License Exam final test

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

A Long Term Care insurance contract shall provide coverage for a minimum of how many months?

12

Insurance agent licenses normally must be renewed every

2 years

In Virginia, which of the following is required in order to continue a resident insurance agent license

Meeting continuing education requirements

When an existing life insurance policy is being reissued with a reduction in cash value, the producer must sign the

Notice Regarding Replacement of Life Insurance or Annuity

An agent is suggesting replacement if a prospective insured is given all of the following advice EXCEPT

"Convert your Term insurance to Whole Life"

The conversion period for a terminated employee to convert group life coverage to an individual plan is

31 days

All of the following statements about health coverage for newborns are correct EXCEPT

All of the following statements about health coverage for newborns are correct EXCEPT

All of the following actions by a licensee may result in license suspension except when the licensee

shares commission with a similarly licensed agent

An agent who tells a client that dividends are guaranteed may be guilty of

misrepresentation

Convincing a prospective insured to buy an insurance policy based on exaggerations is called

misrepresentation

Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed

misrepresentation

The policyholder has how many days to return an Accident & Health Insurance Policy and receive a full refund on premiums

10

After a hearing, the State Corporation Commission may order an agent who willfully violates any provision of the insurance code to pay a MAXIMUM penalty per violation of:

$5,000

Long-Term Care policies issued in Virginia must provide benefits for at least

12 months

The minimum age at which a person can sign a life insurance application is

15

What is the biennial insurance continuing education requirement for an agent with 1 license type

16 hours

According to Virginia law, a Group Life insurance policy requires a minimum of how many insureds

2

At the date of issue, an employee group life insurance policy must cover a MINIMUM of how many employees

2

In Virginia, a small group is comprised of not more than:

2 to 50 members

A newly licensed life and health insurance agent must complete __ hours of continuing education every 2 years.

24

To renew an insurance license, the agent holding 2 types of licenses must complete how many continuing education credits by December 31 in even numbered years

24 credits

Health coverage provided under the Affordable Care Act (ACA) shall be made available for dependents until the child attains the age of:

26

An agent must maintain records of insurance transactions for a MINIMUM of how many previous calendar years?

3

Virginia requires that an insurance agent must complete __ hours of continuing education on the subject of ethics every two years.

3

Every insurance agent/broker MUST maintain all records, books, and documents for insurance transactions for a period of not less than

3 years

A Qualified Long Term Care policy requires the Free Look provision to refund 100% of premiums paid within how many days of policy delivery?

30 days

An agency has moved the office to a commercial office complex less than 5 miles from the current office location. The agency must notify the Bureau of Insurance within how many calendar days of such change in office location

30 days

Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund

30 days

The Commission must examine each domestic insurance company AT LEAST every

5 years

An insurance policy has the right to defer granting a policy loan for a maximum of how many months after receiving the loan application?

6

What is the maximum length of time a company can impose a pre-existing condition exclusion on a Medicare Supplement (Medigap) policy?

6 months

A life policy loan in Virginia cannot charge a fixed rate of interest higher than

8%

What is the maximum policy interest rate for individual life insurance policies issued after July 1, 1981

8% per year

An agent may share commissions with which of the following individuals?

A licensed agent with the same license type

Each agent who initiates an application for life insurance or annuity for replacement of an existing policy shall submit which of the following as a part of the application

A signed statement by the applicant regarding the replacement

What is Virginia's definition of Life insurance replacement

A transaction in which a new policy is bought and an old policy is terminated

When recommending a purchase or exchange of an annuity, the agent or insurer must have a reasonable basis for believing that a recommendation is suitable based on all of the following facts disclosed by an applicant EXCEPT the applicant's

County of residence

In Virginia, which of the following statements is CORRECT about life insurance advertisements?

An insurance agency is responsible for advertisements placed by its insurance agents

An example of false advertising would be

An insurer exaggerating its dividends in a magazine advertisement

According to the Affordable Care Act (ACA), which of the following coverages is NOT required?

Coverage for cosmetic surgery

How does the Commissioner of Insurance attain office

Appointed by the State Corporation Commission to a 4-year term

When is a Group Accident & Health policy required to provide coverage for a newborn child?

At the moment of birth

To be eligible for a group health policy, a group MUST meet which of the following:

Be formed for a purpose other than obtaining insurance

A group life insurance policy may NOT insure groups consisting exclusively of persons who are

related by marriage, blood or legal adoption

Which of the following transactions would be considered a Life Insurance policy replacement

Cash surrender an existing whole life policy and purchasing a new whole life policy

Which of the following violations is considered and unfair trade practice

Coercion

The replacement of an accident and Health policy should be based on each of the following, EXECPT

Commisions to be Paid

Any administration service fees charged by an insurance agent require the written signature by a consume

In all instances

Which of the following statements is CORRECT about non-partnership Long-Term Care insurance?

Inflation protection must be offered to applicants for a Long-Term Care policy

Which of the following statements is CORRECT about the conversion provision in a group health insurance policy

It is mandated by state requirements

Which of the following statements is CORRECT about the Virginia Life, Accident, and Sickness Insurance Guaranty Association

It protects Virginia insurance policyowners in the event an insurance company becomes insolvent

The rules and regulations of the Life, Accident, and Sickness Insurance Guaranty Association in Virginia apply to

Life and Health Policies issued by companies authorized in Virginia

Which of the following statements about Individual Accident and Health minimum standards is CORRECT?

Minimum standards apply to policy definitions as well as to benefits

An agent MUST complete which of the following forms when an applicant has existing insurance or annuity coverage

Notice Regarding Replacement of Life Insurance or Annuity

The Rules Governing Advertisement of Life Insurance and Annuities apply to which of the following items

Prepared sales presentations used by insurance agents

An insurance licensee is required to provide records of insurance transactions to the State Corporation Commission:

Promptly upon request for examination of the licensee

No insurer shall refuse to insure an individual because of

Race

An insurance agent is in violation of the Rules Governing Advertisement of Life Insurance and Annuities if the agent takes which of the following actions during a sales presentation

Refers to guaranteed policy dividends

All of the following actions are considered rebating EXCEPT:

Sharing commissions with other licensed and appointed agents

At what age is a nondisabled person first eligible for coverage under a Medicare Supplement policy

Sixty- five

Which action by an insurance agent is considered rebating

Splitting commissions with a policyholder who has purchased additional coverage

A policy loan provision is not required in which of the following types of policies?

Term Life

Which of the following actions is considered an Adverse Underwriting Decision

Terminating insurance coverage

An agent is required to make reasonable efforts to obtain information concerning the suitability of an annuity in which of the following situations

The agent assists the consumer with the purchase of an annuity

Which of the following circumstances would cause a Medicare Supplement policy to be cancelled

The insured fails to Pay the premium

According to Virginia Law in which of the following situations would be dependent handicapped child Not be covered under a family Accident and Health policy

The premium for the handicapped child are not paid

Testimonials used in Accident & Health insurance must meet all of the following requirements, EXCEPT:

They must be approved by the Virginia Commissioner of Insurance

Inducing or attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance is

Twisting

The Virginia organization responsible for approving all continuing education, instructors, continuing education courses, and programs of instruction for insurance agents is the: Virginia Department of testing services

Virginia Insurance continuing education board

Which of the following statements about a business entity acting as an insurance agent is CORRECT

`It must designate at least 1 licensed producer to be responsible for the entity's compliance with the insurance laws and rules

Which of the following is NOT considered an insurance advertisement?

a direct mal brochure announcing free insurance advice

Under the Health Insurance Portability and Accountability Act (HIPAA), all of the following qualify as creditable coverage, EXCEPT:

accident only

All of the following will result in the suspension of an agent's license EXCEPT

acting with fiduciary responsibility

All of the following provisions are required in a group life policy EXCEP

an Accidental Death and Dismemberment provision

An individual who is appointed by an insurance company to transact insurance is referred to as

an agent

An example of unfair practice is

an agent making a material representation to the insured

According to Virginia law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant

at the time of application

Select the appropriate response Each applicant for an agent's license in Virginia MUST

be a good character and have a good reputation for honesty

Before an insurance company can issue a small employer group policy, it MUST

be authorized to write accident and health insurance in this state

An individual covered under a Group Life insurance policy is considered to be a(n)

certificate holder

Which of the following types of insurance is exempt from the Rules Governing Life Insurance and Annuity Replacements?

credit life

The Accident and Health Insurance Replacement Notice states that the failure to include material medical information on the application may provide a basis for the insurance company to:

deny any future claims and to refund the premiu

In order to act as an insurance agent, a person MUST be:

duly licensed

An insurance agent's license may be suspended or revoked if the agent has

engaged in twisting

How often must an insurance consultant's license be renewed

every year

The life, Accident and sickness Guaranty Association is

funded by admitted insurance companies through assessments

All of the following statements about health coverage for physically handicapped dependents of insureds are correct EXCEPT that the dependent must

have been over ten years of age when the handicap was incurred

An agent MUST do which of the following during a sales presentation for a participating life insurance policy

include a statement that dividends are not guaranteed

An Accident & Health policy must provide Essential Benefits without annual and lifetime limits when purchased:

individually or with group coverage through the Federal Marketplace

Which Medicare product requires use of specific hospitals and sometimes physicians for nonemergency care, and failure to use the specific hospital or physician will result in the insured paying some, if not all, of what Medicare does not pay, and may be more economical than other Medicare products

medicare select policies

An insurer may pay commissions directly to any person for services as an agent provided the agent:

is licensed and appointed

A person who circulates inaccurate information about the benefits of a policy may be found guilty of

misrepresentation

Defamation occurs when an agent makes a false statement intended to

malign another insurer

According to Virginia law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase

marital status

An insurance agent is guilty of twisting if the agent

misrepresents a policy to induce a policy owner to surrender an existing policy

Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent

only if the child is incapable of employment and chiefly dependent on the policyowner

An insurance agent does NOT have fiduciary responsibilities to

other agents

Under the Affordable Care Act (ACA), all of the following coverages must be provided, EXCEPT:

services involving elective cosmetic surgery

Insurance agents who must maintain premiums in a fiduciary account may withdraw funds from the account to pay all of the following expenses EXCEPT

personal medical expenses

When must a written disclosure be given to the applicant or policy holder regarding administrative fees charged by the agent

prior to any service being rendered

During the appeal period, an agent may successfully appeal license termination due to continuing education requirements if

proof of compliance is provided

In Virginia, if an agent misappropriates insurance funds held in a fiduciary capacity, the Commission may:

suspend or revoke license

Under which circumstance can a group life insurance policy be converted to an individual policy

termination of employment

To verify if replacement is involved in a Medicare Supplement sale, i law requires that a question about replacement appear on

the application form

An insured who is covered under an employer's Group Life policy for $15,000 has resigned. All of the following statements about conversion privileges are true EXCEPT

the insured can convert to a $15,000, 15 year level term policy

The Free-Look provision of any health policy begins the date

the policy is delivered to the insured

Essential Benefits without annual and lifetime limits are required on any health policy purchased

thought he federal marketplace

The rules pertaining to senior-specific certifications and professional designations do NOT apply to which of the following types of coverage

title insurance

Group Life policies in Virginia are required to contain a conversion privilege that allows for conversion

to an individual policy for a stated period of time

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert

to an individual policy upon employment termination

An insurer who quotes different policy rates to individuals in the same class of risk may be guilty of:

unfair discrimination

Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Virginia insurance laws covering

unfair trade practices

Agents may combine business funds and insured's premiums:

when duly appointed and contractually authorized by an insurer

An agent who is convicted of a felony must report the conviction to the Bureau of Insurance

within 30 calendar days

According to the Affordable Care Act (ACA), a dependent child's eligibility status is determined by

age

When soliciting a Medicare Supplement policy, an insurance agent should advise an applicant that the

agent is there to determine what, if any, policy is appropriate for the purchaser, considering existing coverage

Which of the following is NOT an example of an agent's breach of fiduciary duty?

allowing premiums to be submitted electronically

The Commission in Virginia has the power to

examine insurers solvency

Which of the following is an example of a "qualifying event" under an Accelerated Benefits rider of a life insurance contract

medical condition resulting in drastically limited life span

The funds used by the Life, Accident, and Sickness Insurance Guaranty Association to carry out its purpose are obtained from the

member companies

Which of the following is NOT a defined group for purchasing group insurance?

non-profit organization

Before holding a hearing regarding an agent's unfair or deceptive practice, the Commission MUST give how many days notice

10

One of the stated purposes of the Life, Accident, and Sickness Insurance Guaranty Association is to

assist in the prevention of insurer insolvencies

To be eligible for a group life policy, a group MUST meet which of the following requirements?

be formed for a purpose other than obtaining life insurance

The Commission may examine the records of an insurance company in order to

determine the solvency of the company

The life insurance and annuity replacement regulation defines replacement as

exchanging an existing policy for a new policy

Select the appropriate response The Rules Governing Life Insurance and Annuity Replacements define replacement as

exchanging and existing policy for a new policy

An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons

failure to pay for coverage

An advertisement stating that an agent is licensed for a line of authority, when that agent is not licensed for that line of authority, is

false advertising

Medicare supplement insurance is issued by

insurance companies

According to Virginia HIPAA regulations, a health insurance issuer of individual policies may discontinue coverage in each of the following situations, EXCEPT:

insured health insurance has declined

The PRIMARY purpose of the life insurance replacement regulation is to protect the

interests of policyowners

A license may be denied, suspended, or revoked if the licensee

is found guilty of misrepresentation

The Commission may suspend, revoke, or refuse to renew the license of an agent who

is found guilty of misrepresentation or fraud in obtaining the license

Which of the following statements is CORRECT about a Health Maintenance Organization (HMO)?

its provider must be under contract or employment

The Virginia Commissioner of Insurance has the authority to examine the business records of all of the following entities, EXCEPT

life insurance master policies

The State Corporation Commission has the authority to

make reasonable insurance rules and regulations

Before purchasing or exchanging an annuity, an agent must make reasonable efforts to obtain information concerning all of the following, EXCEPT the consumer's

marital status

When an agent is replacing an existing ordinary life insurance policy, the agent must take all of the following actions EXCEPT

obtain the beneficiary's signature on a summary of all policies to be replaced

An example of rebating would be

offering a client something of value not stated in the contract in exchange for their business

An example of unfair discrimination would be

offering different terms of coverage for different policyowners having the same risk classification

Which of the following terms is defined as any transaction in which new life insurance or a new annuity is to be purchased and existing life insurance or annuity is to be terminated or discontinued

replacement

An insurance company must do which of the following to terminate an agent's appointment

send notice of termination to the commission

An agent selling Medicare Supplement policies must provide every applicant with a(n)

suitability form

When offering health insurance coverage to an employee, a health insurer must inform the employer of all the following information, EXCEPT:

the terms of the insurer's provider agreements

An agent must provide a suitability statement to the annuity company under all of the following circumstances, EXCEPT

when an agent discusses annuities in general with a client, but no specific recommendation is made

Insurance agents MUST maintain premiums in a fiduciary capacity and remit them

In the ordinary course of business

Insurance agents MUST maintain premiums in a fiduciary capacity and remit them:

In the ordinary course of business

In Virginia, records must be kept for each of the following insurance transactions, EXCEPT

Premium quotes not accepted by the insured or prospective insured

Group life policies MUST include all of the following provisions EXCEPT

Right to loan proceeds

Which of the following individuals is required to hold an appointment with an insurance company which they represent?

An agent

Which of the following situations does NOT apply to the Virginia Replacement Rule?

An existing policyholder purchases an additional policy from the same insure

An insurance agent's license may be suspended or revoked under which of the following circumstances?

The agent has been convicted of a misdemeanor within the past five years

If a licensed resident insurance agent moves out of state, which of the following will occur

The agents license shall terminate immediately

An insurance agent acts in a fiduciary capacity when conducting routine business with all of the following principals EXCEPT

The commission

Disclosure standards require that which of the following be delivered with a Medicare Supplement policy

The outline of coverage

Which of the following statements is CORRECT if an insured converts his Life policy to Paid-Up Insurance and buys new insurance

The transaction is considered replacement

Which of the following statements is CORRECT about a licensed business entity acting as an insurance agent?

They must notify the Bureau of Insurance of any fictitious name used

Which of the following statements is a purpose of the Rules Governing Advertisement of Life Insurance and Annuities

To assure full disclosure to the public of all material and relevant information

Under Virginia law, which of the following provisions is NOT required in a Medicare Supplement policy?

Limitation on pre-existing conditions for up to 12 months

An applicant MUST obtain the appropriate license within how many calendar days from the date of passing the exam?

183

Under the Affordable Care Act (ACA), health coverage is provided for dependents up to the age of

26

An insurance agent must notify the Bureau of Insurance of a change of residential address within how many calendar days

30

How long is the free-look period for Long-Term Care policies sold in Virginia

30 days

A person covered by a group major medical policy leaves the group and converts the coverage to an individual policy. Which of the following statements is INCORRECT about the new policy

It pays the same benefits as the group policy

Making incomplete comparisons of policies in order to induce the purchase of a policy is referred to as

Twisting

An insurance agent who knowingly gives a prospective insured a false statement of the projected dividends for a policy is guilty of:

misrepresentation

According to Virginia law, group life insurance conversion privileges must NOT

requires evidence of insurability

A long-term care lapse notice must be delivered to both the applicant and

secondary adresse

A written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is a

viactical settlement

In Virginia, COBRA permits terminated employees to receive which of the following

Continued coverage in group health plan

An insurance agent license may be denied for which of the following reasons

Conviction of a felony

The Commission may examine the records of an insurance company in order to

Determine the solvency of the policy

Select the appropriate response Insurance agents who must maintain premiums in a fiduciary account may withdraw funds from the account to pay all of the following expenses, EXCEPT

Personal medical expenses

The Commission is responsible for

administering insurance laws

Circulation of any oral or written statement or any pamphlet, circular, article, or literature that is false or maliciously critical of or derogatory to the financial condition of an insurer is known as

defamation

The act of offering an applicant something of value as an inducement to purchase a policy of insurance is

rebating

Licensed agents are NOT required by the Virginia Code to keep:

records of premium quotations that are not accepted by the insured

The purpose of the Rules Governing Life Insurance and Annuity Replacements is to:

reduce the opportunity for misrepresentation and incomplete disclosure

Which of the following is NOT an unfair trade practice?

reinsurance

The Commission may suspend or revoke the license of an agent who takes any of the following actions EXCEPT

represents more than one insurance company

Which of the following is an example of rebating

returning a portion of a premium as inducement to purchase insurance

In Virginia, an insurance agent is BEST defined as:

a person who sells, solicits, or negotiates contracts of insurance or annuity

Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy

Notice to existing and replacing insurers of intention to replace

What are adjustable rates for life policy loans in Virginia based on

Moodys corporate bond index

Insurance companies and agents must implement an information security program to accomplish each of the following, EXCEPT

provide policyholder lists to the Commissioner of Insurance

The Bureau of Insurance may deny an insurance license for which of the following

Failure to report criminal history record report

Each agent shall complete all continuing education requirements by no later than November 30, and shall be given a final opportunity to complete such requirements by

December 31st, every even year

Making false statements about the financial condition of another insurance company is called

Defamination

If an agent determines that the sale of a Medicare Supplement policy involves replacement, the agent must take all of the following actions EXCEPT

notify the replaced insurance company

Medicare Supplement insurance is guaranteed issue if the policy effective date is within how many months of the insured's Medicare Part B starting date?

6

The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond

6 months

In Virginia, a Long-Term Care policy must be renewable in which of the following ways

Guranteed renewable

A person who issues false written or oral statements that are maliciously critical of the financial condition of an insurance company may be found guilty of:

Defamination


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