Virginia Life and Health Exam Review
Questions and Correct Answers
What contract term means only one party to a contract's promises are legally enforceable? -
<CORRECT ANSWER >>Unilateral
Mr. Jones, the insured, committed suicide after the expiration of the suicide clause in his life
insurance policy. The insurer is obligated to: - <CORRECT ANSWER >>Pay the death benefit.
The benefit that encourages the disabled policy owner to try to return to work is: - <CORRECT
ANSWER >>Recurrent disability
Jeff has limited financial resources, but finds himself in a position where he needs a good deal
of protection. A __________would probably best suit his needs at this time. - <CORRECT
ANSWER >>Term policy
Tyler owns a major medical policy with 70/30 coinsurance and a $3,000 deductible. If he
submits a claim for $20,000, how much will he pay? - <CORRECT ANSWER >>$8,100
Life insurance applications require a signature from: - <CORRECT ANSWER >>The agent,
insured, and policyowner.
The cheapest premium payment mode would be on a policy that is paid: - <CORRECT ANSWER
>>Annually
If an applicant misstates their age on an insurance application, what does the insurer do when
it is discovered at claim time? - <CORRECT ANSWER >>Adjust the claim benefits to reflect what
he would have been entitled to if his real age had been given.
,Phil and Sarah bought a life policy in which both are insured. Sarah dies before Phil. If the policy
pays the death benefit after Phil dies, it is a: - <CORRECT ANSWER >>Survivorship life
A decreasing term life policy would be the most appropriate for: - <CORRECT ANSWER >>A 41
year old lawyer who wants a policy to pay his mortgage if he dies
When an insured completed his health policy application, his producer did not take a premium
when he submitted it to the insurer. When the producer delivers the policy to the applicant, he
needs to do all of the following EXCEPT: - <CORRECT ANSWER >>Issue the applicant a
conditional receipt.
What type group plan requires 75% participation? - <CORRECT ANSWER >>Contributory
How much time does a licensee have to notify the Commissioner of Insurance of any change of
residential, mailing, or business address? - <CORRECT ANSWER >>30 days
The services are provided on a prepaid per person basis called capitation in: - <CORRECT
ANSWER >>HMOs
In life insurance, insurable interest must be present at the time of: - <CORRECT ANSWER
>>Application
Mr. Johnson is looking at Medicare Supplement policies. These policies are designed primarily
to: - <CORRECT ANSWER >>Provide benefits not covered by Medicare.
If the cash values of an annuity are invested in securities, it is a: - <CORRECT ANSWER
>>Variable annuity
What is a marketing communication that is oral, printed, or written and designed to create
public interest in life insurance or annuities? - <CORRECT ANSWER >>Advertisement
, What is the minimum time required for the basis of a long-term policy? - <CORRECT ANSWER
>>12 consecutive months
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the
policy? - <CORRECT ANSWER >>Cash surrender
On January 3, an application is submitted without the initial premium. The insurer requires a
medical exam, and it is completed on January 15. On January 20, the insurer issued the policy
standard, and the producer delivers it on January 22. When is coverage effective? - <CORRECT
ANSWER >>January 22, after the statement of good health is signed, and the initial premium is
paid.
What part of the policy directs the insurer on the recipients of benefits? - <CORRECT ANSWER
>>Payment of Claims provision
What is the advantage of a payor benefit rider? - <CORRECT ANSWER >>It provides a temporary
waiver of premium if the person paying the premium dies.
Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using which
dividend option? - <CORRECT ANSWER >>Reduction of premium
The Commissioner is responsible for all of the following in Virginia, EXCEPT: - <CORRECT
ANSWER >>Enactment of insurance laws
How many hours of continuing education for 1 line of authority must insurance agents
complete every 2 years? - <CORRECT ANSWER >>16 hours
If James has an increasing term policy, which of the following must increase? - <CORRECT
ANSWER >>The death benefit
Questions and Correct Answers
What contract term means only one party to a contract's promises are legally enforceable? -
<CORRECT ANSWER >>Unilateral
Mr. Jones, the insured, committed suicide after the expiration of the suicide clause in his life
insurance policy. The insurer is obligated to: - <CORRECT ANSWER >>Pay the death benefit.
The benefit that encourages the disabled policy owner to try to return to work is: - <CORRECT
ANSWER >>Recurrent disability
Jeff has limited financial resources, but finds himself in a position where he needs a good deal
of protection. A __________would probably best suit his needs at this time. - <CORRECT
ANSWER >>Term policy
Tyler owns a major medical policy with 70/30 coinsurance and a $3,000 deductible. If he
submits a claim for $20,000, how much will he pay? - <CORRECT ANSWER >>$8,100
Life insurance applications require a signature from: - <CORRECT ANSWER >>The agent,
insured, and policyowner.
The cheapest premium payment mode would be on a policy that is paid: - <CORRECT ANSWER
>>Annually
If an applicant misstates their age on an insurance application, what does the insurer do when
it is discovered at claim time? - <CORRECT ANSWER >>Adjust the claim benefits to reflect what
he would have been entitled to if his real age had been given.
,Phil and Sarah bought a life policy in which both are insured. Sarah dies before Phil. If the policy
pays the death benefit after Phil dies, it is a: - <CORRECT ANSWER >>Survivorship life
A decreasing term life policy would be the most appropriate for: - <CORRECT ANSWER >>A 41
year old lawyer who wants a policy to pay his mortgage if he dies
When an insured completed his health policy application, his producer did not take a premium
when he submitted it to the insurer. When the producer delivers the policy to the applicant, he
needs to do all of the following EXCEPT: - <CORRECT ANSWER >>Issue the applicant a
conditional receipt.
What type group plan requires 75% participation? - <CORRECT ANSWER >>Contributory
How much time does a licensee have to notify the Commissioner of Insurance of any change of
residential, mailing, or business address? - <CORRECT ANSWER >>30 days
The services are provided on a prepaid per person basis called capitation in: - <CORRECT
ANSWER >>HMOs
In life insurance, insurable interest must be present at the time of: - <CORRECT ANSWER
>>Application
Mr. Johnson is looking at Medicare Supplement policies. These policies are designed primarily
to: - <CORRECT ANSWER >>Provide benefits not covered by Medicare.
If the cash values of an annuity are invested in securities, it is a: - <CORRECT ANSWER
>>Variable annuity
What is a marketing communication that is oral, printed, or written and designed to create
public interest in life insurance or annuities? - <CORRECT ANSWER >>Advertisement
, What is the minimum time required for the basis of a long-term policy? - <CORRECT ANSWER
>>12 consecutive months
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the
policy? - <CORRECT ANSWER >>Cash surrender
On January 3, an application is submitted without the initial premium. The insurer requires a
medical exam, and it is completed on January 15. On January 20, the insurer issued the policy
standard, and the producer delivers it on January 22. When is coverage effective? - <CORRECT
ANSWER >>January 22, after the statement of good health is signed, and the initial premium is
paid.
What part of the policy directs the insurer on the recipients of benefits? - <CORRECT ANSWER
>>Payment of Claims provision
What is the advantage of a payor benefit rider? - <CORRECT ANSWER >>It provides a temporary
waiver of premium if the person paying the premium dies.
Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using which
dividend option? - <CORRECT ANSWER >>Reduction of premium
The Commissioner is responsible for all of the following in Virginia, EXCEPT: - <CORRECT
ANSWER >>Enactment of insurance laws
How many hours of continuing education for 1 line of authority must insurance agents
complete every 2 years? - <CORRECT ANSWER >>16 hours
If James has an increasing term policy, which of the following must increase? - <CORRECT
ANSWER >>The death benefit
