Kentucky Life Insurance State Exam Practice Questions and Answers Verified 2024

Kentucky Life Insurance State Exam Practice Questions and Answers Verified 2024 The premiums paid by an employer for his employee's group life insurance are usually considered to be - CORRECT ANSWER-Tax-deductible to the employer Which of these is NOT considered to be a cost connected with an individual's death? - CORRECT ANSWER-Business expenses These are all accurate statements regarding universal life insurance EXCEPT - CORRECT ANSWER-Policy loans are not permitted Which of these is NOT relevant when determining the amount of personal life insurance needed? - CORRECT ANSWER-Local unemployment rate Who elects the governing body of a mutual insurance company? - CORRECT ANSWER-Policyholders Why would evidence of insurability be required for a person insured with a variable universal life policy? - CORRECT ANSWER-The face amount is increased At what point are death proceeds paid in a joint life policy? - CORRECT ANSWERWhen the first insured dies What is considered a valid reason for small businesses to insure the lives of its major shareholders? - CORRECT ANSWER-Fund a buy-sell agreement Which action will trigger a penalty tax on premature distributions from a modified endowment contract (MEC)? - CORRECT ANSWER-Policy loans Dividends from a mutual insurance company are paid to whom? - CORRECT ANSWER-Policyowners Traditional individual retirement annuity (IRA) distributions must start by - CORRECT ANSWER-April 1st of the year following the year the participant attains age 70 1/2 How are Roth IRA distributions normally taxed? - CORRECT ANSWER-Distributions are received tax-free How can an insurance company minimize exposure to loss? - CORRECT ANSWERReinsurance All of the following statements about traditional individual retirement accounts are false EXCEPT - CORRECT ANSWER-10% penalty is applied to withdrawals before age 59 1/2 All of these statements concerning universal life insurance are false EXCEPT - CORRECT ANSWER-Policy indicates how much of the premium is used toward company expenses 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? - CORRECT ANSWER-Income taxes plus a 10% penalty tax on $30,000 For insurance purposes, similar objects which are exposed to the same perils are referred to as - CORRECT ANSWER-Homogeneous exposure units In an individual retirement account (IRA), rollover