2024 VA LIFE AND HEALTH INSURANCE STATE EXAM
REAL EXAM COMPLETE ACTUAL QUESTIONS AND
CORRECT VERIFIED ANSWERS (A NEW UPDATED
VERSION) |ALREADY GRADED A+ (BRAND NEW!!) VA
LIFE & HEALTH INSUARANCE STATE EXAM 2024
Why would a large corporation choose to self-insure rather than buy an insurance
policy from an insurance company?
a) to avoid having to comply with individual state laws
b) to cover against an occasional but high-severity loss
c) to insure against frequent but low-severity losses
d) for tax abatement purposes - ANSWER: c) to insure against frequent but low-
severity losses
A large company that is willing and financially able to assume certain risks can self-
insure by creating a reserve fund and using that money to pay claims. This type of
system is used for frequently occurring claims such as workers' compensation or
pension plans
All of the following are means of regulation for the insurance business EXCEPT:
a) agency regulation
b) state regulation
c) federal regulation
d) industry self-regulation - ANSWER: a) agency regulation
Agencies are not permitted to regulate themselves. Regulation of insurance is now
principally in the hands of the individual states, though the federal government and
the industry itself have roles in this regulation.
ABC Insurance Company fires Producer Renee. She continues to interview prospects,
make sales presentations with company materials, and collect premiums, which she
deposits in her personal account. Which of the following types of authority have her
"prospects" relied on when paying what they believe to be premiums?
a) apparent authority
b) actual authority
c) implied authority
d) express authority - ANSWER: a) apparent authority
Apparent authority is not intended to be granted to the agent by the insurer.
However, it is the authority that appears to exist from the perspective of the
customer or other third parties.
,Under contract law, an applicant's statements on an application for insurance are
considered to be which of the following?
a) guaranteed as factual
b) taken on good faith
c) warranties
d) representations - ANSWER: d) representations
An applicant's statements on an application for insurance are considered
representations and not warranties.
Margo applies for a $250,000 universal life insurance policy. During the underwriting
process, the insurer determines that she fits its guidelines for policy issue without
any special restrictions. What type of risk is Margo considered?
a) standard
b) substandard
c) preferred
d) rated - ANSWER: a) standard
A person classified as a standard risk fits the insurer's guidelines for policy issue
without any special restrictions. Such applicants have a standard, or normal, medical
history. Most insurance applicants fall within this category.
Multiple employer welfare arrangements (MEWAs) come in two forms. These are
which of the following?
a) fully vested and partially vested
b) fully insured and self-insured
c) contributory and noncontributory
d) group funded and self-funded - ANSWER: b) fully insured and self-insured
Fully insured MEWAs are formed by two or more employers. Self-insured MEWAs
must get a state-issued certificate of authority and follow reporting guidelines similar
to insurance companies, and they must have at least five employers and 200
employees.
Rhonda has accumulated value in her life insurance policy. She has no children and
has heard that a life settlement provider may be interested in buying her policy. How
much can she expect to receive if she sells her interest in the policy?
a) the policy's actual cash value
b) the amount of premiums she has paid
c) the policy's death benefit
, d) a percentage of (but less than) the policy's death benefit - ANSWER: d) a
percentage of (but less than) the policy's death benefit
The agreement between a life insurance policyowner and a life settlement provider
governs the compensation paid in return for the owner's present or future interest in
any portion of the policy. Compensation to the owner is typically more than the
premiums paid or the policy's cash value and is less than the policy's expected death
benefit.
Sam and Elena were married and had purchased a life insurance policy that covered
both their lives. Sam died on June 1. One year later, Elena died, and the policy
proceeds were paid to her son as beneficiary. Which type of policy did Sam and
Elena own?
a) survivorship life
b) family life
c) spousal life
d) joint life - ANSWER: a) survivorship life
Survivorship life insurance policies insure more than one person but pay the death
benefit only when the second insured dies. In these policies, premiums are lower
than they would be for two comparable single-life policies.
Group life insurance can be provided through a group insurance contract or through
a) a trustee of the employer fund
b) a close corporation formed to disburse funds to deceased employees
c) a sole proprietorship formed by the business owner expressly to pay benefits to
deceased employees
d) an agents' association formed to collect premiums and disburse them to
employees who die. - ANSWER: a) a trustee of the employer fund
As in estate planning, a trustee would manage the transfer of funds for the payment
of claims to individual members of the group plan.
The three factors included in calculating life insurance premiums are which of the
following?
a) mortality, interest, and expenses
b) mortality, morbidity, and expenses
c) age, mortality, and interest
d) age, mortality, and expenses - ANSWER: a) mortality, interest, and expenses
Actuaries base traditional life insurance premiums on mortality, or the incidence of
death among a given group; interest, or the amount of earnings the insurer can
REAL EXAM COMPLETE ACTUAL QUESTIONS AND
CORRECT VERIFIED ANSWERS (A NEW UPDATED
VERSION) |ALREADY GRADED A+ (BRAND NEW!!) VA
LIFE & HEALTH INSUARANCE STATE EXAM 2024
Why would a large corporation choose to self-insure rather than buy an insurance
policy from an insurance company?
a) to avoid having to comply with individual state laws
b) to cover against an occasional but high-severity loss
c) to insure against frequent but low-severity losses
d) for tax abatement purposes - ANSWER: c) to insure against frequent but low-
severity losses
A large company that is willing and financially able to assume certain risks can self-
insure by creating a reserve fund and using that money to pay claims. This type of
system is used for frequently occurring claims such as workers' compensation or
pension plans
All of the following are means of regulation for the insurance business EXCEPT:
a) agency regulation
b) state regulation
c) federal regulation
d) industry self-regulation - ANSWER: a) agency regulation
Agencies are not permitted to regulate themselves. Regulation of insurance is now
principally in the hands of the individual states, though the federal government and
the industry itself have roles in this regulation.
ABC Insurance Company fires Producer Renee. She continues to interview prospects,
make sales presentations with company materials, and collect premiums, which she
deposits in her personal account. Which of the following types of authority have her
"prospects" relied on when paying what they believe to be premiums?
a) apparent authority
b) actual authority
c) implied authority
d) express authority - ANSWER: a) apparent authority
Apparent authority is not intended to be granted to the agent by the insurer.
However, it is the authority that appears to exist from the perspective of the
customer or other third parties.
,Under contract law, an applicant's statements on an application for insurance are
considered to be which of the following?
a) guaranteed as factual
b) taken on good faith
c) warranties
d) representations - ANSWER: d) representations
An applicant's statements on an application for insurance are considered
representations and not warranties.
Margo applies for a $250,000 universal life insurance policy. During the underwriting
process, the insurer determines that she fits its guidelines for policy issue without
any special restrictions. What type of risk is Margo considered?
a) standard
b) substandard
c) preferred
d) rated - ANSWER: a) standard
A person classified as a standard risk fits the insurer's guidelines for policy issue
without any special restrictions. Such applicants have a standard, or normal, medical
history. Most insurance applicants fall within this category.
Multiple employer welfare arrangements (MEWAs) come in two forms. These are
which of the following?
a) fully vested and partially vested
b) fully insured and self-insured
c) contributory and noncontributory
d) group funded and self-funded - ANSWER: b) fully insured and self-insured
Fully insured MEWAs are formed by two or more employers. Self-insured MEWAs
must get a state-issued certificate of authority and follow reporting guidelines similar
to insurance companies, and they must have at least five employers and 200
employees.
Rhonda has accumulated value in her life insurance policy. She has no children and
has heard that a life settlement provider may be interested in buying her policy. How
much can she expect to receive if she sells her interest in the policy?
a) the policy's actual cash value
b) the amount of premiums she has paid
c) the policy's death benefit
, d) a percentage of (but less than) the policy's death benefit - ANSWER: d) a
percentage of (but less than) the policy's death benefit
The agreement between a life insurance policyowner and a life settlement provider
governs the compensation paid in return for the owner's present or future interest in
any portion of the policy. Compensation to the owner is typically more than the
premiums paid or the policy's cash value and is less than the policy's expected death
benefit.
Sam and Elena were married and had purchased a life insurance policy that covered
both their lives. Sam died on June 1. One year later, Elena died, and the policy
proceeds were paid to her son as beneficiary. Which type of policy did Sam and
Elena own?
a) survivorship life
b) family life
c) spousal life
d) joint life - ANSWER: a) survivorship life
Survivorship life insurance policies insure more than one person but pay the death
benefit only when the second insured dies. In these policies, premiums are lower
than they would be for two comparable single-life policies.
Group life insurance can be provided through a group insurance contract or through
a) a trustee of the employer fund
b) a close corporation formed to disburse funds to deceased employees
c) a sole proprietorship formed by the business owner expressly to pay benefits to
deceased employees
d) an agents' association formed to collect premiums and disburse them to
employees who die. - ANSWER: a) a trustee of the employer fund
As in estate planning, a trustee would manage the transfer of funds for the payment
of claims to individual members of the group plan.
The three factors included in calculating life insurance premiums are which of the
following?
a) mortality, interest, and expenses
b) mortality, morbidity, and expenses
c) age, mortality, and interest
d) age, mortality, and expenses - ANSWER: a) mortality, interest, and expenses
Actuaries base traditional life insurance premiums on mortality, or the incidence of
death among a given group; interest, or the amount of earnings the insurer can
