Virginia Laws and Rules - Life Insurance
Exam Questions And Solved Solutions.
An agent does NOT need to notify the Bureau of Insurance of a? a) change of address; b) name change;
c) change in financial status; or d) felony conviction - Answer change in financial status
Which of these is NOT considered advertising? A policy illustration, An AM Best company rating, A direct
mailing by an insurer, or An agent's oral sales presentation? - Answer An AM Best company rating
A domestic insurance company in Virginia MUST - Answer be formed under Virginia insurance laws
Under Federal Law, which of the following actions may result in a producer becoming imprisoned? -
Answer Producer embezzling funds from an insurer
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 - Answer pay an amount the premiums would
have purchased at the insured's actual age?
In Virginia, which of the following records are not required to be maintained by an agent? - Answer
Premium quotes for policies not accepted
An agent who informs an applicant that there are no exclusions in an insurance policy has engaged in -
Answer Misrepresentation
In Virginia, any person action as an agent for an unlicensed insurer is - Answer permissible only if acting
as a licensed surplus lines broker
If a group is considering applying for a group life policy, it MUST? - Answer have a minimum number of
eligible persons
, An agent has indicated to a potential client that the proposed life insurance policy is covered by the
Virginia Life, Accident, and Sickness Insurance Guaranty Association. This action taken by the agent is -
Answer prohibited by law
How often must the Commission examine each domestic insurance company? - Answer Every 5 years
Which is a role of the replacing insurer during a life insurance replacement transaction? - Answer Send
notice of the proposed replacement transaction to the existing insurer
An ____ is a person appointed by an insurer that represents the company and presents policies on its
behalf. - Answer agent
Which of these would likely be considered an Unfair Claims Settlement Practice? - Answer Offering
settlements that are less than the fair value to offset insurer expenses
Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the
policy's first two years of existence? - Answer Misstatement of age
A(n) _____________ settlement allows a terminally ill individual to sell their life insurance policy at a
discount to pay for medical bills. - Answer Viatical
According to the State Corporation Commission, the purpose of licensing prospective agents in the state
of Virginia is - Answer qualifying the agent to represent an authorized insurer for soliciting and
negotiating their insurance products
Which of these is NOT an Unfair Claims Settlement Practice? - Answer Refusing to pay persons bringing
false or fraudulent claims
An agent must maintain customer records for _______ year(s) following the completion date of the
insurance transaction. - Answer 5 years
What action may the Bureau of Insurance take when it finds that a license applicant is not competent or
untrustworthy? - Answer Decline to issue the license
Exam Questions And Solved Solutions.
An agent does NOT need to notify the Bureau of Insurance of a? a) change of address; b) name change;
c) change in financial status; or d) felony conviction - Answer change in financial status
Which of these is NOT considered advertising? A policy illustration, An AM Best company rating, A direct
mailing by an insurer, or An agent's oral sales presentation? - Answer An AM Best company rating
A domestic insurance company in Virginia MUST - Answer be formed under Virginia insurance laws
Under Federal Law, which of the following actions may result in a producer becoming imprisoned? -
Answer Producer embezzling funds from an insurer
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 - Answer pay an amount the premiums would
have purchased at the insured's actual age?
In Virginia, which of the following records are not required to be maintained by an agent? - Answer
Premium quotes for policies not accepted
An agent who informs an applicant that there are no exclusions in an insurance policy has engaged in -
Answer Misrepresentation
In Virginia, any person action as an agent for an unlicensed insurer is - Answer permissible only if acting
as a licensed surplus lines broker
If a group is considering applying for a group life policy, it MUST? - Answer have a minimum number of
eligible persons
, An agent has indicated to a potential client that the proposed life insurance policy is covered by the
Virginia Life, Accident, and Sickness Insurance Guaranty Association. This action taken by the agent is -
Answer prohibited by law
How often must the Commission examine each domestic insurance company? - Answer Every 5 years
Which is a role of the replacing insurer during a life insurance replacement transaction? - Answer Send
notice of the proposed replacement transaction to the existing insurer
An ____ is a person appointed by an insurer that represents the company and presents policies on its
behalf. - Answer agent
Which of these would likely be considered an Unfair Claims Settlement Practice? - Answer Offering
settlements that are less than the fair value to offset insurer expenses
Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the
policy's first two years of existence? - Answer Misstatement of age
A(n) _____________ settlement allows a terminally ill individual to sell their life insurance policy at a
discount to pay for medical bills. - Answer Viatical
According to the State Corporation Commission, the purpose of licensing prospective agents in the state
of Virginia is - Answer qualifying the agent to represent an authorized insurer for soliciting and
negotiating their insurance products
Which of these is NOT an Unfair Claims Settlement Practice? - Answer Refusing to pay persons bringing
false or fraudulent claims
An agent must maintain customer records for _______ year(s) following the completion date of the
insurance transaction. - Answer 5 years
What action may the Bureau of Insurance take when it finds that a license applicant is not competent or
untrustworthy? - Answer Decline to issue the license
