Virginia State Law 2025”2026 ACTUAL EXAM 180 QUESTIONS AND
CORRECT ANSWERS GUARANTEE OVER 85% PASSMARK
What is the role of the Virginia State Corporation Commission? - correct answer -The Commission
issues and executes laws related to insurance and insurers, overseeing all companies transacting
insurance in Virginia.
What authority does the Virginia State Corporation Commission have regarding licenses? - correct
answer -The Commission can issue, suspend, or revoke licenses and certificates of authority for
insurance companies.
What can the Virginia State Corporation Commission do if it finds unfair competition or deceptive acts? -
correct answer -It has the authority to examine affairs, issue cease and desist orders, and impose fines
for violations.
What factors should be considered when making recommendations for annuity transactions? - correct
answer -Age, annual income, financial situation and needs, financial experience, financial objectives,
intended use of the annuity, financial time horizon, existing assets, liquidity needs, liquid net worth, and
risk tolerance.
What is Servicemember's Group Life Insurance (SGLI)? - correct answer -A program providing low-cost
term life insurance coverage to eligible servicemembers automatically issued the maximum coverage.
What is Veterans' Group Life Insurance (VGLI)? - correct answer -A program allowing veterans to
continue life insurance coverage after separating from service, providing lifetime coverage as long as
premiums are paid.
What is the maximum group term life insurance coverage for veterans? - correct answer -$400,000
How often does the group term life insurance renew? - correct answer -Every 5 years
What is the grace period for health and accident insurance premiums? - correct answer -7 days for
weekly, 10 days for monthly, and 31 days for all other policies
,What happens if a health policy is reinstated after a lapse? - correct answer -There is a 10-day waiting
period for sickness claims; accident claims are covered immediately.
What is the time limit for providing written notice of a claim? - correct answer -Within 20 days after a
covered loss starts
How long does an insurance company have to send claim forms after receiving notice? - correct
answer -15 days
What is the deadline for providing written proof of loss to the insurer? - correct answer -90 days
What is the interest policy for late benefit payments? - correct answer -Benefits bear simple interest
from 60 days after satisfactory proof of loss is received.
When can legal action be initiated after proof of loss is submitted? - correct answer -Not within 60
days and not after 5 years from the initial proof submission.
What rights does the insurer have regarding physical exams and autopsies? - correct answer -The
insurer can examine the insured and request an autopsy if death is involved.
What is the maximum exclusion period for pre-existing conditions in individual health insurance? -
correct answer -12 months from the date of enrollment
What is the maximum exclusion period for pre-existing conditions in group health insurance? - correct
answer -12 months from the date of enrollment, or 18 months for late enrollees.
What is required for a group to be eligible for a group health policy? - correct answer -The group must
be formed for a purpose other than obtaining insurance.
, What is the minimum number of members required for a labor union to issue a group health policy? -
correct answer -At least 25 members
What must a health insurer disclose to an employer when offering health insurance coverage? - correct
answer -Benefits, premiums, renewability provisions, and exclusions
What is the minimum free-look period for health insurance policies? - correct answer -10 days, or 30
days for Medicare supplements and long-term policies.
What must be included on the first page of an Accident Only policy under Virginia regulations? - correct
answer -A statement indicating it does not pay benefits for loss from sickness.
What is required for an individual to convert from group coverage to an individual plan? - correct
answer -The premium must be paid within 31 days after written notice of termination.
What is the definition of a small employer in Virginia? - correct answer -An employer with 2 to 50
employees during the preceding calendar year.
What must an insurer provide before increasing rates for individual accident and health insurance
policies? - correct answer -Written notice at least 30 days before the effective date of the rate
increase.
What does HIPAA provide for individuals who terminate employment? - correct answer -Benefits to
continue individual coverage without discontinuation due to health status decline.
What is required from an insurer before discontinuing all health insurance coverage in the group
market? - correct answer -A notice of intention must be provided 180 days prior to discontinuation to
the Commission, plan sponsors, and participants.
What is the purpose of long-term care insurance? - correct answer -It provides coverage for
diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services in a non-acute
care setting.
CORRECT ANSWERS GUARANTEE OVER 85% PASSMARK
What is the role of the Virginia State Corporation Commission? - correct answer -The Commission
issues and executes laws related to insurance and insurers, overseeing all companies transacting
insurance in Virginia.
What authority does the Virginia State Corporation Commission have regarding licenses? - correct
answer -The Commission can issue, suspend, or revoke licenses and certificates of authority for
insurance companies.
What can the Virginia State Corporation Commission do if it finds unfair competition or deceptive acts? -
correct answer -It has the authority to examine affairs, issue cease and desist orders, and impose fines
for violations.
What factors should be considered when making recommendations for annuity transactions? - correct
answer -Age, annual income, financial situation and needs, financial experience, financial objectives,
intended use of the annuity, financial time horizon, existing assets, liquidity needs, liquid net worth, and
risk tolerance.
What is Servicemember's Group Life Insurance (SGLI)? - correct answer -A program providing low-cost
term life insurance coverage to eligible servicemembers automatically issued the maximum coverage.
What is Veterans' Group Life Insurance (VGLI)? - correct answer -A program allowing veterans to
continue life insurance coverage after separating from service, providing lifetime coverage as long as
premiums are paid.
What is the maximum group term life insurance coverage for veterans? - correct answer -$400,000
How often does the group term life insurance renew? - correct answer -Every 5 years
What is the grace period for health and accident insurance premiums? - correct answer -7 days for
weekly, 10 days for monthly, and 31 days for all other policies
,What happens if a health policy is reinstated after a lapse? - correct answer -There is a 10-day waiting
period for sickness claims; accident claims are covered immediately.
What is the time limit for providing written notice of a claim? - correct answer -Within 20 days after a
covered loss starts
How long does an insurance company have to send claim forms after receiving notice? - correct
answer -15 days
What is the deadline for providing written proof of loss to the insurer? - correct answer -90 days
What is the interest policy for late benefit payments? - correct answer -Benefits bear simple interest
from 60 days after satisfactory proof of loss is received.
When can legal action be initiated after proof of loss is submitted? - correct answer -Not within 60
days and not after 5 years from the initial proof submission.
What rights does the insurer have regarding physical exams and autopsies? - correct answer -The
insurer can examine the insured and request an autopsy if death is involved.
What is the maximum exclusion period for pre-existing conditions in individual health insurance? -
correct answer -12 months from the date of enrollment
What is the maximum exclusion period for pre-existing conditions in group health insurance? - correct
answer -12 months from the date of enrollment, or 18 months for late enrollees.
What is required for a group to be eligible for a group health policy? - correct answer -The group must
be formed for a purpose other than obtaining insurance.
, What is the minimum number of members required for a labor union to issue a group health policy? -
correct answer -At least 25 members
What must a health insurer disclose to an employer when offering health insurance coverage? - correct
answer -Benefits, premiums, renewability provisions, and exclusions
What is the minimum free-look period for health insurance policies? - correct answer -10 days, or 30
days for Medicare supplements and long-term policies.
What must be included on the first page of an Accident Only policy under Virginia regulations? - correct
answer -A statement indicating it does not pay benefits for loss from sickness.
What is required for an individual to convert from group coverage to an individual plan? - correct
answer -The premium must be paid within 31 days after written notice of termination.
What is the definition of a small employer in Virginia? - correct answer -An employer with 2 to 50
employees during the preceding calendar year.
What must an insurer provide before increasing rates for individual accident and health insurance
policies? - correct answer -Written notice at least 30 days before the effective date of the rate
increase.
What does HIPAA provide for individuals who terminate employment? - correct answer -Benefits to
continue individual coverage without discontinuation due to health status decline.
What is required from an insurer before discontinuing all health insurance coverage in the group
market? - correct answer -A notice of intention must be provided 180 days prior to discontinuation to
the Commission, plan sponsors, and participants.
What is the purpose of long-term care insurance? - correct answer -It provides coverage for
diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services in a non-acute
care setting.
