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Kentucky Life Insurance Exam (Latest 2026/2027 Update) Questions and Verified Answers| 100 % Correct| Grade A
Kentucky Life Insurance Exam (Latest 2026/
2026 Update) Questions and Verified
Answers| 100 % Correct| Grade A
Q: Traditional individual retirement annuity (IRA) distributions must start by
Answer:
April 1st of the year following the year the participant attains age 70 1/2
Q: How are Roth IRA distributions normally taxed?
Answer:
Distributions are received tax-free
Q: How can an insurance company minimize exposure to loss?
Answer:
Reinsurance
Q: All of the following statements about traditional individual retirement accounts are false
EXCEPT
Answer:
10% penalty is applied to withdrawals before age 59 1/2
Q: All of these statements concerning universal life insurance are false EXCEPT
Answer:
Policy indicates how much of the premium is used toward company expenses
Q: A 55 year old recently received a $30,000 distribution from a previous employer's 401k
plan, minus $10,000 withholding. Which federal taxes apply if none of the funds were rolled
over?
Answer:
Income taxes plus a 10% penalty tax on $30,000
Q: For insurance purposes, similar objects which are exposed to the same perils are referred to
as
Answer:
Homogeneous exposure units
Q: In an individual retirement account (IRA), rollover contributions are
Answer:
Not limited by dollar amount
Q: What is the maximum number of employees (earning at least $5,000) that an employer can
have in order to start a SIMPLE retirement plan?
Answer:
100
Q: Which statement concerning a decreasing term life policy is accurate?
Answer:
Face amount decreases over time
Q: All of these are considered features of whole life insurance EXCEPT
Answer:
Initial premium is lower than for an equivalent amount of term insurance
Q: An employer that offers a qualified retirement plan to its employees is eligible to
Answer:
Make tax-deductible contributions to the plan
Q: The insurance coverage in a variable life insurance policy may fluctuate based on the value
of
Answer:
Its underlying investments
Q: How long is a person covered for under a limited pay whole life policy?
Answer:
Until age 100
Q: When does an insured stop making payments under a thirty-payment whole life policy?
Answer:
When the insured dies or 30 years from the policy's inception, whichever comes firstÂ
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