Virginia life and Health Final Exam Questions and
Answers 100% Pass
Which of the following provisions allows an insured or the insurer to
terminate the policy - ANSWER -Cancelable provision
How much is normally paid to a policyowner in a life (viatical)
settlement? - ANSWER -Less than the death benefit
For purposes of disability income insurance, earned income would
include all of the following EXCEPT - ANSWER -Dividends
(Salary, commissions, bonus)
Which type of group plan is excluded from HIPAA rules? - ANSWER -
Disability Income
How does a continuous premium whole life policy differ from a limited
payment while life policy? - ANSWER -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. - ANSWER -102%
Which of the following approves continuing education courses for
credit in Virginia? - ANSWER -State Continuing Education Board
Which statement regarding the waiver of premium rider is accurate? -
ANSWER -Cash payment is not directly provided to the policyowner
,Under a long-term care inflation rider, the benefit levels - ANSWER -
periodically increase without proof of insurability
Which typically changes at the re-entry option date found in some term
life policies? - ANSWER -Premium
Employees generally receive Worker's Compensation benefits for -
ANSWER -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? - ANSWER -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? - ANSWER -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) - ANSWER -Single Premium
Deferred Annuity
Medicare will cover a maximum of how many days per benefit period
in a skilled nursing facility? - ANSWER -100 days
A domestic insurance company in Virginia MUST - ANSWER -Be
formed under Virginia insurance laws
,What are premium for group credit life insurance based on? -
ANSWER -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% - ANSWER -100%
Where will a life insurance policy's proceeds be directed to if all the
beneficiaries die before the insured? - ANSWER -The insured's estate
Under what circumstances does an accident and health insurer have the
right to request an autopsy? - ANSWER -When not prohibited by state
law
Which of these is NOT an unfair claims settlement practice? -
ANSWER -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? - ANSWER -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? - ANSWER -cash value
, How is the insured protected if a payor benefit rider is attached to the
life insurance policy? - ANSWER -Premium payments are waived in
the event the premium payor dies or becomes disabled
After an insurance application has been originated, the producer
normally - ANSWER -is the major personal contact to the insured
Which of the following health provisions requires that the application
becomes part of the policy? - ANSWER -Entire contract clause
Death proceeds from a life insurance policy are typically included in a
deceased insured's gross estate - ANSWER -for federal income tax
reasons
Under which circumstance may an insurer discontinue a small employer
group medical plan? - ANSWER -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?
- ANSWER -The market value variations of the securities backing it
Which of the following is covered by a basic dental indemnity plan? -
ANSWER -Non-surgical periodontal treatment
Periodic health claim payments MUST be made at least - ANSWER -
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
Answers 100% Pass
Which of the following provisions allows an insured or the insurer to
terminate the policy - ANSWER -Cancelable provision
How much is normally paid to a policyowner in a life (viatical)
settlement? - ANSWER -Less than the death benefit
For purposes of disability income insurance, earned income would
include all of the following EXCEPT - ANSWER -Dividends
(Salary, commissions, bonus)
Which type of group plan is excluded from HIPAA rules? - ANSWER -
Disability Income
How does a continuous premium whole life policy differ from a limited
payment while life policy? - ANSWER -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. - ANSWER -102%
Which of the following approves continuing education courses for
credit in Virginia? - ANSWER -State Continuing Education Board
Which statement regarding the waiver of premium rider is accurate? -
ANSWER -Cash payment is not directly provided to the policyowner
,Under a long-term care inflation rider, the benefit levels - ANSWER -
periodically increase without proof of insurability
Which typically changes at the re-entry option date found in some term
life policies? - ANSWER -Premium
Employees generally receive Worker's Compensation benefits for -
ANSWER -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? - ANSWER -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? - ANSWER -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) - ANSWER -Single Premium
Deferred Annuity
Medicare will cover a maximum of how many days per benefit period
in a skilled nursing facility? - ANSWER -100 days
A domestic insurance company in Virginia MUST - ANSWER -Be
formed under Virginia insurance laws
,What are premium for group credit life insurance based on? -
ANSWER -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% - ANSWER -100%
Where will a life insurance policy's proceeds be directed to if all the
beneficiaries die before the insured? - ANSWER -The insured's estate
Under what circumstances does an accident and health insurer have the
right to request an autopsy? - ANSWER -When not prohibited by state
law
Which of these is NOT an unfair claims settlement practice? -
ANSWER -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? - ANSWER -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? - ANSWER -cash value
, How is the insured protected if a payor benefit rider is attached to the
life insurance policy? - ANSWER -Premium payments are waived in
the event the premium payor dies or becomes disabled
After an insurance application has been originated, the producer
normally - ANSWER -is the major personal contact to the insured
Which of the following health provisions requires that the application
becomes part of the policy? - ANSWER -Entire contract clause
Death proceeds from a life insurance policy are typically included in a
deceased insured's gross estate - ANSWER -for federal income tax
reasons
Under which circumstance may an insurer discontinue a small employer
group medical plan? - ANSWER -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?
- ANSWER -The market value variations of the securities backing it
Which of the following is covered by a basic dental indemnity plan? -
ANSWER -Non-surgical periodontal treatment
Periodic health claim payments MUST be made at least - ANSWER -
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
