Virginia Life & Health Study Guide #1

An insured has a $25,000 whole life insurance policy with $6,000 cash value available. Under the extended term nonforfeiture option, what is the amount of insurance available to the insured?

$25,000

An individual is a short under a major medical plan with a 1,000,000 lifetime benefit. The plan has a $500 deductible and a 80% coinsurance. If the insured suffers a $50,500 medical expense during the calendar year what is the remaining lifetime benefit?

$960,000

What is a juvenile life insurance policy?

A life policy that covers the life of a minor

Administrative actions taken against an agent must be reported to the state Corporation Commission within____________ days of the final disposition.

30 days

Which of the following waiting periods Would result in the lowest premium for a disability income policy?

180 days

Every__________ year(s), an agent's license in Virgina must be renewed

2 years

According to the Affordable Care Act (ACA), dependent children may remain one their parents plans until the age?

26

Employees are required to work at least blank hours per week to become eligible for a small employer Health Plan?

30

Greg has recently been terminated from his job that covered him for group life insurance. How long does he have to convert his coverage to an accidental policy?

31 days

An agent has received the first year commission paid on a Medicare supplement policy. Renewal commissions must then be provided for at least_____________ years after the first year.

5 years

Larry wants to purchase an individual disability income policy to provide continuous income while disabled. He is also covered by a two-month wage continuation benefit from his employer. What should the policy elimination period be for his individual policy?

60 days

And insured must furnish written proof of loss to health insurer within ____________ days of the occurrence of the loss.

90 days

A health Plan offered by private insurance and companies is

A Medicare supplement

What does the term field underwriting refer to in the health insurance industry?

A producers contact with the applicant

Mike recently lost sight in both eyes. He has a policy that pays a lump sum benefit for his injury. What type of insurance does my have?

Accidental death and dismemberment

disability income insurance normally excludes coverage for disabilities that arise from

Active military duty

Which of the following statements accurately describe the time " limit on certain defenses"?

After a stated period of time, claims cannot be denied due to material misrepresentation on the application.

If and existing Medicare supplement policy is being replaced by a new policy, who is required to sign the notice of replacement?

Agent and applicant

What type of policy can group term insurance normally be converted to?

An individual permanent life insurance policy

A single-life annuity only has ONE

Annuitant

To be eligible for social security disability an employee must be unable to perform

Any occupation

An agent may be personally liable if he or she engages in acts

Are not part of the agency or agent contract

A domestic Insurance Company in Virginia must

Be formed under Virginia insurance laws

Who normally pays the premiums for group credit life insurance?

Borrower

A disabled business owner who has payroll and business expenses paid for has what kind of insurance policy?

Business overhead expense

Voluntarily terminating an insurance policy is also known as

Cancellation

Which of the following is considered a limited accident and health plan?

Cancer plan

Long-term care insurance policies may contain exclusions for all of the following except

Care for incurable conditions

An agent does not need to notify the Bureau of insurance of a

Change and financial status

The principal source of information concerning an applicants identity, age,and marital status is found in the

Complete application

What must be given to a life insurance applicant when the agent receives an application and the initial premium?

Conditional receipt

An accident and health insurance policies premium requirements are set forth in which of the following provisions?

Consideration claws

The policy provision that permits an employee to change from group life coverage to an individual policy is called the

Conversion provision

Which of these not an unfair Claims practice not an unfair Claims Settlement

Denying unsubstantiated claim on a timely basis

Which of these is not an underwriting responsibilities of a life insurance agent?

Determining the final rate classification

An employee we requested that the balance of her 401k account be sent directly to her in one lump sum. Upon receipt of distribution, she immediately had the funds rolled over into an IRA. What is the tax consequence of the distribution I sent to this employee?

Distribution is subject to federal income tax withholding

A group health insurance policy is a contract between an

Employer and insurance company

The application is part of the annuity contract according to the

Entire contract clause

Notice to buyer on the first page of each long-term care policy delivered in Virginia

Explains that some long-term care costs may not be covered

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

Death proceeds from a life insurance policy are typically included in a deceased insureds gross estate

For federal income tax reasons

Which life insurance policy provision allows a policyowner to cancel the policy and receive a full refund within a limited time. After policy delivery?

Free look period

When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?

Give notice, explain, and allow opting out

Terry receive long-term physical therapy at her residence. What type of insurance would cover this service?

Home Healthcare

Protected with the "other insurance with the insurer" provision?

Insurance company

The _____________ is required to notify the state Corporation Commission in the event of appointment termination

Insurer

Which of these is not a true statement of the war exclusion?

It applies to civil insurrections

Switching life insurance policies without tax consequences is permitted under

MEC rules

Defamation can be BEST described as

Making a statement that is false or maliciously critical of the financial condition of an insurer

An agent who informs an applicant that there are no exclusions and an insurance policy has engaged in

Misrepresentation

Periodic Health claim payments must be paid

Monthly

All of the following are covered under most dental plans except for?

Mouth cancer

The agent has sold a life insurance contract to a client without using an illustration, even though his insurer offers why. For this particular transaction, the applicant

My sign a statement that no illustrations was provided

Rick the agent handles insurance premiums and an untrustworthy manner. His actions could find him guilty of

Not acting as a fiduciary

Which of these would likely be considered an Unfair Claims Settlement Practice?

Offering settlements that are less than the fair value to offset ensure expenses

When when the insurer discover's (during the claim process )that the insurance age was accidentally missed stated on the life insurance application, the insurer will likely

Pay an amount the premiums would have purchased at the insured's actual age

In Virginia any person acting as an agent for an unlicensed insurer is

Permissible only if acting as as a licensed surplus lines broker

If an insured dies during the grace period. Without having paid the premium, how much will the insurer pay?

Policies face amount minus any premiums due

A Good Health Payment may be requested by a life producer at the time of

Policy delivery

What happens to a life insurance policy when the policy loan balance exceeds the cash value?

Policy will no longer be in force

The standard provision of an accident and health insurance policy requires that

Policy, endorsements, and attached papers constitute the" entire contract"

In Virginia Which of the following records are not required to be maintained by an agent?

Premium quotes for policies not accepted

A cease-and-desist order has issued against an agent

Prohibits a specific practice listed in the order

Group accident and health insurance may be offered by an insurer when the sponsoring group

Provides an employer- employee relationship

During an annuity liquidation face, the annuity normally

Receive benefit payments at regular intervals

A life insurance policyowner sells her policy in a viatical settlement come. Under the transaction, the policyowner

Receives an amount less than the policies that's benefit

An independent agent May

Represent several insurers

The outline of coverage for a Medicare supplement policy provides information about

Services, benefits, co-payments, deductibles, exclusion, premiums, and the insurer

Which statement regarding the life insurance premium foe a Childrens rider is true?

The cost for a child rider remains the same regardless of the number of children.

The optionally renewable provision allows what party to cancel the contract?

The insurer

Misrepresenting pertinent policy Provisions relating to coverage after a loss is an

Unfair claim settlement practice

Giving up a known right on a voluntary basis is called an

Waiver

Under what circumstances does an accident and health insurer have the right to request an autopsy?

When not prohibited by state law

And Insurance Company can be liable for a producer's unauthorized authorized acts

When the agency contract is unclear concerning the authority given

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of a receipt are met

Which of the following health insurance plans charges a premium that cannot be increased?

non-cancelable

What typically changes at the re-entry option date found in some term Life policies?

premium

A guaranteed renewable provision allows

premiums which can only be increased per rate class

An example of Misrepresentation is

providing incorrect, misleading, incomplete, or materially untrue information in the license application