Virginia Laws and Rules Pertinent to Insurance EXAM ALL 300 QUESTIONS AND CORRECT ANSWERS LATEST UPDATE THIS YEAR

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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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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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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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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




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