KENTUCKY LIFE INSURANCE EXAM 100 QUESTIONS
& CORRECT ANSWERS LATEST 2025
The premiums paid by an employer for his employee's group life insurance are
usually considered to be - ANSWER-Tax-deductible to the employer
Which of these is NOT considered to be a cost connected with an individual's
death? - ANSWER-Business expenses
These are all accurate statements regarding universal life insurance EXCEPT -
ANSWER-Policy loans are not permitted
Which of these is NOT relevant when determining the amount of personal life
insurance needed? - ANSWER-Local unemployment rate
Who elects the governing body of a mutual insurance company? - ANSWER-
Policyholders
Why would evidence of insurability be required for a person insured with a
variable universal life policy? - ANSWER-The face amount is increased
At what point are death proceeds paid in a joint life policy? - ANSWER-When the
first insured dies
, What is considered a valid reason for small businesses to insure the lives of its
major shareholders? - ANSWER-Fund a buy-sell agreement
Which action will trigger a penalty tax on premature distributions from a modified
endowment contract (MEC)? - ANSWER-Policy loans
Dividends from a mutual insurance company are paid to whom? - ANSWER-
Policyowners
Traditional individual retirement annuity (IRA) distributions must start by -
ANSWER-April 1st of the year following the year the participant attains age 70 1/2
How are Roth IRA distributions normally taxed? - ANSWER-Distributions are
received tax-free
How can an insurance company minimize exposure to loss? - ANSWER-
Reinsurance
All of the following statements about traditional individual retirement accounts
are false EXCEPT - ANSWER-10% penalty is applied to withdrawals before age 59
1/2
All of these statements concerning universal life insurance are false EXCEPT -
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
& CORRECT ANSWERS LATEST 2025
The premiums paid by an employer for his employee's group life insurance are
usually considered to be - ANSWER-Tax-deductible to the employer
Which of these is NOT considered to be a cost connected with an individual's
death? - ANSWER-Business expenses
These are all accurate statements regarding universal life insurance EXCEPT -
ANSWER-Policy loans are not permitted
Which of these is NOT relevant when determining the amount of personal life
insurance needed? - ANSWER-Local unemployment rate
Who elects the governing body of a mutual insurance company? - ANSWER-
Policyholders
Why would evidence of insurability be required for a person insured with a
variable universal life policy? - ANSWER-The face amount is increased
At what point are death proceeds paid in a joint life policy? - ANSWER-When the
first insured dies
, What is considered a valid reason for small businesses to insure the lives of its
major shareholders? - ANSWER-Fund a buy-sell agreement
Which action will trigger a penalty tax on premature distributions from a modified
endowment contract (MEC)? - ANSWER-Policy loans
Dividends from a mutual insurance company are paid to whom? - ANSWER-
Policyowners
Traditional individual retirement annuity (IRA) distributions must start by -
ANSWER-April 1st of the year following the year the participant attains age 70 1/2
How are Roth IRA distributions normally taxed? - ANSWER-Distributions are
received tax-free
How can an insurance company minimize exposure to loss? - ANSWER-
Reinsurance
All of the following statements about traditional individual retirement accounts
are false EXCEPT - ANSWER-10% penalty is applied to withdrawals before age 59
1/2
All of these statements concerning universal life insurance are false EXCEPT -
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
