Virginia Health Exam Study Guide
Question and answers rated A+
2025/2026
A life insurance policy would be considered a wagering contract WITHOUT - correct answer ✔insurable
interest
Which require an offer, acceptance, and consideration? - correct answer ✔contract
What is the consideration given by an insurer in the Consideration clause of a life policy? - correct
answer ✔Promise to pay a death benefit to a named beneficiary
Which is NOT considered to be an element of an insurance contract? - correct answer ✔negotiating
Insurance policies are considered aleatory contracts because - correct answer ✔performance is
conditioned upon a future occurrence
Which of these arrangements allows one to bypass insurable interest laws? - correct answer ✔investor-
Originated Life Insurance
Which of the following consists of an offer, acceptance, and consideration? - correct answer ✔contract
Which of these is considered a statement that is assured to be true in every respect? - correct answer
✔warranty
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What
kind of contract is this? - correct answer ✔unilateral
,If a contract of adhesion contains complicated language, to whom would the interpretation be in favor
of? - correct answer ✔insured
In regards to representations or warranties, which of these statements is TRUE? - correct answer ✔If
material to the risk, false representations will void a policy
When must insurable interest be present in order for a life insurance policy to be valid? - correct answer
✔When the application is made
Life and health insurance policies are - correct answer ✔Unilateral contracts
Insurance contracts are known as ____ because certain future conditions or acts must occur before any
claims can be paid. - correct answer ✔Conditional
A policy of adhesion can only be modified by whom? - correct answer ✔Insurance company
Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following
contractual elements? - correct answer ✔Legal Purpose (Insurable Interest)
Which of these is NOT a type of agent authority? - correct answer ✔principle
A life insurance arrangement which circumvents insurable interest statutes is called - correct answer
✔Investor-Originated Life Insurance
Insurance policies are offered on a "take it or leave it" basis, which make them - correct answer
✔contracts of adhesion
Taking receipt of premiums and holding them for the insurance company is an example of - correct
answer ✔Fiduciary responsibility
, Which of these is considered a statement that is assured to be true in every respect? - correct answer
✔warranty
An accident policy will most likely pay a benefit for a(n) - correct answer ✔off the job accident
The federal income tax treatment of employer-provided group Medical Expense insurance can be
accurately described as - correct answer ✔Employee's premiums paid by the employer is tax-
deductible to the employer as a business expenditure
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness
30 days after the policy's effective date is referred to as the - correct answer ✔waiting period
Which of the following characteristics is associated with a large group disability income policy? - correct
answer ✔No medical underwriting
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a
business? - correct answer ✔Business owner becoming disabled
What is issued to each employee of an employer health plan? - correct answer ✔Certificate
Which statement is true regarding a minor beneficiary? - correct answer ✔Normally, a guardian is
required to be appointed in the Beneficiary clause of the contract
G is an accountant who has ten employees and is concerned about how the business would survive
financially if G became disabled. The type of policy which BEST addresses this concern is - correct
answer ✔Business Overhead Expense
Question and answers rated A+
2025/2026
A life insurance policy would be considered a wagering contract WITHOUT - correct answer ✔insurable
interest
Which require an offer, acceptance, and consideration? - correct answer ✔contract
What is the consideration given by an insurer in the Consideration clause of a life policy? - correct
answer ✔Promise to pay a death benefit to a named beneficiary
Which is NOT considered to be an element of an insurance contract? - correct answer ✔negotiating
Insurance policies are considered aleatory contracts because - correct answer ✔performance is
conditioned upon a future occurrence
Which of these arrangements allows one to bypass insurable interest laws? - correct answer ✔investor-
Originated Life Insurance
Which of the following consists of an offer, acceptance, and consideration? - correct answer ✔contract
Which of these is considered a statement that is assured to be true in every respect? - correct answer
✔warranty
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What
kind of contract is this? - correct answer ✔unilateral
,If a contract of adhesion contains complicated language, to whom would the interpretation be in favor
of? - correct answer ✔insured
In regards to representations or warranties, which of these statements is TRUE? - correct answer ✔If
material to the risk, false representations will void a policy
When must insurable interest be present in order for a life insurance policy to be valid? - correct answer
✔When the application is made
Life and health insurance policies are - correct answer ✔Unilateral contracts
Insurance contracts are known as ____ because certain future conditions or acts must occur before any
claims can be paid. - correct answer ✔Conditional
A policy of adhesion can only be modified by whom? - correct answer ✔Insurance company
Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following
contractual elements? - correct answer ✔Legal Purpose (Insurable Interest)
Which of these is NOT a type of agent authority? - correct answer ✔principle
A life insurance arrangement which circumvents insurable interest statutes is called - correct answer
✔Investor-Originated Life Insurance
Insurance policies are offered on a "take it or leave it" basis, which make them - correct answer
✔contracts of adhesion
Taking receipt of premiums and holding them for the insurance company is an example of - correct
answer ✔Fiduciary responsibility
, Which of these is considered a statement that is assured to be true in every respect? - correct answer
✔warranty
An accident policy will most likely pay a benefit for a(n) - correct answer ✔off the job accident
The federal income tax treatment of employer-provided group Medical Expense insurance can be
accurately described as - correct answer ✔Employee's premiums paid by the employer is tax-
deductible to the employer as a business expenditure
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness
30 days after the policy's effective date is referred to as the - correct answer ✔waiting period
Which of the following characteristics is associated with a large group disability income policy? - correct
answer ✔No medical underwriting
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a
business? - correct answer ✔Business owner becoming disabled
What is issued to each employee of an employer health plan? - correct answer ✔Certificate
Which statement is true regarding a minor beneficiary? - correct answer ✔Normally, a guardian is
required to be appointed in the Beneficiary clause of the contract
G is an accountant who has ten employees and is concerned about how the business would survive
financially if G became disabled. The type of policy which BEST addresses this concern is - correct
answer ✔Business Overhead Expense
