Virgiia State Life and Health Exam
an agent offers an application something of value not mentioned in the contract as an inducement to purchase an insurance policy. this illegal act is called
rebating
splitting the commission with the buyer on a sale of insurance is known as
rebating
under virginia law, all of these are required to be kept by licensed agents EXCEP
records of premium quotations that were rejected by the insured
how do benefit payments fluctuate over time in a variable life annuity?
reflects changes in thhe market value of assets in a separate account
if a licensee is suspended for non-renewal, the licensee may apply for reinstatement within
the 12 month period following the date when the license should have been renewed
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
a Keogh plan is a(n)
qualified retirement plan for the self employed
which of these occurrences could improve an insurer's ability to reduce premiums?
rate of earnings on investments increase
when an insred under a group life insurance plan in virginia elects the conversion option, the new policy is issued
without requiring evidence of insurability
an insurance consultant's license must be renewed ever
year
an insurance consultant's license must be renewed every
year
which statemetn regarding the cash value. of a whole life insurance policy is correct?
available to the policyowner when policy has been surrendered
the IRS has a "minimum coverage" rule regarding qualified retirement plans. this rule states that each qualified plan is required to
benefit a broad cross-section of employees
which of the following is considered a limited accident and health plan?
cancer plan
which of the following types of insurers limits the exposures it writes to those of its owners
captive insurer
a family counseling benefit is typically offered under which of these coverages?
hospice care
according tto the affordable care act, coverage may be rescinded
if intentionally false statements were offered
premiums collected by an insurance agent must be maintained in a fiduciary capacity. at what point must these premiums be remitted to the insurer?
in the ordinary course of business
which of the following does not help determine group health insurance premiums?
income level of group members
which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2?
income tax and penalty tax
medicare part A typically covers
inpatient drugs
an accelerated benefit rider in a life insurance policy may provide funds to an insured who
is exected to remain in a nursing home for life
which of these would not be a valid reason to add the waiver of premium rider to a life insurance policy?
it allows a policy loan to cover premium payments if the policyowner becomes totally disabled
all agents and insurance companies must impolement an information ecurity program. which of the followoing is not a valid reason for this implementation?
it provides policyholder lists to the commission
all agnets and insurance companies must implement an information security program. which of the following is NOT a valid reason for this implementation
it provides policyholder lists to the commission
what is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old?
less than the policy's face amount
in order for an individual to receive commissions from an insurance company for services as an agent, the individual must be
licensed and appointed
which of these is NOT a common life insurance nonforfeiture option?
life income annuity
how can a group dental insurer discourage adverse selection?
limit the duration of coverage
joe is a life insurance policyowner who has failed to pay interest on his policy lan. what will result from this nonpayment?
loan amount is increased to reflect the amount of interest due
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
misrepresentation on the application is
material
a recirpocal insurer typically has an administrator who manages the premiums collected from the group's members. the administrator is called
attorney-in-fact
how long is individual medical expense insurance normally written for?
1 year
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?
100%
what is the maximum social security disability benefit amount an insured can receive?
100% of the insureds primary insurance amount (PIA)
any person who unknowingly violates virginia insurance law may be punished for each violation by a penalty not to exceed
1000 with 10000 cap
a LT care policyy issued in VA must provide coverage for at LEAST
12 months
after passing the state exam, an applicantt is required to obtain the appropriate license within __ calendar days
183
an agents license in VA must be renewed ever
2 years
how many days does the free look provision allow the insured the right to return the policy for full premium
20 days
nonqualified medical expense distribution from a health savings account have a penalty of
20%
a licensee who is rrequired to take continuing education must include how many ethics coursework hours?
3
each LT care policy sold in VA must include a free look provision that refunds all premiums within __ days of delivery
30
how many days netice does the affordable care act require insurers to give before rescinding coverage?
30
if an insurance agency has moved its office to. new location, the bureau of insurance must be notified within ____ calendar days of the move
30
in VA, an insurer must file a written notice of appointment with the SCC within
30 days of the first insurance application submitted by the licensee
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 indidual policy?
31 days
when an accident and health policy requires payment of an additional premium to provide ccoverage for a newborn, how many days after the birth is the first payment due?
31 days
an agent must maintain customer records for __ year following the completion date of the insurance transaction
5
the commission must inspect the financial records of each domestic company every
5 years
a person who intentionally commits a criminal violation of virginia insurance law may be subject to a maximum fine of
5000
an agent who willfully violates the insurance code may, after a hearing, pay UP TO ___ per violation
5000
how long do mosst states allow an insurance company to delay tthe payment of a cash surrender under the delayed payment provision?
6 months
in a long term care policy issued in VA, any provision limiting preexisting conditions may not exceed
6 months
what is the actuarial value of a bronze level health plan
60
in virginia, a life insurance policy loan shall bear interest at a specified rate, NOT in excess of
8%
ERISA requires that a summary plan description must be provided to a new plan member within how many days following the new member's eligibilty date?
90
according to ERISA regulations, a summary plan description must be provided to a new plan member within __ days of the members eligibility date
90
which of these statements accurately reflects virginia law regarding life insurance advertisements?
An insurance agency is responsible for advertisements placed by its insurance agents
according to the affordable cre act, new health insurance marketplaces are established by the
CCIIO
which of the following is a syndicate established by a group of insurers to share underwriting dutties?
Lloyd's organization
an orgganizaition that requires healthcare services to be procided by a network of physicians and hospitals is known as
PPO
which of these is NOT an advantage of term life insurance?
a cash benefit will be provided if the insured is alive at the end of the policy period
with whom may an agent share commissions with?
a licensed agent with the same license type
emergency health care coverage for medicare enrollees traveling abroad is
a medicare supplement additional benefit
which of the following would NOT be appropriate for an immediate annuity
a parent saving for a child's college
what does the term "field underwriting" refer to in health insurance industry?
a producers contact with the applicant
which of the following does NOT qualify as creditable coverage under the health insurance portability and accountability act (HIPAA)
accident plans
which of these circumstances requires an agent to make reasonable efforts to obtain information concerning the suitability of an annuity?
agent helps a client with the purchase of an annuity
in VA, who is primarily responsible for determining the appropriateness of a medicare supplement policy for a proposed insured?
agent who solicits the application
which of the following will happen if a licensed resident insurance agent moves to another state?
agent's license shall terminate immediately
an agents authority to bind an insurer to an insurance contract may be grated in the
agents contract and the insurance company's appointment
what is a major difference between private commercial insurers and HMOs?
an HMO combines medical care deliver and funding in one organization
which of the following is not a valid contract exchange?
an annuity exchanged for a life insurance policy
misrepresentingpertinent policy provisions relating to coverage after a loss is
an unfair claims settlemtn practice
if a group endorses an accident and health insurance product in an advertisement, the public must be made aware of
any control by the insurer over the group
in what situation could an insurance policy's coverage be modified?
applicant is substandard risk
which of the following situations would a medical exam NOT be required for an individual insurance applicant?
applicants family members have a history of cancer
the minimu virginia standards
apply to policy defninitions as well as to benefits
accident and health insurance claim handling is made more convenient to the insured by utilizing
assignment of benefits
a client would like to purchase an annuity from n agent. the agent does not need to make reasonable efforts to obtain information from the client on which of the following?
clients marital status
prepaid dental plans differ from most other types of denttal plans in what way?
closed panel of dentists can only be used
which of the following can be used to avoid the mandatory withholding tax on qualified plan distributions
coduit IRA
a licensee who attempts to intimidate a prospective insured is guilty of
coercion
an agent who attempts to intimidate is engaging in
coercion
in counselinging a prospective policyholder about replacing existing group health insurance, the discussion ttopics should include
comparing the benefits of the current and proposed plans
the insurer's obligation to pay a claim depends on whether the insured or beneficiary has complied with all policy conditions. this makes the policy a
conditional contract
the courst will normally interpret a policy in favor of the insured when the meaning of the policy is not clear. this is because an insurance policy is an
contract of adhesion
al surreders his life insurance policy for its cash value. the total of premiums paid into the policy minus total dividends received in cash or used to offset prremiums is referred to as the
cost basis
jerry has an indemnity plan which covers dental expenses. typically, these type of plans
cover preventative care once every 6 months
any employee insured under a group life insurance plan is normally
covered with term life insurance
proceeds of the viatical settlement contract could be subject to the claims of
creditors
which of the following disability buy-sell agreements is best suited for buusinesses with a limited number of partners?
cross-purrchase agreement
major medical plans typically exclude coverage for which of the following benefits
custodial care
christopher is issued an insurance policy that conttains an attached agreement which alters the terms of the policy. the attached agreement is called
endorsement
which of the following is a role of the SCC?
establish rational insurance rules and regulations
which statement concerning an adjustable life insurance policy is FALSE?
evidence of insurability is required when there is a change in premium
the "notice to buyer" on the first page of each long term care policy delivered in VA
explains that some LT care costs may not be covered
a policyowner fell behind on the premium payments of a whole life policy and is now in the grace period. how much will the beneficiary receive if the insured dies during this grace period and the policy also contains an outstanding policy loan?
face amount minus the loan balance and past-due premium
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
facultative reinsurance
federally qualified HMOs must offer
family planning services
an accident & health policy is requrired to provide essential benefits without annual and lifetime limits when purchased through
federal marketplace
medicare part A does not provide coverage for
first 3 pints of blood
an individual long term policy must be renewable
for life
an annuity contract may be returned for a full refund during the
free look period
emily is disabled.. in order to become eligible for social security disability income benefits, she must be
fully insured, according to social security
the administrator for a corporate pension plan bought an accumulation annuity contract for its 2,000 employees. all 2,000 prticipating employees received certificates of participation. what kind of contract is this?
group deferred annuity
what is the name of the rider that provides an adiitional purchase option in a life insurance policy?
guaranteed insurability rider
according to the rules governing advisement of life insurance and annuities, an aget may NOT take which of the following actions during a sales presentation
mentioning guaranteed policy dividends
during the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following rreaosns except
misstatement of age in the application
periodic health claim payments MUST be made at least
monthly
which of the following is TRU about a qualified retirement plan that is "top heavy"?
more than 60% of plan assets are in key employee accounts
medicare supplement insurance requires an individual to be atleast how old for open enrollment?
no minimum age
what is the minimum age required for open enrollment in medicare supplement insurance?
no minimum age required
the disability income policy most likely to have been issued on a substandard basis is
non-cancelable with a health condition exclusion rider
tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. what type of policy is this?
noncancelable
the contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called
nonforfeiture options
an agent whose actions exceed the authority granted by contract is
not backed by the insurer
sarah, age 88, is a life annuitantt who has lived beyond her life expectancy. the funds for additional benefit payments will be derived primarily from funds that were
not distributed to life annuitants who died before life expectancy
when replacing an individual accident and health policy in VA, the required replacement notice to the applicant must include
notice tht pre-existing conditions may not be covered
a licensed business entity acting as an insurance agent must
notify the bureau of insurance of any fictitious name used
under medicare supplement insurance, which form provides information about services, benefits, copayments, deductibles, exclusions, premiumes, and the insurer?
outline of coverage
renewal of small employer health insurance plans may be denied for all of the following reasons EXCEPT
overuse of physician and hospital services
j is an insurance agent who maintains premiums in a fiduciary account. which of the following expenses may not be paid using funds withdrawn from this account?
personal medical expenses
twisting means
persuading an insured, to the insureds detrimentt, to switch policies
a signed good health statement may be requested by a life producer at the time of
policy delivery
which of the following statements best describes disability buy-sell insurance policies?
policy proceeds are typically received income tax-free
which of the following does the commissiooner of insurance NOT have the authority to examine its business records
policyholders
whichh of the following guidelines does NOT apply under the pregnancy provision of the civil rights act?
post-termination extensions of medical benefits must apply equally to pregnancy
In VA, which of the following records are not required to be maintained by an agent?
premium quotes for policies not accepted
qualified long term care policies must include all of the following provisions except
prior hospitalization
which of the following outlines the authority given to the producer onbehlaf ofthe insurer?
producer contract
in VA, reducing benefits for a newborn child under an accident and health plan is
prohibited in any form
a cease and desist order issued against an agent
prohibits a specific practice listed in order
B the agent recently had her license terminated because she did not meet continuing education requirements. she may successfully appeal this decision if
proof of compliance is provided
all of the following are powers and duties of the commission except
prosecute brokers who violate virginia state insurance laws
an agent may share commission in which one of the following scenarios?
with another licensed but unappointed agent
a transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called
replacement
aa transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called
replacement
when determining the suitability of an annuity for a consumer, the insurance provider is obligated to
report the annuity rates of their competitors
an indepedent agent may
represent several insurers
in virginia, an individual can be disqualified from obtaining a resident agent license by
residing in a bordering state
a group-owned insurance company that is formed to assume and spread the liability risks of its members is known as
risk retention group
which of these is NOT considered the responsibility of a producer during the underwriting process?
selecting the final approval date
third-party administration has become fairly common in accident and health insurance due to the growth of
self-funding benefits
christine is receiving benefits provided from her disability income insurance. as compared to her previous earnings, the benefits should be
somewhat less
darrell has a group long-term disability income policy paid by his employer. which of these statements is true?
specified benefit amount is a percentage of his wages
which life insurance policy provision prohibits a beneficiary from "commuting, encumbering, withdrawing, or assigning" any portion of the proceeds prior to actual receipt from the company?
spendthrift clause
regulations for variable insurance contracts are set by all of the following except
state attorney generals office
who regulates an insureres claim settlement practices
state insurance departments
jonas is covered with disability insurance through his employer. the employer pays 75% of the premium, while jonas pays the other 25%. what is jonas' tax liability for any benefitts paid from the plan?
taxes must be paid on 25% of the benefits received
when a ten year renewable term life insurance policy is issued at age 45 is renewed, the premium rate will be the current rate for
ten year term insurance for a person aged 55
which of the following is not a requirement for testimonials used in accident and health insurance
testimonials must be approved by the commission
under the fair credit reporting act, whichstatement is true?
the consumer who was investigated must be advised that credit, insurance, employment was denied because of an unfavorable report
in vrginia, a LT care policy which lapses may be reinstated within five months if
the covered individual was mentally incapacitated
an accident and health policy is required to provide essential benefits without annual and lifetime limits when purchased individually or with group coverage through
the federal marketplace
an agentts cancellationof appointment must be reported to the commission by
the insurance company
under the law of agency, the principal is considered
the insurer
in VA, an insurer providing small employer group medical plans may discontinue an employer's coverage if
the insurer no longer offers the plan to any employer
which of the following is permitted in an advertisement for an insurance policy?
the insurers name
who is responsible for reporting the licensee's change of name or address to the commission?
the licensee
copensationfor a new medicare supplement policy that replaces an existing policy cannot exceed
the renewal commission of the original policy
which of the following is information that an insurer is NOT expected to provide to an employer when offering health coverage to an employee?
the terms of the insurers provider agreement
in accordance with federal fraud and false statements regulation, a prohibited person cannot transact insurance business in VA without
the written consent of the commissioner
Why were Exchanges implemented by the Affordable Care Act (ACA)?
to create a one stop market for standardized health insurance plans
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
the owner's cost basis for a non-qualified deferred annuity is typically the same as
total premiums paid
a life insurance policy that includes a return of premium rider will pay the beneficiary how much upon the insured's death?
total premiums paid plus the policy face amount
what is the effect of the market value adjustment in a market value adjustment annuity?
transfers some of the investment risk to the policyowner
which reinsurance contract between two insurers involves an automatic sharing of the risks assumed?
treaty reinsurance
an agent has made false comparisons of policies to induce the sale of an insurance policy. this illegal act is called?
twisting
misrepresenting a policy for the purpose of inducing a policyholder to change or replace an existing policy is known as
twisting
an individual received a quote from an insurance company that is a different rate from individuals in the same risk class. the insurance company may be accused of
unfair discrimination
an individula received a qote different from individuals in same class. the insurance company may be accused of
unfair discrimination
when must a licensee provide insurance records to the SCC
upon request for examination
when must a licensee provide insurane records to the SCC
upon request for the examination
viatical settlement broker represents the
viator
which of these organizaitons approves continuation courses in virginia?
virgnia insurance continuing education board
if an agent replaces a client's existing life insurance policy with a new one, which of these actions is advisable?
wait until the new policy is issued and delivered before surrendering existing policy
an agent gives a conditional receipt to a clientt for an insurance policy after collecting the initial premium. when will the policy become effective?
when the conditions of the receipt are met
under which circumstance is the interest rate guarnateed within a market value adjusted annuity?
when the contract has been held for the period specified in the policy
when does the producer give a premium receipt for a life insurance application?
when the initial premium has been paid with the applicaiton
pete is covered by a group health insurance plan which covers employees in multiple states. this plan is governed by the laws of which state?
where the master contract was issued
