Virginia Life and Health Exam Review. Questions with accurate answers. 2022/2023.

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Virginia Life and Health Exam Review. Questions with accurate answers. 2022/2023. What contract term means only one party to a contract's promises are legally enforceable? - ✔✔Unilateral ... Mr. Jones, the insured, committed suicide after the expiration of the suicide clause in his life insurance policy. The insurer is obligated to: - ✔✔Pay the death benefit. The benefit that encourages the disabled policy owner to try to return to work is: - ✔✔Recurrent disability 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. - ✔✔Term policy 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? - ✔✔$8,100 Life insurance applications require a signature from: - ✔✔The agent, insured, and policyowner. The cheapest premium payment mode would be on a policy that is paid: - ✔✔Annually If an applicant misstates their age on an insurance application, what does the insurer do when it is discovered at claim time? - ✔✔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: - ✔✔Survivorship life A decreasing term life policy would be the most appropriate for: - ✔✔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: - ✔✔Issue the applicant a conditional receipt. What type group plan requires 75% participation? - ✔✔Contributory How much time does a licensee have to notify the Commissioner of Insurance of any change of residential, mailing, or business address? - ✔✔30 days The services are provided on a prepaid per person basis called capitation in: - ✔✔HMOs In life insurance, insurable interest must be present at the time of: - ✔✔Application Mr. Johnson is looking at Medicare Supplement policies. These policies are designed primarily to: - ✔✔Provide benefits not covered by Medicare. If the cash values of an annuity are invested in securities, it is a: - ✔✔Variable annuity What is a marketing communication that is oral, printed, or written and designed to create public interest in life insurance or annuities? - ✔✔Advertisement What is the minimum time required for the basis of a long-term policy? - ✔✔12 consecutive months Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the policy? - ✔✔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. When is coverage effective? - ✔✔January 22, after the statement of good health is signed, and the initial premium is paid. What part of the policy directs the insurer on the recipients of benefits? - ✔✔Payment of Claims provision What is the advantage of a payor benefit rider? - ✔✔It provides a temporary waiver of premium if the person paying the premium dies. Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using which dividend option? - ✔✔Reduction of premium The Commissioner is responsible for all of the following in Virginia, EXCEPT: - ✔✔Enactment of insurance laws How many hours of continuing education for 1 line of authority must insurance agents complete every 2 years? - ✔✔16 hours If James has an increasing term policy, which of the following must increase? - ✔✔The death benefit The manner in which the proceeds of a life policy are handled are specified in what provision? - ✔✔Settlement options The manner in which the proceeds of a life policy are handled are specified in what provision? - ✔✔Settlement options Which of the following policies would pay for a company's rent, utilities, and other operating expenses if the owner becomes disabled? - ✔✔Business overhead expense Tina has a policy that only covers cancer-related medical expenses. What kind of policy does she have? - ✔✔Dread disease How much time does an insurer have to report a termination of an appointment to the Commissioner of Insurance? - ✔✔30 days Shane and Casey both have health plans from work that covers their son Cash. Which plan is primary? - ✔✔The parent with the earliest birthday in the year is primary. Which of the following is not one of the elements required to make a contract legal? - ✔✔Ambiguities Which type of life policy would best suit someone who retires in good health with a large amount of cash, whose investment goals are conservative? - ✔✔Single premium whole life insurance How many days does an insured have to file a notice of claim? - ✔✔20 days How many days does someone have after termination of their group policy to make their first premium payment on the converted policy? - ✔✔31 days On April 9, an application is submitted without the initial premium. The insurer requires a medical exam, and it is completed on April 14. On April 18, the insurer issued the policy, and the producer delivers it on April 21. When is coverage effective? - ✔✔April 21, after the statement of good health is signed, and the initial premium is paid. In Virginia, inflation protection in long-term care partnership policies MUST be provided for seniors who are in what age range? - ✔✔61 to 76 A replacing insurer has all the following duties, EXCEPT: - ✔✔Inform applicant of the free look period How often can the Commissioner of Insurance examine individuals that transact insurance in Virginia? - ✔✔As often as he or she wants Life insurance death benefits that can be accessed tax-free when the insured is still alive are called: - ✔✔Accelerated benefits An insurance application is not complete unless it has: - ✔✔The signature of the insured (unless not an adult), and the agent. A program that includes prehospitalization authorization is an example of: - ✔✔Managed care If an applicant states their age is 30 on an application for life insurance, when they were actually 37, what is the insurer likely to do? - ✔✔Pay the death benefit based on the applicant's actual age. Which of the following is NOT a purpose the Commissioner has established minimum standards for individual health insurance policies? - ✔✔To regulate the pricing across companies The fact that the application is part of the policy is stated in: - ✔✔The entire contract How much time does an insurer have to notify the Commissioner of Insurance of an appointment? - ✔✔30 days The rider that you would pick if you want to be able to add coverage in the future, without having to show proof of insurability: - ✔✔Guaranteed insurability In most Disability Income policies, the Elimination Period applies: - ✔✔To each disability separately. How does the IRS treat disability income benefits when the employer pays the policy premiums? - ✔✔They are fully taxable. At what age would a qualified retirement plan distribution be premature? - ✔✔59 Which of the following offers the broadest service area and broadest selection of providers? - ✔✔PPO Comprehensive major medical health policies typically have an Eligible Expenses provision that specifies coverage for all but: - ✔✔Experimental services. Information obtained by a phone call to an applicant, may be included in which of the following reports? - ✔✔Inspection report How often do appointments have to be renewed? - ✔✔Annually Which of the following groups is ineligible for group insurance? - ✔✔A sports team formed to procure insurance When dealing with an individual health policy replacement, who must sign a form noting replacement? - ✔✔The applicant and agent What is the biggest source of information used in underwriting? - ✔✔Application Riders covering additional insureds can be added to life policies and cover all but which of the following? - ✔✔Younger siblings of the policyholder Blake died 20 days after his group life insurance coverage was terminated. He did not apply for individual coverage. Which of the following is true? - ✔✔His beneficiary will receive the full death benefit. Who has the right to change the beneficiary on a life policy? - ✔✔The policyowner Which of the following statements is correct when pertaining to coordination of benefits by a group long-term disability plan with Social Security? - ✔✔Group and Social Security benefits pay a combined maximum limit. HSAs are frequently used with: - ✔✔HDHPs [Show More]

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