VA STATE LIFE, HEALTH AND ANNUITIES EXAM
In a long-term care policy issued in Virginia, any provision limiting preexisting conditions
may not exceed _____ months - Answers - 6 months
What is a universal life insurance policy? - Answers - A flexible premium deposit fund
and a monthly renewable term insurance policy
How is an insured's accident and health claim handled by an insurer if it occurs during
the policy's grace period? - Answers - The unpaid premium may be subtracted from
the reimbursement
What must an agent do when replacing a long-term care policy with a new policy? -
Answers - Notify the applicant that an annual premium must be paid for the new policy
The free look period provided in a life insurance policy is usually - Answers - 10 days
Which of the following is NOT subject to the promise to pay in an insuring clause?
A) How the premium is calculated
B) Policy provisions
C) Policy conditions
D) Policy exclusions - Answers - How the premium is calculated
In Virginia, an insurance agent's appointment is in effect - Answers - until termination
Tim is confined to a nursing home but doesn't have a terminal illness. Which life
insurance rider is designed to help pay for this type of expense? - Answers - Long-
term car benefit rider
An insurance company can be liable for a producer's unauthorized acts - Answers -
when the agency contract is unclear concerning the authority given
The automatic premium loan provision can be accurately described as a - Answers -
provision that provides a policy loan to pay any premiums by the end of the grace period
Which of these statements ins NOT true regarding a cash value loan against a life
insurance policy?
A) Interest normally accrues on unpaid balances
B) Loan cannot exceed the policy's cash value
C) Policy contract terms dictate the interest rate
D) Interest payments made by policyowner are deductable - Answers - Interest
payments made by policyowner are deductible
,Home health care benefits typically do NOT include coverage for
A) nursing care
B) wheelchairs
C) physical therapy
D) prescription medication - Answers - prescription medication
What health insurance provision requires that the application becomes part of the policy
- Answers - entire contract clause
The conversion option for group term insurance may be exercised by an employee
within ____ days of terminated employment - Answers - 31 days of terminated
employment
An insurance policy that can also be classified as a securities product is called -
Answers - variable life
In Virginia, false advertising is an example of - Answers - misrepresentation
An insured, age 67, is coved under a disability income policy. What will the insurer
normally require in order for the insured to continue coverage - Answers - The insured
must be actively at work for a specified number of hours per week
An agent may be personally liable if he or she engages in acts that - Answers - are not
part of the agency or agent contract
In regards to technology and the ACA, which of the following statements is correct? -
Answers - States which operate with an Exchange MUST offer an internet-based portal
Licensed agents in Virginia are authorized to - Answers - solicit, receive, an forward
applications to the insurer
Group life insurance is typically issued as _______ insurance - Answers - level term
insurance
If the State Corporation Commission believes that an agent is incompetent or
untrustworthy, it has the authority to perform all of the following functions EXCEPT -
Answers - incarcerate the agent
Group life plans sold in Virginia typically contain a conversion option. If the insured
elects this option. The new policy does - Answers - does NOT require evidence of
insurability
A Guaranteed Renewable provision allows - Answers - premiums which can only be
increased per rate class
, John has a criminal record in which he was convicted of a felony that involved
dishonesty. Under Federal law, how would John be able to engage in insurance
transactions? - Answers - Given written consent by the state insurance regulatory
agency
Mary is an employee who is covered with a disability income policy through her
employer. SHE PAYS for the portion of the premium attributable to the cost of residual
disability benefits, while her employer pays for the remainder. What are the tax
implications of this policy? - Answers - residual benefits will be received income tax-
free
In an extended term insurance nonforfeiture option in a life policy, the premium to
purchase the coverage ________ - Answers - comes from the policy's cash value
Rick the agent handles insurance premiums in an untrustworthy manner. His actions
could find him guilty of - Answers - not acting as a fiduciary
A source of supplemental income for a life insurance policyowner can be derived from
the - Answers - cash value
The standard provisions of an accident and health insurance policy require that the -
Answers - policy, endorsements, an attached papers constitute the "entire contract"
In what situation could an insurance policy's coverage be modified? - Answers -
Applicant is a substandard risk
What is considered the collateral on a life insurance policy loan - Answers - the policy's
cash value
James the agent has sold a life insurance contract to a client without using an
illustration, even though his insurer offers one. For this particular transaction, the
applicant - Answers - must sign a statement that no illustration was provided
How does a continuous premium whole life policy differ from a limited payment whole
life policy? - Answers - The time period in which premiums will be paid
An accident and health insurer has just received written proof of loss from one of its
insureds. The insured must now wait 60 days before - Answers - bringing legal action
against the insurer
A health insurer MUST provided a proof of loss form within ______ - Answers - 15
days of receipt of the notice of loss
Which of these is NOT an advantage of term life insurance?
In a long-term care policy issued in Virginia, any provision limiting preexisting conditions
may not exceed _____ months - Answers - 6 months
What is a universal life insurance policy? - Answers - A flexible premium deposit fund
and a monthly renewable term insurance policy
How is an insured's accident and health claim handled by an insurer if it occurs during
the policy's grace period? - Answers - The unpaid premium may be subtracted from
the reimbursement
What must an agent do when replacing a long-term care policy with a new policy? -
Answers - Notify the applicant that an annual premium must be paid for the new policy
The free look period provided in a life insurance policy is usually - Answers - 10 days
Which of the following is NOT subject to the promise to pay in an insuring clause?
A) How the premium is calculated
B) Policy provisions
C) Policy conditions
D) Policy exclusions - Answers - How the premium is calculated
In Virginia, an insurance agent's appointment is in effect - Answers - until termination
Tim is confined to a nursing home but doesn't have a terminal illness. Which life
insurance rider is designed to help pay for this type of expense? - Answers - Long-
term car benefit rider
An insurance company can be liable for a producer's unauthorized acts - Answers -
when the agency contract is unclear concerning the authority given
The automatic premium loan provision can be accurately described as a - Answers -
provision that provides a policy loan to pay any premiums by the end of the grace period
Which of these statements ins NOT true regarding a cash value loan against a life
insurance policy?
A) Interest normally accrues on unpaid balances
B) Loan cannot exceed the policy's cash value
C) Policy contract terms dictate the interest rate
D) Interest payments made by policyowner are deductable - Answers - Interest
payments made by policyowner are deductible
,Home health care benefits typically do NOT include coverage for
A) nursing care
B) wheelchairs
C) physical therapy
D) prescription medication - Answers - prescription medication
What health insurance provision requires that the application becomes part of the policy
- Answers - entire contract clause
The conversion option for group term insurance may be exercised by an employee
within ____ days of terminated employment - Answers - 31 days of terminated
employment
An insurance policy that can also be classified as a securities product is called -
Answers - variable life
In Virginia, false advertising is an example of - Answers - misrepresentation
An insured, age 67, is coved under a disability income policy. What will the insurer
normally require in order for the insured to continue coverage - Answers - The insured
must be actively at work for a specified number of hours per week
An agent may be personally liable if he or she engages in acts that - Answers - are not
part of the agency or agent contract
In regards to technology and the ACA, which of the following statements is correct? -
Answers - States which operate with an Exchange MUST offer an internet-based portal
Licensed agents in Virginia are authorized to - Answers - solicit, receive, an forward
applications to the insurer
Group life insurance is typically issued as _______ insurance - Answers - level term
insurance
If the State Corporation Commission believes that an agent is incompetent or
untrustworthy, it has the authority to perform all of the following functions EXCEPT -
Answers - incarcerate the agent
Group life plans sold in Virginia typically contain a conversion option. If the insured
elects this option. The new policy does - Answers - does NOT require evidence of
insurability
A Guaranteed Renewable provision allows - Answers - premiums which can only be
increased per rate class
, John has a criminal record in which he was convicted of a felony that involved
dishonesty. Under Federal law, how would John be able to engage in insurance
transactions? - Answers - Given written consent by the state insurance regulatory
agency
Mary is an employee who is covered with a disability income policy through her
employer. SHE PAYS for the portion of the premium attributable to the cost of residual
disability benefits, while her employer pays for the remainder. What are the tax
implications of this policy? - Answers - residual benefits will be received income tax-
free
In an extended term insurance nonforfeiture option in a life policy, the premium to
purchase the coverage ________ - Answers - comes from the policy's cash value
Rick the agent handles insurance premiums in an untrustworthy manner. His actions
could find him guilty of - Answers - not acting as a fiduciary
A source of supplemental income for a life insurance policyowner can be derived from
the - Answers - cash value
The standard provisions of an accident and health insurance policy require that the -
Answers - policy, endorsements, an attached papers constitute the "entire contract"
In what situation could an insurance policy's coverage be modified? - Answers -
Applicant is a substandard risk
What is considered the collateral on a life insurance policy loan - Answers - the policy's
cash value
James the agent has sold a life insurance contract to a client without using an
illustration, even though his insurer offers one. For this particular transaction, the
applicant - Answers - must sign a statement that no illustration was provided
How does a continuous premium whole life policy differ from a limited payment whole
life policy? - Answers - The time period in which premiums will be paid
An accident and health insurer has just received written proof of loss from one of its
insureds. The insured must now wait 60 days before - Answers - bringing legal action
against the insurer
A health insurer MUST provided a proof of loss form within ______ - Answers - 15
days of receipt of the notice of loss
Which of these is NOT an advantage of term life insurance?
