Page 1 of 53
1
KENTUCKY LIFE AND HEALTH INSURANCE EXAM
150 EXAM QUESTIONS AND CORRECT ANSWERS
2024-2025 ALREADY GRADED A+
Mike had both of his legs amputated after a boulder fell on them. He has a policy that pays a lump sum benefit for this injury. What type of insurance does Mike have?
Catastrophic Accidental death and dismemberment Major medical Hospital expense - ANSWER-Accidental death and dismemberment
An accidental death and dismemberment policy pays a benefit in the event of accidental dismemberment or loss of vision/hearing.
Which of these Nonforfeiture Options continue a build-up of cash value?
Waiver of Premium Extended Term Reduced Paid-Up Cash Surrender - ANSWER-Reduced paid up
A Reduced Paid-Up option would provide continuing cash value build-up.
- / 4
Page 2 of 53
2 What type of life policy covers two people and pays upon the death of the last insured?
Shared Survivorship Adjustable Joint - ANSWER-Survivorship
Which of the following questions may an insurer properly ask an applicant for insurance?
Whether the applicant has ever tested positive for the HIV infection
Whether the applicant has ever been tested for the HIV infection
Whether the applicant has ever tested negative for the HIV infection
None of the above - ANSWER-Whether the applicant has ever tested positive for the HIV infection
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
Joint Life Adjustable Life 2 / 4
Page 3 of 53
3 Variable Universal Life Universal Life - ANSWER-Variable Universal Life
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
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
The initial amount of credit life and health insurance may NOT exceed:
The total amount repayable under the contract of indebtedness
- / 4
Page 4 of 53
4 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
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
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?
- year
- years
- years
- / 4