Virginia Life and Health Exam
Review Questions And Answers
What contract term means only one party to a contract's promises are legally
enforceable? ANSWERS Unilateral
Mr. Jones, the insured, committed suicide after the expiration of the suicide
clause in his life insurance policy. The insurer is obligated to: ANSWERS Pay
the death benefit.
The benefit that encourages the disabled policy owner to try to return to
work is: ANSWERS Recurrent disability
Jeff has limited financial resources, but finds himself in a position where he
needs a good deal of protection. A __________would probably best suit his
needs at this time. ANSWERS Term policy
Tyler owns a major medical policy with 70/30 coinsurance and a $3,000
deductible. If he submits a claim for $20,000, how much will he pay?
ANSWERS $8,100
Life insurance applications require a signature from: ANSWERS The agent,
insured, and policyowner.
The cheapest premium payment mode would be on a policy that is paid:
ANSWERS Annually
If an applicant misstates their age on an insurance application, what does
the insurer do when it is discovered at claim time? ANSWERS Adjust the
claim benefits to reflect what he would have been entitled to if his real age
had been given.
Phil and Sarah bought a life policy in which both are insured. Sarah dies
before Phil. If the policy pays the death benefit after Phil dies, it is a:
ANSWERS Survivorship life
A decreasing term life policy would be the most appropriate for: ANSWERS A
41 year old lawyer who wants a policy to pay his mortgage if he dies
, When an insured completed his health policy application, his producer did
not take a premium when he submitted it to the insurer. When the producer
delivers the policy to the applicant, he needs to do all of the following
EXCEPT: ANSWERS Issue the applicant a conditional receipt.
What type group plan requires 75% participation? ANSWERS Contributory
How much time does a licensee have to notify the Commissioner of
Insurance of any change of residential, mailing, or business address?
ANSWERS 30 days
The services are provided on a prepaid per person basis called capitation in:
ANSWERS HMOs
In life insurance, insurable interest must be present at the time of:
ANSWERS Application
Mr. Johnson is looking at Medicare Supplement policies. These policies are
designed primarily to: ANSWERS Provide benefits not covered by Medicare.
If the cash values of an annuity are invested in securities, it is a: ANSWERS
Variable annuity
What is a marketing communication that is oral, printed, or written and
designed to create public interest in life insurance or annuities? ANSWERS
Advertisement
What is the minimum time required for the basis of a long-term policy?
ANSWERS 12 consecutive months
Alex's life policy lapsed, which Nonforfeiture option would the insurer send
him the value of the policy? ANSWERS Cash surrender
On January 3, an application is submitted without the initial premium. The
insurer requires a medical exam, and it is completed on January 15. On
January 20, the insurer issued the policy standard, and the producer delivers
it on January 22. When is coverage effective? ANSWERS January 22, after
the statement of good health is signed, and the initial premium is paid.
What part of the policy directs the insurer on the recipients of benefits?
ANSWERS Payment of Claims provision
What is the advantage of a payor benefit rider? ANSWERS It provides a
temporary waiver of premium if the person paying the premium dies.
Review Questions And Answers
What contract term means only one party to a contract's promises are legally
enforceable? ANSWERS Unilateral
Mr. Jones, the insured, committed suicide after the expiration of the suicide
clause in his life insurance policy. The insurer is obligated to: ANSWERS Pay
the death benefit.
The benefit that encourages the disabled policy owner to try to return to
work is: ANSWERS Recurrent disability
Jeff has limited financial resources, but finds himself in a position where he
needs a good deal of protection. A __________would probably best suit his
needs at this time. ANSWERS Term policy
Tyler owns a major medical policy with 70/30 coinsurance and a $3,000
deductible. If he submits a claim for $20,000, how much will he pay?
ANSWERS $8,100
Life insurance applications require a signature from: ANSWERS The agent,
insured, and policyowner.
The cheapest premium payment mode would be on a policy that is paid:
ANSWERS Annually
If an applicant misstates their age on an insurance application, what does
the insurer do when it is discovered at claim time? ANSWERS Adjust the
claim benefits to reflect what he would have been entitled to if his real age
had been given.
Phil and Sarah bought a life policy in which both are insured. Sarah dies
before Phil. If the policy pays the death benefit after Phil dies, it is a:
ANSWERS Survivorship life
A decreasing term life policy would be the most appropriate for: ANSWERS A
41 year old lawyer who wants a policy to pay his mortgage if he dies
, When an insured completed his health policy application, his producer did
not take a premium when he submitted it to the insurer. When the producer
delivers the policy to the applicant, he needs to do all of the following
EXCEPT: ANSWERS Issue the applicant a conditional receipt.
What type group plan requires 75% participation? ANSWERS Contributory
How much time does a licensee have to notify the Commissioner of
Insurance of any change of residential, mailing, or business address?
ANSWERS 30 days
The services are provided on a prepaid per person basis called capitation in:
ANSWERS HMOs
In life insurance, insurable interest must be present at the time of:
ANSWERS Application
Mr. Johnson is looking at Medicare Supplement policies. These policies are
designed primarily to: ANSWERS Provide benefits not covered by Medicare.
If the cash values of an annuity are invested in securities, it is a: ANSWERS
Variable annuity
What is a marketing communication that is oral, printed, or written and
designed to create public interest in life insurance or annuities? ANSWERS
Advertisement
What is the minimum time required for the basis of a long-term policy?
ANSWERS 12 consecutive months
Alex's life policy lapsed, which Nonforfeiture option would the insurer send
him the value of the policy? ANSWERS Cash surrender
On January 3, an application is submitted without the initial premium. The
insurer requires a medical exam, and it is completed on January 15. On
January 20, the insurer issued the policy standard, and the producer delivers
it on January 22. When is coverage effective? ANSWERS January 22, after
the statement of good health is signed, and the initial premium is paid.
What part of the policy directs the insurer on the recipients of benefits?
ANSWERS Payment of Claims provision
What is the advantage of a payor benefit rider? ANSWERS It provides a
temporary waiver of premium if the person paying the premium dies.
