Kentucky Life & Health Insurance Exam — All Questions

Which state agency issues resident life and health insurance producer licenses in Kentucky?

• a.The Kentucky Department of Financial Institutions
• b.The Kentucky Bureau of Insurance
• c.The Kentucky Department of Insurance✓
• d.The Kentucky Insurance Commission

The Kentucky Department of Insurance regulates the business of insurance in Kentucky and licenses producers. It is led by the Insurance Commissioner, who has authority to issue, deny, suspend, and revoke licenses and to enforce the state insurance code. No separate financial-services department or insurance 'commission' handles producer licensing here.

A Kentucky resident who wants to sell both life insurance and health (accident and sickness) insurance typically obtains:

• a.A resident producer license with life and accident & health lines of authority✓
• b.A property and casualty producer license
• c.A surplus lines broker license
• d.Two separate licenses issued by two different state agencies

Kentucky follows the producer-licensing model in which one resident insurance producer license carries the specific lines of authority the applicant qualifies for, such as life and accident & health. Property/casualty and surplus lines are different lines for different products.

Before a licensed Kentucky producer may transact insurance on behalf of a particular insurer, what must generally occur?

• a.Nothing beyond holding a valid license is ever required
• b.The producer must reside in the insurer's home state
• c.The insurer must appoint the producer and file that appointment with the Kentucky Department of Insurance✓
• d.The producer must post a surety bond with the state treasurer

Holding a license lets a person act as a producer, but to represent a specific company the insurer must appoint the producer, notifying the Kentucky Department of Insurance. A producer may hold appointments from several insurers at once; ending the relationship terminates the appointment.

To keep a resident life and health producer license active in Kentucky, a producer generally must:

• a.Do nothing further once the license is first issued
• b.Complete the required continuing education each renewal period and pay the renewal fee✓
• c.Obtain a brand-new license for each insurer represented
• d.Retake the full licensing examination every single year

Kentucky issues licenses for a set term and requires continuing education (including ethics content) each renewal cycle, plus payment of the renewal fee. Letting CE lapse or missing renewal can cause the license to expire, after which reinstatement rules and penalties may apply. Exact hours and fees are set by the Kentucky Department of Insurance and can change.