VA LIFE INSURANCE QUESTIONS AND ANSWERS
SET A+
✔✔A 15-year mortgage is best protected by what kind of life policy? - ✔✔15-year
decreasing term
✔✔Which of the following is a role of the State Corporation Commission? - ✔✔Establish
rational insurance rules and regulations
✔✔How are policyowner dividends treated in regards to income tax? - ✔✔Interest on
accumulations is taxed
✔✔S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT - ✔✔beneficiary's age
✔✔A life insurance policy would be considered a wagering contract WITHOUT: -
✔✔insurable interest
✔✔Which of the following is a characteristic of a variable annuity? - ✔✔Underlying
equity investments
✔✔A business entity acting as an insurance agent MUST - ✔✔designate at least one
license producer to be responsible for the entity's compliance with the insurance laws
and rules
✔✔T is an insurance agent running television ads stating he is licensed for a line of
annuity, when in fact he is not. T has engaged in - ✔✔false advertising
✔✔Which of these actions by a licensee would NOT likely result in license suspension
or revocation? - ✔✔Sharing a commission with another similarity-licensed agent
SET A+
✔✔A 15-year mortgage is best protected by what kind of life policy? - ✔✔15-year
decreasing term
✔✔Which of the following is a role of the State Corporation Commission? - ✔✔Establish
rational insurance rules and regulations
✔✔How are policyowner dividends treated in regards to income tax? - ✔✔Interest on
accumulations is taxed
✔✔S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT - ✔✔beneficiary's age
✔✔A life insurance policy would be considered a wagering contract WITHOUT: -
✔✔insurable interest
✔✔Which of the following is a characteristic of a variable annuity? - ✔✔Underlying
equity investments
✔✔A business entity acting as an insurance agent MUST - ✔✔designate at least one
license producer to be responsible for the entity's compliance with the insurance laws
and rules
✔✔T is an insurance agent running television ads stating he is licensed for a line of
annuity, when in fact he is not. T has engaged in - ✔✔false advertising
✔✔Which of these actions by a licensee would NOT likely result in license suspension
or revocation? - ✔✔Sharing a commission with another similarity-licensed agent
