Kentucky Life Insurance Exam Questions With All Correct Answers

Net Premium {Ans: Net of operating expenses, takes into account mortality rate and assumed interest}Cash Surrender Value Option {Ans: The policyholder receives the policy's cash value or cash accumulation as a lump sum. Any outstanding policy loans are deducted from the cash payout.}es {Ans: }Insurance Reserves {Ans: Policyholders' funds and investment returns that insurance companies are holding in anticipation of paying claims}Servicemember's Group Life Insurance {Ans: Covers military personnel, is term coverage, insured pays 100% of standard premium, federal government pays 100% of the hazardous rate}Qualified Retirement Plan {Ans: A retirement savings plan approved by the Internal Revenue Service that provides individuals with a tax benefit: tax deductible to the business, not currently taxable to the employee, accumulates on a tax-differed basis, taxed at retirement under advantageous rules}