Kentucky Life Insurance Exam (Latest 2024/ 2025 Update) Questions and Verified Answers| 100 % Correct| Grade A

Kentucky Life Insurance Exam (Latest 2024/ 2025 Update) Questions and Verified Answers| 100 % Correct| Grade A Q: Traditional individual retirement annuity (IRA) distributions must start by Answer: April 1st of the year following the year the participant attains age 70 1/2 Q: How are Roth IRA distributions normally taxed? Answer: Distributions are received tax-free Q: How can an insurance company minimize exposure to loss? Answer: Reinsurance Q: All of the following statements about traditional individual retirement accounts are false EXCEPT Answer: 10% penalty is applied to withdrawals before age 59 1/2 Q: All of these statements concerning universal life insurance are false EXCEPT Answer: Policy indicates how much of the premium is used toward company expenses Q: 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? Answer: Income taxes plus a 10% penalty tax on $30,000 Q: For insurance purposes, similar objects which are exposed to the same perils are referred to as Answer: Homogeneous exposure units Q: In an individual retirement account (IRA), rollover contributions are Answer: Not limited by dollar amount Q: 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? Answer: 100 Q: Which statement concerning a decreasing term life policy is accurate? Answer: Face amount decreases over time Q: All of these are considered features of whole life insurance EXCEPT Answer: Initial premium is lower than for an equivalent amount of term insurance Q: An employer that offers a qualified retirement plan to its employees is eligible to Answer: Make tax-deductible contributions to the plan Q: The insurance coverage in a variable life insurance policy may fluctuate based on the value of Answer: Its underlying investments Q: How long is a person covered for under a limited pay whole life policy? Answer: Until age 100 Q: When does an insured stop making payments under a thirty-payment whole life policy? Answer: When the insured dies or 30 years from the policy's inception, whichever comes first