Kentucky Life Insurance State Exam
Practice Questions with verified correct
detailed Answers new latest update 2025
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 contributions are -
-- correct answer ---Not limited by dollar amount
What is the maximum number of employees (earning at least $5,000)
that an employer can have in order to start a SIMPLE retirement plan?
--- correct answer ---100
Which statement concerning a decreasing term life policy is accurate?
--- correct answer ---Face amount decreases over time
,All of these are considered features of whole life insurance EXCEPT ---
correct answer ---Initial premium is lower than for an equivalent
amount of term insurance
An employer that offers a qualified retirement plan to its employees is
eligible to --- correct answer ---Make tax-deductible contributions to
the plan
The insurance coverage in a variable life insurance policy may
fluctuate based on the value of --- correct answer ---Its underlying
investments
How long is a person covered for under a limited pay whole life
policy? --- correct answer ---Until age 100
When does an insured stop making payments under a thirty-payment
whole life policy? --- correct answer ---When the insured dies or 30
years from the policy's inception, whichever comes first
What does a fixed life annuity offer protection against? --- correct
answer ---Savings depletion because of longevity
, When does interest income in a deferred annuity get reported for
federal income taxes? --- correct answer ---When the distributions are
received
Which statement regarding the cash value of a whole life insurance
policy is correct? --- correct answer ---Payable to the policy owner
when policy has been surrendered
The following are all elements of a legal contract EXCEPT --- correct
answer ---Recorded evidence
An insurance policy that can also be classified as a securities product
is called --- correct answer ---Variable life
Which of these do NOT indicate the presence of insurable interest in a
life insurance contract? --- correct answer ---Lifelong friendship
The owner of a single premium deferred annuity is entitled to do all of
these EXCEPT --- correct answer ---Make multiple premium payments
Practice Questions with verified correct
detailed Answers new latest update 2025
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 contributions are -
-- correct answer ---Not limited by dollar amount
What is the maximum number of employees (earning at least $5,000)
that an employer can have in order to start a SIMPLE retirement plan?
--- correct answer ---100
Which statement concerning a decreasing term life policy is accurate?
--- correct answer ---Face amount decreases over time
,All of these are considered features of whole life insurance EXCEPT ---
correct answer ---Initial premium is lower than for an equivalent
amount of term insurance
An employer that offers a qualified retirement plan to its employees is
eligible to --- correct answer ---Make tax-deductible contributions to
the plan
The insurance coverage in a variable life insurance policy may
fluctuate based on the value of --- correct answer ---Its underlying
investments
How long is a person covered for under a limited pay whole life
policy? --- correct answer ---Until age 100
When does an insured stop making payments under a thirty-payment
whole life policy? --- correct answer ---When the insured dies or 30
years from the policy's inception, whichever comes first
What does a fixed life annuity offer protection against? --- correct
answer ---Savings depletion because of longevity
, When does interest income in a deferred annuity get reported for
federal income taxes? --- correct answer ---When the distributions are
received
Which statement regarding the cash value of a whole life insurance
policy is correct? --- correct answer ---Payable to the policy owner
when policy has been surrendered
The following are all elements of a legal contract EXCEPT --- correct
answer ---Recorded evidence
An insurance policy that can also be classified as a securities product
is called --- correct answer ---Variable life
Which of these do NOT indicate the presence of insurable interest in a
life insurance contract? --- correct answer ---Lifelong friendship
The owner of a single premium deferred annuity is entitled to do all of
these EXCEPT --- correct answer ---Make multiple premium payments
