Comprehensive Exam -Kentucky Life and Health Insurance Final Updated Exam 2024 Q&A All of the following are producer responsibilities to the applicant, except: - CORRECT ANSWER -Offering and selling only the lowest premium policy ___________ manufacture and sell insurance coverage in the form of policies or contracts of insurance. - CORRECT ANSWER -Insurers When both parties must perform certain duties and follow certain rules of conduct to make a contract enforceable refers to a(n) __________ contract. - CORRECT ANSWER -Conditional _____________ insurance allows for insurance coverage to be obtained when not available from admitted carriers. - CORRECT ANSWER -Surplus lines The field underwriter is the _________ and is not a determiner of insurability. - CORRECT ANSWER -Producer To address adverse selection what can an insurer legally do? - CORRECT ANSWER -
Establish and enforce sound underwriting practices A contract that is drafted by an insurer and receives no input or alteration from the insured, is considered a(n): - CORRECT ANSWER -Contract of Adhesion Which of the following parties does not sign an application for life insurance? - CORRECT ANSWER -The beneficiary The ____________ market is a private source of coverage of last resort for individuals or businesses that have been rejected by voluntary market insurers. - CORRECT ANSWER -Residual Which of the following is NOT considered one of the essential elements of a contract? - CORRECT ANSWER -Conditions An insurer NOT authorized to do business within this state is considered what type of insurer? - CORRECT ANSWER -Non-Admitted Which of the following describes Fiduciary Responsibilities? - CORRECT ANSWER -
Anyone acting as an insurance producer or agent for an insurer shall be held responsible in a trust or fiduciary capacity for any money collected or received for the insurer The relationship of a person who acts on behalf of a company whereby the person's actions can bind the company is known as: - CORRECT ANSWER -The law of agency With health and life insurance a/an _________ is required at the time of the application. - CORRECT ANSWER -Insurable interest _____________ consists of groups of underwriters called syndicates, each of which specializes in insuring a particular type of risk. - CORRECT ANSWER -Lloyds of London What is the primary reason why States have 'outlawed' Stranger Originated Life Insurance (STOLI) transactions? - CORRECT ANSWER -At policy inception there is a lack of insurable interest Which of the following types of policies is eligible for policy dividends? - CORRECT ANSWER -Participating An applicant for life insurance pays the agent the initial premium and receives a Conditional Insurability Receipt in return. If the policy was to be issued as substandard, but the applicant dies prior to policy issue what is the result? - CORRECT ANSWER -
The insurer will refund any premiums paid Which of the following best describes 'Capital Retention/Conservation' in an effort to meet an income objective? - CORRECT ANSWER -Investment earnings are paid out If a copy of the application, which led to a life insurance policy being issued, is attached to the policy: - CORRECT ANSWER -It is considered part of the entire contract Which of the following products are offered by insurers to protect families from the financial setback of a family member's premature death? - CORRECT ANSWER -Life Insurance The HIV Consent Form specifies which types of individuals may receive __________. - CORRECT ANSWER -The test results Confidential information shared by the producer to the insurer and does not become part of the policy is the __________. - CORRECT ANSWER -Agent's Report A is the insured under a $100,000 10 year term life insurance policy with her spouse named as her beneficiary. If she dies in year 9, what will her spouse receive? - CORRECT ANSWER -The face amount of the policy
Establish and enforce sound underwriting practices A contract that is drafted by an insurer and receives no input or alteration from the insured, is considered a(n): - CORRECT ANSWER -Contract of Adhesion Which of the following parties does not sign an application for life insurance? - CORRECT ANSWER -The beneficiary The ____________ market is a private source of coverage of last resort for individuals or businesses that have been rejected by voluntary market insurers. - CORRECT ANSWER -Residual Which of the following is NOT considered one of the essential elements of a contract? - CORRECT ANSWER -Conditions An insurer NOT authorized to do business within this state is considered what type of insurer? - CORRECT ANSWER -Non-Admitted Which of the following describes Fiduciary Responsibilities? - CORRECT ANSWER -
Anyone acting as an insurance producer or agent for an insurer shall be held responsible in a trust or fiduciary capacity for any money collected or received for the insurer The relationship of a person who acts on behalf of a company whereby the person's actions can bind the company is known as: - CORRECT ANSWER -The law of agency With health and life insurance a/an _________ is required at the time of the application. - CORRECT ANSWER -Insurable interest _____________ consists of groups of underwriters called syndicates, each of which specializes in insuring a particular type of risk. - CORRECT ANSWER -Lloyds of London What is the primary reason why States have 'outlawed' Stranger Originated Life Insurance (STOLI) transactions? - CORRECT ANSWER -At policy inception there is a lack of insurable interest Which of the following types of policies is eligible for policy dividends? - CORRECT ANSWER -Participating An applicant for life insurance pays the agent the initial premium and receives a Conditional Insurability Receipt in return. If the policy was to be issued as substandard, but the applicant dies prior to policy issue what is the result? - CORRECT ANSWER -
The insurer will refund any premiums paid Which of the following best describes 'Capital Retention/Conservation' in an effort to meet an income objective? - CORRECT ANSWER -Investment earnings are paid out If a copy of the application, which led to a life insurance policy being issued, is attached to the policy: - CORRECT ANSWER -It is considered part of the entire contract Which of the following products are offered by insurers to protect families from the financial setback of a family member's premature death? - CORRECT ANSWER -Life Insurance The HIV Consent Form specifies which types of individuals may receive __________. - CORRECT ANSWER -The test results Confidential information shared by the producer to the insurer and does not become part of the policy is the __________. - CORRECT ANSWER -Agent's Report A is the insured under a $100,000 10 year term life insurance policy with her spouse named as her beneficiary. If she dies in year 9, what will her spouse receive? - CORRECT ANSWER -The face amount of the policy
