Kentucky Life Insurance Practice Exam Guide (actual questions and answers)

Kentucky Life Insurance Practice Exam Guide (actual questions and answers) A Straight Life Annuity - CORRECT ANSWER-Provides for a periodic income to be paid to the annuitant for life, does not provide a guarantee as to maximum benefits, and provides that periodic income payments cease upon the annuitant's death Expressed Powers - CORRECT ANSWER-those powers of an insurance agent included in the agreement between the agent and the company are known as Human Life Value refers to - CORRECT ANSWER-The monetary value that a person has to others An Unauthorized Company - CORRECT ANSWER-A company that has not received permission from the insurance commissioner to do business in this state Fixed Period Option - CORRECT ANSWER-The Settlement option that provides for the proceeds plus interest to be paid in installments for a specified period of time A physical examination - CORRECT ANSWER-May be part if the risk selection process Straight Life Income - CORRECT ANSWER-The Life income settlement option under which a beneficiary receives an income from the present time until death In a Whole Life Insurance Policy - CORRECT ANSWER-The cash value is greatest at the end of the policy period, and the insurance protection is greatest at the start of the policy Buy-Sell Agreement - CORRECT ANSWER-Using the proceeds from a policy on the life of a deceased business owner to purchase his or her business interest probably indicates a How is a policy loan recovered by the company if the Extended Term Option goes into effect? - CORRECT ANSWER-The amount is subtracted from and accumulated cash value and the face amount of the Term Policy is reduced by the same amount An annuity is a contract that - CORRECT ANSWER-Liquidates an estate through periodic payments to the Annuitant Income payments made from an Annuity are - CORRECT ANSWER-Only partly subject to federal taxation Statements that support the definition of insurance - CORRECT ANSWER-The result of financial loss is spread among many persons, the cost to any one person is small, the cost is certain regardless of the circumstances of the loss A Family Income Policy differs from a Decreasing Term Policy, in that, the Family Income Policy - CORRECT ANSWER-Pays mont