KY LIFE INSURANCE EXAM

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KY LIFE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -97 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: At the time of application

Answer:

When must insurable interest exist in a life insurance policy?Question 2: the time is not specified so long as the total indebtedness does not exceed the policy cash

Answer:

when must a life insurance policy loan be repaid

Question 3: Insuring clause

Answer:

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?

Question 4: guaranteed insurability option

Answer:

an individual is purchasing a life insurance policy with a face value of $25,000. while this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. which of the following options should be included in the policy?

Question 5: The rider is usually level term insurance.

Answer:

Which is true about a spouse term rider?

Question 6: 6 months.

Answer:

An insurer may delay or defer a request for a policy loan for up to

Question 7: Coverage until death or age 100

Answer:

What characteristic makes whole life permanent protection?

Question 8: the donor must give all rights of ownership to the charity

Answer:

when making a charitable gift of a life insurance policy, what must the donor do to receive the tax advantages available

Question 9: Family Income Policy

Answer:

W owns a policy in which she is covered as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy is this?

Question 10: a debtor has an insurable interest in the life of a lender

Answer:

which of the following statements is not true concerning insurable interest as it applies to life insurance Question 11: The chief administrator of the insurer is called an "attorney-in-fact".

Answer:

Which of the following is a characteristic of a Reciprocal Insurance Exchange?

Question 12: revocable beneficiary

Answer:

a policy owner who is also the insured wants to name her husband as the beneficiary of her life policy.she also wishes to retain all the rights of ownership. the policy owner should have her husband named as the

Question 13: Investment Experience.

Answer:

L&D Insurance earned a higher return on their invested premiums than they expected to. They will use this money to pay dividends on life insurance policies. This is called

Question 14: Participating

Answer:

Which type of insurance policy pays dividends if there are excess premiums over the cost of providing the insurance?

Question 15: higher

Answer:

all other factors being equal, what would the premium be life in a survivorship life policy as compared to the premium in a joint life policy Question 16: Attempting in good faith to effect prompt, fair and equitable settlements of claims on which liability has become reasonably clear.

Answer:

Which of the following are NOT improper claims practices if committed in conscious disregard for the law or if committed with such frequency as to indicate a general business practice to engage in that type of conduct?

Question 17: It provides income the beneficiary cannot outlive.

Answer:

Which of the following is true regarding a single life settlement option?

Question 18: 3 days

Answer:

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

Question 19: Copy of the original application

Answer:

According to the entire contract provision, what document must be made part of the insurance policy?

Question 20: To purchase a smaller amount of the same type of insurance as the original policy.

Answer:

The paid-up addition option uses the dividend

Question 21: It may last for the lifetime of the annuitant.

Answer:

Which of the following is TRUE regarding the annuity period?

Question 22: 2 years

Answer:

the validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years

Question 23: Executive is the owner, and the executive pays the premium.

Answer:

In the Executive Bonus plan, who is the owner of the policy, and who pays the premium?

Question 24: 3

Answer:

under SIMPLE plans, participating employees may defer up to a specified amount each year, and the employer then makes a matching contribution up to an amount equal to what percent of the employee's annual wages

Question 25: Return the policy to the insurer.

Answer:

Agent D submitted an application for life insurance on client

• No money was sent with the application. When Agent D attempted to deliver the policy, he

discovered that A had suffered a heart attack since the application was taken. The agent should Question 26: December 31 of the year that contains the fifth anniversary of the owner's death.

Answer:

When must an IRA be completely distributed when a beneficiary is not named?