VA STATE LIFE HEALTH ANNUITIES EVALUATION
TEST QUESTIONS AND ANSWERS SET A+
✔✔What determines the full amount of Social Security retirement benefits a qualified
individual is entitled to receive? - ✔✔primary insurance amount (PIA)
✔✔What health insurance plan charges a premium that cannot be increased? -
✔✔noncancelable
✔✔An insured must furnish written proof of loss to the health insurer within ____ days
of the occurrence of the loss - ✔✔90 days
✔✔The interest credited to the cash values of personally-owned non-qualified annuities
is considered
A) tax credit
B) tax-deferred
C) tax-deductible
D) tax-exempt - ✔✔tax deferred
✔✔How is the insured protected if a payor benefit rider is attached to the life insurance
policy? - ✔✔premium payments are waived in the event the premium payor dies or
becomes disabled
✔✔When would evidence of insurability be required for a person already covered with a
variable universal life policy? - ✔✔when the death benefit is increased
✔✔A life insurance company just paid a $100,000 death benefit to a beneficiary. When
the insured died, the cash value was $15,000 and the total premiums=paid equaled
$10,000. How much the the proceeds will be added to the beneficiary's gross income for
federal income tax purposes?
, A) Nothing
B) 5,000
C) 100,000
D) 105,000 - ✔✔Nothing
✔✔Notice of information practices must be given to a policyholder at least - ✔✔every 3
years
✔✔An agent's insurance records must be provided to the State Corporation
Commission - ✔✔upon request of the state corporation commission
✔✔Which of the following is NOT true of a preferred provider plan?
A) If services is obtained outside the preferred provider plan, benefits are reduced and
costs increase
B) Members of the preferred provider plan select from among the preferred providers for
needed services
C) Hospitals can only initiate preferred provider plans
D) Preferred provider plans can include dental care - ✔✔Hospitals can only initiate
preferred provider plans
✔✔What happens when the policyowner borrows against the cash value of his life
insurance policy? - ✔✔The policy proceeds would be reduced by the outstanding loan
balance
✔✔An insurer may NOT refuse the renewal of a small employer health insurance plan
because of - ✔✔overuse of medical services
✔✔A statement MUST be signed by the _____ for any illustrations used in the sale of a
life insurance policy - ✔✔agent
✔✔Tim is covered by an accident and health insurance policy that may not be changed
in any way by the insurer up to a stated age, as long as the premiums are paid. What
type of policy is this? - ✔✔Noncancelable
✔✔What are reasonable an customary charges for health insurance primarily based
on? - ✔✔average charges within a geographic region
✔✔The administrator for a corporate pension plan bought an accumulation annuity
contract for its 2,000 employees. All 2,000 participating employees received certificates
of participation. What kind of contract is this? - ✔✔group deferred annuity
TEST QUESTIONS AND ANSWERS SET A+
✔✔What determines the full amount of Social Security retirement benefits a qualified
individual is entitled to receive? - ✔✔primary insurance amount (PIA)
✔✔What health insurance plan charges a premium that cannot be increased? -
✔✔noncancelable
✔✔An insured must furnish written proof of loss to the health insurer within ____ days
of the occurrence of the loss - ✔✔90 days
✔✔The interest credited to the cash values of personally-owned non-qualified annuities
is considered
A) tax credit
B) tax-deferred
C) tax-deductible
D) tax-exempt - ✔✔tax deferred
✔✔How is the insured protected if a payor benefit rider is attached to the life insurance
policy? - ✔✔premium payments are waived in the event the premium payor dies or
becomes disabled
✔✔When would evidence of insurability be required for a person already covered with a
variable universal life policy? - ✔✔when the death benefit is increased
✔✔A life insurance company just paid a $100,000 death benefit to a beneficiary. When
the insured died, the cash value was $15,000 and the total premiums=paid equaled
$10,000. How much the the proceeds will be added to the beneficiary's gross income for
federal income tax purposes?
, A) Nothing
B) 5,000
C) 100,000
D) 105,000 - ✔✔Nothing
✔✔Notice of information practices must be given to a policyholder at least - ✔✔every 3
years
✔✔An agent's insurance records must be provided to the State Corporation
Commission - ✔✔upon request of the state corporation commission
✔✔Which of the following is NOT true of a preferred provider plan?
A) If services is obtained outside the preferred provider plan, benefits are reduced and
costs increase
B) Members of the preferred provider plan select from among the preferred providers for
needed services
C) Hospitals can only initiate preferred provider plans
D) Preferred provider plans can include dental care - ✔✔Hospitals can only initiate
preferred provider plans
✔✔What happens when the policyowner borrows against the cash value of his life
insurance policy? - ✔✔The policy proceeds would be reduced by the outstanding loan
balance
✔✔An insurer may NOT refuse the renewal of a small employer health insurance plan
because of - ✔✔overuse of medical services
✔✔A statement MUST be signed by the _____ for any illustrations used in the sale of a
life insurance policy - ✔✔agent
✔✔Tim is covered by an accident and health insurance policy that may not be changed
in any way by the insurer up to a stated age, as long as the premiums are paid. What
type of policy is this? - ✔✔Noncancelable
✔✔What are reasonable an customary charges for health insurance primarily based
on? - ✔✔average charges within a geographic region
✔✔The administrator for a corporate pension plan bought an accumulation annuity
contract for its 2,000 employees. All 2,000 participating employees received certificates
of participation. What kind of contract is this? - ✔✔group deferred annuity
