age 1 of 58
KENTUCKY LIFE INSURANCE ACTUAL EXAM
2025/2026 COMPLETE EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS || 100%
GUARANTEED PASS <LATEST VERSION>
Powers of Agency .......Answer.........Can be expressed (in writing)
or implied (not actually stated) or apparent (if agent does
something for which they seem to have the authority to do)
Twisting .......Answer.........An agent convinces a policyowner to
lapse or surrender a present policy in order to sell him another
one, usually from a different company //external replacement
Churning .......Answer.........The practice of using misrepresentation
to induce replacement of a policy issued by the insurer the agent
represents rather than the policy of a competing company
(internal replacement)
,age 2 of 58
Social Security .......Answer.........Financed by a payroll tax on
employers, employees, and the self-employed
Social Security Survivor Benefits .......Answer.........Lump sum death
benefit of $255 is paid to a deceased worker's spouse or
dependent child
Servicemember's Group Life Insurance .......Answer.........Covers
military personnel, is term coverage, insured pays 100% of
standard premium, federal government pays 100% of the
hazardous rate
Purpose of Subtitle .......Answer.........Protects policyowners,
insureds, beneficiaries, annuitants, payees, and assignees of
certain life insurance policies against failures in the performance
of contractual obligations due to the impairment or insolvency of
the insurer issuing such policies or contracts.
,age 3 of 58
association obligations for any one life .......Answer.........300,000
in insurance death benefits, no more than 100,000 cash
surrender/cash withdrawal values, 100,000 health insurance
benefits, 250,000 present value of annuity benefits
Elements of a Contract .......Answer.........Competent parties, legal
purpose, offer and acceptance, consideration
Waiver .......Answer.........Voluntary giving up of a known right or
privilege, can be express or implied
Estoppel .......Answer.........A person is prohibited by virtue of his
own past actions from claiming a right that would work to the
detriment of another who relied on the past conduct
Aleatory Contract .......Answer.........a contract where the values
exchanged may not be equal but depend on an uncertain event
, age 4 of 58
Contracts of Adhesion .......Answer.........One-sided in regards to
preparation (prepared by the insurer)
Contract of Utmost Good Faith .......Answer.........Both parties
bargain in good faith when forming and entering into the
contract. The two parties rely upon the statements and promises
of the other and assume no attempt to conceal or deceive has
been made.
Executory Contract .......Answer.........A contract that has not yet
been fully performed.
Mortality Rate .......Answer.........Determined by dividing the
average number of people who will die each year at each age
by the entire population of people that age (1980 CSO table)
KENTUCKY LIFE INSURANCE ACTUAL EXAM
2025/2026 COMPLETE EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS || 100%
GUARANTEED PASS <LATEST VERSION>
Powers of Agency .......Answer.........Can be expressed (in writing)
or implied (not actually stated) or apparent (if agent does
something for which they seem to have the authority to do)
Twisting .......Answer.........An agent convinces a policyowner to
lapse or surrender a present policy in order to sell him another
one, usually from a different company //external replacement
Churning .......Answer.........The practice of using misrepresentation
to induce replacement of a policy issued by the insurer the agent
represents rather than the policy of a competing company
(internal replacement)
,age 2 of 58
Social Security .......Answer.........Financed by a payroll tax on
employers, employees, and the self-employed
Social Security Survivor Benefits .......Answer.........Lump sum death
benefit of $255 is paid to a deceased worker's spouse or
dependent child
Servicemember's Group Life Insurance .......Answer.........Covers
military personnel, is term coverage, insured pays 100% of
standard premium, federal government pays 100% of the
hazardous rate
Purpose of Subtitle .......Answer.........Protects policyowners,
insureds, beneficiaries, annuitants, payees, and assignees of
certain life insurance policies against failures in the performance
of contractual obligations due to the impairment or insolvency of
the insurer issuing such policies or contracts.
,age 3 of 58
association obligations for any one life .......Answer.........300,000
in insurance death benefits, no more than 100,000 cash
surrender/cash withdrawal values, 100,000 health insurance
benefits, 250,000 present value of annuity benefits
Elements of a Contract .......Answer.........Competent parties, legal
purpose, offer and acceptance, consideration
Waiver .......Answer.........Voluntary giving up of a known right or
privilege, can be express or implied
Estoppel .......Answer.........A person is prohibited by virtue of his
own past actions from claiming a right that would work to the
detriment of another who relied on the past conduct
Aleatory Contract .......Answer.........a contract where the values
exchanged may not be equal but depend on an uncertain event
, age 4 of 58
Contracts of Adhesion .......Answer.........One-sided in regards to
preparation (prepared by the insurer)
Contract of Utmost Good Faith .......Answer.........Both parties
bargain in good faith when forming and entering into the
contract. The two parties rely upon the statements and promises
of the other and assume no attempt to conceal or deceive has
been made.
Executory Contract .......Answer.........A contract that has not yet
been fully performed.
Mortality Rate .......Answer.........Determined by dividing the
average number of people who will die each year at each age
by the entire population of people that age (1980 CSO table)
