Final Exam - Virginia Life and Health
Practice Question and answers 100%
correct 2025/2026
Under which circumstance may an insurer discontinue a small employer group medical plan? - correct
answer ✔Employer fails to pay the premium prior to the end of the grace period
An insured is covered with a health insurance policy. If the insured would like to cancel the policy,
he/she must - correct answer ✔notify the insurance company in writing
Who is protected with the "other insurance with this insurer" provision? - correct answer ✔Insurance
company
When a producer submits an application that discloses personal information regarding the applicant,
who supplies the privacy notice? - correct answer ✔Producer
Which of the following is NOT a dividend option for a life insurance policy? - correct answer ✔Receiving
the entire policy cash value
Chuck and Shaquille are both licensed agents in the same line of insurance. Chuck provides Shaquille
with a referral that results in a sale. Commissions on this sale will likely be - correct answer ✔shared by
both agents
In Virginia, once a life insurance policy has been in force for ___ year(s), it becomes incontestable. -
correct answer ✔2
A licensee who must complete continuing education as a requirement for license renewal must do so
every ___ year(s). - correct answer ✔2
,The ________ is required to notify the Bureau of Insurance of a licensee's change of name or address -
correct answer ✔licensee
An agent must maintain customer records for ___ year(s) following the completion date of the insurance
transaction. - correct answer ✔5
When an insurer discovers (during the claim process) that the insured's age was accidentally misstated
on the life insurance application, the insurer will likely - correct answer ✔pay an amount the premiums
would have purchased at the insured's actual age
Which of the following does NOT fall under "hospital care" in a typical health maintenance organization
(HMO) plan? - correct answer ✔Private duty nursing
An agent MUST notify the Bureau of Insurance for - correct answer ✔conducting business under an
assumed name
A Guaranteed Renewable provision allows - correct answer ✔premiums which can only be increased
per rate class
Carlos the agent has sold an insurance policy and will be sharing the commission with another
individual. Which of the following individuals may Carlos share the commission with? - correct answer
✔Another licensed but unappointed agent
Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and
is issued a policy. When does his coverage become effective? - correct answer ✔Date of issuance of the
conditional receipt
What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?
- correct answer ✔Less than the policy's face amount
, Which of these is NOT a factor during the health insurance underwriting process? - correct answer
✔Former residence
Which of the following does NOT meet the requirements of "skilled nursing care"? - correct answer
✔Must be provided exclusively in a hospital
Insurance crimes which affect interstate commerce are prosecuted by the - correct answer ✔US
Attorney General
An employee welfare plan exempt from ERISA regulations would be - correct answer ✔church plans
After an annuity has been in force for ___ year(s), it becomes incontestable. - correct answer ✔2
Which life insurance settlement option pays a stated monthly benefit until both principal and interest
are exhausted? - correct answer ✔Fixed amount installment option
Which of these life insurance policies does NOT contain a cash value provision? - correct answer
✔Decreasing term life
Terry receives long-term physical therapy at her residence. What type of insurance would cover this
service? - correct answer ✔Home health care
Major Medical policies are typically characterized by which of the following? - correct answer ✔Flat
deductible
How long can an insurer legally defer paying the cash value of a surrendered life insurance policy? -
correct answer ✔6 months
Practice Question and answers 100%
correct 2025/2026
Under which circumstance may an insurer discontinue a small employer group medical plan? - correct
answer ✔Employer fails to pay the premium prior to the end of the grace period
An insured is covered with a health insurance policy. If the insured would like to cancel the policy,
he/she must - correct answer ✔notify the insurance company in writing
Who is protected with the "other insurance with this insurer" provision? - correct answer ✔Insurance
company
When a producer submits an application that discloses personal information regarding the applicant,
who supplies the privacy notice? - correct answer ✔Producer
Which of the following is NOT a dividend option for a life insurance policy? - correct answer ✔Receiving
the entire policy cash value
Chuck and Shaquille are both licensed agents in the same line of insurance. Chuck provides Shaquille
with a referral that results in a sale. Commissions on this sale will likely be - correct answer ✔shared by
both agents
In Virginia, once a life insurance policy has been in force for ___ year(s), it becomes incontestable. -
correct answer ✔2
A licensee who must complete continuing education as a requirement for license renewal must do so
every ___ year(s). - correct answer ✔2
,The ________ is required to notify the Bureau of Insurance of a licensee's change of name or address -
correct answer ✔licensee
An agent must maintain customer records for ___ year(s) following the completion date of the insurance
transaction. - correct answer ✔5
When an insurer discovers (during the claim process) that the insured's age was accidentally misstated
on the life insurance application, the insurer will likely - correct answer ✔pay an amount the premiums
would have purchased at the insured's actual age
Which of the following does NOT fall under "hospital care" in a typical health maintenance organization
(HMO) plan? - correct answer ✔Private duty nursing
An agent MUST notify the Bureau of Insurance for - correct answer ✔conducting business under an
assumed name
A Guaranteed Renewable provision allows - correct answer ✔premiums which can only be increased
per rate class
Carlos the agent has sold an insurance policy and will be sharing the commission with another
individual. Which of the following individuals may Carlos share the commission with? - correct answer
✔Another licensed but unappointed agent
Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and
is issued a policy. When does his coverage become effective? - correct answer ✔Date of issuance of the
conditional receipt
What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?
- correct answer ✔Less than the policy's face amount
, Which of these is NOT a factor during the health insurance underwriting process? - correct answer
✔Former residence
Which of the following does NOT meet the requirements of "skilled nursing care"? - correct answer
✔Must be provided exclusively in a hospital
Insurance crimes which affect interstate commerce are prosecuted by the - correct answer ✔US
Attorney General
An employee welfare plan exempt from ERISA regulations would be - correct answer ✔church plans
After an annuity has been in force for ___ year(s), it becomes incontestable. - correct answer ✔2
Which life insurance settlement option pays a stated monthly benefit until both principal and interest
are exhausted? - correct answer ✔Fixed amount installment option
Which of these life insurance policies does NOT contain a cash value provision? - correct answer
✔Decreasing term life
Terry receives long-term physical therapy at her residence. What type of insurance would cover this
service? - correct answer ✔Home health care
Major Medical policies are typically characterized by which of the following? - correct answer ✔Flat
deductible
How long can an insurer legally defer paying the cash value of a surrendered life insurance policy? -
correct answer ✔6 months
