Virginia Laws and Rules Exam
Q&A(Rated A+)
In Virginia, an insurer must file a written notice of appointment with the State
Corporation Commission within - ANSWER-30 days of the first insurance application
submitted by the licensee
Which of these is NOT an Unfair Claims Settlement Practice? - ANSWER-Denying
unsubstantiated claims on a timely basis
A statement MUST be signed by the ________ for any illustrations used in the sale
of a life insurance policy. - ANSWER-Agent
Which of these would likely be considered an Unfair Claims Settlement Practice? -
ANSWER-Offering settlements that are less than the fair value to offset insurer
expenses
The State Corporation Commission is empowered to perform each of the following
acts EXCEPT - ANSWER-Prosecute agents who violate state insurance laws
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 - ANSWER-Must sign a statement that no illustration was provided
When an agent is determining the suitability of an annuity for a client, which of these
is NOT usually taken into consideration? - ANSWER-level of education
Which of the following situations would qualify an insured to receive funds from an
accelerated (living) benefit rider? - ANSWER-Insured is expected to remain in a
nursing home for life
Licensed agents in Virginia are authorized to - ANSWER-Solicit, receive, and
forward applications to the insurer
In Virginia, an insurance agent's appointment - ANSWER-Is in effect until termination
Someone who is licensed to negotiate a viatical settlement contract is called a(n) -
ANSWER-Viatical settlement broker
Which of the following approves continuing education courses for credit in Virginia? -
ANSWER-State Continuing Education Board (Virginia Continuing Education Board)
In Virginia, once a life insurance policy has been in force for ____ year(s), it
becomes incontestable. - ANSWER-2 years
, Proceeds of a life insurance policy claim may be issued to a minor ONLY if -
ANSWER-A guardian has been appointed to receive proceeds on behalf of the
minor.
An agent who makes derogatory remarks about another insurance company during
the sale of insurance has engaged in - ANSWER-Defamation
Which of the following is considered an Unfair Claims Settlement Practice? -
ANSWER-Failure to investigate or pay legitimate claims
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? - ANSWER-Given written consent by the state insurance regulatory
agency
An agent who informs an applicant that there are no exclusions in an insurance
policy has engaged in - ANSWER-Misrepresentation
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy? -
ANSWER-31 days
Virginia requires that an insurance agent must complete __ hour(s) of continuing
education on the subject of ethics every reporting period. - ANSWER-3 hours
A life insurance policy can be backdated before the application date for up to ___
month(s). - ANSWER-6 months
An annuity contract may be returned for a full refund during the - ANSWER-Free-
look period
When an insurer discovers (during the claim process) that the insured's age was
accidentally misstated on the life insurance application, the insurer will most likely -
ANSWER-Pay an amount the premiums would have purchased at the insured's
actual age
Carlos the agent has sold an insurance policy and will be sharing the commission
with another individual. Which of the following individuals may Carlos share the
commission with? - ANSWER-Another licensed but unappointed agent
Which of these is NOT an Unfair Claims Settlement Practice? - ANSWER-Refusing
to pay persons bringing false or fraudulent claims
An example of rebating would be - ANSWER-splitting the commission with the buyer
on a sale of insurance
In a speech to a local association, an agent incorrectly stated that XYZ Insurance
Company is in financial difficulty and not paying claims. The agent may be guilty of -
ANSWER-defamation
Q&A(Rated A+)
In Virginia, an insurer must file a written notice of appointment with the State
Corporation Commission within - ANSWER-30 days of the first insurance application
submitted by the licensee
Which of these is NOT an Unfair Claims Settlement Practice? - ANSWER-Denying
unsubstantiated claims on a timely basis
A statement MUST be signed by the ________ for any illustrations used in the sale
of a life insurance policy. - ANSWER-Agent
Which of these would likely be considered an Unfair Claims Settlement Practice? -
ANSWER-Offering settlements that are less than the fair value to offset insurer
expenses
The State Corporation Commission is empowered to perform each of the following
acts EXCEPT - ANSWER-Prosecute agents who violate state insurance laws
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 - ANSWER-Must sign a statement that no illustration was provided
When an agent is determining the suitability of an annuity for a client, which of these
is NOT usually taken into consideration? - ANSWER-level of education
Which of the following situations would qualify an insured to receive funds from an
accelerated (living) benefit rider? - ANSWER-Insured is expected to remain in a
nursing home for life
Licensed agents in Virginia are authorized to - ANSWER-Solicit, receive, and
forward applications to the insurer
In Virginia, an insurance agent's appointment - ANSWER-Is in effect until termination
Someone who is licensed to negotiate a viatical settlement contract is called a(n) -
ANSWER-Viatical settlement broker
Which of the following approves continuing education courses for credit in Virginia? -
ANSWER-State Continuing Education Board (Virginia Continuing Education Board)
In Virginia, once a life insurance policy has been in force for ____ year(s), it
becomes incontestable. - ANSWER-2 years
, Proceeds of a life insurance policy claim may be issued to a minor ONLY if -
ANSWER-A guardian has been appointed to receive proceeds on behalf of the
minor.
An agent who makes derogatory remarks about another insurance company during
the sale of insurance has engaged in - ANSWER-Defamation
Which of the following is considered an Unfair Claims Settlement Practice? -
ANSWER-Failure to investigate or pay legitimate claims
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? - ANSWER-Given written consent by the state insurance regulatory
agency
An agent who informs an applicant that there are no exclusions in an insurance
policy has engaged in - ANSWER-Misrepresentation
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy? -
ANSWER-31 days
Virginia requires that an insurance agent must complete __ hour(s) of continuing
education on the subject of ethics every reporting period. - ANSWER-3 hours
A life insurance policy can be backdated before the application date for up to ___
month(s). - ANSWER-6 months
An annuity contract may be returned for a full refund during the - ANSWER-Free-
look period
When an insurer discovers (during the claim process) that the insured's age was
accidentally misstated on the life insurance application, the insurer will most likely -
ANSWER-Pay an amount the premiums would have purchased at the insured's
actual age
Carlos the agent has sold an insurance policy and will be sharing the commission
with another individual. Which of the following individuals may Carlos share the
commission with? - ANSWER-Another licensed but unappointed agent
Which of these is NOT an Unfair Claims Settlement Practice? - ANSWER-Refusing
to pay persons bringing false or fraudulent claims
An example of rebating would be - ANSWER-splitting the commission with the buyer
on a sale of insurance
In a speech to a local association, an agent incorrectly stated that XYZ Insurance
Company is in financial difficulty and not paying claims. The agent may be guilty of -
ANSWER-defamation
