VIRGINIA LIFE INSURANCE EXAM 2026-2027
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|CURRENTLY TESTING QUESTIONS AND
SOLUTIONS|NEWEST |JUST
RELEASED!!|BRAND NEW VERSION
An agent is convicted of a felony in another jurisdiction. Within what period of time must the
agent report the felony charge to the Commission?
a)Immediately
b)5 days
c)10 days
d)30 days
d)30 days
All of the following are true regarding rebates EXCEPT
a)Rebates are allowed if it's in the best interest of the client.
b)Rebates are only allowed if specifically stated in the policy.
c)Rebating can be anything of economic value, given as an inducement to buy
.d)Dividends are not considered to be rebates.
a)Rebates are allowed if it's in the best interest of the client.
All of the following could be considered rebates if offered to an insured in the sale of insurance
EXCEPT
a)Stocks, securities, or bonds.
b)An offer to share in commissions generated by the sale
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,.c)Dividends from a mutual insurer.
d)An offer of employment.
c)Dividends from a mutual insurer.
Which of the following terms is used to describe a person, other than a viator, that enters into
or effectuates a viatical settlement contract?
a)Viatical settlement broker
b)Viatical settlement effectuator
c)Viatical settlement provider
d)Viatical settlement purchaser
c)Viatical settlement provider
An insurer publishes intimidating brochures that portray the insurer's competition as financially
and professionally unstable. Which of the following best describes this act?
a)Illegal until endorsed by the Guaranty Association
b)Legal, provided that the other insurers are paid royalties for the usage of their names
c)Illegal under any circumstances
d)Legal, provided that the information can be verified
c)Illegal under any circumstances
Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as
a)Unlawful distribution of dividends.
b)Coercion.
c)Rebating.
d)Twisting.
c)Rebating.
Which of the following is NOT a duty of the Commission of Insurance?
a)Suspending or revoking licenses of Insurance Code violators
b)Examining each domestic insurer at least once a year
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,c)Appointing the Commissioner of Insurance
d)Enforcing the Insurance Code
b)Examining each domestic insurer at least once a year
In Virginia, after 3 years of ownership, policyholders of whole life insurance policies are able to
borrow cash values in excess of the mandated reserves at an interest rate that is
a)Fixed or Variable.
b)Prime plus 3%.
c)Fixed.
d)Variable.
a)Fixed or Variable.
In which instance may 3 licensees share commissions?
a)Three licensees may never share a commission.
b)Sharing of commissions is at the discretion of the insurer.
c)When all 3 are licensed for the same line of insurance from which the commission comes
d)When at least 2 are licensed for the appropriate line of insurance from which the commission
comes
c)When all 3 are licensed for the same line of insurance from which the commission comes
If an agent's appointment is terminated, suspended or revoked, the agent must cease selling or
soliciting on behalf of the insurer within
a)15 calendar days.
b)30 calendar days.
c)5 calendar days.
d)10 calendar days.
d)10 calendar days.
To what organization must all admitted insurers belong?
a)The Commissioner's Association
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, b)The Virginia Insurance Department Association
c)Life, Accident and Sickness Insurance Guaranty Association
d)The Virginia Insurers Association
c)Life, Accident and Sickness Insurance Guaranty Association
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use
the funds to purchase new insurance?
a)Replacement rule
b)Reinstatement rule
c)Conversion rule
d)Disclosure rule
a)Replacement rule
Once the agent's appointment with the insurer has been terminated, how soon must the
insurer mail a notice of termination to the agent?
a)15 calendar days
b)30 days
c)5 business days
d)10 days
a)15 calendar days
An agent is licensed for life and property insurance. How many hours of CE is the agent required
to earn every 2 years?
a)10
b)16
c)24
d)40
c)24
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WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|CURRENTLY TESTING QUESTIONS AND
SOLUTIONS|NEWEST |JUST
RELEASED!!|BRAND NEW VERSION
An agent is convicted of a felony in another jurisdiction. Within what period of time must the
agent report the felony charge to the Commission?
a)Immediately
b)5 days
c)10 days
d)30 days
d)30 days
All of the following are true regarding rebates EXCEPT
a)Rebates are allowed if it's in the best interest of the client.
b)Rebates are only allowed if specifically stated in the policy.
c)Rebating can be anything of economic value, given as an inducement to buy
.d)Dividends are not considered to be rebates.
a)Rebates are allowed if it's in the best interest of the client.
All of the following could be considered rebates if offered to an insured in the sale of insurance
EXCEPT
a)Stocks, securities, or bonds.
b)An offer to share in commissions generated by the sale
1|Page
,.c)Dividends from a mutual insurer.
d)An offer of employment.
c)Dividends from a mutual insurer.
Which of the following terms is used to describe a person, other than a viator, that enters into
or effectuates a viatical settlement contract?
a)Viatical settlement broker
b)Viatical settlement effectuator
c)Viatical settlement provider
d)Viatical settlement purchaser
c)Viatical settlement provider
An insurer publishes intimidating brochures that portray the insurer's competition as financially
and professionally unstable. Which of the following best describes this act?
a)Illegal until endorsed by the Guaranty Association
b)Legal, provided that the other insurers are paid royalties for the usage of their names
c)Illegal under any circumstances
d)Legal, provided that the information can be verified
c)Illegal under any circumstances
Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as
a)Unlawful distribution of dividends.
b)Coercion.
c)Rebating.
d)Twisting.
c)Rebating.
Which of the following is NOT a duty of the Commission of Insurance?
a)Suspending or revoking licenses of Insurance Code violators
b)Examining each domestic insurer at least once a year
2|Page
,c)Appointing the Commissioner of Insurance
d)Enforcing the Insurance Code
b)Examining each domestic insurer at least once a year
In Virginia, after 3 years of ownership, policyholders of whole life insurance policies are able to
borrow cash values in excess of the mandated reserves at an interest rate that is
a)Fixed or Variable.
b)Prime plus 3%.
c)Fixed.
d)Variable.
a)Fixed or Variable.
In which instance may 3 licensees share commissions?
a)Three licensees may never share a commission.
b)Sharing of commissions is at the discretion of the insurer.
c)When all 3 are licensed for the same line of insurance from which the commission comes
d)When at least 2 are licensed for the appropriate line of insurance from which the commission
comes
c)When all 3 are licensed for the same line of insurance from which the commission comes
If an agent's appointment is terminated, suspended or revoked, the agent must cease selling or
soliciting on behalf of the insurer within
a)15 calendar days.
b)30 calendar days.
c)5 calendar days.
d)10 calendar days.
d)10 calendar days.
To what organization must all admitted insurers belong?
a)The Commissioner's Association
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, b)The Virginia Insurance Department Association
c)Life, Accident and Sickness Insurance Guaranty Association
d)The Virginia Insurers Association
c)Life, Accident and Sickness Insurance Guaranty Association
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use
the funds to purchase new insurance?
a)Replacement rule
b)Reinstatement rule
c)Conversion rule
d)Disclosure rule
a)Replacement rule
Once the agent's appointment with the insurer has been terminated, how soon must the
insurer mail a notice of termination to the agent?
a)15 calendar days
b)30 days
c)5 business days
d)10 days
a)15 calendar days
An agent is licensed for life and property insurance. How many hours of CE is the agent required
to earn every 2 years?
a)10
b)16
c)24
d)40
c)24
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