CAADC TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS 2025 COMPLETE EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
The State Corporation Commission has the authority to - (ANSWER)make reasonable insurance rules and
regulations
Which of the following statements about a business entity acting as an insurance agent is CORRECT -
(ANSWER)`It must designate at least 1 licensed producer to be responsible for the entity's compliance
with the insurance laws and rules
Which of the following statements is CORRECT about non-partnership Long-Term Care insurance? -
(ANSWER)Inflation protection must be offered to applicants for a Long-Term Care policy
One of the stated purposes of the Life, Accident, and Sickness Insurance Guaranty Association is to -
(ANSWER)assist in the prevention of insurer insolvencies
The life insurance and annuity replacement regulation defines replacement as - (ANSWER)exchanging an
existing policy for a new policy
Each agent shall complete all continuing education requirements by no later than November 30, and
shall be given a final opportunity to complete such requirements by - (ANSWER)December 31st, every
even year
Making incomplete comparisons of policies in order to induce the purchase of a policy is referred to as -
(ANSWER)Twisting
Health coverage provided under the Affordable Care Act (ACA) shall be made available for dependents
until the child attains the age of: - (ANSWER)26
,CAADC TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS 2025 COMPLETE EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
An agent selling Medicare Supplement policies must provide every applicant with a(n) -
(ANSWER)suitability form
Insurance agents MUST maintain premiums in a fiduciary capacity and remit them: - (ANSWER)In the
ordinary course of business
To be eligible for a group life policy, a group MUST meet which of the following requirements? -
(ANSWER)be formed for a purpose other than obtaining life insurance
If a licensed resident insurance agent moves out of state, which of the following will occur -
(ANSWER)The agents license shall terminate immediately
Which of the following is NOT an example of an agent's breach of fiduciary duty? - (ANSWER)allowing
premiums to be submitted electronically
A person who issues false written or oral statements that are maliciously critical of the financial
condition of an insurance company may be found guilty of: - (ANSWER)Defamination
An insurance agent acts in a fiduciary capacity when conducting routine business with all of the
following principals EXCEPT - (ANSWER)The commission
What are adjustable rates for life policy loans in Virginia based on - (ANSWER)Moodys corporate bond
index
A policy loan provision is not required in which of the following types of policies? - (ANSWER)Term Life
, CAADC TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS 2025 COMPLETE EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
Which of the following individuals is required to hold an appointment with an insurance company which
they represent? - (ANSWER)An agent
An insurance agent's license may be suspended or revoked under which of the following circumstances?
- (ANSWER)The agent has been convicted of a misdemeanor within the past five years
Select the appropriate response
Insurance agents who must maintain premiums in a fiduciary account may withdraw funds from the
account to pay all of the following expenses, EXCEPT - (ANSWER)Personal medical expenses
An agent MUST complete which of the following forms when an applicant has existing insurance or
annuity coverage - (ANSWER)Notice Regarding Replacement of Life Insurance or Annuity
An agent must provide a suitability statement to the annuity company under all of the following
circumstances, EXCEPT - (ANSWER)when an agent discusses annuities in general with a client, but no
specific recommendation is made
The Commission in Virginia has the power to - (ANSWER)examine insurers solvency
Before holding a hearing regarding an agent's unfair or deceptive practice, the Commission MUST give
how many days notice - (ANSWER)10
Making false statements about the financial condition of another insurance company is called -
(ANSWER)Defamination
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
The State Corporation Commission has the authority to - (ANSWER)make reasonable insurance rules and
regulations
Which of the following statements about a business entity acting as an insurance agent is CORRECT -
(ANSWER)`It must designate at least 1 licensed producer to be responsible for the entity's compliance
with the insurance laws and rules
Which of the following statements is CORRECT about non-partnership Long-Term Care insurance? -
(ANSWER)Inflation protection must be offered to applicants for a Long-Term Care policy
One of the stated purposes of the Life, Accident, and Sickness Insurance Guaranty Association is to -
(ANSWER)assist in the prevention of insurer insolvencies
The life insurance and annuity replacement regulation defines replacement as - (ANSWER)exchanging an
existing policy for a new policy
Each agent shall complete all continuing education requirements by no later than November 30, and
shall be given a final opportunity to complete such requirements by - (ANSWER)December 31st, every
even year
Making incomplete comparisons of policies in order to induce the purchase of a policy is referred to as -
(ANSWER)Twisting
Health coverage provided under the Affordable Care Act (ACA) shall be made available for dependents
until the child attains the age of: - (ANSWER)26
,CAADC TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS 2025 COMPLETE EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
An agent selling Medicare Supplement policies must provide every applicant with a(n) -
(ANSWER)suitability form
Insurance agents MUST maintain premiums in a fiduciary capacity and remit them: - (ANSWER)In the
ordinary course of business
To be eligible for a group life policy, a group MUST meet which of the following requirements? -
(ANSWER)be formed for a purpose other than obtaining life insurance
If a licensed resident insurance agent moves out of state, which of the following will occur -
(ANSWER)The agents license shall terminate immediately
Which of the following is NOT an example of an agent's breach of fiduciary duty? - (ANSWER)allowing
premiums to be submitted electronically
A person who issues false written or oral statements that are maliciously critical of the financial
condition of an insurance company may be found guilty of: - (ANSWER)Defamination
An insurance agent acts in a fiduciary capacity when conducting routine business with all of the
following principals EXCEPT - (ANSWER)The commission
What are adjustable rates for life policy loans in Virginia based on - (ANSWER)Moodys corporate bond
index
A policy loan provision is not required in which of the following types of policies? - (ANSWER)Term Life
, CAADC TEST FINAL EXAM AND PRACTICE EXAM QUESTIONS 2025 COMPLETE EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
Which of the following individuals is required to hold an appointment with an insurance company which
they represent? - (ANSWER)An agent
An insurance agent's license may be suspended or revoked under which of the following circumstances?
- (ANSWER)The agent has been convicted of a misdemeanor within the past five years
Select the appropriate response
Insurance agents who must maintain premiums in a fiduciary account may withdraw funds from the
account to pay all of the following expenses, EXCEPT - (ANSWER)Personal medical expenses
An agent MUST complete which of the following forms when an applicant has existing insurance or
annuity coverage - (ANSWER)Notice Regarding Replacement of Life Insurance or Annuity
An agent must provide a suitability statement to the annuity company under all of the following
circumstances, EXCEPT - (ANSWER)when an agent discusses annuities in general with a client, but no
specific recommendation is made
The Commission in Virginia has the power to - (ANSWER)examine insurers solvency
Before holding a hearing regarding an agent's unfair or deceptive practice, the Commission MUST give
how many days notice - (ANSWER)10
Making false statements about the financial condition of another insurance company is called -
(ANSWER)Defamination
