VA STATE LIFE HEALTH ANNUITIES QUESTIONS
AND ANSWERS SET A+
✔✔A Guaranteed Renewable provision allows - ✔✔premiums which can only be
increased per rate class
✔✔John has a criminal record in which he was convicted of a felony that involved
dishonesty. Under Federal law, how would John be able to engage in insurance
transactions? - ✔✔Given written consent by the state insurance regulatory agency
✔✔Mary is an employee who is covered with a disability income policy through her
employer. SHE PAYS for the portion of the premium attributable to the cost of residual
disability benefits, while her employer pays for the remainder. What are the tax
implications of this policy? - ✔✔residual benefits will be received income tax-free
✔✔In an extended term insurance nonforfeiture option in a life policy, the premium to
purchase the coverage ________ - ✔✔comes from the policy's cash value
✔✔Rick the agent handles insurance premiums in an untrustworthy manner. His actions
could find him guilty of - ✔✔not acting as a fiduciary
✔✔A source of supplemental income for a life insurance policyowner can be derived
from the - ✔✔cash value
✔✔The standard provisions of an accident and health insurance policy require that the -
✔✔policy, endorsements, an attached papers constitute the "entire contract"
✔✔In what situation could an insurance policy's coverage be modified? - ✔✔Applicant
is a substandard risk
✔✔What is considered the collateral on a life insurance policy loan - ✔✔the policy's
cash value
,✔✔James the agent has sold a life insurance contract to a client without using an
illustration, even though his insurer offers one. For this particular transaction, the
applicant - ✔✔must sign a statement that no illustration was provided
✔✔How does a continuous premium whole life policy differ from a limited payment
whole life policy? - ✔✔The time period in which premiums will be paid
✔✔An accident and health insurer has just received written proof of loss from one of its
insureds. The insured must now wait 60 days before - ✔✔bringing legal action against
the insurer
✔✔A health insurer MUST provided a proof of loss form within ______ - ✔✔15 days of
receipt of the notice of loss
✔✔Which of these is NOT an advantage of term life insurance?
A) the greatest amount of coverage can be provided for the initial premium paid
B) It can be provided as a rider to another policy
C) A cash benefit will be provided if the insured is alive at the end of the policy period
D) Temporary insurance needs can be met - ✔✔A cash benefit will be provided if the
insured is alive at the end of the policy period
✔✔Which of these factors does not influence an individual's need for life insurance?
A) lifestyle of the applicant
B) number of dependents
C) future educational costs of dependents
D) self-maintenance expenses - ✔✔self-maintenance expenses
✔✔In Virginia, an person acting as an agent for an unlicensed insurer is -
✔✔permissible only if acting as a licensed surplus lines broker
✔✔persuading an insure, to the insured's detriment, to switch policies is called -
✔✔twisting
✔✔An agent MUST notify the Bureau of insurance for - ✔✔conducting business under
an assumed name
✔✔Emergency health care coverage for Medicare enrollees traveling abroad is - ✔✔a
Medicare Supplement additional benefit
, ✔✔According the the affordable care act (ACA), the proportion of premium revenues
spend on clinical services an quality improvements is called the - ✔✔medical loss ratio
✔✔The life insurance premium for a children's rider - ✔✔remains the same no matter
how many children
✔✔Life insurance premiums are computed on what three factors - ✔✔mortality, interest,
expenses
✔✔Which of the following does NOT meet the requirements of "skilled nursing care"?
A) Must be ordered by a doctor
B) Must require daily care
C) Must be provided exclusively in a hospital
D) Must be provided by skilled medical practitioners - ✔✔Must be provided
EXCLUSIVELY in a hospital
✔✔The HIPAA portability rules for an individual who changes from one group medical
plan to another ______ - ✔✔reduces or eliminates any pre-existing conditions excluded
under the new play
✔✔When a producer submits an application that discloses personal information
regarding the applicant, who supplies the privacy notice? - ✔✔Producer
✔✔Christine is receiving benefits provided from her disability income insurance. As
compared to her previous earnings, the disability benefits should be - ✔✔somewhat
less
✔✔What is NOT considered the responsibility of a producer during underwriting
process? - ✔✔selecting the final approval date
✔✔Which of the following would NOT be a reason for purchasing life insurance on a
child's life?
A) provide benefits for the child if the parents die
B) Pay for the child's funeral expenses
C) Provide a start on the child's personal insurance
D) Help provide funds for the child's education - ✔✔Provide benefits for the child if the
parents die
✔✔The _____ is required to notify the State Corporation Commission in the event of an
appointment termination - ✔✔insurer
AND ANSWERS SET A+
✔✔A Guaranteed Renewable provision allows - ✔✔premiums which can only be
increased per rate class
✔✔John has a criminal record in which he was convicted of a felony that involved
dishonesty. Under Federal law, how would John be able to engage in insurance
transactions? - ✔✔Given written consent by the state insurance regulatory agency
✔✔Mary is an employee who is covered with a disability income policy through her
employer. SHE PAYS for the portion of the premium attributable to the cost of residual
disability benefits, while her employer pays for the remainder. What are the tax
implications of this policy? - ✔✔residual benefits will be received income tax-free
✔✔In an extended term insurance nonforfeiture option in a life policy, the premium to
purchase the coverage ________ - ✔✔comes from the policy's cash value
✔✔Rick the agent handles insurance premiums in an untrustworthy manner. His actions
could find him guilty of - ✔✔not acting as a fiduciary
✔✔A source of supplemental income for a life insurance policyowner can be derived
from the - ✔✔cash value
✔✔The standard provisions of an accident and health insurance policy require that the -
✔✔policy, endorsements, an attached papers constitute the "entire contract"
✔✔In what situation could an insurance policy's coverage be modified? - ✔✔Applicant
is a substandard risk
✔✔What is considered the collateral on a life insurance policy loan - ✔✔the policy's
cash value
,✔✔James the agent has sold a life insurance contract to a client without using an
illustration, even though his insurer offers one. For this particular transaction, the
applicant - ✔✔must sign a statement that no illustration was provided
✔✔How does a continuous premium whole life policy differ from a limited payment
whole life policy? - ✔✔The time period in which premiums will be paid
✔✔An accident and health insurer has just received written proof of loss from one of its
insureds. The insured must now wait 60 days before - ✔✔bringing legal action against
the insurer
✔✔A health insurer MUST provided a proof of loss form within ______ - ✔✔15 days of
receipt of the notice of loss
✔✔Which of these is NOT an advantage of term life insurance?
A) the greatest amount of coverage can be provided for the initial premium paid
B) It can be provided as a rider to another policy
C) A cash benefit will be provided if the insured is alive at the end of the policy period
D) Temporary insurance needs can be met - ✔✔A cash benefit will be provided if the
insured is alive at the end of the policy period
✔✔Which of these factors does not influence an individual's need for life insurance?
A) lifestyle of the applicant
B) number of dependents
C) future educational costs of dependents
D) self-maintenance expenses - ✔✔self-maintenance expenses
✔✔In Virginia, an person acting as an agent for an unlicensed insurer is -
✔✔permissible only if acting as a licensed surplus lines broker
✔✔persuading an insure, to the insured's detriment, to switch policies is called -
✔✔twisting
✔✔An agent MUST notify the Bureau of insurance for - ✔✔conducting business under
an assumed name
✔✔Emergency health care coverage for Medicare enrollees traveling abroad is - ✔✔a
Medicare Supplement additional benefit
, ✔✔According the the affordable care act (ACA), the proportion of premium revenues
spend on clinical services an quality improvements is called the - ✔✔medical loss ratio
✔✔The life insurance premium for a children's rider - ✔✔remains the same no matter
how many children
✔✔Life insurance premiums are computed on what three factors - ✔✔mortality, interest,
expenses
✔✔Which of the following does NOT meet the requirements of "skilled nursing care"?
A) Must be ordered by a doctor
B) Must require daily care
C) Must be provided exclusively in a hospital
D) Must be provided by skilled medical practitioners - ✔✔Must be provided
EXCLUSIVELY in a hospital
✔✔The HIPAA portability rules for an individual who changes from one group medical
plan to another ______ - ✔✔reduces or eliminates any pre-existing conditions excluded
under the new play
✔✔When a producer submits an application that discloses personal information
regarding the applicant, who supplies the privacy notice? - ✔✔Producer
✔✔Christine is receiving benefits provided from her disability income insurance. As
compared to her previous earnings, the disability benefits should be - ✔✔somewhat
less
✔✔What is NOT considered the responsibility of a producer during underwriting
process? - ✔✔selecting the final approval date
✔✔Which of the following would NOT be a reason for purchasing life insurance on a
child's life?
A) provide benefits for the child if the parents die
B) Pay for the child's funeral expenses
C) Provide a start on the child's personal insurance
D) Help provide funds for the child's education - ✔✔Provide benefits for the child if the
parents die
✔✔The _____ is required to notify the State Corporation Commission in the event of an
appointment termination - ✔✔insurer
