Kentucky Life Insurance Exam
ANS
four Types of Life Insurance - ANSPermanent, Term, Industrial, Group
Absolute, Voluntary, Complete Assignment - ANSPolicy is given as a gift, policy owner has
no way of getting better surrendered rights
Accelerated Benefits Rider - ANSA existence insurance rider that permits for the early fee of
a few part of the coverage's face amount should the insured suffer from a terminal
contamination or injury.
Accidental Death Rider - ANSProvides for an additional quantity paid to the beneficiary
should the insured die as the end result of an coincidence. Excludes demise with the aid of
self-inflicted harm, dying whilst committing against the law, and demise as end result of
struggle.
Accumulation at Interest Option - ANSA dividend or agreement alternative under which the
policyholder permits his or her dividends or coverage proceeds to build up hobby with the
employer. Although the dividends or proceeds are not normally taxable, the hobby earned is.
Accumulation Units - ANSA variable annuity settlement owner's hobby inside the separate
account prior to annuitization, sold with the aid of the net purchase payment
Adjustable Life Policies - ANSPolicyholder can alter face quantity of coverage,
quantity/frequency of top class payments, period of coverage safety
Advantages of Group Life - ANSLower charges, no longer required to supply proof of
insurability, organization pays all or part of the top rate
Advantages of agreement alternatives - ANSinsurer invests the cash, money is safe with
insurance organisation, assured interest profits
Adverse Selection - ANSPeople who're maximum likely to experience loss are more likely to
are trying to find coverage than folks who aren't
Aleatory Contract - ANSa settlement where the values exchanged may not be equal but
depend upon an unsure event
Annuitant - ANSThe individual who gets the bills from an annuity
Annuities - ANSA constant amount of money paid to a person every 12 months, normally for
the relaxation of their life.
,Annuity Unit - ANSThe quantity of annuity units denotes the proportion of the price range an
annuitant will receive from a variable annuity account after the buildup duration ends and
benefits begin. A formula is used to transform accumulation gadgets to annuity devices.
Fixed variety in quantity, but price varies.
Applicant - ANSParty making the software to the insurance enterprise, may or might not be
the proposed insured
Application - ANSA formal request for an insurance policy that means that the furnished
information is genuine to the nice of the applicant's understanding.
Affiliation obligations for any individual life - ANS300,000 in coverage demise advantages,
no more than 100,000 coins give up/cash withdrawal values, a hundred,000 medical health
insurance benefits, 250,000 present value of annuity benefits
Assumptions about Group Insurance - ANSThe organization is huge, most companies can
be wholesome, coverage is incidental to the career
Automatic Premium Loan Provision - ANSAuthorizes insurer to mechanically pay any
premium in default on the end of the grace duration and rate the quantity so paid in
opposition to the existence insurance policy as a coverage loan.
Backdating - ANSThe exercise of creating a policy effective at an earlier date than the
prevailing. Permits the insurer to be rated a year younger, top class fee dates correspond to
the profits sample of the policyholder, enables the purchase of a policy troubles to younger
customers
Beneficiary - ANSReceives any survivor blessings payable beneath the annuity on the death
of the annuitant
Binding Receipt - ANSProvides insurance as quickly as premium is obtained (before
approval)
Buy-Sell Agreement - ANSAgreement that a deceased enterprise owner's hobby might be
bought and purchased at a predetermined charge or at a price according to a predetermined
system, ought to encompass a investment provision
Cash Surrender Value Option - ANSThe policyholder receives the coverage's cash value or
coins accumulation as a lump sum.
Any fantastic coverage loans are deducted from the coins payout.
Cash Value of ULP $zero - ANSContract expires, coverage goes into grace period,
Certificate of Insurance - ANSForm that certifies the coverage, the benefits, and the
beneficiary's call, each member below a set lifestyles policy receives one
, Change of Policy - ANSAn agent is NEVER accredited to make a change in a coverage,
whether at the request of the policy owner or for a few other reason. Only legal organisation
officials could make adjustments or amendments in life insurance regulations, and such
adjustments ought to have the coverage owner's recognition earlier than they take impact.
Changes or Amendments to a Contract - ANSRiders, endorsements, or amendments
Charitable Uses of Life Insurance - ANS1) Policy is proficient on lifestyles of the donor,
wherein fee of coverage is deductible, and a pair of) donor makes charity the beneficiary and
continues to pay premiums (which are not tax deductible)
Churning - ANSThe exercise of using misrepresentation to set off substitute of a policy
issued by way of the insurer the agent represents instead of the coverage of a competing
employer (inner replacement)
Class Designation - ANSA beneficiary designation. Rather than specifying one or extra
beneficiaries by way of name, the coverage proprietor designates a category or organization
of beneficiaries. For instance, "my youngsters."
Classes of Hazard - ANSPresent physical circumstance/medical history, career, moral
health, avocation danger
CODA - ANSemployee defers part of pay into 401(okay) plan by way of a coins bonus or
earnings discount
Collateral for Policy Loans - ANSThe insurance organization does now not require the
coverage owner to offer outdoor collateral for the mortgage, due to the fact the collateral
mortgage is the policy's cash value
Collateral/Partial/Conditional Assignment - ANSAssignment of a part of the proceeds of an
insurance policy to a bank as collateral to settle the mortgage balance that can exist on the
insured's death.
Common Disaster Provision - ANSSometimes added to a coverage and designed to offer an
alternative beneficiary inside the occasion that the insured as well as the authentic
beneficiary dies because the end result of a not unusual coincidence.
Concealment - ANSWithholding of statistics that ought to accept to the insurance agency
due to the fact they would most virtually have an effect on the company's choice of issuing a
coverage
Conditional Receipt - ANSAgent can't assure the policy may be issued, serves as a receipt
for the first full top rate and a announcement that the policy might be issued issue to the
approval of the agency. If insured dies before coverage is issued, proceeds are best issued
in the event that they could have been if the insured had been residing
Consent - ANSPerson being insured need to signal software
ANS
four Types of Life Insurance - ANSPermanent, Term, Industrial, Group
Absolute, Voluntary, Complete Assignment - ANSPolicy is given as a gift, policy owner has
no way of getting better surrendered rights
Accelerated Benefits Rider - ANSA existence insurance rider that permits for the early fee of
a few part of the coverage's face amount should the insured suffer from a terminal
contamination or injury.
Accidental Death Rider - ANSProvides for an additional quantity paid to the beneficiary
should the insured die as the end result of an coincidence. Excludes demise with the aid of
self-inflicted harm, dying whilst committing against the law, and demise as end result of
struggle.
Accumulation at Interest Option - ANSA dividend or agreement alternative under which the
policyholder permits his or her dividends or coverage proceeds to build up hobby with the
employer. Although the dividends or proceeds are not normally taxable, the hobby earned is.
Accumulation Units - ANSA variable annuity settlement owner's hobby inside the separate
account prior to annuitization, sold with the aid of the net purchase payment
Adjustable Life Policies - ANSPolicyholder can alter face quantity of coverage,
quantity/frequency of top class payments, period of coverage safety
Advantages of Group Life - ANSLower charges, no longer required to supply proof of
insurability, organization pays all or part of the top rate
Advantages of agreement alternatives - ANSinsurer invests the cash, money is safe with
insurance organisation, assured interest profits
Adverse Selection - ANSPeople who're maximum likely to experience loss are more likely to
are trying to find coverage than folks who aren't
Aleatory Contract - ANSa settlement where the values exchanged may not be equal but
depend upon an unsure event
Annuitant - ANSThe individual who gets the bills from an annuity
Annuities - ANSA constant amount of money paid to a person every 12 months, normally for
the relaxation of their life.
,Annuity Unit - ANSThe quantity of annuity units denotes the proportion of the price range an
annuitant will receive from a variable annuity account after the buildup duration ends and
benefits begin. A formula is used to transform accumulation gadgets to annuity devices.
Fixed variety in quantity, but price varies.
Applicant - ANSParty making the software to the insurance enterprise, may or might not be
the proposed insured
Application - ANSA formal request for an insurance policy that means that the furnished
information is genuine to the nice of the applicant's understanding.
Affiliation obligations for any individual life - ANS300,000 in coverage demise advantages,
no more than 100,000 coins give up/cash withdrawal values, a hundred,000 medical health
insurance benefits, 250,000 present value of annuity benefits
Assumptions about Group Insurance - ANSThe organization is huge, most companies can
be wholesome, coverage is incidental to the career
Automatic Premium Loan Provision - ANSAuthorizes insurer to mechanically pay any
premium in default on the end of the grace duration and rate the quantity so paid in
opposition to the existence insurance policy as a coverage loan.
Backdating - ANSThe exercise of creating a policy effective at an earlier date than the
prevailing. Permits the insurer to be rated a year younger, top class fee dates correspond to
the profits sample of the policyholder, enables the purchase of a policy troubles to younger
customers
Beneficiary - ANSReceives any survivor blessings payable beneath the annuity on the death
of the annuitant
Binding Receipt - ANSProvides insurance as quickly as premium is obtained (before
approval)
Buy-Sell Agreement - ANSAgreement that a deceased enterprise owner's hobby might be
bought and purchased at a predetermined charge or at a price according to a predetermined
system, ought to encompass a investment provision
Cash Surrender Value Option - ANSThe policyholder receives the coverage's cash value or
coins accumulation as a lump sum.
Any fantastic coverage loans are deducted from the coins payout.
Cash Value of ULP $zero - ANSContract expires, coverage goes into grace period,
Certificate of Insurance - ANSForm that certifies the coverage, the benefits, and the
beneficiary's call, each member below a set lifestyles policy receives one
, Change of Policy - ANSAn agent is NEVER accredited to make a change in a coverage,
whether at the request of the policy owner or for a few other reason. Only legal organisation
officials could make adjustments or amendments in life insurance regulations, and such
adjustments ought to have the coverage owner's recognition earlier than they take impact.
Changes or Amendments to a Contract - ANSRiders, endorsements, or amendments
Charitable Uses of Life Insurance - ANS1) Policy is proficient on lifestyles of the donor,
wherein fee of coverage is deductible, and a pair of) donor makes charity the beneficiary and
continues to pay premiums (which are not tax deductible)
Churning - ANSThe exercise of using misrepresentation to set off substitute of a policy
issued by way of the insurer the agent represents instead of the coverage of a competing
employer (inner replacement)
Class Designation - ANSA beneficiary designation. Rather than specifying one or extra
beneficiaries by way of name, the coverage proprietor designates a category or organization
of beneficiaries. For instance, "my youngsters."
Classes of Hazard - ANSPresent physical circumstance/medical history, career, moral
health, avocation danger
CODA - ANSemployee defers part of pay into 401(okay) plan by way of a coins bonus or
earnings discount
Collateral for Policy Loans - ANSThe insurance organization does now not require the
coverage owner to offer outdoor collateral for the mortgage, due to the fact the collateral
mortgage is the policy's cash value
Collateral/Partial/Conditional Assignment - ANSAssignment of a part of the proceeds of an
insurance policy to a bank as collateral to settle the mortgage balance that can exist on the
insured's death.
Common Disaster Provision - ANSSometimes added to a coverage and designed to offer an
alternative beneficiary inside the occasion that the insured as well as the authentic
beneficiary dies because the end result of a not unusual coincidence.
Concealment - ANSWithholding of statistics that ought to accept to the insurance agency
due to the fact they would most virtually have an effect on the company's choice of issuing a
coverage
Conditional Receipt - ANSAgent can't assure the policy may be issued, serves as a receipt
for the first full top rate and a announcement that the policy might be issued issue to the
approval of the agency. If insured dies before coverage is issued, proceeds are best issued
in the event that they could have been if the insured had been residing
Consent - ANSPerson being insured need to signal software
