LICENSE EXAM FINAL TEST QUESTIONS AND ANSWERS (100%
CORRECT)
The State Corporation Commission has the authority to - ANSWER-make reasonable insurance
rules and regulations
Which of the following statements about a business entity acting as an insurance agent is
CORRECT - ANSWER-`It must designate at least 1 licensed producer to be responsible for the
entity's compliance with the insurance laws and rules
Which of the following statements is CORRECT about non-partnership Long-Term Care
insurance? - ANSWER-Inflation protection must be offered to applicants for a Long-Term Care
policy
One of the stated purposes of the Life, Accident, and Sickness Insurance Guaranty Association is
to - ANSWER-assist in the prevention of insurer insolvencies
The life insurance and annuity replacement regulation defines replacement as - ANSWER-
exchanging an existing policy for a new policy
Each agent shall complete all continuing education requirements by no later than November 30,
and shall be given a final opportunity to complete such requirements by - ANSWER-December
31st, every even year
Making incomplete comparisons of policies in order to induce the purchase of a policy is
referred to as - ANSWER-Twisting
Health coverage provided under the Affordable Care Act (ACA) shall be made available for
dependents until the child attains the age of: - ANSWER-26
,An agent selling Medicare Supplement policies must provide every applicant with a(n) -
ANSWER-suitability form
Insurance agents MUST maintain premiums in a fiduciary capacity and remit them: - ANSWER-In
the ordinary course of business
To be eligible for a group life policy, a group MUST meet which of the following requirements? -
ANSWER-be formed for a purpose other than obtaining life insurance
If a licensed resident insurance agent moves out of state, which of the following will occur -
ANSWER-The agents license shall terminate immediately
Which of the following is NOT an example of an agent's breach of fiduciary duty? - ANSWER-
allowing premiums to be submitted electronically
A person who issues false written or oral statements that are maliciously critical of the financial
condition of an insurance company may be found guilty of: - ANSWER-Defamination
An insurance agent acts in a fiduciary capacity when conducting routine business with all of the
following principals EXCEPT - ANSWER-The commission
What are adjustable rates for life policy loans in Virginia based on - ANSWER-Moodys corporate
bond index
A policy loan provision is not required in which of the following types of policies? - ANSWER-
Term Life
, Which of the following individuals is required to hold an appointment with an insurance
company which they represent? - ANSWER-An agent
An insurance agent's license may be suspended or revoked under which of the following
circumstances? - ANSWER-The agent has been convicted of a misdemeanor within the past five
years
Select the appropriate response
Insurance agents who must maintain premiums in a fiduciary account may withdraw funds from
the account to pay all of the following expenses, EXCEPT - ANSWER-Personal medical expenses
An agent MUST complete which of the following forms when an applicant has existing insurance
or annuity coverage - ANSWER-Notice Regarding Replacement of Life Insurance or Annuity
An agent must provide a suitability statement to the annuity company under all of the following
circumstances, EXCEPT - ANSWER-when an agent discusses annuities in general with a client,
but no specific recommendation is made
The Commission in Virginia has the power to - ANSWER-examine insurers solvency
Before holding a hearing regarding an agent's unfair or deceptive practice, the Commission
MUST give how many days notice - ANSWER-10
Making false statements about the financial condition of another insurance company is called -
ANSWER-Defamination
Each agent who initiates an application for life insurance or annuity for replacement of an
existing policy shall submit which of the following as a part of the application - ANSWER-A
signed statement by the applicant regarding the replacement
CORRECT)
The State Corporation Commission has the authority to - ANSWER-make reasonable insurance
rules and regulations
Which of the following statements about a business entity acting as an insurance agent is
CORRECT - ANSWER-`It must designate at least 1 licensed producer to be responsible for the
entity's compliance with the insurance laws and rules
Which of the following statements is CORRECT about non-partnership Long-Term Care
insurance? - ANSWER-Inflation protection must be offered to applicants for a Long-Term Care
policy
One of the stated purposes of the Life, Accident, and Sickness Insurance Guaranty Association is
to - ANSWER-assist in the prevention of insurer insolvencies
The life insurance and annuity replacement regulation defines replacement as - ANSWER-
exchanging an existing policy for a new policy
Each agent shall complete all continuing education requirements by no later than November 30,
and shall be given a final opportunity to complete such requirements by - ANSWER-December
31st, every even year
Making incomplete comparisons of policies in order to induce the purchase of a policy is
referred to as - ANSWER-Twisting
Health coverage provided under the Affordable Care Act (ACA) shall be made available for
dependents until the child attains the age of: - ANSWER-26
,An agent selling Medicare Supplement policies must provide every applicant with a(n) -
ANSWER-suitability form
Insurance agents MUST maintain premiums in a fiduciary capacity and remit them: - ANSWER-In
the ordinary course of business
To be eligible for a group life policy, a group MUST meet which of the following requirements? -
ANSWER-be formed for a purpose other than obtaining life insurance
If a licensed resident insurance agent moves out of state, which of the following will occur -
ANSWER-The agents license shall terminate immediately
Which of the following is NOT an example of an agent's breach of fiduciary duty? - ANSWER-
allowing premiums to be submitted electronically
A person who issues false written or oral statements that are maliciously critical of the financial
condition of an insurance company may be found guilty of: - ANSWER-Defamination
An insurance agent acts in a fiduciary capacity when conducting routine business with all of the
following principals EXCEPT - ANSWER-The commission
What are adjustable rates for life policy loans in Virginia based on - ANSWER-Moodys corporate
bond index
A policy loan provision is not required in which of the following types of policies? - ANSWER-
Term Life
, Which of the following individuals is required to hold an appointment with an insurance
company which they represent? - ANSWER-An agent
An insurance agent's license may be suspended or revoked under which of the following
circumstances? - ANSWER-The agent has been convicted of a misdemeanor within the past five
years
Select the appropriate response
Insurance agents who must maintain premiums in a fiduciary account may withdraw funds from
the account to pay all of the following expenses, EXCEPT - ANSWER-Personal medical expenses
An agent MUST complete which of the following forms when an applicant has existing insurance
or annuity coverage - ANSWER-Notice Regarding Replacement of Life Insurance or Annuity
An agent must provide a suitability statement to the annuity company under all of the following
circumstances, EXCEPT - ANSWER-when an agent discusses annuities in general with a client,
but no specific recommendation is made
The Commission in Virginia has the power to - ANSWER-examine insurers solvency
Before holding a hearing regarding an agent's unfair or deceptive practice, the Commission
MUST give how many days notice - ANSWER-10
Making false statements about the financial condition of another insurance company is called -
ANSWER-Defamination
Each agent who initiates an application for life insurance or annuity for replacement of an
existing policy shall submit which of the following as a part of the application - ANSWER-A
signed statement by the applicant regarding the replacement
