Kentucky Life and Health Insurance Exam (Latest 2024/ 2025 Update) Questions and Verified Answers| 100 % Correct| Grade A Q: Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? Joint Life Adjustable Life Variable Universal Life Universal Life Answer: Variable Universal Life Q: Two agencies are competing for a new client. Agency A mentions to the prospective client that all of the companies with which it does business are licensed in all U.S. States. It also mentions that Agency B may not be dependable since it is only licensed in 42 States. Therefore, Agency A may have engaged in: Perjury Fraud Defamation Larceny Answer: Defamation Q: The health insurance program which is administered by each state and funded by both the federal and state governments is called: Long-term care Medicaid Medicare Supplemental Program Medicare Answer: Medicaid Q: The initial amount of credit life and health insurance may NOT exceed: The total amount repayable under the contract of indebtedness The insured's individual salary The total Life insurance already in place on the insured's life. An amount to be determined by the Commissioner on a case-by-case basis Answer: The total amount repayable under the contract of indebtedness Q: How much will be taxable if a policyowner, age 55, relinquishes a Universal Life policy? No taxes are owed on a Universal Life policy cash surrender Taxes are owed on the entire cash value Taxes are owed on the entire cash value plus a 10% penalty for early withdrawal Taxes are owed on the amount of cash value that exceeds the premiums paid Answer: Taxes are owed on the amount of cash value that exceeds the premiums paid Q: When a material misstatement is discovered on an application for health insurance, the insurer may contest the claim payment during what period of time following the issuance of the policy? 1 year 2 years 3 years 4 years Answer: 2 years Q: T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect? $5,000 per month benefit $10,000 per month benefit if the cause was accidental More than $5,000 per month benefit if cause was work-related Less than $5,000 per month benefit regardless of the cause Answer: Less than $5,000 per month benefit regardless of the cause Q: Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible? Deferral provision Carryover provision Stop Loss provision Corridor provision Answer: Carryover provision Q: When a premium payment for a life insurance policy is missed, what provision will dictate the actions taken by the insurer? Reinstatement clause Grace Period clause Premium Mode clause Incontestable clause Answer: Grace period clause Q: What kind of premium does a Whole Life policy have? decreasing adjustable level deferred Answer: Level Q: All of the following are proper funding vehicles in a qualified plan, EXCEPT? Annuity Mutual Fund Stock Life Insurance Answer: Life insurance Q: All of the following statements about Major Medical benefits are true, EXCEPT: The deductible can be expressed as a fixed dollar amount The benefit period begins only after a specified amount of expenses have accrued Benefits are generally expressed as a percentage of eligible expenses Benefits have no maximum limit