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The KY L&H exam has 50 questions and runs 1 hour.
These 10 free KY L&H questions are organized by exam domain, so you can see how each part of the Kentucky Life Insurance Agent Examination blueprint is tested. Reveal the answer and explanation under each question.
A client needs $35,000 for final expenses, $95,000 to retire debts, $120,000 for education, and a $400,000 income fund. The family has $75,000 in liquid assets earmarked for these needs and $180,000 of existing life insurance. A $140,000 retirement account is inaccessible and reserved for the surviving spouse's retirement. Using the needs approach, how much additional life insurance is indicated?
Correct answer: B - $395,000
A life applicant pays the initial premium and receives a conditional receipt stating that coverage exists only if the applicant was insurable as applied for on the receipt date. The applicant dies before policy issue. Underwriting later establishes that the applicant would have been declined on that date. What is the proper result?
Correct answer: A - No death benefit is payable under the receipt because the insurability condition was not met; the premium is refunded
A 53-year-old insured is in year 18 of a 20-year term policy. A recent diagnosis makes new coverage difficult, but the policy's conversion period is still open. The insured wants permanent protection. Which action uses the contractual conversion right?
Correct answer: C - Convert to an eligible permanent policy without new evidence; premium is ordinarily based on attained age
A client wants flexible premiums, an adjustable death benefit, and direct allocation among separate-account investment options. The client accepts market risk. Which product and sales requirement fit these objectives?
Correct answer: D - Variable universal life; sale requires a prospectus and proper insurance and securities authority
A policyowner named the spouse as irrevocable beneficiary. The owner later wants to collaterally assign the policy to a bank for a business loan. Which step is generally required because the assignment can affect the beneficiary's vested interest?
Correct answer: A - Obtain the irrevocable beneficiary's written consent before making the collateral assignment
While traveling, an EPO member develops crushing chest pain and shortness of breath. A prudent layperson would consider the symptoms an emergency, so the member goes to the nearest out-of-network emergency department without prior authorization. Which statement best describes the coverage rule?
Correct answer: D - Emergency evaluation cannot require prior authorization, and protected cost sharing is treated at in-network levels
A Kentucky health insurer receives timely written notice of claim but does not furnish claim forms within 15 days. What should the claimant do to preserve the claim?
Correct answer: C - Submit equivalent written proof of the loss within the 90-day proof-of-loss period
An in-network provider bills $12,000 for a covered service. The plan's allowed charge is $9,000, the insured has $1,500 of deductible remaining, and the plan pays 80% after the deductible. Ignoring any separate balance-billing issue, how much does the insurer pay?
Correct answer: A - $6,000
Before disability, an insured earned $7,500 per month. The insured returns to work earning $4,500 per month. The policy pays a residual benefit equal to the full $4,000 monthly benefit multiplied by the percentage loss of earnings. What monthly benefit is payable?
Correct answer: B - $1,600
An insured can physically perform bathing, continence, dressing, eating, toileting, and transferring. Because of severe cognitive impairment, however, the insured wanders and cannot recognize danger. A licensed practitioner certifies that substantial supervision will be needed for at least 120 days. Does the insured meet a tax-qualified long-term care benefit trigger?
Correct answer: C - Yes; the severe cognitive-impairment supervision trigger is independently satisfied
The KY L&H exam also covers these domains. Drill them in the full free practice test:
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