VA STATE LIFE HEALTH ANNUITIES
COMPREHENSIVE QUESTIONS AND ANSWERS SET
A+
✔✔Tom the agent negotiates an agreement that unreasonably restrains the business of
insurance. He has likely committed a violation of insurance law that falls under -
✔✔boycott, coercion, and intimidation
✔✔The optionally renewable provision allows the ____ to cancel the contract - ✔✔the
insurer
✔✔An agent does NOT need to notify the Bureau of Insurance of a
A) change of address
B) name change
C) change of financial status
D) felony conviction - ✔✔change of financial status
✔✔Which health policy clause specifies the amount of benefits to be paid?
A) insuring clause
B) consideration clause
C) free-look clause
D) payment mode clause - ✔✔insuring clause
✔✔Field underwriting by a producer _____ - ✔✔may result in the disclosure of
hazardous activities of the applicant
✔✔The powers directly given to a producer in an agency contract are called ______ -
✔✔express powers
,✔✔What type of deductible must be satisfied again for each illness or accident in a
major medical plan? - ✔✔per-cause
✔✔Short-term group disability income benefits are - ✔✔a percentage of weekly
earnings up to a stated maximum
✔✔A 55 year old recently received a $30,000 distribution from a previous employer's
401k plan, minus $6,000 for income tax withholding. Which federal taxes apply if none
of the funder were rolled over? - ✔✔Income taxes plus a 10% penalty tax on $30,000
✔✔The difference between a doctor's actual charged an the amount approved by
Medicare is reffered to as an - ✔✔excess charge
✔✔What action may the Bureau of Insurance take when it finds that a license
APPLICANT is not competent or untrustworthy? - ✔✔decline to issue the license
✔✔_____ does NOT help determine group health insurance premiums. - ✔✔income
level of group members
✔✔Which of the following provisions allows an insured or the insurer to terminate the
policy? - ✔✔Cancelable provision
✔✔Which of the following provision is NOT required to be included in qualified long-
term care policies?
A) Inflation protection
B) Nonforfeiture option
C) Prior hospitalization
D) Guaranteed renewability - ✔✔Prior hospitalization
✔✔Voluntarily terminating an insurance policy is also known as - ✔✔cancellation
✔✔A signed good health statement may be collected by a life producer at the time of
A) policy issue
B) application
C) policy delivery
D) physical examination - ✔✔policy delivery
✔✔An insured covered under a disability income policy is disabled and collecting
benefits from THE SAME cause, whereupon benefits continue to be paid. This is an
example of which of the following:
A) Presumptive disability
, B) Concurrent disability
C) Residual disability
D) Recurrent disability - ✔✔Recurrent disability
✔✔How do benefit payments fluctuate over time in a variable life annuity?
A) Benefit payments stay fixed
B) Reflects changes in the market value of assets in a separate account
C) Annuitant controls any benefit payment changes
D) Any benefit payment fluctuations have to be approved in writing by the owner -
✔✔Reflects changes in the market value of assets in a separate account
✔✔When does a family accident and health policy's coverage for a newborn child
begin? - ✔✔at the moment of birth
✔✔Which of the following statements is true regarding accident and health insurance
claims that reimburse on an indemnity basis?
A) no proof of loss needed
B) claims can be sent directly to the insured
C) claims are required to be sent to the health provider
D) no claim formed is needed - ✔✔claims can be sent directly to the insured
✔✔What effect does interest income have upon insurance premiums?
A) increases premium
B) decreases premium
C) levels the premium
D) adjust premium on a quarterly basis - ✔✔decreases premium
✔✔James owns a business and purchased a policy that covers the business expense
of finding a permanent or temporary employee to replace a disabled one. This type of
disability coverage is called - ✔✔key employee coverage
✔✔Which of these policies is considered to be a comprehensive health policy
A) major medical policy
B) surgical policy
C) limited benefit policy
D) health savings account - ✔✔major medical policy
✔✔Which benefit is normally payable to a life insurance policyowner when the insured's
life expectancy has been severely limited?
COMPREHENSIVE QUESTIONS AND ANSWERS SET
A+
✔✔Tom the agent negotiates an agreement that unreasonably restrains the business of
insurance. He has likely committed a violation of insurance law that falls under -
✔✔boycott, coercion, and intimidation
✔✔The optionally renewable provision allows the ____ to cancel the contract - ✔✔the
insurer
✔✔An agent does NOT need to notify the Bureau of Insurance of a
A) change of address
B) name change
C) change of financial status
D) felony conviction - ✔✔change of financial status
✔✔Which health policy clause specifies the amount of benefits to be paid?
A) insuring clause
B) consideration clause
C) free-look clause
D) payment mode clause - ✔✔insuring clause
✔✔Field underwriting by a producer _____ - ✔✔may result in the disclosure of
hazardous activities of the applicant
✔✔The powers directly given to a producer in an agency contract are called ______ -
✔✔express powers
,✔✔What type of deductible must be satisfied again for each illness or accident in a
major medical plan? - ✔✔per-cause
✔✔Short-term group disability income benefits are - ✔✔a percentage of weekly
earnings up to a stated maximum
✔✔A 55 year old recently received a $30,000 distribution from a previous employer's
401k plan, minus $6,000 for income tax withholding. Which federal taxes apply if none
of the funder were rolled over? - ✔✔Income taxes plus a 10% penalty tax on $30,000
✔✔The difference between a doctor's actual charged an the amount approved by
Medicare is reffered to as an - ✔✔excess charge
✔✔What action may the Bureau of Insurance take when it finds that a license
APPLICANT is not competent or untrustworthy? - ✔✔decline to issue the license
✔✔_____ does NOT help determine group health insurance premiums. - ✔✔income
level of group members
✔✔Which of the following provisions allows an insured or the insurer to terminate the
policy? - ✔✔Cancelable provision
✔✔Which of the following provision is NOT required to be included in qualified long-
term care policies?
A) Inflation protection
B) Nonforfeiture option
C) Prior hospitalization
D) Guaranteed renewability - ✔✔Prior hospitalization
✔✔Voluntarily terminating an insurance policy is also known as - ✔✔cancellation
✔✔A signed good health statement may be collected by a life producer at the time of
A) policy issue
B) application
C) policy delivery
D) physical examination - ✔✔policy delivery
✔✔An insured covered under a disability income policy is disabled and collecting
benefits from THE SAME cause, whereupon benefits continue to be paid. This is an
example of which of the following:
A) Presumptive disability
, B) Concurrent disability
C) Residual disability
D) Recurrent disability - ✔✔Recurrent disability
✔✔How do benefit payments fluctuate over time in a variable life annuity?
A) Benefit payments stay fixed
B) Reflects changes in the market value of assets in a separate account
C) Annuitant controls any benefit payment changes
D) Any benefit payment fluctuations have to be approved in writing by the owner -
✔✔Reflects changes in the market value of assets in a separate account
✔✔When does a family accident and health policy's coverage for a newborn child
begin? - ✔✔at the moment of birth
✔✔Which of the following statements is true regarding accident and health insurance
claims that reimburse on an indemnity basis?
A) no proof of loss needed
B) claims can be sent directly to the insured
C) claims are required to be sent to the health provider
D) no claim formed is needed - ✔✔claims can be sent directly to the insured
✔✔What effect does interest income have upon insurance premiums?
A) increases premium
B) decreases premium
C) levels the premium
D) adjust premium on a quarterly basis - ✔✔decreases premium
✔✔James owns a business and purchased a policy that covers the business expense
of finding a permanent or temporary employee to replace a disabled one. This type of
disability coverage is called - ✔✔key employee coverage
✔✔Which of these policies is considered to be a comprehensive health policy
A) major medical policy
B) surgical policy
C) limited benefit policy
D) health savings account - ✔✔major medical policy
✔✔Which benefit is normally payable to a life insurance policyowner when the insured's
life expectancy has been severely limited?
