Page 1 of 64
Virginia Laws and Rules Pertinent to Insurance EXAM
ALL 300 QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
Virginia Laws and Rules Pertinent to Insurance EXAM
QUESTION: Which situations does NOT require an agent to provide a suitability statement to
the annuity company
A) When an annuity contract is recommended and sold as a solution to a client's financial
objectives
B) After evaluation of a client's retirement goals, an annuity is proposed and sold
C) When an agent advises a client to purchase a fixed annuity to provide retirement income and
an application is taken
D) When an agent discusses annuities in general with a client, but no specific recommendation
is made - ANSWER-D) When an agent discusses annuities in general with a client, but no specific
recommendation is made
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, Page 2 of 64
QUESTION: A health insurer in Virginia may NOT discontinue coverage in which of the following
situations
A) Failure to pay premium
B)Insured engaged in fraud
C) Insured no longer residers in the service area
D) Insured's health status has been declined - ANSWER-D) Insured's health status has been
declined
QUESTION: If an administration fee is charged by an agent, the customer's written signature is
REQUIRED - ANSWER-in every occurence
QUESTION: If an agent holds 1 license type, the biennial continuing education requirement is
___ hours - ANSWER-16
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, Page 3 of 64
QUESTION: With whom may an agent share commissions with - ANSWER-A licensed agent with
the same license type
QUESTION: According to the ACA, a dependent child's eligibility status is determined by -
ANSWER-age
QUESTION: A business entity acting as an insurance agent MUST - ANSWER-designate at least 1
licensed producer to be responsible for the entity's compliance with the insurance laws and
rules
QUESTION: Replacement can be defined as - ANSWER-exchanging an existing policy for a new
policy
QUESTION: What would be a potential consequence for an agent who misappropriates
insurance funds held in a fiduciary capacity - ANSWER-The Commission may suspend or revoke
the agent's license
QUESTION: The Rules Governing Advertisement of Life Insurance and Annuities were created to
provide - ANSWER-full disclosure to the public of all material and relevant information
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, Page 4 of 64
QUESTION: If an agent has not completed the continuation education requirement by
November 30, a final opportunity to complete this requirement is extended to - ANSWER-
December 31 every even year
QUESTION: During a sales transaction, which of the following forms must be completed by an
agent if the customer has existing insurance coverage - ANSWER-Notice Regarding Replacement
of Life Insurance or Annuity
QUESTION: A Medicare Supplement policy can impose a pre-existing condition exclusion for up
to - ANSWER-6 months
QUESTION: If an existing Accident and Health policy is being replaced with a new policy, the
decision to replace should NOT be based on - ANSWER-commissions to be paid
QUESTION: If an agent holds 2 license types, the continuing education requirement is ____
credits by December 31 in even numbered years - ANSWER-24
4
Virginia Laws and Rules Pertinent to Insurance EXAM
ALL 300 QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
Virginia Laws and Rules Pertinent to Insurance EXAM
QUESTION: Which situations does NOT require an agent to provide a suitability statement to
the annuity company
A) When an annuity contract is recommended and sold as a solution to a client's financial
objectives
B) After evaluation of a client's retirement goals, an annuity is proposed and sold
C) When an agent advises a client to purchase a fixed annuity to provide retirement income and
an application is taken
D) When an agent discusses annuities in general with a client, but no specific recommendation
is made - ANSWER-D) When an agent discusses annuities in general with a client, but no specific
recommendation is made
1
, Page 2 of 64
QUESTION: A health insurer in Virginia may NOT discontinue coverage in which of the following
situations
A) Failure to pay premium
B)Insured engaged in fraud
C) Insured no longer residers in the service area
D) Insured's health status has been declined - ANSWER-D) Insured's health status has been
declined
QUESTION: If an administration fee is charged by an agent, the customer's written signature is
REQUIRED - ANSWER-in every occurence
QUESTION: If an agent holds 1 license type, the biennial continuing education requirement is
___ hours - ANSWER-16
2
, Page 3 of 64
QUESTION: With whom may an agent share commissions with - ANSWER-A licensed agent with
the same license type
QUESTION: According to the ACA, a dependent child's eligibility status is determined by -
ANSWER-age
QUESTION: A business entity acting as an insurance agent MUST - ANSWER-designate at least 1
licensed producer to be responsible for the entity's compliance with the insurance laws and
rules
QUESTION: Replacement can be defined as - ANSWER-exchanging an existing policy for a new
policy
QUESTION: What would be a potential consequence for an agent who misappropriates
insurance funds held in a fiduciary capacity - ANSWER-The Commission may suspend or revoke
the agent's license
QUESTION: The Rules Governing Advertisement of Life Insurance and Annuities were created to
provide - ANSWER-full disclosure to the public of all material and relevant information
3
, Page 4 of 64
QUESTION: If an agent has not completed the continuation education requirement by
November 30, a final opportunity to complete this requirement is extended to - ANSWER-
December 31 every even year
QUESTION: During a sales transaction, which of the following forms must be completed by an
agent if the customer has existing insurance coverage - ANSWER-Notice Regarding Replacement
of Life Insurance or Annuity
QUESTION: A Medicare Supplement policy can impose a pre-existing condition exclusion for up
to - ANSWER-6 months
QUESTION: If an existing Accident and Health policy is being replaced with a new policy, the
decision to replace should NOT be based on - ANSWER-commissions to be paid
QUESTION: If an agent holds 2 license types, the continuing education requirement is ____
credits by December 31 in even numbered years - ANSWER-24
4
