VIRGINIA LAWS AND RULES - LIFE INSURANCE EXAM
ACTUAL EXAM COMPLETE 180 QUESTIONS AND
CORRECT DETAILED ANSWERS
If an agent holds 2 license types, the continuing education requirement is ______
credits by December 31 in even numbered years. - ANSWER: 24
A Health Maintenance Organization (HMO) MUST - ANSWER: require its providers
must be under contract or employment
The Affordable Care Act (ACA) provides health coverage to dependents up to the age
of - ANSWER: 26
Individual life insurance policies can charge no more than _____ interest per year on
cash value loans. - ANSWER: 8%
An agent who makes a statement that is maliciously critical of another person's
financial condition is guilty of - ANSWER: defamation
To be eligible for a group health policy, a group MUST - ANSWER: be formed for a
purpose other than obtaining insurance.
Which of the following will happen if a licensed resident insurance agent moves to
another state? - ANSWER: Agent's license shall terminate immediately
A Long Term Care insurance contract shall provide coverage for - ANSWER: a
minimum of 12 months
An agent may not ___________________________________ during a sales
presentation. - ANSWER: advertise guaranteed policy dividends.
Virginia's Replacement Rule does not apply when - ANSWER: an existing policyholder
purchases an additional policy from the same insurer.
If an agent misappropriates insurance funds held in a fiduciary capacity, the
Commission may - ANSWER: suspend or revoke the agent's license.
When an applicant has existing insurance or annuity coverage, an agent must
complete - ANSWER: a Notice Regarding Replacement of Life Insurance or Annuity
form.
Nonprofit organizations are - ANSWER: not a defined group for purchasing group
insurance.
A small group in Virginia is comprised of - ANSWER: 2 to 50 members.
, Sharing commission with another similarly-licensed agent - ANSWER: will not result
in a license suspension or revocation.
An insurance consultant's license MUST be renewed every - ANSWER: year, with an
application and $50 fee.
An agent must maintain records of insurance transactions for a MINIMUM of how
many previous calendar years? - ANSWER: 3
Any agent who holds one type of license must complete - ANSWER: 16 hours of
continuing education credits every 2 years.
Term life does not require a policy loan provision because - ANSWER: no cash value
is accumulated.
A long-term care rider in a life insurance policy pays a daily benefit in the event of
which of the following? - ANSWER: Inability of the insured to perform more than 2
Activities of Daily Living (ADL's)
The purpose of the Time of Payment of Claims provision is to - ANSWER: prevent the
insurance company from delaying claim payments.
Initial Deductible - ANSWER: Requires the insured pay the first portion of a covered
Major Medical insurance expense.
Major Medical benefits have a - ANSWER: maximum limit.
Modified whole life policies - ANSWER: have premiums that are lower than typical
whole life premiums during the first few years (usually five) and then higher than
typical thereafter.
A large group disability income policy can be distinguished by - ANSWER: no medical
underwriting.
A Guaranteed Renewable Health Insurance policy can have - ANSWER: increasing
premiums at time of renewal.
The provision that can be used to put an insurance policy back in force after it has
lapsed due to nonpayment is called - ANSWER: Reinstatement
Dread disease insurance - ANSWER: provides benefits for ONLY specific types of
illnesses such as cancer or stroke.
An insurance company can usually contest the information contained in an accident
and health application for two years from the - ANSWER: date the insurance
company dates the policy.
ACTUAL EXAM COMPLETE 180 QUESTIONS AND
CORRECT DETAILED ANSWERS
If an agent holds 2 license types, the continuing education requirement is ______
credits by December 31 in even numbered years. - ANSWER: 24
A Health Maintenance Organization (HMO) MUST - ANSWER: require its providers
must be under contract or employment
The Affordable Care Act (ACA) provides health coverage to dependents up to the age
of - ANSWER: 26
Individual life insurance policies can charge no more than _____ interest per year on
cash value loans. - ANSWER: 8%
An agent who makes a statement that is maliciously critical of another person's
financial condition is guilty of - ANSWER: defamation
To be eligible for a group health policy, a group MUST - ANSWER: be formed for a
purpose other than obtaining insurance.
Which of the following will happen if a licensed resident insurance agent moves to
another state? - ANSWER: Agent's license shall terminate immediately
A Long Term Care insurance contract shall provide coverage for - ANSWER: a
minimum of 12 months
An agent may not ___________________________________ during a sales
presentation. - ANSWER: advertise guaranteed policy dividends.
Virginia's Replacement Rule does not apply when - ANSWER: an existing policyholder
purchases an additional policy from the same insurer.
If an agent misappropriates insurance funds held in a fiduciary capacity, the
Commission may - ANSWER: suspend or revoke the agent's license.
When an applicant has existing insurance or annuity coverage, an agent must
complete - ANSWER: a Notice Regarding Replacement of Life Insurance or Annuity
form.
Nonprofit organizations are - ANSWER: not a defined group for purchasing group
insurance.
A small group in Virginia is comprised of - ANSWER: 2 to 50 members.
, Sharing commission with another similarly-licensed agent - ANSWER: will not result
in a license suspension or revocation.
An insurance consultant's license MUST be renewed every - ANSWER: year, with an
application and $50 fee.
An agent must maintain records of insurance transactions for a MINIMUM of how
many previous calendar years? - ANSWER: 3
Any agent who holds one type of license must complete - ANSWER: 16 hours of
continuing education credits every 2 years.
Term life does not require a policy loan provision because - ANSWER: no cash value
is accumulated.
A long-term care rider in a life insurance policy pays a daily benefit in the event of
which of the following? - ANSWER: Inability of the insured to perform more than 2
Activities of Daily Living (ADL's)
The purpose of the Time of Payment of Claims provision is to - ANSWER: prevent the
insurance company from delaying claim payments.
Initial Deductible - ANSWER: Requires the insured pay the first portion of a covered
Major Medical insurance expense.
Major Medical benefits have a - ANSWER: maximum limit.
Modified whole life policies - ANSWER: have premiums that are lower than typical
whole life premiums during the first few years (usually five) and then higher than
typical thereafter.
A large group disability income policy can be distinguished by - ANSWER: no medical
underwriting.
A Guaranteed Renewable Health Insurance policy can have - ANSWER: increasing
premiums at time of renewal.
The provision that can be used to put an insurance policy back in force after it has
lapsed due to nonpayment is called - ANSWER: Reinstatement
Dread disease insurance - ANSWER: provides benefits for ONLY specific types of
illnesses such as cancer or stroke.
An insurance company can usually contest the information contained in an accident
and health application for two years from the - ANSWER: date the insurance
company dates the policy.
