1 | Page
License Exam final test Questions and
Answers
The State Corporation Commission has the authority to
Ans: make reasonable insurance rules and regulations
Which of the following statements about a business entity acting
as an insurance agent is CORRECT
Ans: `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?
Ans: 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
Ans: assist in the prevention of insurer insolvencies
The life insurance and annuity replacement regulation defines
replacement as
Ans: 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
Ans: December 31st, every even year
Making incomplete comparisons of policies in order to induce the
purchase of a policy is referred to as
© 2025 All rights reserved
, 2 | Page
Ans: Twisting
Health coverage provided under the Affordable Care Act (ACA)
shall be made available for dependents until the child attains the
age of:
Ans: 26
An agent selling Medicare Supplement policies must provide every
applicant with a(n)
Ans: suitability form
Insurance agents MUST maintain premiums in a fiduciary capacity
and remit them:
Ans: In the ordinary course of business
To be eligible for a group life policy, a group MUST meet which of
the following requirements?
Ans: 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
Ans: The agents license shall terminate immediately
Which of the following is NOT an example of an agent's breach of
fiduciary duty?
Ans: 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:
Ans: Defamination
An insurance agent acts in a fiduciary capacity when conducting
routine business with all of the following principals EXCEPT
© 2025 All rights reserved
, 3 | Page
Ans: The commission
What are adjustable rates for life policy loans in Virginia based on
Ans: Moodys corporate bond index
A policy loan provision is not required in which of the following
types of policies?
Ans: Term Life
Which of the following individuals is required to hold an
appointment with an insurance company which they represent?
Ans: An agent
An insurance agent's license may be suspended or revoked under
which of the following circumstances?
Ans: 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
Ans: Personal medical expenses
An agent MUST complete which of the following forms when an
applicant has existing insurance or annuity coverage
Ans: 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
Ans: when an agent discusses annuities in general with a client, but no
specific recommendation is made
The Commission in Virginia has the power to
© 2025 All rights reserved
License Exam final test Questions and
Answers
The State Corporation Commission has the authority to
Ans: make reasonable insurance rules and regulations
Which of the following statements about a business entity acting
as an insurance agent is CORRECT
Ans: `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?
Ans: 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
Ans: assist in the prevention of insurer insolvencies
The life insurance and annuity replacement regulation defines
replacement as
Ans: 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
Ans: December 31st, every even year
Making incomplete comparisons of policies in order to induce the
purchase of a policy is referred to as
© 2025 All rights reserved
, 2 | Page
Ans: Twisting
Health coverage provided under the Affordable Care Act (ACA)
shall be made available for dependents until the child attains the
age of:
Ans: 26
An agent selling Medicare Supplement policies must provide every
applicant with a(n)
Ans: suitability form
Insurance agents MUST maintain premiums in a fiduciary capacity
and remit them:
Ans: In the ordinary course of business
To be eligible for a group life policy, a group MUST meet which of
the following requirements?
Ans: 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
Ans: The agents license shall terminate immediately
Which of the following is NOT an example of an agent's breach of
fiduciary duty?
Ans: 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:
Ans: Defamination
An insurance agent acts in a fiduciary capacity when conducting
routine business with all of the following principals EXCEPT
© 2025 All rights reserved
, 3 | Page
Ans: The commission
What are adjustable rates for life policy loans in Virginia based on
Ans: Moodys corporate bond index
A policy loan provision is not required in which of the following
types of policies?
Ans: Term Life
Which of the following individuals is required to hold an
appointment with an insurance company which they represent?
Ans: An agent
An insurance agent's license may be suspended or revoked under
which of the following circumstances?
Ans: 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
Ans: Personal medical expenses
An agent MUST complete which of the following forms when an
applicant has existing insurance or annuity coverage
Ans: 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
Ans: when an agent discusses annuities in general with a client, but no
specific recommendation is made
The Commission in Virginia has the power to
© 2025 All rights reserved
