Final Exam-Virginia Life and Health
Questions and Correct Answers
Insurable inter in one's own life is legally considered as - <CORRECT ANSWER >>Generally
unlimited
Where dose the primary funding for medical part A come from? - <CORRECT ANSWER
>>Federal payroll and self employment taxes
What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as
opposed to naming an individual? - <CORRECT ANSWER >>Management of proceeds would be
provided
Virginia requires that an agent must complete___ hours of continuing education on the subject
of ethics every reporting. - <CORRECT ANSWER >>3 hours
According to the needs approach, an emergency reserve fund's primary purpose is to -
<CORRECT ANSWER >>cover the cost of unexpected expenses
Which of the following provisions allows an insured or the insurer to terminate the policy -
<CORRECT ANSWER >>Cancelable provision
How much is normally paid to a policyowner in a life (viatical) settlement? - <CORRECT ANSWER
>>Less than the death benefit
For purposes of disability income insurance, earned income would include all of the following
EXCEPT - <CORRECT ANSWER >>Dividends
(Salary, commissions, bonus)
,Which type of group plan is excluded from HIPAA rules? - <CORRECT ANSWER >>Disability
Income
How does a continuous premium whole life policy differ from a limited payment while life
policy? - <CORRECT ANSWER >>The time period in which premiums will be paid
COBRA extends coverage for a surviving spouse but at a rate not more than _____ of the group
premium. - <CORRECT ANSWER >>102%
Which of the following approves continuing education courses for credit in Virginia? -
<CORRECT ANSWER >>State Continuing Education Board
Which statement regarding the waiver of premium rider is accurate? - <CORRECT ANSWER
>>Cash payment is not directly provided to the policyowner
Under a long-term care inflation rider, the benefit levels - <CORRECT ANSWER >>periodically
increase without proof of insurability
Which typically changes at the re-entry option date found in some term life policies? -
<CORRECT ANSWER >>Premium
Employees generally receive Worker's Compensation benefits for - <CORRECT ANSWER >>Lost
wages and medical expenses due to a occupational accident
Which is an accurate description of the premium in a graded premium life insurance policy? -
<CORRECT ANSWER >>Annual increases in premium for a stated number of years then levels off
for the remainder of the contract
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan,
minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? -
<CORRECT ANSWER >>Income taxes plus a 10% penalty tax on $30,000
, Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further
payments are permitted and the income stream begins in 15 years. This contract is a(n) -
<CORRECT ANSWER >>Single Premium Deferred Annuity
Medicare will cover a maximum of how many days per benefit period in a skilled nursing
facility? - <CORRECT ANSWER >>100 days
A domestic insurance company in Virginia MUST - <CORRECT ANSWER >>Be formed under
Virginia insurance laws
What are premium for group credit life insurance based on? - <CORRECT ANSWER >>Flat rate
unrelated to the borrower's age
What minimum percentage of all eligible employees must participate in a group life insurance
plan if the premiums are completely paid for by the employer?
0%
50%
75%
100% - <CORRECT ANSWER >>100%
Where will a life insurance policy's proceeds be directed to if all the beneficiaries die before the
insured? - <CORRECT ANSWER >>The insured's estate
Under what circumstances does an accident and health insurer have the right to request an
autopsy? - <CORRECT ANSWER >>When not prohibited by state law
Which of these is NOT an unfair claims settlement practice? - <CORRECT ANSWER >>Offering to
settle a claim by arbitration
Questions and Correct Answers
Insurable inter in one's own life is legally considered as - <CORRECT ANSWER >>Generally
unlimited
Where dose the primary funding for medical part A come from? - <CORRECT ANSWER
>>Federal payroll and self employment taxes
What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as
opposed to naming an individual? - <CORRECT ANSWER >>Management of proceeds would be
provided
Virginia requires that an agent must complete___ hours of continuing education on the subject
of ethics every reporting. - <CORRECT ANSWER >>3 hours
According to the needs approach, an emergency reserve fund's primary purpose is to -
<CORRECT ANSWER >>cover the cost of unexpected expenses
Which of the following provisions allows an insured or the insurer to terminate the policy -
<CORRECT ANSWER >>Cancelable provision
How much is normally paid to a policyowner in a life (viatical) settlement? - <CORRECT ANSWER
>>Less than the death benefit
For purposes of disability income insurance, earned income would include all of the following
EXCEPT - <CORRECT ANSWER >>Dividends
(Salary, commissions, bonus)
,Which type of group plan is excluded from HIPAA rules? - <CORRECT ANSWER >>Disability
Income
How does a continuous premium whole life policy differ from a limited payment while life
policy? - <CORRECT ANSWER >>The time period in which premiums will be paid
COBRA extends coverage for a surviving spouse but at a rate not more than _____ of the group
premium. - <CORRECT ANSWER >>102%
Which of the following approves continuing education courses for credit in Virginia? -
<CORRECT ANSWER >>State Continuing Education Board
Which statement regarding the waiver of premium rider is accurate? - <CORRECT ANSWER
>>Cash payment is not directly provided to the policyowner
Under a long-term care inflation rider, the benefit levels - <CORRECT ANSWER >>periodically
increase without proof of insurability
Which typically changes at the re-entry option date found in some term life policies? -
<CORRECT ANSWER >>Premium
Employees generally receive Worker's Compensation benefits for - <CORRECT ANSWER >>Lost
wages and medical expenses due to a occupational accident
Which is an accurate description of the premium in a graded premium life insurance policy? -
<CORRECT ANSWER >>Annual increases in premium for a stated number of years then levels off
for the remainder of the contract
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan,
minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? -
<CORRECT ANSWER >>Income taxes plus a 10% penalty tax on $30,000
, Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further
payments are permitted and the income stream begins in 15 years. This contract is a(n) -
<CORRECT ANSWER >>Single Premium Deferred Annuity
Medicare will cover a maximum of how many days per benefit period in a skilled nursing
facility? - <CORRECT ANSWER >>100 days
A domestic insurance company in Virginia MUST - <CORRECT ANSWER >>Be formed under
Virginia insurance laws
What are premium for group credit life insurance based on? - <CORRECT ANSWER >>Flat rate
unrelated to the borrower's age
What minimum percentage of all eligible employees must participate in a group life insurance
plan if the premiums are completely paid for by the employer?
0%
50%
75%
100% - <CORRECT ANSWER >>100%
Where will a life insurance policy's proceeds be directed to if all the beneficiaries die before the
insured? - <CORRECT ANSWER >>The insured's estate
Under what circumstances does an accident and health insurer have the right to request an
autopsy? - <CORRECT ANSWER >>When not prohibited by state law
Which of these is NOT an unfair claims settlement practice? - <CORRECT ANSWER >>Offering to
settle a claim by arbitration
