FINAL EXAM - KENTUCKY LIFE AND HEALTH

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FINAL EXAM - KENTUCKY LIFE AND HEALTH

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A school teacher has contributed $80,000 into a Tax Sheltered Annuity. At the time she surrendered the contract, the account value was $180,000 and her tax bracket was 30%. The resultant tax amounts to?

Answer:

$54,000

Question 2: What type of permanent life insurance offers a guaranteed minimum face amount and allows for future increases in coverage?

Answer:

variable life

Question 3: How often must the Commissioner examine insurers?

Answer:

at least every 3 years Question 4: Failure to keep premiums collected separate from the agent's personal funds is an

illegal practice known as:

Answer:

commingling

Question 5: When does the agent give a premium receipt for a life insurance application?

Answer:

when the initial premium has been paid with the application Question 6: Which of these BEST describes how reasonable and customary changes charges are calculated for health and accident insurance?

Answer:

The average prevailing costs of medical services within a geographic region

Question 7: Which of these life products is NOT considered interest-senstive?

Answer:

modified whole life Question 8: Inpatient psychiatric care is covered under Part A Medicare for 190 days per:

Answer:

lifetime Question 9: The premiums for continued health insurance coverage under COBRA are paid for

by the:

Answer:

employee Question 10: An insurable risk requires:

Answer:

that the chance of loss be measureble Question 11: The policy provision that entitles the insurer to establish conditions the insured

must meet while a claim is pending is:

Answer:

Time Limit on Certain Defenses Question 12: An insurance agent who replaces an existing policy by making false written or oral

statements is committing the act of:

Answer:

twisting

Question 13: The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a

Answer:

closed panel Question 14: The Commissioner of Insurance is:

Answer:

appointed by the governer Question 15: M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?

Answer:

revocable Question 16: A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that;

Answer:

The policyowner may need to resume premium payments depending on actual results Question 17: A type of insurance company that is established as a lodge or charitable

organization is:

Answer:

Fraternal Question 18: C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

Answer:

the cost Question 19: J is a subscriber to plan which contracts with doctors and hospitals to provide medical benefits at a predetermined price. What type of plan does J belong to?

Answer:

A Health Maintenance Organization

Question 20: Which approach predicts a person's earning potential and determines how much of that amount would be devoted to dependents?

Answer:

Human life value approach Question 21: When a life insurance policy is issued to replace another life insurance policy, which of the following does NOT need to be provided to the purchaser at or before the time the policy is delivered?

Answer:

the replacing insurer's financial statements Question 22: All of these are duties of a producer when delivering an insurance policy, EXCEPT:

Answer:

leave a conditional receipt with client Question 23: A waiver of premium benefit for life insurance policy is utilized when the insured:

Answer:

becomes completely disabled Question 24: K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income?

Answer:

disability income Question 25: P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period?

Answer:

sign an enrollment card

Question 26: What does a fixed annuity offer protection against?

Answer:

savings depletion because of longevity