Life and Health Insurance Exam Practice set
Which of the following is NOT guaranteed in a whole life policy?
Dividend scale
For purposes of disability income insurance, earned income would include all of the following
Dividends
When using the needs approach for life insurance planning, a lump sum may be created to provide for all of the following EXCEPT:
Employee benefits
Which of the following statements BEST describes employer contributions for employer provided health insurance?
Employer contributions are deductible
Which tax is normally associated with an individual's death?
Estate tax
Death benefits from a life insurance policy are normally considered to be
Exempt from federal income tax
How are benefit payments from individually-owned medical expense policies treated for tax purposes?
Exempt from income taxes
Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy?
Extended term nonforfeiture option
A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originate from?
Fair credit reporting act
All individual long term care policies delivered in Virginia MUST be renewable
For life
A(n) __________insurance company conducts business in a state outside the one in which it is domiciled
Foreign
What is considered a valid reason for small corporations to insure the lives of its major stockholders?
Fund a buy-sell agreement
An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?
Good health statement
Most medicare supplement information used by an insurer must be approved by the state. Which of following types of information does NOT require state approval
Government publications
According to the affordable care act (ACA), Insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a(n)
Grandfathered plan
A life annuity with period certain is characterized as G
Guaranteeing benefit payments for a stated minimum number of years
Service providers
HMOs PPOs
Dan owns a disability insurance policy which provides ONLY nonoccupational coverage. Which of the following circumstances would likely NOT be covered under his plan?
He falls and breaks his hip at work
A medical fee schedule shows the amount an insurer will pay for a given procedure. This amount is considered to be
Highest amount payable
A policy owner has just borrowed from a life insurance policy's cash value. Which of these statements is true?
In the event of death, the loan amount is deducted from the policy proceeds
Trade association groups that are eligible for group medical benefits normally are
In the same industry,
Medical Information Bureau (MIB) consists of members from which group?
Insurance companies
The medical information bureau consists of members from which group?
Insurance companies
Who is protected with the "other insurance with this insurer" provision?
Insurance companies
Which of the following provisions permits an insurer to return a portion of the premium and pay benefits on a prorata basis if it finds that an insured has duplicate coverage?
Insurance with other insurers
Which of the following situations would qualify an insured to receive funds from an accelerated (living) benefit rider?
Insured is expected to remain in a nursing home for life
The ______ is required to notify the state corporation commission in the event of appointment termination
Insurer
utmost good faith
Insurer covers claim and you tell the truth
Virginia requires advertisement for accident and health insurance policies covering ONLY a specified illness to prominently display
A statement that the policy is limited
Life insurance replacement can be best defined as
A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered
An agent who willfully violates the insurance code may, after a hearing, pay up to ______ per violation as a penalty
$5,000
Virginia fees
-All fees and charges for insurance must be stated in the premium -admin fees can be charged as long as there is a written disclosure given to the applicant
Describe an aleatory contract
-Element of chance is involved -Potential unequal exchange of value for both parties -A legal wager is considered an aleatory contract
Duties of the replacing agent
-Leave applicant with a copy -submit replacing insurance company a copy of the replacement notice with the application
Dividends from a mutual insurer
-are not taxable -considered return of premium
two types of agents
-captive/career (Works for 1 insurer) -independent (works for multiple insurers)
Virginia law requires agents to report to the commissioner any administrative action taken against them
-consent to the order -general and specific facts of circumstances
A contract is considered void when
-consideration is incomplete -when one party is a minor -when agreement cannot be reached between parties
These are considered to be advertising
-direct mailing by an insurer -an agent is oral sales presentation -a policy illustration
Costs considered in the event of death
-funeral expenses -tax liability -probate costs
Legal Insurance contracts must have
-offer and acceptance -consideration -legal purpose -competent parties
What is covered in a comprehensive long term care policy?
-physical therapy -skilled nursing care -custodial care
Classifications underwriters use for policyowners
-preferred -standard -substandard
Information security program
-protect applicants against threats or hazards -ensure confidentiality of policyholder information -protect against unauthorized access to or use of information that can harm policyholder
Duties of the replacing insurance company
-require a copy of application and replacement notice -send each existing insurance company a written communication advising of the proposed replacement within a specified period of time.
Virginia Laws - The insurance information and privacy protection act
-requires that an applicant for an individual insurance policy be notified of an investigation into his personal character, general reputation, and mode of living -insurer must give customer a privacy protection notice at the time of application -must notify clearly of marketing research collection -must give applicant adverse underwriting info within 30 days -notice of hearing within 10 days of charges
The free look period provided in a life insurance policy is usually
10 days
Carlos' agent license has been suspended due to non-renewal. He may apply for reinstatement within the ___ month period following the date when the license should have been renewed
12
The maximum prison sentence given under federal law for unfair and deceptive insurance practices is
15 years
A licensee who must complete continuing education as a requirement for license renewal must do so every ______ year(s)
2
Every _____ years, an agent's license in Virginia must be renewed.
2
A licensee who must complete continuing education as a requirement for a license renewal must do so every __ Year(s)
2 years
In Virginia, a small employer is comprised of
2-50 employees
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
20% is withheld for income taxes
Virginia requires that an insurance agent must complete ____ hours of continuing education on the subject of ethics every reporting period
3
Upon meeting company requirements, a lapsed life insurance policy may be reinstated within ____ year(s)
3 years
When the insured contests the amount of a claim payment by the insurer he or she has what period of time to bring legal action if necessary
3 years
An insurance company or agent must respond within _____ days to an insured's request to access personal information collected on him/her by the insurer
30 days
In Virginia, a grace period of _____ days is required for a life insurance policy paid on an annual basis.
31
Greg had recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an individual policy?
31 days
Social security disability income requirements state that in order to become fully insured on a permanent basis, you must have worked in a covered occupation for
40 quarters
One becomes eligible for Social Security disability benefits after having been disabled for
5 months
What is the maximum number of employees an employer may have for qualified medial savings accounts
50
How long can an insurer legally defer paying the cash value of a surrendered life insurance policy?
6 months
In a long term care policy issued in Virginia, any provision limiting preexisting conditions may not exceed
6 months
What is the actuarial value of a bronze level health plan?
60%
What is the minimum age required for open enrollment in medicare supplement insurance?
65
ERISA requires that a Summary Plan Description must be provided to a new plan member within how many days following the new member's eligibility date?
90 days
Proceeds of a life insurance policy claim may be issued to a minor ONLY if
A guardian has been appointed to receive proceeds on behalf of the minor
Which of the following is NOT covered by a comprehensive long-term care policy?
Acute care
Which of the following statements accurately describes the time limit on certain defenses?
After a stated period of time, claims cannot be denied due to material misrepresentation on the application
The absolute assignment of a life insurance policy results in
All incidents of ownership transferred to the assignee
Which of the following is NOT a valid contract exchange?
An annuity exchange for a life insurance policy
Which of the following situations would allow funds to be deposited into a rollover IRA?
An employee quits her job and receives $50,000 from her qualified plan
Which of the following is NOT a reason for a business to buy key person life insurance?
An increased pension liability if the key employee dies
A single-life annuity only has ONE
Annuitant
In the event of premium default, which life insurance provision will use the cash value to keep the policy in force
Automatic premium loan
A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one month after the policy effective date. Which statement is true?
Beneficiary receives $50,000 income tax-free
In long term care insurance, what is the length of time for which claims will be paid?
Benefit period
Which of the following statements BEST describes a double indemnity provision in travel accident insurance?
Benefits are doubled under certain circumstances stated in the policy
According to the Affordable Care Act, new Health insurance marketplaces are established by the
CCIIO
Which of the following is NOT a condition that must be met for an accidental death benefit to be paid?
Cause of death must be from a job related injury
Before a Medicare Supplement advertisement is released to the public, it must first be approved by the
Commission
A contract is not considered void when
Consideration is unequal
What effect does interest income have upon insurance premiums?
Decreases premium
In what way is a life insurance policy affected by an accelerated benefit payment?
Decreases the death benefit
When compared to a fixed annuity, a variable annuity has what distinguishing feature?
Investment risk is assumed by the purchaser
When an agent is determining the suitability of an annuity for a client which of these is NOT usually taken into consideration?
Level of education
Which of the following financial products creates an instant estate no matter when the date of death?
Life Insurance
An agent must hold which of the following licenses to sell variable life insurance policies?
Life, variable, and securities license
Which of the following is a syndicate established by a group of insurers to share underwriting duties?
Lloyd's organization
Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment?
Loan amount is increased to reflect the amount of interest due
Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is designed to help pay for this type of expense?
Long term care benefit rider
Which of these is a type of private insurance that covers the cost of sharing amounts under medicare?
Medicare Supplement
Medicare part A coinsurance payments are covered by
Medicare supplement plan A
How would preventative care be encouraged in a dental plan?
No deductible on routine examnations
Medicare supplement insurance requires an individual to be at least how old for open enrollment
No minimum age
Paul is an agent who is licensed in Virginia, but a resident of Maryland . P is considered to be a(n)_____________ agent.
Nonresident
Lloyds of London
Not an insurance company. Members of the association form syndicates to underwrite and issue insurance- like coverage. This is a group of investors who share in unusual risk.
A life insurance company just paid a $100,000 death benefit to a beneficiary. When the insured died, the cash value was $15,000 and the total premiums paid equaled $10,000. How much of the proceeds will be added to the beneficiary's gross income for federal income tax purposes?
Nothing
What must an agent do when replacing a long-term care policy with a new policy?
Notify the applicant of any new waiting periods in the new policy
All of these statements correctly describe an aleatory contract EXCEPT
Only one party makes any kind of legally enforceable offer
A life insurance policy's contingent beneficiary is the
Person who receives the death benefits if the primary beneficiary dies before the insured
A health insurance applicant is notified that a physical examination is required. Which statement is correct.
Physical examinations are performed at the expense of the insurer.
Tim is covered by Policy A with a $4,000 limit and by Policy B with a $2,000 limit. Policy A is primary. If a $6,000 loss is incurred, what will each policy pay?
Policy A will pay $4,000 and Policy B will pay $2,000
Straight whole life insurance can be accurately described in all of these statements EXCEPT
Policy protection normally expires at age 65
Dividends from a mutual insurance company are paid to whom?
Policyholder
Under which circumstance would inflation protection NOT be included in a long-term policy?
Policyowner declines the policy in writing
Which of the following accurately describes a participating insurance policy?
Policyowners may be entitled to receive benefits
In Virginia, which of the following records are not required to be maintained by an agent?
Premium quotes for policies not accepted
What determines the full amount of social security retirement benefits a qualified individual is entitled to receive?
Primary insurance amount (PIA)
A cease and desist order issued against an agent
Prohibits a specific practice listed in the order
Fiduciary Responsibility
Promptly forwarding premiums to the insurance company
The dental specialty which deals with the replacement of missing teeth is called
Prosthodontics
The automatic premium loan provision can be accurately described as a
Provision that provides a policy loan to pay any premiums by the end of the grace period
What happens to the death benefit of a life insurance policy if the insured elects a partial payment from the accelerated (living) benefit provision?
Reduced
Which of the following statements BEST describes the HIPAA portability rules for a individual who changes from one group medical plan to another?
Reduces or eliminates any pre-existing conditions excluded under the new plan
What could be the potential result of taking out a cash value loan under a life insurance policy?
Reduces the amount receivable upon surrender of the contract
Which of the following is NOT an objective of the National Association of Insurance (NAIC)?
Regulate state insurance commissioners
Which of the following describes the act of insuring a risk against a possible loss?
Risk Transfer
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as
Risk retention group
Security laws passed by Congress are enforced by which Federal agency?
Security and Exchange Commission
Which of these factors does NOT influence an individuals need for life insurance?
Self-maintenance expenses
Dividends from a stock insurance company are normally sent to
Shareholders
Laura is a new employee and will be obtaining non-contributory group major medical insurance from her employer. Which of the following actions must she take during open enrollment period?
Sign an enrollment card
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)
Single premium deferred annuity
Which of the following approves continuing education courses for credit in Virginia
State Continuing Education Board
Which of the following entities does NOT establish regulations for variable insurance products?
State attorney general
Who regulates an insurer's claim settlement practices?
State insurance departments
1945 McCarran and Ferguson Act
States that while federal government has the authority to regulate the insurance industry, it would not exercise that right if the insurance industry was run effectively and adequately by the states
What happens to the cash value of a market value adjusted annuity if its surrendered prior to the end of the stated guarantee period?
Subject to market value adjustment
Policy Loan
available after 3 years of policy
Which of the following statements is true if the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made
The account can be rolled into the surviving spouse's IRA
The insured's consideration given for a health insurance policy is
The first premium payment and the application
Which of the following must clearly be illustrated in ALL sales material for market value adjusted annuities?
The market value adjustment can be either upward or downward
Which statement concerning a deferred annuity contract is correct?
The owner can be the beneficiary, annuitant or neither
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid
Why does Virginia law require an insurance agent to examine the existing Medicare supplement policies of a prospective insured?
To determine the suitability of potential changes
When a ceding insurer transfers a portion of its risk to an assuming insurer on a case by case basis, this process is referred to as
Treaty Reinsurance
Which reinsurance contract between two insurers involves an automatic sharing of the risks assumed?
Treaty reinsurance
When does interest income for a flexible premium deferred annuity get reported for federal income?
Upon receiving distributions from the contract
How do birthing centers reduce medical costs?
Using certified nurse midwives
An insurance policy that can also be classified as a securities product is called
Variable life
Policy issue date
When policy becomes effective when premiums paid with application and two-week delivery
A policyowner is permitted to take out a policy loan on a whole life policy at what point?
When the policy has cash value
Proceeds of a life insurance policy claim may be issued to a minor ONLY if
a guardian has been appointed to receive proceeds on behalf of the minor
Which of the co-annuitants listed below would receive the largest money benefit payment in a 100% survivor annuity?
ages 71 and 73
Which type of policy can group term life insurance normally be converted to?
an individual permanent life insurance policy
According to the Pregnancy Discrimination Act of 1978, employers must treat pregnancy in the same manner as
any other medical disability
Before an individual is permitted to act as an insurance agent, he/she must hold a valid insurance license and be ____ by an authorized insurer
appointed
How may an insurance company classify an accidental death benefit on a life policy?
as an optional policy rider
Affordable Care Act (ACA) established "exchanges" in order to
assist individuals and small businesses when making their health insurance purchases
When does a family accident and health policy's coverage for a newborn child begin?
at the moment of birth
A domestic insurance company in Virginia must
be formed under Virginia insurance laws
Moral hazard
being dishonest, lying
The Change of Occupation provision in a Disability Income policy states that, in the event the insured changes to a less hazardous occupation, which of the following may apply?
benefits can be increased in the event of a covered claim
Who normally pays the premiums for group credit life insurance?
borrower
In a disability buy-sell agreement the policies funding the agreement are owned by the
business entity
A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy?
business overhead expense
An agent recently replaced an existing Medicare Supplement policy with a new policy. The agent's compensation for the new policy
cannot exceed the renewal commission of the original policy
Which of the following is NOT an allowable exclusion for healthcare insurance policies?
care for incurable conditions
A source of supplemental income for a life insurance policyholder can be derived from the?
cash value
A source of supplemental income for a life insurance policyowner can be derived from the
cash value
Reinsurer assumes risk from transferred portion of insurance
ceding company to reinsurer
A health insurance underwriter will most likely view alcohol abuse as a(n)
condition which results in an automatic rejection for coverage
An annuity's accumulation period may
continue after the purchase payments stop
Jerry has an indemnity plan which covers dental expenses. Typically, these type of plans
cover preventitive care once every 6 months
If an insured dies during the grace period without having paid the premium, how much will the insurer pay?
policy's face amount minus any premiums due
The main purpose of an annuity is to
create a stream of income
Viatical settlement proceeds may be subject to the claims of
creditors
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The transfer of Rick's IRA account balance to his surviving spouse qualifies for
death benefits
What happens to the purchasing power of benefit payments from a fixed life annuity when the cost of living goes up?
decreases
Which of these is typically required as a major treatment in an indemnity dental plan?
dentures
Which of these is NOT an underwriting responsibility of an insurance producer?
determining the final rate classification
Disability income policies provide protection for which of the following?
economic death
Under which circumstance may an insurer discontinue a small employer group medical plan?
employer fails to pay the premium prior to the end of the grace period
Speculative risk
events where you can win or lose
Long term care policies will usually pay for eligible benefits using which of the following methods?
expense incurred
Which life insurance policy option allows the policyowner to have coverage equal to the net death benefit of the lapsed policy?
extended term non-forfeiture option
Federally qualified HMO's must offer
family planning services
Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted?
fixed amount installment option
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
social security
1905 The Armstrong Investigation Act
gave the authority to the states to regulate insurance.
A major medical expense plan typically includes coverage for hospital room and board. Which of the following is normally covered under the category "room and board"?
general nursing care
What is the name of the rider that provides an additional purchase option in a life insurance policy?
guaranteed insurability rider
A long-term care plan in Virginia must be issued on which of the following basis?
guaranteed renewable
A condition that increases the possibility of financial loss is called a
hazard
Kyle is an insured who disregarded an accident and health insurance policy provision that requires him to seek a second surgical opinion. What will the end result be?
he may be reimbursed for the surgical procedure at a reduced benefit level
For insurance purposes, similar objects which are exposed to the same group of perils are referred to as
homogeneous exposure units
a family counseling benefit is typically offered under which of these coverages
hospice care
With life insurance, the needs approach is used primarily in determining
how much life insurance a client should apply for
When a large sum of money is used to structure monthly payments, which product is typically used?
immediate annuity
The unwritten authority given to a producer to carry out necessary incidental acts of the agency agreement are called
implied authority
Which life insurance clause prohibits an insurance company from questioning the validity of the contract after a stated period of time has passed?
incontestable clause
A health insurance underwriter will most likely view alcohol abuse as a(n)
increased exposure to risk
Who must sign a rider attached to a health insurance policy in order for it to be valid?
insured and producer
Which of these statements is NOT true regarding a cash value loa against a life insurance policy?
interest payments made by policyowner are deductible
Laura added a children's rider to her life insurance policy. What type of coverage was added?
level term
After the extended term life nonforfeiture option is chosen, the available insurance will be
level term for a stated period of time
After the extended term life nonforfeiture option is chosen, the available insurance will be
level term or a stated period of time
How can a group dental insurer discourage adverse selection?
limit the duration of coverage
Each of the following will trigger a benefit under the presumptive disability provision, EXCEPT
loss of any one limb
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid
mandatory income tax withholding on the amount transferred
A MET third party administrator may not preform which of the following functions?
marketing the plan
An insurance contact may be voided if misrepresentation found on the application is determined to be
material
TRICARE
military health plan that provides services for active duty personnel and their families
Periodic health claim payments MUST be made at least
monthly
Risk retention groups (Rrg)
mutual company formed by a group of people in the same industry. (Ex: dentists, engineers, pharmacists)
Medicare supplement policies in Virginia may contain
neither waiting periods nor preexisting conditions exclusions
An agent whose actions exceed the authority granted by contract is
not backed by the insurer
Which of these is not an unfair claims settlement practice?
offering to settle a claim by arbitration
Most prepaid dental plans cover
oral examinations
A major medical expense policy typically does NOT
pay surgeon fees on a first-dollar basis
cause of loss
peril
Under a long-term care inflation rider, the benefit levels
periodically increase without proof of insurability
A life insurance guaranteed insurability rider gives the insured the right, without proving insurability to
periodically purchase additional insurance
In Virginia, any person acting as an agent for an unlicensed insurer is
permissible only if acting as a licensed surplus lines broker
Which would not be a location where a skilled nursing care is provided
personal residence
How is the insured protected if a payor benefit rider is attached to the life insurance policy?
premium payments are waived in the event the premium payor dies or becomes disabled
Which statement regarding the life insurance premium for a children's rider is true?
premium remains the same no matter how many children
A pre-existing condition exclusion in an accident and health insurance policy pertains to
prior health matters
Which of the following does NOT fall under "hospital care" in a typical health maintenance organization (HMO) plan?
private duty nurse
Commercial insurers -aka-
private insurance companies
Which of the following outlines the authority given to the producer on behalf of the insurer?
producer contract
A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a
profit sharing plan
An agent has indicated to a potential client that the proposed life insurance policy is covered by the Virginia life, accident, and sickness insurance guaranty association. This action taken by the agent is
prohibited by law
The state corporation commission is empowered to perform each of the following acts
prosecute an agent who violates state insurance laws
The automatic premium loan provision can be accurately described as a
provision that provides a policy loan to pay any premiums by the end of the grace period
Ambiguities in insurance contracts are typically interpreted in favor of the insured. This rule is referred to as
reasonable expectations
A life insurance policy owner sells to a third party in a viatical settlement. Under this transaction, the policyowner
receives an amount less than the policy's death benefit
During an annuity's liquidation phase, the annuitant normally
receives benefit payments are regular intervals
Which of the following is not a dividend option for a life insurance policy?
receiving the entire policy cash value
Which of the following disability income provisions allows two periods of disability to be counted as one?
recurrent disability
What effect can a long-term care benefit rider have on a life insurance policy?
reduced death benefit
How do benefit payments fluctuate over time in a variable life annuity?
reflects changes in the market value of assets in a separate account
How can an insurance company minimize exposure to loss?
reinsuring risks
An independent agent may
represent several insurers
The inability to perform some of the duties of one's own occupation is known as a
residual disability
Which of the following would most likely purchase an immediate annuity?
retiree having a lump sum to invest
potential for loss
risk
An example of endodontic treatment is a
root canal
1944 United States v. South-Eastern Underwriters Association
ruled that insurance transactions crossing state lines are interstate commerce and are subject to federal regulation.
Assets that back the non-guaranteed values of variable life insurance products are held in which account?
separate account set up by the insurer
The outline of coverage for a medicare supplement policy provides information about?
services, benefits, copayments, deductibles, exclusions, premiums, and the insurer
Dividends from a stock insurance company are normally sent to
shareholders (stockholders)
Licensed agents in Virginia are authorized to
solicit, receive, and forward applications to the insurer
Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance company has a right to refuse renewal of the policy for
specific reasons stated in the contract
An example of rebating would be
splitting the commission with the buyer on a sale of insurance
Who regulates an insurer's claim settlement practices?
state insurance departments
Replacement
strictly regulated and requires full disclosure by both the agent and the replacing insurance company
Which of these is a true statement regarding survivor benefits under a qualified retirement plan?
survivor benefits can only be waived with the written consent of a married employee's spouse
What type of insurance policy covers two or more persons and pays the face amount upon the death of the first insured?
survivorship l ife
Under a key person disability income policy, benefits will be received as
tax free income to the business
The interest credited to the cash values of personally-owned non-qualified annuities i considered
tax-deferred
An agent may be personally liable if he or she engages in acts
that are not part of the agency or agent contract
1869 Paul v. Virginia
the U.S. Supreme Court ruled that insurance transactions crossing state lines are not interstate commerce.
What is payable to the policyowner if a whole life policy is surrendered prior to its maturity date?
the cash value
In Virginia, a long term-care policy which lapses may be reinstated within 5 months if
the covered individual was mentally incapacitated
Which statement concerning adjustable life insurance is accurate?
the face amount and premiums can be changed simultaneously by the policyowner
Virginia Life and Health insurance guaranty association
the guaranty fund is to ensure that claims filed against insolvent insurance companies will be paid.
The optionally renewable provision allows what party to cancel the contract?
the insurer
The Virginia life, accident, and sickness insurance guaranty fund protects an insured in the event of
the insurer's insolvency
A life insurance policy advertisement may contain
the insurer's name
Which statement concerning a deferred annuity contract is correct?
the owner can be the beneficiary, annuitant or neither
Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for
the policy is surrendered for less than what was paid into it
what is considered the collateral on a life insurance policy loan?
the policy's cash value
How is community rating used for underwriting purposes?
the same rates are charged for individual and group plans in the same geographical area
An insurer must charge the same individual life insurance premium for two individuals who share
the same risk class and have equal life expectancy
How does a premium whole life policy differ from a limited payment whole life policy?
the time period in which premiums will be paid
Which of these is NOT a reason to buy a term life policy?
to accumulate savings
Which of the following involves sharing an uncertain risk with another similar group?
transfer
Reciprocal Insurers
unincorporated groups of individual members that provide insurance for other members through indemnity contracts
An agent's insurance records must be provided to the State Corporation Commission
upon request of the state corporation commission
An insurance company can be liable for a producer's unauthorized acts
when the agency contract is unclear concerning the authority given
When does the producer give a premium receipt for a life insurance application?
when the initial premium has been paid with the application
Which life insurance policy would be eligible to include an automatic premium loan provision?
whole life
The following are all elements of a valid contract EXCEPT
written evidence
Policy
written instrument in which a contract of insurance is set forth
