VA LIFE AND HEALTH INSURANCE STATE EXAM QUESTIONS AND
va life/health insurance exam
ANSWERS (VERIFIED AND WELL DETAILED ANSWERS) LATEST
Study online at https://quizlet.com/_hh4qto
UPDATE 2025/2026
1. A(n) ________ insurer assumes risk from another insur- Reinsurance
ance company.
- Reciprocal
- Assumption
- Captive
- Reinsurance
2. When a ceding insurer transfers a portion of its risk Facultative reinsurance
to an assuming insurer on a case by case basis, this
process is referred to as
- Treaty reinsurance
- Reciprocity
- Quotative pooling
- Facultative reinsurance
3. Dividends from a mutual insurance company are paid Policyholders
to whom?
- Beneficiaries
- Stockholders
- Policyholders
- Preferred stockholders
4. Which of these describe a participating life insurance Policyowners are entitled
policy? to receive dividends
- Stock companies allow their policyowners to share in
any company earnings
- Policyowners are not entitled to vote for members of
the board of directors
, va life/health insurance exam
Study online at https://quizlet.com/_hh4qto
- Policyowners pay assessments for company losses
- Policyowners are entitled to receive dividends
5. A group-owned insurance company that is formed to risk retention group
assume and spread the liability risks of its members is
known as a
- risk retention group
- treaty insurer
- risk assumption group
- captive insurer
6. The stated amount or percent of liquid assets that reserves
an insurer must have on hand that will satisfy future
obligations to its policyholders is called
- retention
- reserves
- surplus
- credits
7. What is the accounting measurement of an insurance Reserves
company's future obligations to its policyowners?
- Credits
- Reserves
- Surplus account
- Retention fund
8. Which of the following is a syndicate established by a Lloyd's organization
group of insurers to share underwriting duties?
- NAIC
, va life/health insurance exam
Study online at https://quizlet.com/_hh4qto
- Lloyd's organization
- Reinsurer
- Multi-line insurers
9. Which of the following is NOT an objective of the Na- Regulate state insurance
tional Association of Insurance Commissioners? commissioners
- Regulate state insurance commissioners
- Encourage uniformity in state insurance laws
- Promote efficiency in the administration of state in-
surance laws
- Protect the interest of policyowners and consumers
10. What type of reinsurance contract involves two com-
panies automatically sharing their risk exposure?
- Treaty
- Arbitrage
- Excess
- Facultative
11. An insurer has a contractual agreement which trans- Reinsurance contract
fers a portion of its risk exposure to another insurer.
What type of contractual arrangement is this?
- Mutuality agreement
- Reciprocity arrangement
- Reinsurance contract
- Coinsurance contract
12. For insurance purposes, similar objects which are ex- Homogeneous exposure
posed to the same group of perils are referred to as units
, va life/health insurance exam
Study online at https://quizlet.com/_hh4qto
- Similar exposure units
- Homogenous perils
- Homogeneous exposure units
- Common hazards
13. Which of the following can be defined as a cause of a Peril
loss?
- Risk
- Peril
- Hazard
- Adversity
14. Which of the following is NOT an example of risk re- Not doing a business deal
tention? after deciding it would be
too risky
- Deciding a business deal is risky but going through
with it anyways
- Self-insuring a given risk
- Becoming aware of a risk and taking no action
- Not doing a business deal after deciding it would be
too risky
15. Which of these statements is NOT a characteristic of Individual losses can be
the law of large numbers? predicted based on past
experience
- Losses can be predicted in large groups with a higher
degree of accuracy
- Group losses can be predicted based on past experi-
ence
- Individual losses can be predicted based on past
experience
- Rates can be calculated to compensate for losses
va life/health insurance exam
ANSWERS (VERIFIED AND WELL DETAILED ANSWERS) LATEST
Study online at https://quizlet.com/_hh4qto
UPDATE 2025/2026
1. A(n) ________ insurer assumes risk from another insur- Reinsurance
ance company.
- Reciprocal
- Assumption
- Captive
- Reinsurance
2. When a ceding insurer transfers a portion of its risk Facultative reinsurance
to an assuming insurer on a case by case basis, this
process is referred to as
- Treaty reinsurance
- Reciprocity
- Quotative pooling
- Facultative reinsurance
3. Dividends from a mutual insurance company are paid Policyholders
to whom?
- Beneficiaries
- Stockholders
- Policyholders
- Preferred stockholders
4. Which of these describe a participating life insurance Policyowners are entitled
policy? to receive dividends
- Stock companies allow their policyowners to share in
any company earnings
- Policyowners are not entitled to vote for members of
the board of directors
, va life/health insurance exam
Study online at https://quizlet.com/_hh4qto
- Policyowners pay assessments for company losses
- Policyowners are entitled to receive dividends
5. A group-owned insurance company that is formed to risk retention group
assume and spread the liability risks of its members is
known as a
- risk retention group
- treaty insurer
- risk assumption group
- captive insurer
6. The stated amount or percent of liquid assets that reserves
an insurer must have on hand that will satisfy future
obligations to its policyholders is called
- retention
- reserves
- surplus
- credits
7. What is the accounting measurement of an insurance Reserves
company's future obligations to its policyowners?
- Credits
- Reserves
- Surplus account
- Retention fund
8. Which of the following is a syndicate established by a Lloyd's organization
group of insurers to share underwriting duties?
- NAIC
, va life/health insurance exam
Study online at https://quizlet.com/_hh4qto
- Lloyd's organization
- Reinsurer
- Multi-line insurers
9. Which of the following is NOT an objective of the Na- Regulate state insurance
tional Association of Insurance Commissioners? commissioners
- Regulate state insurance commissioners
- Encourage uniformity in state insurance laws
- Promote efficiency in the administration of state in-
surance laws
- Protect the interest of policyowners and consumers
10. What type of reinsurance contract involves two com-
panies automatically sharing their risk exposure?
- Treaty
- Arbitrage
- Excess
- Facultative
11. An insurer has a contractual agreement which trans- Reinsurance contract
fers a portion of its risk exposure to another insurer.
What type of contractual arrangement is this?
- Mutuality agreement
- Reciprocity arrangement
- Reinsurance contract
- Coinsurance contract
12. For insurance purposes, similar objects which are ex- Homogeneous exposure
posed to the same group of perils are referred to as units
, va life/health insurance exam
Study online at https://quizlet.com/_hh4qto
- Similar exposure units
- Homogenous perils
- Homogeneous exposure units
- Common hazards
13. Which of the following can be defined as a cause of a Peril
loss?
- Risk
- Peril
- Hazard
- Adversity
14. Which of the following is NOT an example of risk re- Not doing a business deal
tention? after deciding it would be
too risky
- Deciding a business deal is risky but going through
with it anyways
- Self-insuring a given risk
- Becoming aware of a risk and taking no action
- Not doing a business deal after deciding it would be
too risky
15. Which of these statements is NOT a characteristic of Individual losses can be
the law of large numbers? predicted based on past
experience
- Losses can be predicted in large groups with a higher
degree of accuracy
- Group losses can be predicted based on past experi-
ence
- Individual losses can be predicted based on past
experience
- Rates can be calculated to compensate for losses
