Kentucky law( life insurance)
Agents must keep records of all insurance transactions for at least
5 year
In order to transact insurance business in this state, an insurance company must first obtain which of the following documents?
Certificate of authority
When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?
Insured's contingent beneficiary
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Insuring class
Which of the following clauses specifies the conditions under which a policyowner can change coverage?
Privilege of change
Which of the following information will be stated in the consideration clause of a life insurance policy?
The amount of premium payment
Which of the following is NOT a situation in which the payment of a death claim may be less than the face amount of the policy?
There was no beneficiary designation.
Which of the following statements is TRUE concerning irrevocable beneficiaries?
They can be changed only with the written consent of that beneficiary.
What is the purpose of the applicant control clause?
To allow an adult to control the policy until a minor reaches the age of majority
How many continuing education hours can agents carry over from one licensing period to the next?
Up to 12
When should an agent notify the department of Insurance that they have moved home or business address?
Within 30 days.
A person who investigates or settles claims on solely on behalf of the insured would be licensed as
An adjuster.
Whose responsibility is it to inform the insurance company of an insured's death?
An agent
An applicant for an adjuster's license can be issued a temporary license as an apprentice adjuster for how long?
12 months
An applicant for an agent license in Kentucky must be at least
18 years old
Agents in Kentucky must maintain a place of business that is
Accessible to the public.
Which of the following is TRUE about a class designation?
Beneficiaries are not identified by name
Which of the following would be considered an illegal inducement to purchase insurance?
Confirming future dividends in a life insurance proposal
Which of the following is NOT typically excluded from life policies?
Death due to plane crash for a fare-paying passenger
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer.
Items stipulated in the contract that the insurer will not provide coverage for are found in the
Exclusions clause
An individual purchased a life insurance policy on his life naming his wife as primary beneficiary, and their daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?
If the primary beneficiary predeceases the insured
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstances
State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT
Inviting prospective clients to the grand opening of the company's new office.
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
Which of the following is true regarding the spendthrift clause in life insurance policies?
It can protect the policy proceeds from creditors of the beneficiary.
An insured has an outstanding loan when she dies in a car accident. Her husband is the beneficiary of her life insurance policy. What will most likely happen to the death benefit?
It will be for less than the original amount because of the outstanding loan.
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
An insured purchased a life policy in 2010 and died in 2020. The insurance company discovers at that time that the insured had misstated information about her insurance history on the application. What will the insurer do?
Pay the death benefit
An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
Rebating
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?
Reinstatement provision
A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the
Revocable beneficiary
When an admitted life insurer becomes insolvent, after notice and a hearing, the Commissioner will assess member insurers in order to pay insured, claimants, and beneficiaries of the insolvent insurer. Should a member fail to pay their assessment, the Commissioner will
Suspend or revoke that company's certificate of authority
When an admitted life insurer becomes insolvent, after notice and a hearing, the Commissioner will assess member insurers in order to pay insured, claimants, and beneficiaries of the insolvent insurer. Should a member fail to pay their assessment, the Commissioner will
Suspend or revoke that company's certificate of authority.
In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to
contingent beneficiary
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
twisting
An absolute assignment is a
transfer of all ownership rights in a policy
What type of account will most likely be established for a minor?
trust
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
twisting
An applicant for an adjuster's license who meets all the requirements except the experience, special education, or training requirements may be issued
A temporary license as an apprentice adjuster
A person or business entity who collects premiums and/or adjusts or settles life or health insurance claims on residents of Kentucky must have which license?
An administrator's license
A business entity acting as an agent is required to obtain what kind of license?
An agent's license
All of the following are requirements for insurance license applicants EXCEPT
Fulfill post secondary education requirements
All of the following are requirements for insurance license applicants EXCEPT
Fulfill post secondary education requirements.
Which of the following policy components contains the company's promise to pay?
Insuring clause
An insurance license issued by the Kentucky Department of Insurance shall include all of the following, EXCEPT:
Name and address of the appointing insurer
The Ownership provision entitles the policyowner to do all of the following EXCEPT
Set premium rates
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchased the insurance policy today
A hearing may be held when requested in writing, when required by the Insurance Code, or when
The Commissioner finds it necessary.
In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to
contingent beneficiary
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
defamation
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?
discrimination
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
false advertising
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
false advertising
How long is a temporary license valid in Kentucky?
180 days
How many hours of continuing education related to Ethics are required every licensing period?
3
Any individual life insurance policy must provide for a minimum period of at least how many years during which the insured may institute legal action?
3 years
An insurance company must notify the Commissioner whenever it terminates an agent's appointment within how many days of the termination date?
30 days
An individual who advises persons about their insurance or annuity contracts regarding coverage, advisability, rights, or interest under the contract would be called
A consultant