1 Exampromax - Stuvia US
Virginia Life and Health Exam Review
Questions and Answers 100% Correct Answers
Already Graded A+
Q: What contract term means only one party to a contract's promises are
legally enforceable?
Ans: Unilateral
Q: Mr. Jones, the insured, committed suicide after the expiration of the
suicide clause in his life insurance policy. The insurer is obligated to:
Exampromax - Stuvia US
Ans: Pay the death benefit.
Q: The benefit that encourages the disabled policy owner to try to return to
work is:
Ans: Recurrent disability
Q: 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.
Ans: Term policy
Q: 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?
Ans: $8,100
Q: Life insurance applications require a signature from:
Ans: The agent, insured, and policyowner.
Q: The cheapest premium payment mode would be on a policy that is paid:
, 2 Exampromax - Stuvia US
Ans: Annually
Q: If an applicant misstates their age on an insurance application, what
does the insurer do when it is discovered at claim time?
Ans: Adjust the claim benefits to reflect what he would have been entitled to if
his real age had been given.
Q: 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:
Ans: Survivorship life
Q: A decreasing term life policy would be the most appropriate for:
Ans: A 41 year old lawyer who wants a policy to pay his mortgage if he dies
Exampromax - Stuvia US
Q: 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:
Ans: Issue the applicant a conditional receipt.
Q: What type group plan requires 75% participation?
Ans: Contributory
Q: How much time does a licensee have to notify the Commissioner of
Insurance of any change of residential, mailing, or business address?
Ans: 30 days
Q: The services are provided on a prepaid per person basis called capitation
in:
Ans: HMOs
Q: In life insurance, insurable interest must be present at the time of:
Ans: Application
, 3 Exampromax - Stuvia US
Q: Mr. Johnson is looking at Medicare Supplement policies. These policies
are designed primarily to:
Ans: Provide benefits not covered by Medicare.
Q: If the cash values of an annuity are invested in securities, it is a:
Ans: Variable annuity
Q: What is a marketing communication that is oral, printed, or written and
designed to create public interest in life insurance or annuities?
Ans: Advertisement
Q: What is the minimum time required for the basis of a long-term policy?
Ans: 12 consecutive months
Exampromax - Stuvia US
Q: Alex's life policy lapsed, which Nonforfeiture option would the insurer
send him the value of the policy?
Ans: Cash surrender
Q: 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?
Ans: January 22, after the statement of good health is signed, and the initial
premium is paid.
Q: What part of the policy directs the insurer on the recipients of benefits?
Ans: Payment of Claims provision
Q: What is the advantage of a payor benefit rider?
Ans: It provides a temporary waiver of premium if the person paying the
premium dies.
Q: Dylan tells the insurer to keep the dividend and apply it to his next
premium. He is using which dividend option?
Virginia Life and Health Exam Review
Questions and Answers 100% Correct Answers
Already Graded A+
Q: What contract term means only one party to a contract's promises are
legally enforceable?
Ans: Unilateral
Q: Mr. Jones, the insured, committed suicide after the expiration of the
suicide clause in his life insurance policy. The insurer is obligated to:
Exampromax - Stuvia US
Ans: Pay the death benefit.
Q: The benefit that encourages the disabled policy owner to try to return to
work is:
Ans: Recurrent disability
Q: 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.
Ans: Term policy
Q: 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?
Ans: $8,100
Q: Life insurance applications require a signature from:
Ans: The agent, insured, and policyowner.
Q: The cheapest premium payment mode would be on a policy that is paid:
, 2 Exampromax - Stuvia US
Ans: Annually
Q: If an applicant misstates their age on an insurance application, what
does the insurer do when it is discovered at claim time?
Ans: Adjust the claim benefits to reflect what he would have been entitled to if
his real age had been given.
Q: 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:
Ans: Survivorship life
Q: A decreasing term life policy would be the most appropriate for:
Ans: A 41 year old lawyer who wants a policy to pay his mortgage if he dies
Exampromax - Stuvia US
Q: 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:
Ans: Issue the applicant a conditional receipt.
Q: What type group plan requires 75% participation?
Ans: Contributory
Q: How much time does a licensee have to notify the Commissioner of
Insurance of any change of residential, mailing, or business address?
Ans: 30 days
Q: The services are provided on a prepaid per person basis called capitation
in:
Ans: HMOs
Q: In life insurance, insurable interest must be present at the time of:
Ans: Application
, 3 Exampromax - Stuvia US
Q: Mr. Johnson is looking at Medicare Supplement policies. These policies
are designed primarily to:
Ans: Provide benefits not covered by Medicare.
Q: If the cash values of an annuity are invested in securities, it is a:
Ans: Variable annuity
Q: What is a marketing communication that is oral, printed, or written and
designed to create public interest in life insurance or annuities?
Ans: Advertisement
Q: What is the minimum time required for the basis of a long-term policy?
Ans: 12 consecutive months
Exampromax - Stuvia US
Q: Alex's life policy lapsed, which Nonforfeiture option would the insurer
send him the value of the policy?
Ans: Cash surrender
Q: 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?
Ans: January 22, after the statement of good health is signed, and the initial
premium is paid.
Q: What part of the policy directs the insurer on the recipients of benefits?
Ans: Payment of Claims provision
Q: What is the advantage of a payor benefit rider?
Ans: It provides a temporary waiver of premium if the person paying the
premium dies.
Q: Dylan tells the insurer to keep the dividend and apply it to his next
premium. He is using which dividend option?
