KENTUCKY LIFE LATEST
INSURANCE EXAM
In an outright gift of life insurance to a charity
A. all the incidents of ownership in the policy belong to the done.
B. the donor retains the right to name a new beneficiary.
C. the cash values in the policy belong to the donor.
D. the premiums paid by the donor are not tax deductible. - ANSWERS-
A. all the incidents of ownership in the policy belong to the donee.
When signing the application form, the proposed insured is
A. certifying his or her good health and the company should issue the
policy.
B. swearing to the accuracy of the information contained in the
application.
C. making a formal request to the company for a life insurance policy.
D. certifying ability to make the premium payments necessary to keep
the policy in force. - ANSWERS-C. making a formal request to the
company for a life insurance policy.
Which of the following would NOT be permitted as a Section 1035
policy exchange?
A. A life contract exchanged for another life contract
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, KENTUCKY LIFE LATEST
INSURANCE EXAM
B. An annuity contract exchanged for a life contract
C. An annuity contract exchanged for another annuity contract
D. An endowment contract exchanged for an annuity contract -
ANSWERS-B. An annuity contract exchanged for a life contract
In applying for life insurance protection
A. a minor may not sign an application.
B. a minor may sign an application.
C. no one under age 18 may sign an application.
D. no one under 21 may sign an application. - ANSWERS-A. a minor
may not sign an application.
The applicant, if other than the proposed insured, must have
A. no relationship with the insured.
B. an insurable interest in the life of the policyowner.
C. an insurable interest in the life of the insured.
D. a blood relationship with the insured. - ANSWERS-C. an insurable
interest in the life of the insured.
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, KENTUCKY LIFE LATEST
INSURANCE EXAM
Which of the following statements regarding the Medical Information
Bureau is NOT true?
A. It is a nonprofit agency established by life insurance companies to aid
their underwriting.
B. It supplies member companies with information concerning
insurability of proposed insureds.
C. It must be authorized by the applicant to give information to member
companies.
D. It is not obligated to supply applicants with information it holds about
them. - ANSWERS-D. It is not obligated to supply applicants with
information it holds about them.
Establishing premium for special class risks by using a regular mortality
table, but assuming proposed insureds are a few years older than they
actually are, is called
A. the multiple extra premium method.
B. rating up.
C. the lien plan.
D. the flat extra premium charge method. - ANSWERS-B. rating up.
The Fair Credit Reporting Act guarantees which of the following?
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, KENTUCKY LIFE LATEST
INSURANCE EXAM
A. Equitable insurance rates
B. Full disclosure of policy benefits
C. Applicants' right to information held about them by any reporting
agency
D. Full disclosure of an insurer's financial condition - ANSWERS-C.
Applicants' right to information held about them by any reporting
agency
The most important difference between licensed agents and licensed
brokers is
A. agents represent the company; brokers represent the client.
B. agents represent the client; brokers represent the company.
C. only agents can solicit prospects for the purpose of selling coverage.
D. brokers are not subject to the same laws and regulations as are agents.
- ANSWERS-A. agents represent the company; brokers represent the
client.
How old must an individual ordinarily be to begin taking funds out of a
traditional IRA without penalty for premature distribution?
A. 70-1/2
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INSURANCE EXAM
In an outright gift of life insurance to a charity
A. all the incidents of ownership in the policy belong to the done.
B. the donor retains the right to name a new beneficiary.
C. the cash values in the policy belong to the donor.
D. the premiums paid by the donor are not tax deductible. - ANSWERS-
A. all the incidents of ownership in the policy belong to the donee.
When signing the application form, the proposed insured is
A. certifying his or her good health and the company should issue the
policy.
B. swearing to the accuracy of the information contained in the
application.
C. making a formal request to the company for a life insurance policy.
D. certifying ability to make the premium payments necessary to keep
the policy in force. - ANSWERS-C. making a formal request to the
company for a life insurance policy.
Which of the following would NOT be permitted as a Section 1035
policy exchange?
A. A life contract exchanged for another life contract
END OF
PAGE
1
, KENTUCKY LIFE LATEST
INSURANCE EXAM
B. An annuity contract exchanged for a life contract
C. An annuity contract exchanged for another annuity contract
D. An endowment contract exchanged for an annuity contract -
ANSWERS-B. An annuity contract exchanged for a life contract
In applying for life insurance protection
A. a minor may not sign an application.
B. a minor may sign an application.
C. no one under age 18 may sign an application.
D. no one under 21 may sign an application. - ANSWERS-A. a minor
may not sign an application.
The applicant, if other than the proposed insured, must have
A. no relationship with the insured.
B. an insurable interest in the life of the policyowner.
C. an insurable interest in the life of the insured.
D. a blood relationship with the insured. - ANSWERS-C. an insurable
interest in the life of the insured.
END OF
PAGE
2
, KENTUCKY LIFE LATEST
INSURANCE EXAM
Which of the following statements regarding the Medical Information
Bureau is NOT true?
A. It is a nonprofit agency established by life insurance companies to aid
their underwriting.
B. It supplies member companies with information concerning
insurability of proposed insureds.
C. It must be authorized by the applicant to give information to member
companies.
D. It is not obligated to supply applicants with information it holds about
them. - ANSWERS-D. It is not obligated to supply applicants with
information it holds about them.
Establishing premium for special class risks by using a regular mortality
table, but assuming proposed insureds are a few years older than they
actually are, is called
A. the multiple extra premium method.
B. rating up.
C. the lien plan.
D. the flat extra premium charge method. - ANSWERS-B. rating up.
The Fair Credit Reporting Act guarantees which of the following?
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PAGE
3
, KENTUCKY LIFE LATEST
INSURANCE EXAM
A. Equitable insurance rates
B. Full disclosure of policy benefits
C. Applicants' right to information held about them by any reporting
agency
D. Full disclosure of an insurer's financial condition - ANSWERS-C.
Applicants' right to information held about them by any reporting
agency
The most important difference between licensed agents and licensed
brokers is
A. agents represent the company; brokers represent the client.
B. agents represent the client; brokers represent the company.
C. only agents can solicit prospects for the purpose of selling coverage.
D. brokers are not subject to the same laws and regulations as are agents.
- ANSWERS-A. agents represent the company; brokers represent the
client.
How old must an individual ordinarily be to begin taking funds out of a
traditional IRA without penalty for premature distribution?
A. 70-1/2
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PAGE
4
