Virginia Principles of Life/Health
Insurance Exam Questions & Answers
Ordinary Whole Life - ANSWER-requires level premium payments
Limited Pay - ANSWER-The type of whole life insurance that requires payments for
a certain or limited period
Universal Life Insurance Policies - ANSWER-allow premium payments to be skipped
Variable Life - ANSWER-Which type of life insurance policy is regulated as a security
Variable Universal Life - ANSWER-The type of life insurance product that combines
features of universal life and variable life
Current Assumption Whole Life Insurance Policies - ANSWER-may offer an
adjustable death benefit
Decreasing Term - ANSWER-The type of term insurance that is generally used to
protect against the risk that an insured will die before an outstanding loan is paid off
Variable Annuity - ANSWER-pays a variable return, based on sub-account
performance
Annuitant - ANSWER-The measuring life of an annuity policy
Term Certain or Period Certain Annuity - ANSWER-The type of immediate annuity or
annuitization option that pays a specified amount for a specified period
Single Premium Annuity - ANSWER-A fixed annuity where a single, cash payment
establishes the contract
Surrender Charge - ANSWER-What the insurance company may charge the client
when a client takes a withdrawal out of their deferred annuity
Bail-out provision - ANSWER-A provision of a deferred annuity that states that if the
rate ever goes below 2%, the annuity can be surrendered without the application of
surrender charges
Survivorship life insurance - ANSWER-the type of insurance that pays a death
benefit upon the death of the last to die of two or more insured
Guaranteed insurability provision or rider - ANSWER-gives the insured the right to
purchase additional insurance without having to provide evidence of insurability
, Waiver Premium Provision for Juvenile Life Policies - ANSWER-a provision which
allows the premium payments to stop after the payer of the premium on a policy
insuring the life of a juvenile becomes disabled
Through the ages of 60 to 65 - ANSWER-To what ages are the waiver of premium
disability riders generally effective?
Owner - ANSWER-The party on a whole life insurance policy with the right to take
withdrawals
Owner - ANSWER-The party on a life insurance contract with the right to increase or
decrease coverage within contract specifications
Premiums - ANSWER-Constitutes a valuable consideration in an insurance contract
(not: warranties, statements, representations)
Beneficiary - ANSWER-The party that receives policy benefits upon the death of the
insured
Irrevocable Beneficiary - ANSWER-If a _________ is named on a life insurance
policy, the beneficiary designation may only be changed with the permission of this
person
Common Disaster Clause - ANSWER-The type of clause that provides that life
insurance death benefit will be paid to the class II or secondary beneficiary only if the
primary beneficiary does not survive the insured for a specified number of days
Reinstatement - ANSWER-The restoration and continuation of an original contract.
May happen up to three years after due date of defaulted premium payments.
Non forfeiture provisions - ANSWER-These apply when cash value policy holders
stop paying
Incontestability Clause - ANSWER-A clause that gives the maximum amount of time
the insurer has to contest the validity of the policy
Life policies - ANSWER-The "entire contract," "incontestability," and "misstatement
of age," clauses are found in:
Lump sum equal to the remaining - ANSWER-What does a life with cash refund
settlement option pay?
Ten - ANSWER-the minimum number of days an insurer must provide an individual
whole life policy owner in which to examine a policy that is not a replacement policy
and return it for a full refund
Thirty one - ANSWER-a grace period of at least ________days in which a premium
payment may be made after its due date in which the policy will remain in full force is
required when individual life insurance policies are issued or delivered in Virginia
Insurance Exam Questions & Answers
Ordinary Whole Life - ANSWER-requires level premium payments
Limited Pay - ANSWER-The type of whole life insurance that requires payments for
a certain or limited period
Universal Life Insurance Policies - ANSWER-allow premium payments to be skipped
Variable Life - ANSWER-Which type of life insurance policy is regulated as a security
Variable Universal Life - ANSWER-The type of life insurance product that combines
features of universal life and variable life
Current Assumption Whole Life Insurance Policies - ANSWER-may offer an
adjustable death benefit
Decreasing Term - ANSWER-The type of term insurance that is generally used to
protect against the risk that an insured will die before an outstanding loan is paid off
Variable Annuity - ANSWER-pays a variable return, based on sub-account
performance
Annuitant - ANSWER-The measuring life of an annuity policy
Term Certain or Period Certain Annuity - ANSWER-The type of immediate annuity or
annuitization option that pays a specified amount for a specified period
Single Premium Annuity - ANSWER-A fixed annuity where a single, cash payment
establishes the contract
Surrender Charge - ANSWER-What the insurance company may charge the client
when a client takes a withdrawal out of their deferred annuity
Bail-out provision - ANSWER-A provision of a deferred annuity that states that if the
rate ever goes below 2%, the annuity can be surrendered without the application of
surrender charges
Survivorship life insurance - ANSWER-the type of insurance that pays a death
benefit upon the death of the last to die of two or more insured
Guaranteed insurability provision or rider - ANSWER-gives the insured the right to
purchase additional insurance without having to provide evidence of insurability
, Waiver Premium Provision for Juvenile Life Policies - ANSWER-a provision which
allows the premium payments to stop after the payer of the premium on a policy
insuring the life of a juvenile becomes disabled
Through the ages of 60 to 65 - ANSWER-To what ages are the waiver of premium
disability riders generally effective?
Owner - ANSWER-The party on a whole life insurance policy with the right to take
withdrawals
Owner - ANSWER-The party on a life insurance contract with the right to increase or
decrease coverage within contract specifications
Premiums - ANSWER-Constitutes a valuable consideration in an insurance contract
(not: warranties, statements, representations)
Beneficiary - ANSWER-The party that receives policy benefits upon the death of the
insured
Irrevocable Beneficiary - ANSWER-If a _________ is named on a life insurance
policy, the beneficiary designation may only be changed with the permission of this
person
Common Disaster Clause - ANSWER-The type of clause that provides that life
insurance death benefit will be paid to the class II or secondary beneficiary only if the
primary beneficiary does not survive the insured for a specified number of days
Reinstatement - ANSWER-The restoration and continuation of an original contract.
May happen up to three years after due date of defaulted premium payments.
Non forfeiture provisions - ANSWER-These apply when cash value policy holders
stop paying
Incontestability Clause - ANSWER-A clause that gives the maximum amount of time
the insurer has to contest the validity of the policy
Life policies - ANSWER-The "entire contract," "incontestability," and "misstatement
of age," clauses are found in:
Lump sum equal to the remaining - ANSWER-What does a life with cash refund
settlement option pay?
Ten - ANSWER-the minimum number of days an insurer must provide an individual
whole life policy owner in which to examine a policy that is not a replacement policy
and return it for a full refund
Thirty one - ANSWER-a grace period of at least ________days in which a premium
payment may be made after its due date in which the policy will remain in full force is
required when individual life insurance policies are issued or delivered in Virginia
