Comprehensive Exam-KY Life & Health (164 questions to
pass the "Comprehensive Exam" you need get 90% to pass
1 General Insurance 15 2 Life Basics 8 3 3 Types of Policies
and Riders 15 4 Life Policy Provisions and Options 15 5
Annuities 6 6 Markets a
All of the following are producer responsibilities to the applicant, except:
Offering and selling only the lowest premium policy
___________ manufacture and sell insurance coverage in the form of policies or
contracts of insurance.
Insurers
When both parties must perform certain duties and follow certain rules of
conduct to make a contract enforceable refers to a(n) __________ contract.
Conditional
_____________ insurance allows for insurance coverage to be obtained when not
available from admitted carriers.
Surplus lines
The field underwriter is the _________ and is not a determiner of insurability.
Producer
To address adverse selection what can an insurer legally do?
Establish and enforce sound underwriting practices
A contract that is drafted by an insurer and receives no input or alteration from
the insured, is considered a(n):
Contract of Adhesion
Which of the following parties does not sign an application for life insurance?
The beneficiary
The ____________ market is a private source of coverage of last resort for
individuals or businesses that have been rejected by voluntary market insurers.
Residual
Which of the following is NOT considered one of the essential elements of a
contract?
Conditions
An insurer NOT authorized to do business within this state is considered what
type of insurer?
Non-Admitted
Which of the following describes Fiduciary Responsibilities?
Anyone acting as an insurance producer or agent for an insurer shall be held
responsible in a trust or fiduciary capacity for any money collected or received for the
insurer
The relationship of a person who acts on behalf of a company whereby the
person's actions can bind the company is known as:
The law of agency
With health and life insurance a/an _________ is required at the time of the
application.
, Insurable interest
_____________ consists of groups of underwriters called syndicates, each of
which specializes in insuring a particular type of risk.
Lloyds of London
What is the primary reason why States have 'outlawed' Stranger Originated Life
Insurance (STOLI) transactions?
At policy inception there is a lack of insurable interest
Which of the following types of policies is eligible for policy dividends?
Participating
An applicant for life insurance pays the agent the initial premium and receives a
Conditional Insurability Receipt in return. If the policy was to be issued as
substandard, but the applicant dies prior to policy issue what is the result?
The insurer will refund any premiums paid
Which of the following best describes 'Capital Retention/Conservation' in an
effort to meet an income objective?
Investment earnings are paid out
If a copy of the application, which led to a life insurance policy being issued, is
attached to the policy:
It is considered part of the entire contract
Which of the following products are offered by insurers to protect families from
the financial setback of a family member's premature death?
Life Insurance
The HIV Consent Form specifies which types of individuals may receive
__________.
The test results
Confidential information shared by the producer to the insurer and does not
become part of the policy is the __________.
Agent's Report
A is the insured under a $100,000 10 year term life insurance policy with her
spouse named as her beneficiary. If she dies in year 9, what will her spouse
receive?
The face amount of the policy
Which of the following statements about Equity Indexed Life insurance is TRUE?
The interest credited to the policy is based off of the performance of a stock market
index like the S&P 500
A policyowner would like more coverage than the $100,000 Whole Life policy
being proposed, but does not have enough discretionary income to pay a lot
more money to do so. What can a producer recommend that will allow the
policyowner to have the Whole Life policy, but with more total death benefit at an
affordable price?
Add a term rider
All of the following are correct pertaining to Decreasing Term, except:
The premium declines throughout the term of the policy
All of the following are statements are true of a juvenile policy, except:
The insured is the premium payor
Term Life insurance is designed to provide coverage for ___________.
pass the "Comprehensive Exam" you need get 90% to pass
1 General Insurance 15 2 Life Basics 8 3 3 Types of Policies
and Riders 15 4 Life Policy Provisions and Options 15 5
Annuities 6 6 Markets a
All of the following are producer responsibilities to the applicant, except:
Offering and selling only the lowest premium policy
___________ manufacture and sell insurance coverage in the form of policies or
contracts of insurance.
Insurers
When both parties must perform certain duties and follow certain rules of
conduct to make a contract enforceable refers to a(n) __________ contract.
Conditional
_____________ insurance allows for insurance coverage to be obtained when not
available from admitted carriers.
Surplus lines
The field underwriter is the _________ and is not a determiner of insurability.
Producer
To address adverse selection what can an insurer legally do?
Establish and enforce sound underwriting practices
A contract that is drafted by an insurer and receives no input or alteration from
the insured, is considered a(n):
Contract of Adhesion
Which of the following parties does not sign an application for life insurance?
The beneficiary
The ____________ market is a private source of coverage of last resort for
individuals or businesses that have been rejected by voluntary market insurers.
Residual
Which of the following is NOT considered one of the essential elements of a
contract?
Conditions
An insurer NOT authorized to do business within this state is considered what
type of insurer?
Non-Admitted
Which of the following describes Fiduciary Responsibilities?
Anyone acting as an insurance producer or agent for an insurer shall be held
responsible in a trust or fiduciary capacity for any money collected or received for the
insurer
The relationship of a person who acts on behalf of a company whereby the
person's actions can bind the company is known as:
The law of agency
With health and life insurance a/an _________ is required at the time of the
application.
, Insurable interest
_____________ consists of groups of underwriters called syndicates, each of
which specializes in insuring a particular type of risk.
Lloyds of London
What is the primary reason why States have 'outlawed' Stranger Originated Life
Insurance (STOLI) transactions?
At policy inception there is a lack of insurable interest
Which of the following types of policies is eligible for policy dividends?
Participating
An applicant for life insurance pays the agent the initial premium and receives a
Conditional Insurability Receipt in return. If the policy was to be issued as
substandard, but the applicant dies prior to policy issue what is the result?
The insurer will refund any premiums paid
Which of the following best describes 'Capital Retention/Conservation' in an
effort to meet an income objective?
Investment earnings are paid out
If a copy of the application, which led to a life insurance policy being issued, is
attached to the policy:
It is considered part of the entire contract
Which of the following products are offered by insurers to protect families from
the financial setback of a family member's premature death?
Life Insurance
The HIV Consent Form specifies which types of individuals may receive
__________.
The test results
Confidential information shared by the producer to the insurer and does not
become part of the policy is the __________.
Agent's Report
A is the insured under a $100,000 10 year term life insurance policy with her
spouse named as her beneficiary. If she dies in year 9, what will her spouse
receive?
The face amount of the policy
Which of the following statements about Equity Indexed Life insurance is TRUE?
The interest credited to the policy is based off of the performance of a stock market
index like the S&P 500
A policyowner would like more coverage than the $100,000 Whole Life policy
being proposed, but does not have enough discretionary income to pay a lot
more money to do so. What can a producer recommend that will allow the
policyowner to have the Whole Life policy, but with more total death benefit at an
affordable price?
Add a term rider
All of the following are correct pertaining to Decreasing Term, except:
The premium declines throughout the term of the policy
All of the following are statements are true of a juvenile policy, except:
The insured is the premium payor
Term Life insurance is designed to provide coverage for ___________.
