed?

equal to the original policy for as long as the cash value will purchase

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount

Have attained fully insured status

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

Life paid up at age 65

Which of the following is an example of a limited-pay life policy?

it can be used as collateral to secure a loan

Which of the following would be considered value provided by life insurance?

close to each statement the disclosure statement refers to

Which of the following would be the best place for disclosure statements in an insurance advertisement?

the difference between the contracted interest rate and the rate at surrender

what is the market value adjustment in modified guaranteed annuities referring to