Final Exam-Virginia life and Health
Insurable interest in one's own life is legally considered as - ANS -Generally unlimited
Where does the primary funding for medical part A come from? - ANS -Federal payroll and self
employment taxes
What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as
opposed to naming an individual? - ANS -Management of proceeds would be provided
Virginia requires that an agent must complete___ hours of continuing education on the subject
of ethics every reporting. - ANS -3 hours
According to the needs approach, an emergency reserve fund's primary purpose is to - ANS
-cover the cost of unexpected expenses
Which of the following provisions allows an insured or the insurer to terminate the policy - ANS
-Cancelable provision
How much is normally paid to a policyowner in a life (viatical) settlement? - ANS -Less than the
death benefit
For purposes of disability income insurance, earned income would include all of the following
EXCEPT - ANS -Dividends
(Salary, commissions, bonus)
Which type of group plan is excluded from HIPAA rules? - ANS -Disability Income
How does a continuous premium whole life policy differ from a limited payment while life policy?
- ANS -The time period in which premiums will be paid
COBRA extends coverage for a surviving spouse but at a rate not more than _____ of the group
premium. - ANS -102%
Which of the following approves continuing education courses for credit in Virginia? - ANS
-State Continuing Education Board
Which statement regarding the waiver of premium rider is accurate? - ANS -Cash payment is
not directly provided to the policyowner
,Under a long-term care inflation rider, the benefit levels - ANS -periodically increase without
proof of insurability
Which typically changes at the re-entry option date found in some term life policies? - ANS
-Premium
Employees generally receive Worker's Compensation benefits for - ANS -Lost wages and
medical expenses due to a occupational accident
Which is an accurate description of the premium in a graded premium life insurance policy? -
ANS -Annual increases in premium for a stated number of years then levels off for the
remainder of the contract
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan,
minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? -
ANS -Income taxes plus a 10% penalty tax on $30,000
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further
payments are permitted and the income stream begins in 15 years. This contract is a(n) - ANS
-Single Premium Deferred Annuity
Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility?
- ANS -100 days
A domestic insurance company in Virginia MUST - ANS -Be formed under Virginia insurance
laws
What are premium for group credit life insurance based on? - ANS -Flat rate unrelated to the
borrower's age
What minimum percentage of all eligible employees must participate in a group life insurance
plan if the premiums are completely paid for by the employer?
0%
50%
75%
100% - ANS -100%
Where will a life insurance policy's proceeds be directed to if all the beneficiaries die before the
insured? - ANS -The insured's estate
Under what circumstances does an accident and health insurer have the right to request an
autopsy? - ANS -When not prohibited by state law
, Which of these is NOT an unfair claims settlement practice? - ANS -Offering to settle a claim by
arbitration
How is an insured's accident and health claim handled by an insurer if it occurs during the
policy's grace period? - ANS -The unpaid premium may be subtracted from the reimbursement
What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?
- ANS -cash value
How is the insured protected if a payor benefit rider is attached to the life insurance policy? -
ANS -Premium payments are waived in the event the premium payor dies or becomes disabled
After an insurance application has been originated, the producer normally - ANS -is the major
personal contact to the insured
Which of the following health provisions requires that the application becomes part of the
policy? - ANS -Entire contract clause
Death proceeds from a life insurance policy are typically included in a deceased insured's gross
estate - ANS -for federal income tax reasons
Under which circumstance may an insurer discontinue a small employer group medical plan? -
ANS -Employer fails to pay the premium for it to the end of the grease period
What determines how much an annuitant is paid for a variable annuity? - ANS -The market
value variations of the securities backing it
Which of the following is covered by a basic dental indemnity plan? - ANS -Non-surgical
periodontal treatment
Periodic health claim payments MUST be made at least - ANS -monthly
James is covered with health insurance by two different insurers. The "insurance with other
insurers" provision in an individual health insurance policy allows an insurer to pay benefits to
the insured on a pro-rata basis when - ANS -The insurer was not notified prior to the claim that
the insured has other health coverage
A major medical expense plan typically includes coverage for hospital room and board. Which of
the following is normally covered under the category "room and board"? - ANS -General
nursing care
Which of the following statements is true regarding accident and health insurance claims that
reimburse on an indemnity basis? - ANS -Claims can be sent directly to the insured
Insurable interest in one's own life is legally considered as - ANS -Generally unlimited
Where does the primary funding for medical part A come from? - ANS -Federal payroll and self
employment taxes
What would be a valid reason for naming a trust as the beneficiary of a life insurance policy as
opposed to naming an individual? - ANS -Management of proceeds would be provided
Virginia requires that an agent must complete___ hours of continuing education on the subject
of ethics every reporting. - ANS -3 hours
According to the needs approach, an emergency reserve fund's primary purpose is to - ANS
-cover the cost of unexpected expenses
Which of the following provisions allows an insured or the insurer to terminate the policy - ANS
-Cancelable provision
How much is normally paid to a policyowner in a life (viatical) settlement? - ANS -Less than the
death benefit
For purposes of disability income insurance, earned income would include all of the following
EXCEPT - ANS -Dividends
(Salary, commissions, bonus)
Which type of group plan is excluded from HIPAA rules? - ANS -Disability Income
How does a continuous premium whole life policy differ from a limited payment while life policy?
- ANS -The time period in which premiums will be paid
COBRA extends coverage for a surviving spouse but at a rate not more than _____ of the group
premium. - ANS -102%
Which of the following approves continuing education courses for credit in Virginia? - ANS
-State Continuing Education Board
Which statement regarding the waiver of premium rider is accurate? - ANS -Cash payment is
not directly provided to the policyowner
,Under a long-term care inflation rider, the benefit levels - ANS -periodically increase without
proof of insurability
Which typically changes at the re-entry option date found in some term life policies? - ANS
-Premium
Employees generally receive Worker's Compensation benefits for - ANS -Lost wages and
medical expenses due to a occupational accident
Which is an accurate description of the premium in a graded premium life insurance policy? -
ANS -Annual increases in premium for a stated number of years then levels off for the
remainder of the contract
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan,
minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? -
ANS -Income taxes plus a 10% penalty tax on $30,000
Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further
payments are permitted and the income stream begins in 15 years. This contract is a(n) - ANS
-Single Premium Deferred Annuity
Medicare will cover a maximum of how many days per benefit period in a skilled nursing facility?
- ANS -100 days
A domestic insurance company in Virginia MUST - ANS -Be formed under Virginia insurance
laws
What are premium for group credit life insurance based on? - ANS -Flat rate unrelated to the
borrower's age
What minimum percentage of all eligible employees must participate in a group life insurance
plan if the premiums are completely paid for by the employer?
0%
50%
75%
100% - ANS -100%
Where will a life insurance policy's proceeds be directed to if all the beneficiaries die before the
insured? - ANS -The insured's estate
Under what circumstances does an accident and health insurer have the right to request an
autopsy? - ANS -When not prohibited by state law
, Which of these is NOT an unfair claims settlement practice? - ANS -Offering to settle a claim by
arbitration
How is an insured's accident and health claim handled by an insurer if it occurs during the
policy's grace period? - ANS -The unpaid premium may be subtracted from the reimbursement
What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?
- ANS -cash value
How is the insured protected if a payor benefit rider is attached to the life insurance policy? -
ANS -Premium payments are waived in the event the premium payor dies or becomes disabled
After an insurance application has been originated, the producer normally - ANS -is the major
personal contact to the insured
Which of the following health provisions requires that the application becomes part of the
policy? - ANS -Entire contract clause
Death proceeds from a life insurance policy are typically included in a deceased insured's gross
estate - ANS -for federal income tax reasons
Under which circumstance may an insurer discontinue a small employer group medical plan? -
ANS -Employer fails to pay the premium for it to the end of the grease period
What determines how much an annuitant is paid for a variable annuity? - ANS -The market
value variations of the securities backing it
Which of the following is covered by a basic dental indemnity plan? - ANS -Non-surgical
periodontal treatment
Periodic health claim payments MUST be made at least - ANS -monthly
James is covered with health insurance by two different insurers. The "insurance with other
insurers" provision in an individual health insurance policy allows an insurer to pay benefits to
the insured on a pro-rata basis when - ANS -The insurer was not notified prior to the claim that
the insured has other health coverage
A major medical expense plan typically includes coverage for hospital room and board. Which of
the following is normally covered under the category "room and board"? - ANS -General
nursing care
Which of the following statements is true regarding accident and health insurance claims that
reimburse on an indemnity basis? - ANS -Claims can be sent directly to the insured
