VIRGINIA LIFE AND HEALTH EXAM
REVIEW QUESTIONS & UPDATED
CORRECT ANSWERS
What contract term means only one party to a contract's promises are legally
enforceable? - CORRECT ANSWER Unilateral
Mr. Jones, the insured, committed suicide after the expiration of the suicide clause in his
life insurance policy. The insurer is obligated to: - CORRECT ANSWER Pay the death
benefit.
The benefit that encourages the disabled policy owner to try to return to work is: -
CORRECT ANSWER Recurrent disability
Jeff has limited financial resources, but finds himself in a position where he needs a
good deal of protection. A __________would probably best suit his needs at this time. -
CORRECT ANSWER Term policy
Tyler owns a major medical policy with 70/30 coinsurance and a $3,000 deductible. If he
submits a claim for $20,000, how much will he pay? - CORRECT ANSWER $8,100
Life insurance applications require a signature from: - CORRECT ANSWER The agent,
insured, and policyowner.
The cheapest premium payment mode would be on a policy that is paid: - CORRECT
ANSWER Annually
If an applicant misstates their age on an insurance application, what does the insurer do
when it is discovered at claim time? - CORRECT ANSWER Adjust the claim benefits to
reflect what he would have been entitled to if his real age had been given.
Phil and Sarah bought a life policy in which both are insured. Sarah dies before Phil. If
the policy pays the death benefit after Phil dies, it is a: - CORRECT ANSWER
Survivorship life
A decreasing term life policy would be the most appropriate for: - CORRECT ANSWER
A 41 year old lawyer who wants a policy to pay his mortgage if he dies
When an insured completed his health policy application, his producer did not take a
premium when he submitted it to the insurer. When the producer delivers the policy to
, the applicant, he needs to do all of the following EXCEPT: - CORRECT ANSWER
Issue the applicant a conditional receipt.
What type group plan requires 75% participation? - CORRECT ANSWER Contributory
How much time does a licensee have to notify the Commissioner of Insurance of any
change of residential, mailing, or business address? - CORRECT ANSWER 30 days
The services are provided on a prepaid per person basis called capitation in: -
CORRECT ANSWER HMOs
In life insurance, insurable interest must be present at the time of: - CORRECT
ANSWER Application
Mr. Johnson is looking at Medicare Supplement policies. These policies are designed
primarily to: - CORRECT ANSWER Provide benefits not covered by Medicare.
If the cash values of an annuity are invested in securities, it is a: - CORRECT
ANSWER Variable annuity
What is a marketing communication that is oral, printed, or written and designed to
create public interest in life insurance or annuities? - CORRECT ANSWER
Advertisement
What is the minimum time required for the basis of a long-term policy? - CORRECT
ANSWER 12 consecutive months
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value
of the policy? - CORRECT ANSWER Cash surrender
On January 3, an application is submitted without the initial premium. The insurer
requires a medical exam, and it is completed on January 15. On January 20, the insurer
issued the policy standard, and the producer delivers it on January 22. When is
coverage effective? - CORRECT ANSWER January 22, after the statement of good
health is signed, and the initial premium is paid.
What part of the policy directs the insurer on the recipients of benefits? - CORRECT
ANSWER Payment of Claims provision
What is the advantage of a payor benefit rider? - CORRECT ANSWER It provides a
temporary waiver of premium if the person paying the premium dies.
Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using
which dividend option? - CORRECT ANSWER Reduction of premium
REVIEW QUESTIONS & UPDATED
CORRECT ANSWERS
What contract term means only one party to a contract's promises are legally
enforceable? - CORRECT ANSWER Unilateral
Mr. Jones, the insured, committed suicide after the expiration of the suicide clause in his
life insurance policy. The insurer is obligated to: - CORRECT ANSWER Pay the death
benefit.
The benefit that encourages the disabled policy owner to try to return to work is: -
CORRECT ANSWER Recurrent disability
Jeff has limited financial resources, but finds himself in a position where he needs a
good deal of protection. A __________would probably best suit his needs at this time. -
CORRECT ANSWER Term policy
Tyler owns a major medical policy with 70/30 coinsurance and a $3,000 deductible. If he
submits a claim for $20,000, how much will he pay? - CORRECT ANSWER $8,100
Life insurance applications require a signature from: - CORRECT ANSWER The agent,
insured, and policyowner.
The cheapest premium payment mode would be on a policy that is paid: - CORRECT
ANSWER Annually
If an applicant misstates their age on an insurance application, what does the insurer do
when it is discovered at claim time? - CORRECT ANSWER Adjust the claim benefits to
reflect what he would have been entitled to if his real age had been given.
Phil and Sarah bought a life policy in which both are insured. Sarah dies before Phil. If
the policy pays the death benefit after Phil dies, it is a: - CORRECT ANSWER
Survivorship life
A decreasing term life policy would be the most appropriate for: - CORRECT ANSWER
A 41 year old lawyer who wants a policy to pay his mortgage if he dies
When an insured completed his health policy application, his producer did not take a
premium when he submitted it to the insurer. When the producer delivers the policy to
, the applicant, he needs to do all of the following EXCEPT: - CORRECT ANSWER
Issue the applicant a conditional receipt.
What type group plan requires 75% participation? - CORRECT ANSWER Contributory
How much time does a licensee have to notify the Commissioner of Insurance of any
change of residential, mailing, or business address? - CORRECT ANSWER 30 days
The services are provided on a prepaid per person basis called capitation in: -
CORRECT ANSWER HMOs
In life insurance, insurable interest must be present at the time of: - CORRECT
ANSWER Application
Mr. Johnson is looking at Medicare Supplement policies. These policies are designed
primarily to: - CORRECT ANSWER Provide benefits not covered by Medicare.
If the cash values of an annuity are invested in securities, it is a: - CORRECT
ANSWER Variable annuity
What is a marketing communication that is oral, printed, or written and designed to
create public interest in life insurance or annuities? - CORRECT ANSWER
Advertisement
What is the minimum time required for the basis of a long-term policy? - CORRECT
ANSWER 12 consecutive months
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value
of the policy? - CORRECT ANSWER Cash surrender
On January 3, an application is submitted without the initial premium. The insurer
requires a medical exam, and it is completed on January 15. On January 20, the insurer
issued the policy standard, and the producer delivers it on January 22. When is
coverage effective? - CORRECT ANSWER January 22, after the statement of good
health is signed, and the initial premium is paid.
What part of the policy directs the insurer on the recipients of benefits? - CORRECT
ANSWER Payment of Claims provision
What is the advantage of a payor benefit rider? - CORRECT ANSWER It provides a
temporary waiver of premium if the person paying the premium dies.
Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using
which dividend option? - CORRECT ANSWER Reduction of premium
