License Exam final test
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
