Life and Health Insurance License prep
Exam Questions With Best graded
Answers
Which of the following statements is true regarding accident and health insurance
claims that reimburse on an idemnity basis? - ANSWER-Claims can be sent directly
to the insured.
Tom the agent negotiates an agreement that unreasonably restrains the business of
insurance. He has likely commited a violation of insurance law that falls under -
ANSWER-Boycott, coercion, and intimidation
Viatical settlement proceeds may be subject to the claims of - ANSWER-creditors
Once an insured notifies an insurer of a claim, what must the insurer do? -
ANSWER-Send out a claim form
What action may the Bureau of Insurance take when it finds that a license applicant
is not competent or untrustworthy? - ANSWER-decline to issue the license
In a long-term care policy issued in Virginia, any provision limiting preexisting
conditions may not exceed - ANSWER-6 months
aministrative actions taken against an agent must be reported to the State
Corporation Commission within how many days of the final disposition - ANSWER-
30
In Virginia, once a life insurance policy has been in force for how many years, it
becomes incontestable - ANSWER-2
Mentally or physically handicapped dependent children MUST be covered under an
individual health insurance policy - ANSWER-until they become self supportive
Carlos' agent license has been suspended due to non-renewal. He may apply for the
reinstatement within the ---month period following the date when the license should
have been renewed - ANSWER-12
If a life insurance applicant is shown future premiums are to be paid out of non-
guaranteed values, the illustration used in the sales presentation MUST - ANSWER-
disclose that premium payments may need to be resumed depending on actual
results
Which of these is NOT an Unfair Claims Settlement Practice? - ANSWER-Refusing
to pay persons bringing false or fraudulent claims
, A prosepective client was intimidated by an agent to purchase an insurance contract.
The agent could be found guilty of - ANSWER-coercion
The maxiumum prison sentense given under federal law for unfair and deceptive
insurance practices is - ANSWER-15 years
When replacing an individual Accident and Health policy in Virginia, the required
replacement notice to the applicant must include - ANSWER-Notice that the prior
conditions may not be covered
In Virgina, a small employer is comprised of - ANSWER-2-50
Paul is an agent who is licensed in Virginia but a resident of Maryland. P is
consedered to be an what agent? - ANSWER-nonresident
In VA what records are not required to be maintained by the agent? - ANSWER-
Premium quotes for policies not accepted
An insurance company is marketing a health insurance policy in Virginia which
contains a provision that is in conflict with Virginia insurance law. What remedy must
be taken by the insurer? - ANSWER-The provision must be amended to conform to
the minimum statutory requirements.
A long-term care policy in Virginia must be issued on which of the following basis? -
ANSWER-Guaranteed renewable
Before an individual is permitted to act as an insurance agent, he/she must hold a
valid insurance license and be -----by an authoried insurer - ANSWER-Appointed
In Virginia, an insurer must file a written notice of appointment with the State
Corporation Commission within - ANSWER-30 days
If a Medicare Supplement policy is cancelled by the insurer, which of these
circumstances does NOT require prior approval by the State Corporation
Commission? - ANSWER-non payment of premium
Once a child is born and covered under an accident and health insurance plan, any
reduction in benefits on the newborn is - ANSWER-strictly prohibited
A insurance company operates outside the state it is domiciled - ANSWER-foreign
Group health insurance issued in Virginia must identify any exclusions, limitations, or
reductions in coverage on which of the following? - ANSWER-The certificate of
coverage
In a speech to a local association, an agent incorrectly stated that XY Insurance
Company is in financial difficulty and not paying claims. The agent may be guilty of -
ANSWER-defamation
Exam Questions With Best graded
Answers
Which of the following statements is true regarding accident and health insurance
claims that reimburse on an idemnity basis? - ANSWER-Claims can be sent directly
to the insured.
Tom the agent negotiates an agreement that unreasonably restrains the business of
insurance. He has likely commited a violation of insurance law that falls under -
ANSWER-Boycott, coercion, and intimidation
Viatical settlement proceeds may be subject to the claims of - ANSWER-creditors
Once an insured notifies an insurer of a claim, what must the insurer do? -
ANSWER-Send out a claim form
What action may the Bureau of Insurance take when it finds that a license applicant
is not competent or untrustworthy? - ANSWER-decline to issue the license
In a long-term care policy issued in Virginia, any provision limiting preexisting
conditions may not exceed - ANSWER-6 months
aministrative actions taken against an agent must be reported to the State
Corporation Commission within how many days of the final disposition - ANSWER-
30
In Virginia, once a life insurance policy has been in force for how many years, it
becomes incontestable - ANSWER-2
Mentally or physically handicapped dependent children MUST be covered under an
individual health insurance policy - ANSWER-until they become self supportive
Carlos' agent license has been suspended due to non-renewal. He may apply for the
reinstatement within the ---month period following the date when the license should
have been renewed - ANSWER-12
If a life insurance applicant is shown future premiums are to be paid out of non-
guaranteed values, the illustration used in the sales presentation MUST - ANSWER-
disclose that premium payments may need to be resumed depending on actual
results
Which of these is NOT an Unfair Claims Settlement Practice? - ANSWER-Refusing
to pay persons bringing false or fraudulent claims
, A prosepective client was intimidated by an agent to purchase an insurance contract.
The agent could be found guilty of - ANSWER-coercion
The maxiumum prison sentense given under federal law for unfair and deceptive
insurance practices is - ANSWER-15 years
When replacing an individual Accident and Health policy in Virginia, the required
replacement notice to the applicant must include - ANSWER-Notice that the prior
conditions may not be covered
In Virgina, a small employer is comprised of - ANSWER-2-50
Paul is an agent who is licensed in Virginia but a resident of Maryland. P is
consedered to be an what agent? - ANSWER-nonresident
In VA what records are not required to be maintained by the agent? - ANSWER-
Premium quotes for policies not accepted
An insurance company is marketing a health insurance policy in Virginia which
contains a provision that is in conflict with Virginia insurance law. What remedy must
be taken by the insurer? - ANSWER-The provision must be amended to conform to
the minimum statutory requirements.
A long-term care policy in Virginia must be issued on which of the following basis? -
ANSWER-Guaranteed renewable
Before an individual is permitted to act as an insurance agent, he/she must hold a
valid insurance license and be -----by an authoried insurer - ANSWER-Appointed
In Virginia, an insurer must file a written notice of appointment with the State
Corporation Commission within - ANSWER-30 days
If a Medicare Supplement policy is cancelled by the insurer, which of these
circumstances does NOT require prior approval by the State Corporation
Commission? - ANSWER-non payment of premium
Once a child is born and covered under an accident and health insurance plan, any
reduction in benefits on the newborn is - ANSWER-strictly prohibited
A insurance company operates outside the state it is domiciled - ANSWER-foreign
Group health insurance issued in Virginia must identify any exclusions, limitations, or
reductions in coverage on which of the following? - ANSWER-The certificate of
coverage
In a speech to a local association, an agent incorrectly stated that XY Insurance
Company is in financial difficulty and not paying claims. The agent may be guilty of -
ANSWER-defamation
