Life and Health Insurance License prep
Which of the following statements is true regarding accident and health insurance
claims that reimburse on an idemnity basis? - ANS-Claims can be sent directly to the
insured.
Tom the agent negotiates an agreement that unreasonably restrains the business of
insurance. He has likely commited a violation of insurance law that falls under -
ANS-Boycott, coercion, and intimidation
Viatical settlement proceeds may be subject to the claims of - ANS-creditors
Once an insured notifies an insurer of a claim, what must the insurer do? - ANS-Send
out a claim form
What action may the Bureau of Insurance take when it finds that a license applicant is
not competent or untrustworthy? - ANS-decline to issue the license
In a long-term care policy issued in Virginia, any provision limiting preexisting conditions
may not exceed - ANS-6 months
aministrative actions taken against an agent must be reported to the State Corporation
Commission within how many days of the final disposition - ANS-30
In Virginia, once a life insurance policy has been in force for how many years, it
becomes incontestable - ANS-2
Mentally or physically handicapped dependent children MUST be covered under an
individual health insurance policy - ANS-until they become self supportive
Carlos' agent license has been suspended due to non-renewal. He may apply for the
reinstatement within the ---month period following the date when the license should
have been renewed - ANS-12
If a life insurance applicant is shown future premiums are to be paid out of
non-guaranteed values, the illustration used in the sales presentation MUST -
ANS-disclose that premium payments may need to be resumed depending on actual
results
,Which of these is NOT an Unfair Claims Settlement Practice? - ANS-Refusing to pay
persons bringing false or fraudulent claims
A prosepective client was intimidated by an agent to purchase an insurance contract.
The agent could be found guilty of - ANS-coercion
The maxiumum prison sentense given under federal law for unfair and deceptive
insurance practices is - ANS-15 years
When replacing an individual Accident and Health policy in Virginia, the required
replacement notice to the applicant must include - ANS-Notice that the prior conditions
may not be covered
In Virgina, a small employer is comprised of - ANS-2-50
Paul is an agent who is licensed in Virginia but a resident of Maryland. P is consedered
to be an what agent? - ANS-nonresident
In VA what records are not required to be maintained by the agent? - ANS-Premium
quotes for policies not accepted
An insurance company is marketing a health insurance policy in Virginia which contains
a provision that is in conflict with Virginia insurance law. What remedy must be taken by
the insurer? - ANS-The provision must be amended to conform to the minimum
statutory requirements.
A long-term care policy in Virginia must be issued on which of the following basis? -
ANS-Guaranteed renewable
Before an individual is permitted to act as an insurance agent, he/she must hold a valid
insurance license and be -----by an authoried insurer - ANS-Appointed
In Virginia, an insurer must file a written notice of appointment with the State
Corporation Commission within - ANS-30 days
If a Medicare Supplement policy is cancelled by the insurer, which of these
circumstances does NOT require prior approval by the State Corporation Commission?
- ANS-non payment of premium
, Once a child is born and covered under an accident and health insurance plan, any
reduction in benefits on the newborn is - ANS-strictly prohibited
A insurance company operates outside the state it is domiciled - ANS-foreign
Group health insurance issued in Virginia must identify any exclusions, limitations, or
reductions in coverage on which of the following? - ANS-The certificate of coverage
In a speech to a local association, an agent incorrectly stated that XY Insurance
Company is in financial difficulty and not paying claims. The agent may be guilty of -
ANS-defamation
Which of the following is NOT a valid reason for an insurer to contest a life insurance
policy during the policy's first two years of existence? - ANS-Misstatement of age
In Virgina, false advertising is an example of - ANS-Misrepresentation
When determining the suitability of an annuity for a consumer, the insurance provider is
obligated to - ANS-Make reasonable efforts to fit the annuity with the consumer's needs
Persuading an insured, to the insured's detriment, to switch policies is called -
ANS-twisting
A life insurance applicant is tested for the Human Immunodeficiency Virus HIV. The
applicant MUST be informed that the testing - ANS-helps determine the insurability of
the applicant
The free-look period for a new Medicare Suppliment policy is -- days - ANS-30
A life insurance policyowner sells her policy to a third party in a viatical settlement.
Under this transaction, the policyowner - ANS-receives an amount less than the policy's
death amount
Insurance crimes which affect interstate commerce are prosecuted by the - ANS-U.S.
Attorney General
The Virginia Life, Accident, Sickness Insurance Guaranty Fund protects an insured in
the event of - ANS-the insurer's insolvency
Which of the following statements is true regarding accident and health insurance
claims that reimburse on an idemnity basis? - ANS-Claims can be sent directly to the
insured.
Tom the agent negotiates an agreement that unreasonably restrains the business of
insurance. He has likely commited a violation of insurance law that falls under -
ANS-Boycott, coercion, and intimidation
Viatical settlement proceeds may be subject to the claims of - ANS-creditors
Once an insured notifies an insurer of a claim, what must the insurer do? - ANS-Send
out a claim form
What action may the Bureau of Insurance take when it finds that a license applicant is
not competent or untrustworthy? - ANS-decline to issue the license
In a long-term care policy issued in Virginia, any provision limiting preexisting conditions
may not exceed - ANS-6 months
aministrative actions taken against an agent must be reported to the State Corporation
Commission within how many days of the final disposition - ANS-30
In Virginia, once a life insurance policy has been in force for how many years, it
becomes incontestable - ANS-2
Mentally or physically handicapped dependent children MUST be covered under an
individual health insurance policy - ANS-until they become self supportive
Carlos' agent license has been suspended due to non-renewal. He may apply for the
reinstatement within the ---month period following the date when the license should
have been renewed - ANS-12
If a life insurance applicant is shown future premiums are to be paid out of
non-guaranteed values, the illustration used in the sales presentation MUST -
ANS-disclose that premium payments may need to be resumed depending on actual
results
,Which of these is NOT an Unfair Claims Settlement Practice? - ANS-Refusing to pay
persons bringing false or fraudulent claims
A prosepective client was intimidated by an agent to purchase an insurance contract.
The agent could be found guilty of - ANS-coercion
The maxiumum prison sentense given under federal law for unfair and deceptive
insurance practices is - ANS-15 years
When replacing an individual Accident and Health policy in Virginia, the required
replacement notice to the applicant must include - ANS-Notice that the prior conditions
may not be covered
In Virgina, a small employer is comprised of - ANS-2-50
Paul is an agent who is licensed in Virginia but a resident of Maryland. P is consedered
to be an what agent? - ANS-nonresident
In VA what records are not required to be maintained by the agent? - ANS-Premium
quotes for policies not accepted
An insurance company is marketing a health insurance policy in Virginia which contains
a provision that is in conflict with Virginia insurance law. What remedy must be taken by
the insurer? - ANS-The provision must be amended to conform to the minimum
statutory requirements.
A long-term care policy in Virginia must be issued on which of the following basis? -
ANS-Guaranteed renewable
Before an individual is permitted to act as an insurance agent, he/she must hold a valid
insurance license and be -----by an authoried insurer - ANS-Appointed
In Virginia, an insurer must file a written notice of appointment with the State
Corporation Commission within - ANS-30 days
If a Medicare Supplement policy is cancelled by the insurer, which of these
circumstances does NOT require prior approval by the State Corporation Commission?
- ANS-non payment of premium
, Once a child is born and covered under an accident and health insurance plan, any
reduction in benefits on the newborn is - ANS-strictly prohibited
A insurance company operates outside the state it is domiciled - ANS-foreign
Group health insurance issued in Virginia must identify any exclusions, limitations, or
reductions in coverage on which of the following? - ANS-The certificate of coverage
In a speech to a local association, an agent incorrectly stated that XY Insurance
Company is in financial difficulty and not paying claims. The agent may be guilty of -
ANS-defamation
Which of the following is NOT a valid reason for an insurer to contest a life insurance
policy during the policy's first two years of existence? - ANS-Misstatement of age
In Virgina, false advertising is an example of - ANS-Misrepresentation
When determining the suitability of an annuity for a consumer, the insurance provider is
obligated to - ANS-Make reasonable efforts to fit the annuity with the consumer's needs
Persuading an insured, to the insured's detriment, to switch policies is called -
ANS-twisting
A life insurance applicant is tested for the Human Immunodeficiency Virus HIV. The
applicant MUST be informed that the testing - ANS-helps determine the insurability of
the applicant
The free-look period for a new Medicare Suppliment policy is -- days - ANS-30
A life insurance policyowner sells her policy to a third party in a viatical settlement.
Under this transaction, the policyowner - ANS-receives an amount less than the policy's
death amount
Insurance crimes which affect interstate commerce are prosecuted by the - ANS-U.S.
Attorney General
The Virginia Life, Accident, Sickness Insurance Guaranty Fund protects an insured in
the event of - ANS-the insurer's insolvency
