KS Life & Health case studies
KS Life & Health · Put your knowledge to work in context.
The Kansas Life and Health Insurance Producer Licensing Exam is the state's qualifying examination for candidates who want to sell life insurance, health insurance, or both in Kansas. It is intended for new producers entering the insurance business, career changers moving into financial services, and licensed producers in other lines who want to add life and health authority. The KS Life & Health case studies are 5 cases and about 4,557 words.
1The 1035 Exchange With a Policy Loan and a MEC Trap
Dana, 58, owns a whole life policy issued in 2009: 500,000 death benefit, 180,000 cash surrender value, 120,000 adjusted basis, and a 30,000 policy loan at 6%. Her new agent proposes surrendering it and using the money for a 500,000 indexed universal life policy funded with a 180,000 single premium, illustrated at 7%.
861 words, about 4 min2Agent Completes a False Application, Then the Insured Dies
Marcus, 44, applied for 750,000 of 20-year term on February 1, signed a conditional receipt, and paid the 1,860 annual premium. On the application, agent Ruiz recorded "no" to the tobacco question and "no" to a chronic-asthma question, although Marcus had said in the meeting that he smoked a pack a day and used an inhaler; Ruiz replied, "let's not complicate underwriting." The policy was issued at preferred rates and delivered March 3.
859 words, about 4 min3Entity Buy-Sell, a Rated Owner, and Employer-Owned Life Insurance
A three-physician group, equal one-third shareholders, has an entity-purchase buy-sell agreement. Each owner is insured under a 1,000,000 15-year term policy owned by and payable to the professional corporation, which deducts the premiums.
952 words, about 5 min4Working Past 65: Group Plan, Medicare, HSA, and the Spouse
Priya, 66, is a full-time pharmacist at a 60-employee hospital and has never enrolled in Medicare. She earns 180,000 and is covered by the hospital's 3,000-deductible HDHP with an HSA; her husband Raj, 63, is covered as a dependent.
932 words, about 5 min5Own-Occupation Policy, Group LTD Offset, and the Tax Character of Benefits
Chen, 47, is a hand surgeon earning 30,000 a month. She owns an individual own-occupation disability policy: 15,000 monthly benefit, 90-day elimination period, to age 65, residual disability rider, 3% COLA, and a future increase option.
953 words, about 5 min