VA State Life, Health and Annuities Exam
Questions And All Correct Answers.
In a long-term care policy issued in Virginia, any provision limiting preexisting conditions may not exceed
_____ months - Answer 6 months
What is a universal life insurance policy? - Answer A flexible premium deposit fund and a monthly
renewable term insurance policy
How is an insured's accident and health claim handled by an insurer if it occurs during the policy's grace
period? - Answer The unpaid premium may be subtracted from the reimbursement
What must an agent do when replacing a long-term care policy with a new policy? - Answer Notify the
applicant that an annual premium must be paid for the new policy
The free look period provided in a life insurance policy is usually - Answer 10 days
Which of the following is NOT subject to the promise to pay in an insuring clause?
A) How the premium is calculated
B) Policy provisions
C) Policy conditions
D) Policy exclusions - Answer How the premium is calculated
In Virginia, an insurance agent's appointment is in effect - Answer until termination
Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is
designed to help pay for this type of expense? - Answer Long-term car benefit rider
,An insurance company can be liable for a producer's unauthorized acts - Answer when the agency
contract is unclear concerning the authority given
The automatic premium loan provision can be accurately described as a - Answer provision that
provides a policy loan to pay any premiums by the end of the grace period
Which of these statements ins NOT true regarding a cash value loan against a life insurance policy?
A) Interest normally accrues on unpaid balances
B) Loan cannot exceed the policy's cash value
C) Policy contract terms dictate the interest rate
D) Interest payments made by policyowner are deductable - Answer Interest payments made by
policyowner are deductible
Home health care benefits typically do NOT include coverage for
A) nursing care
B) wheelchairs
C) physical therapy
D) prescription medication - Answer prescription medication
What health insurance provision requires that the application becomes part of the policy - Answer
entire contract clause
The conversion option for group term insurance may be exercised by an employee within ____ days of
terminated employment - Answer 31 days of terminated employment
An insurance policy that can also be classified as a securities product is called - Answer variable life
In Virginia, false advertising is an example of - Answer misrepresentation
, An insured, age 67, is coved under a disability income policy. What will the insurer normally require in
order for the insured to continue coverage - Answer The insured must be actively at work for a
specified number of hours per week
An agent may be personally liable if he or she engages in acts that - Answer are not part of the agency
or agent contract
In regards to technology and the ACA, which of the following statements is correct? - Answer States
which operate with an Exchange MUST offer an internet-based portal
Licensed agents in Virginia are authorized to - Answer solicit, receive, an forward applications to the
insurer
Group life insurance is typically issued as _______ insurance - Answer level term insurance
If the State Corporation Commission believes that an agent is incompetent or untrustworthy, it has the
authority to perform all of the following functions EXCEPT - Answer incarcerate the agent
Group life plans sold in Virginia typically contain a conversion option. If the insured elects this option.
The new policy does - Answer does NOT require evidence of insurability
A Guaranteed Renewable provision allows - Answer premiums which can only be increased per rate
class
John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal
law, how would John be able to engage in insurance transactions? - Answer Given written consent by
the state insurance regulatory agency
Mary is an employee who is covered with a disability income policy through her employer. SHE PAYS for
the portion of the premium attributable to the cost of residual disability benefits, while her employer
pays for the remainder. What are the tax implications of this policy? - Answer residual benefits will be
received income tax-free
Questions And All Correct Answers.
In a long-term care policy issued in Virginia, any provision limiting preexisting conditions may not exceed
_____ months - Answer 6 months
What is a universal life insurance policy? - Answer A flexible premium deposit fund and a monthly
renewable term insurance policy
How is an insured's accident and health claim handled by an insurer if it occurs during the policy's grace
period? - Answer The unpaid premium may be subtracted from the reimbursement
What must an agent do when replacing a long-term care policy with a new policy? - Answer Notify the
applicant that an annual premium must be paid for the new policy
The free look period provided in a life insurance policy is usually - Answer 10 days
Which of the following is NOT subject to the promise to pay in an insuring clause?
A) How the premium is calculated
B) Policy provisions
C) Policy conditions
D) Policy exclusions - Answer How the premium is calculated
In Virginia, an insurance agent's appointment is in effect - Answer until termination
Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is
designed to help pay for this type of expense? - Answer Long-term car benefit rider
,An insurance company can be liable for a producer's unauthorized acts - Answer when the agency
contract is unclear concerning the authority given
The automatic premium loan provision can be accurately described as a - Answer provision that
provides a policy loan to pay any premiums by the end of the grace period
Which of these statements ins NOT true regarding a cash value loan against a life insurance policy?
A) Interest normally accrues on unpaid balances
B) Loan cannot exceed the policy's cash value
C) Policy contract terms dictate the interest rate
D) Interest payments made by policyowner are deductable - Answer Interest payments made by
policyowner are deductible
Home health care benefits typically do NOT include coverage for
A) nursing care
B) wheelchairs
C) physical therapy
D) prescription medication - Answer prescription medication
What health insurance provision requires that the application becomes part of the policy - Answer
entire contract clause
The conversion option for group term insurance may be exercised by an employee within ____ days of
terminated employment - Answer 31 days of terminated employment
An insurance policy that can also be classified as a securities product is called - Answer variable life
In Virginia, false advertising is an example of - Answer misrepresentation
, An insured, age 67, is coved under a disability income policy. What will the insurer normally require in
order for the insured to continue coverage - Answer The insured must be actively at work for a
specified number of hours per week
An agent may be personally liable if he or she engages in acts that - Answer are not part of the agency
or agent contract
In regards to technology and the ACA, which of the following statements is correct? - Answer States
which operate with an Exchange MUST offer an internet-based portal
Licensed agents in Virginia are authorized to - Answer solicit, receive, an forward applications to the
insurer
Group life insurance is typically issued as _______ insurance - Answer level term insurance
If the State Corporation Commission believes that an agent is incompetent or untrustworthy, it has the
authority to perform all of the following functions EXCEPT - Answer incarcerate the agent
Group life plans sold in Virginia typically contain a conversion option. If the insured elects this option.
The new policy does - Answer does NOT require evidence of insurability
A Guaranteed Renewable provision allows - Answer premiums which can only be increased per rate
class
John has a criminal record in which he was convicted of a felony that involved dishonesty. Under Federal
law, how would John be able to engage in insurance transactions? - Answer Given written consent by
the state insurance regulatory agency
Mary is an employee who is covered with a disability income policy through her employer. SHE PAYS for
the portion of the premium attributable to the cost of residual disability benefits, while her employer
pays for the remainder. What are the tax implications of this policy? - Answer residual benefits will be
received income tax-free
