Kentucky Life and Health
1. A straight life annuity: - provides for a periodic income to be paid to the annuitant for life
- does not provide a guarantee as to maximum benefits
- provides that periodic income payments cease upon the annuitant's death
2. Those powers of an insurance agent included in the agreement between the agent, and the
company are known as: expressed powers
3. Human life value refers to: The monetary value that a person has to others
4. A company that has not received permission from the insurance commis- sioner to do business
in this state is called: An unauthorized company
5. The settlement option that provides for the proceeds plus interest to be paid in installments for a
specified period of time is the: fixed period option
6. Parts of the risk selection process include:: A physical examination
Personal investigation of the proposed insured
Choosing prospects for life insurance carefully
7. The life income settlement option under which a beneficiary receives an income from the
present time until death is called: Straight life income
8. In a whole life insurance policy: the cash value is greatest at the end of the policy period,
and the insurance protection is greatest at the start of the policy
9. Using the proceeds from a policy on the life of a deceased business owner to purchase his or her
business interest probably indicates a: buy-sell agreement
10.How is any policy loan recovered by the company if the extended term option goes into
effect?: The amount is subtracted from any accumulated cash value and the face amount of
the term policy is reduced by the same amount
11.An annuity is a contract that: Liquidates an estate through periodic payments to the
annuitant
12.Income payments made from an annuity are: only partly subject to federal taxation
13.3 statements that support the definition of insurance: the result of financial loss is spread
among many persons
the cost to any one person is small
the cost is certain regardless of circumstances of the loss
14.A family income policy differs from a decreasing term policy in that the family income policy:
pays monthly income upon the death of the insured
15.A variable annuity can provide payments to the annuitant for : Life
, Kentucky Life and Health
16.An insurance policy with a back-end load: Makes a service charge if the policy is
surrendered
17.The stork provision of a guaranteed insurability rider provides that the policyowner may
purchase insurance: on his life in anticipation of his next option date, within 90 days after the
birth of a child
18.An insurance agent's duties include: - solicitation
- collecting premiums
- handling claims
19."Reserve" may be defined as the amount of money that: together, with premiums due and
interest on this premiums, will enable a company to pay death claims
20.An employee who participates in a qualified company pension plan, and who also has self-
employment income, may establish: An IRA and KEOGH plan
21.when will a life insurance policy automatically lapse?: when an unpaid policy loan, plus interest,
equal the cash value of the policy
22.A universal life contract expires when: the cash value account becomes too small to pay the
cost of insurance
23.most life insurance policies: will pay the face amount if the insured is killed while a a
passenger of a regularly scheduled commercial airliner
24.Dividends left at interest: Can be used without affecting the cash value of the policy
25.All term policies automatically provide: death benefit
26."Loading" means to assign to each policy the appropriate share of the company's: operating
expenses
27.An annual premium annuity is one that: is purchased over the years prior to the date on
which the annuity begins
28.The cash value of a Variable Life Policy: is determined by the investment experience of
the separate account
29.The wording of a life insurance policy: May not be changed by the agent
30.A flexible premium annuity: Is a deferred annuity with annuity payment amounts that
cannot be determined in advance
31.If you have a Family Income Policy purchased at age 30 that has a 20-year payment period and
die at age 45, how many years will the beneficiary receive from the policy?: 5 years
32.When should an agent notify the Department of Insurance that they have changed address?:
within 30 days
33.Money resulting from savings in mortality, higher than expected interest, and reductions in
operating expenses is called: divisible surplus
1. A straight life annuity: - provides for a periodic income to be paid to the annuitant for life
- does not provide a guarantee as to maximum benefits
- provides that periodic income payments cease upon the annuitant's death
2. Those powers of an insurance agent included in the agreement between the agent, and the
company are known as: expressed powers
3. Human life value refers to: The monetary value that a person has to others
4. A company that has not received permission from the insurance commis- sioner to do business
in this state is called: An unauthorized company
5. The settlement option that provides for the proceeds plus interest to be paid in installments for a
specified period of time is the: fixed period option
6. Parts of the risk selection process include:: A physical examination
Personal investigation of the proposed insured
Choosing prospects for life insurance carefully
7. The life income settlement option under which a beneficiary receives an income from the
present time until death is called: Straight life income
8. In a whole life insurance policy: the cash value is greatest at the end of the policy period,
and the insurance protection is greatest at the start of the policy
9. Using the proceeds from a policy on the life of a deceased business owner to purchase his or her
business interest probably indicates a: buy-sell agreement
10.How is any policy loan recovered by the company if the extended term option goes into
effect?: The amount is subtracted from any accumulated cash value and the face amount of
the term policy is reduced by the same amount
11.An annuity is a contract that: Liquidates an estate through periodic payments to the
annuitant
12.Income payments made from an annuity are: only partly subject to federal taxation
13.3 statements that support the definition of insurance: the result of financial loss is spread
among many persons
the cost to any one person is small
the cost is certain regardless of circumstances of the loss
14.A family income policy differs from a decreasing term policy in that the family income policy:
pays monthly income upon the death of the insured
15.A variable annuity can provide payments to the annuitant for : Life
, Kentucky Life and Health
16.An insurance policy with a back-end load: Makes a service charge if the policy is
surrendered
17.The stork provision of a guaranteed insurability rider provides that the policyowner may
purchase insurance: on his life in anticipation of his next option date, within 90 days after the
birth of a child
18.An insurance agent's duties include: - solicitation
- collecting premiums
- handling claims
19."Reserve" may be defined as the amount of money that: together, with premiums due and
interest on this premiums, will enable a company to pay death claims
20.An employee who participates in a qualified company pension plan, and who also has self-
employment income, may establish: An IRA and KEOGH plan
21.when will a life insurance policy automatically lapse?: when an unpaid policy loan, plus interest,
equal the cash value of the policy
22.A universal life contract expires when: the cash value account becomes too small to pay the
cost of insurance
23.most life insurance policies: will pay the face amount if the insured is killed while a a
passenger of a regularly scheduled commercial airliner
24.Dividends left at interest: Can be used without affecting the cash value of the policy
25.All term policies automatically provide: death benefit
26."Loading" means to assign to each policy the appropriate share of the company's: operating
expenses
27.An annual premium annuity is one that: is purchased over the years prior to the date on
which the annuity begins
28.The cash value of a Variable Life Policy: is determined by the investment experience of
the separate account
29.The wording of a life insurance policy: May not be changed by the agent
30.A flexible premium annuity: Is a deferred annuity with annuity payment amounts that
cannot be determined in advance
31.If you have a Family Income Policy purchased at age 30 that has a 20-year payment period and
die at age 45, how many years will the beneficiary receive from the policy?: 5 years
32.When should an agent notify the Department of Insurance that they have changed address?:
within 30 days
33.Money resulting from savings in mortality, higher than expected interest, and reductions in
operating expenses is called: divisible surplus
