Virginia Life and Health Exam Review
Questions and Answers
1. What contract term means only one party to a contract's
promises are legally enforceable?: Unilateral
2. Mr. Jones, the insured, committed suicide after the expiration of
the suicide clause in his life insurance policy. The insurer is obligated
to:: Pay the death benefit.
3. The benefit that encourages the disabled policy owner to try to
return to work is:: Recurrent disability
4. 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.: Term policy
5. 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?: $8,100
6. Life insurance applications require a signature from:: The agent, insured,
and policyowner.
,7. The cheapest premium payment mode would be on a policy that is
paid:: An- nually
8. If an applicant misstates their age on an insurance application, what
does the insurer do when it is discovered at claim time?: Adjust the claim benefits to
reflect what he would have been entitled to if his real age had been given.
9. 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:: Survivorship life
10. A decreasing term life policy would be the most appropriate
for:: A 41 year old lawyer who wants a policy to pay his mortgage if he dies
11. 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:-
: Issue the applicant a conditional receipt.
12. What type group plan requires 75% participation?: Contributory
13. How much time does a licensee have to notify the
Commissioner of Insur- ance of any change of residential, mailing,
, or business address?: 30 days
14. The services are provided on a prepaid per person basis
called capitation in:: HMOs
15. In life insurance, insurable interest must be present at the time
of:: Application
16. Mr. Johnson is looking at Medicare Supplement policies. These
policies are designed primarily to:: Provide benefits not covered by Medicare.
17. If the cash values of an annuity are invested in securities, it is a::
Variable annuity
18. What is a marketing communication that is oral, printed,
or written and designed to create public interest in life insurance
or annuities?: Advertisement
19. What is the minimum time required for the basis of a long-
term policy?: 12 consecutive months
20. Alex's life policy lapsed, which Nonforfeiture option would the
insurer send him the value of the policy?: Cash surrender
Questions and Answers
1. What contract term means only one party to a contract's
promises are legally enforceable?: Unilateral
2. Mr. Jones, the insured, committed suicide after the expiration of
the suicide clause in his life insurance policy. The insurer is obligated
to:: Pay the death benefit.
3. The benefit that encourages the disabled policy owner to try to
return to work is:: Recurrent disability
4. 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.: Term policy
5. 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?: $8,100
6. Life insurance applications require a signature from:: The agent, insured,
and policyowner.
,7. The cheapest premium payment mode would be on a policy that is
paid:: An- nually
8. If an applicant misstates their age on an insurance application, what
does the insurer do when it is discovered at claim time?: Adjust the claim benefits to
reflect what he would have been entitled to if his real age had been given.
9. 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:: Survivorship life
10. A decreasing term life policy would be the most appropriate
for:: A 41 year old lawyer who wants a policy to pay his mortgage if he dies
11. 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:-
: Issue the applicant a conditional receipt.
12. What type group plan requires 75% participation?: Contributory
13. How much time does a licensee have to notify the
Commissioner of Insur- ance of any change of residential, mailing,
, or business address?: 30 days
14. The services are provided on a prepaid per person basis
called capitation in:: HMOs
15. In life insurance, insurable interest must be present at the time
of:: Application
16. Mr. Johnson is looking at Medicare Supplement policies. These
policies are designed primarily to:: Provide benefits not covered by Medicare.
17. If the cash values of an annuity are invested in securities, it is a::
Variable annuity
18. What is a marketing communication that is oral, printed,
or written and designed to create public interest in life insurance
or annuities?: Advertisement
19. What is the minimum time required for the basis of a long-
term policy?: 12 consecutive months
20. Alex's life policy lapsed, which Nonforfeiture option would the
insurer send him the value of the policy?: Cash surrender
