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