FINAL EXAM-VIRGINIA LIFE AND
HEALTH QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT RATED + NEWLY UPDATED
2025
Insurable Interest in One’s Own Life
Answer: The insurable interest in one's own life is legally considered:
Correct Answer: Generally unlimited.
Primary Funding for Medical Part A
Answer: The primary funding for Medicare Part A comes from:
Correct Answer: Federal payroll and self-employment taxes.
Trust as Beneficiary of Life Insurance
Answer: A valid reason to name a trust as the beneficiary of a life insurance
policy, rather than an individual, is:
Correct Answer: The management of proceeds would be provided by the trust.
Virginia Continuing Education Requirement
Answer: Virginia requires that an agent complete ___ hours of continuing
education on ethics every reporting period:
Correct Answer: 3 hours.
Purpose of Emergency Reserve Fund (Needs Approach)
Answer: According to the needs approach, the primary purpose of an emergency
reserve fund is to:
Correct Answer: Cover the cost of unexpected expenses.
,Cancelable Provision
Answer: Which of the following provisions allows an insured or the insurer to
terminate the policy?
Correct Answer: Cancelable provision.
Life (Viatical) Settlement Payout
Answer: How much is typically paid to a policyholder in a life (viatical)
settlement?
Correct 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
HEALTH QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS 100%
CORRECT RATED + NEWLY UPDATED
2025
Insurable Interest in One’s Own Life
Answer: The insurable interest in one's own life is legally considered:
Correct Answer: Generally unlimited.
Primary Funding for Medical Part A
Answer: The primary funding for Medicare Part A comes from:
Correct Answer: Federal payroll and self-employment taxes.
Trust as Beneficiary of Life Insurance
Answer: A valid reason to name a trust as the beneficiary of a life insurance
policy, rather than an individual, is:
Correct Answer: The management of proceeds would be provided by the trust.
Virginia Continuing Education Requirement
Answer: Virginia requires that an agent complete ___ hours of continuing
education on ethics every reporting period:
Correct Answer: 3 hours.
Purpose of Emergency Reserve Fund (Needs Approach)
Answer: According to the needs approach, the primary purpose of an emergency
reserve fund is to:
Correct Answer: Cover the cost of unexpected expenses.
,Cancelable Provision
Answer: Which of the following provisions allows an insured or the insurer to
terminate the policy?
Correct Answer: Cancelable provision.
Life (Viatical) Settlement Payout
Answer: How much is typically paid to a policyholder in a life (viatical)
settlement?
Correct 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
