VIRGINIA LIFE AND HEALTH EXAM
REVIEW QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT RATED A+
Unilateral Contract
Answer: A contract term where only one party’s promises are legally enforceable.
Correct Answer: Unilateral
Suicide Clause in Life Insurance
Answer: If Mr. Jones, the insured, commits suicide after the suicide clause has
expired, the insurer is obligated to:
Correct Answer: Pay the death benefit.
Recurrent Disability Benefit
Answer: The benefit designed to encourage a disabled policyholder to return to
work is:
Correct Answer: Recurrent disability.
Term Policy for Limited Resources
Answer: Jeff, with limited financial resources, would likely be best suited by:
Correct Answer: A term policy.
Tyler’s Medical Policy Coinsurance
Answer: Tyler has a major medical policy with 70/30 coinsurance and a $3,000
deductible. If he submits a $20,000 claim, his out-of-pocket cost would be:
Correct Answer: $8,100.
,Signatures on Life Insurance Applications
Answer: A life insurance application requires a signature from:
Correct Answer: The agent, the insured, and the policyholder.
Cheapest Premium Payment Mode
Answer: The most cost-effective premium payment mode is typically when the
policy is paid:
Correct Answer: Annually.
If an applicant misstates their age on an insurance application, what does the
insurer do when it is discovered at claim time? -ANSWER✔✔Adjust the claim
benefits to reflect what he would have been entitled to if his real age had been
given.
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: -
ANSWER✔✔Survivorship life
A decreasing term life policy would be the most appropriate for: -ANSWER✔✔A
41 year old lawyer who wants a policy to pay his mortgage if he dies
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: -
ANSWER✔✔Issue the applicant a conditional receipt.
What type group plan requires 75% participation? -ANSWER✔✔Contributory
, How much time does a licensee have to notify the Commissioner of Insurance of
any change of residential, mailing, or business address? -ANSWER✔✔30 days
The services are provided on a prepaid per person basis called capitation in: -
ANSWER✔✔HMOs
In life insurance, insurable interest must be present at the time of: -
ANSWER✔✔Application
Mr. Johnson is looking at Medicare Supplement policies. These policies are
designed primarily to: -ANSWER✔✔Provide benefits not covered by Medicare.
If the cash values of an annuity are invested in securities, it is a: -
ANSWER✔✔Variable annuity
What is a marketing communication that is oral, printed, or written and designed to
create public interest in life insurance or annuities? -ANSWER✔✔Advertisement
What is the minimum time required for the basis of a long-term policy? -
ANSWER✔✔12 consecutive months
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him
the value of the policy? -ANSWER✔✔Cash surrender
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.
REVIEW QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT RATED A+
Unilateral Contract
Answer: A contract term where only one party’s promises are legally enforceable.
Correct Answer: Unilateral
Suicide Clause in Life Insurance
Answer: If Mr. Jones, the insured, commits suicide after the suicide clause has
expired, the insurer is obligated to:
Correct Answer: Pay the death benefit.
Recurrent Disability Benefit
Answer: The benefit designed to encourage a disabled policyholder to return to
work is:
Correct Answer: Recurrent disability.
Term Policy for Limited Resources
Answer: Jeff, with limited financial resources, would likely be best suited by:
Correct Answer: A term policy.
Tyler’s Medical Policy Coinsurance
Answer: Tyler has a major medical policy with 70/30 coinsurance and a $3,000
deductible. If he submits a $20,000 claim, his out-of-pocket cost would be:
Correct Answer: $8,100.
,Signatures on Life Insurance Applications
Answer: A life insurance application requires a signature from:
Correct Answer: The agent, the insured, and the policyholder.
Cheapest Premium Payment Mode
Answer: The most cost-effective premium payment mode is typically when the
policy is paid:
Correct Answer: Annually.
If an applicant misstates their age on an insurance application, what does the
insurer do when it is discovered at claim time? -ANSWER✔✔Adjust the claim
benefits to reflect what he would have been entitled to if his real age had been
given.
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: -
ANSWER✔✔Survivorship life
A decreasing term life policy would be the most appropriate for: -ANSWER✔✔A
41 year old lawyer who wants a policy to pay his mortgage if he dies
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: -
ANSWER✔✔Issue the applicant a conditional receipt.
What type group plan requires 75% participation? -ANSWER✔✔Contributory
, How much time does a licensee have to notify the Commissioner of Insurance of
any change of residential, mailing, or business address? -ANSWER✔✔30 days
The services are provided on a prepaid per person basis called capitation in: -
ANSWER✔✔HMOs
In life insurance, insurable interest must be present at the time of: -
ANSWER✔✔Application
Mr. Johnson is looking at Medicare Supplement policies. These policies are
designed primarily to: -ANSWER✔✔Provide benefits not covered by Medicare.
If the cash values of an annuity are invested in securities, it is a: -
ANSWER✔✔Variable annuity
What is a marketing communication that is oral, printed, or written and designed to
create public interest in life insurance or annuities? -ANSWER✔✔Advertisement
What is the minimum time required for the basis of a long-term policy? -
ANSWER✔✔12 consecutive months
Alex's life policy lapsed, which Nonforfeiture option would the insurer send him
the value of the policy? -ANSWER✔✔Cash surrender
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.
