CHAPTER EXAM - VIRGINIA LAWS
AND RULES QUESTIONS & CORRECT
ANSWERS
Question 1Select the appropriate response
Under the Health Insurance Portability and Accountability Act (HIPAA), all of the following
qualify as creditable coverage EXCEPT
accident only
individual major medical
Medicare
group major medical - correct answer ✔✔accident only
Select the appropriate response
An agency has moved the office to a commercial office complex less than 5 miles from the
current office location. The agency must notify the Bureau of Insurance within how many
calendar days of such change in office location?
10 days
20 days
30 days
No requirement since the new office is less than 5 miles from the prior office location - correct
answer ✔✔30 days
,Insurance agents MUST maintain premiums in a fiduciary capacity and remit them
at any time the agent deems appropriate
in the ordinary course of business
within 1 year
within 6 months of receipt - correct answer ✔✔in the ordinary course of business
Select the appropriate response
An insurer may pay commissions directly to any person for services as an agent provided the
agent
is licensed
is licensed and appointed
works for a licensed agency even if the agent is unlicensed
has applied to take the licensing examination - correct answer ✔✔is licensed and appointed
An Accident & Health policy must provide Essential Benefits without annual and lifetime limits
when purchased
individually from commercial providers
through Medicare
in a group plan from commercial providers
individually or with group coverage through the Federal Marketplace - correct answer
✔✔individually or with group coverage through the Federal Marketplace
In Virginia, an insurance agent is BEST defined as
a person appointed by more than one insurance company to issue policies
, a person who sells, solicits, or negotiates contracts of insurance or annuity
a person who places insurance with nonadmitted companies
an employee of an insurance company who has the authority to underwrite insurance - correct
answer ✔✔a person who sells, solicits, or negotiates contracts of insurance or annuity
If a licensed resident insurance agent moves out of state, which of the following will occur?
The agent will lose commissions
The agent's license shall terminate immediately
The agent will automatically receive a license in the new home state
The Bureau of Insurance will contact all the agent's policyholders - correct answer ✔✔The
agent's license shall terminate immediately
An agent must maintain records of insurance transactions for a MINIMUM of how many
previous calendar years?
1
2
3
5 - correct answer ✔✔3
The Virginia Commissioner of Insurance has the authority to examine the business records of all
of the following entities EXCEPT
insurance agents
insurance companies
insurance consultants
life insurance master policyholders - correct answer ✔✔life insurance master policyholders
A Long Term Care insurance contract shall provide coverage for a minimum of how many
months?
AND RULES QUESTIONS & CORRECT
ANSWERS
Question 1Select the appropriate response
Under the Health Insurance Portability and Accountability Act (HIPAA), all of the following
qualify as creditable coverage EXCEPT
accident only
individual major medical
Medicare
group major medical - correct answer ✔✔accident only
Select the appropriate response
An agency has moved the office to a commercial office complex less than 5 miles from the
current office location. The agency must notify the Bureau of Insurance within how many
calendar days of such change in office location?
10 days
20 days
30 days
No requirement since the new office is less than 5 miles from the prior office location - correct
answer ✔✔30 days
,Insurance agents MUST maintain premiums in a fiduciary capacity and remit them
at any time the agent deems appropriate
in the ordinary course of business
within 1 year
within 6 months of receipt - correct answer ✔✔in the ordinary course of business
Select the appropriate response
An insurer may pay commissions directly to any person for services as an agent provided the
agent
is licensed
is licensed and appointed
works for a licensed agency even if the agent is unlicensed
has applied to take the licensing examination - correct answer ✔✔is licensed and appointed
An Accident & Health policy must provide Essential Benefits without annual and lifetime limits
when purchased
individually from commercial providers
through Medicare
in a group plan from commercial providers
individually or with group coverage through the Federal Marketplace - correct answer
✔✔individually or with group coverage through the Federal Marketplace
In Virginia, an insurance agent is BEST defined as
a person appointed by more than one insurance company to issue policies
, a person who sells, solicits, or negotiates contracts of insurance or annuity
a person who places insurance with nonadmitted companies
an employee of an insurance company who has the authority to underwrite insurance - correct
answer ✔✔a person who sells, solicits, or negotiates contracts of insurance or annuity
If a licensed resident insurance agent moves out of state, which of the following will occur?
The agent will lose commissions
The agent's license shall terminate immediately
The agent will automatically receive a license in the new home state
The Bureau of Insurance will contact all the agent's policyholders - correct answer ✔✔The
agent's license shall terminate immediately
An agent must maintain records of insurance transactions for a MINIMUM of how many
previous calendar years?
1
2
3
5 - correct answer ✔✔3
The Virginia Commissioner of Insurance has the authority to examine the business records of all
of the following entities EXCEPT
insurance agents
insurance companies
insurance consultants
life insurance master policyholders - correct answer ✔✔life insurance master policyholders
A Long Term Care insurance contract shall provide coverage for a minimum of how many
months?
