Virginia-Life-Annuities-and-Health-Insurance Exam Questions and Answers (Page: 9)

QUESTION: 65

In long-term care insurance, the guarantee of insurability option provides the insured with the ability to:

Purchase additional insurance at a later date
Replace the policy at any time with one from a different insurer
Extend coverage under the policy for the insured's lifetime
Keep the same premium for the entire contract period

Answer(s): A

Explanation:

Virginia Code § 38.2-5202 allows a guaranteed insurability option in LTC insurance, letting the insured buy additional coverage later (option A) without proving insurability, typically at set intervals or life events (e.g., inflation adjustment). Option B (replace with another insurer) isn't a policy feature; it's a market action. Option C (lifetime extension) confuses with benefit periods, not insurability. Option D (fixed premium) relates to non-cancelable policies, not this rider. The study guide likely describes this with examples--e.g., adding $1,000 monthly benefit at age 70-- emphasizing future flexibility, making A the correct ability.

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QUESTION: 66

Ambulatory care centers are most often used by patients who require:

Physical therapy
Wellness centers
Outpatient surgical procedures
Overnight accommodations

Answer(s): C

Explanation:

Virginia Code § 38.2-3407 et seq. covers health services, where ambulatory care centers (e.g., outpatient clinics) specialize in same-day procedures like outpatient surgical procedures (option C-- e.g., cataract surgery). Option A (physical therapy) may occur there but isn't the primary use; therapy clinics differ. Option B (wellness centers) focuses on prevention, not procedures. Option D (overnight accommodations) contradicts "ambulatory," meaning walk-in/walk-out care. The study guide likely defines this in a health facilities section, with examples like knee arthroscopy, making C the most frequent use.

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QUESTION: 67

If an agent misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered:

Defamation
Unfair discrimination
Misrepresentation
Coercion

Answer(s): C

Explanation:

Virginia Code § 38.2-502 defines misrepresentation as an unfair practice, where an agent misstates or omits key policy details (e.g., calling a term policy "permanent") to mislead the insured. Option C fits this legal breach. Option A (defamation) involves false reputational harm, not policy sales. Option B (unfair discrimination, § 38.2-211) involves unequal treatment, not misrepresentation. Option D (coercion) implies force, not deception. The study guide likely warns of misrepresentation penalties--e.g., an agent fined for hiding exclusions--making C the applicable violation.

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QUESTION: 68

Which is true about an adjustable life insurance policy?

The policy while in force can alternate between forms of term life insurance and whole life insurance
The only nonforfeiture option available is cash
No settlement options are available
It is a form of retirement income annuity

Answer(s): A

Explanation:

Adjustable life insurance (Virginia Code § 38.2-3113.1) allows flexibility in face amount and premiums, effectively shifting between term (lower cost, no cash value) and whole life (higher cost,

cash value) features while in force (option A). Option B is false; nonforfeiture options include cash, reduced paid-up, or extended term. Option C is false; settlement options (e.g., lump sum) apply as with other policies. Option D is wrong; it's life insurance, not an annuity. The study guide likely explains this adaptability--e.g., increasing premiums to build cash value (whole life)--making A the true statement.

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QUESTION: 69

All of the following statements about universal life insurance are true EXCEPT:

A mortality charge is subtracted from the cash value accumulations each month
The policy stipulates the amount that will be used for company expenses
Death benefits are taxed as ordinary income
Policy loans affect the amount of interest credited to the policy cash value

Answer(s): C

Explanation:

Universal life (Virginia Code § 38.2-3113.1) features: Option A is true; a mortality charge funds the death benefit, deducted monthly from cash value. Option B is true; expense charges are disclosed (e.g., admin fees). Option D is true; loans reduce the cash value earning interest. Option C is false; death benefits are generally tax-free under IRC § 101(a)(1), not ordinary income, unless an exception (e.g., transfer for value) applies, which isn't standard. The study guide likely contrasts universal life mechanics--e.g., $50 monthly mortality charge--with tax-free benefits, making C the exception.

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QUESTION: 70

A health maintenance organization (HMO) must offer emergency health services:

Sixteen hours a day, six days per week
Sixteen hours a day, seven days per week
Twenty-four hours a day, six days per week
Twenty-four hours a day, seven days per week

Answer(s): D

Explanation:

Virginia Code § 38.2-4306 mandates that Health Maintenance Organizations (HMOs) provide comprehensive health services, including emergency care, as a core benefit. Emergency services must be available 24 hours a day, 7 days a week (option D) to ensure immediate access to life-saving treatment, aligning with federal and state standards (e.g., ACA requirements under 42 CFR § 422.113). This reflects the HMO's obligation to cover urgent needs--e.g., a heart attack at 2 a.m.-- via in-network facilities or out-of-network reimbursement if necessary. Option A (16 hours, 6 days) and Option B (16 hours, 7 days) fall short of the continuous access requirement, limiting coverage unreasonably. Option C (24 hours, 6 days) excludes one day, contradicting the nonstop mandate. The study guide likely emphasizes this 24/7 rule in an HMO benefits section, with examples like ER visits covered anytime, making D the correct standard. This ensures HMOs meet Virginia's consumer protection goals under § 38.2-4300 et seq., distinguishing them from less comprehensive plans.

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QUESTION: 71

A licensed agent must report a felony conviction to the Commission within how many calendar days?

10 days
20 days
30 days
60 days

Answer(s): C

Explanation:

Virginia Code § 38.2-1826(C) requires licensees, including insurance agents, to report any felony conviction to the State Corporation Commission's Bureau of Insurance within 30 calendar days of the final disposition (option C). "Final disposition" means the court's conclusive ruling--e.g., sentencing after a guilty plea. This rule ensures the Bureau can assess the agent's fitness to retain their license, protecting the public from untrustworthy practitioners. Option A (10 days) is too short and not specified in Virginia law for this purpose. Option B (20 days) lacks statutory support and falls between standard reporting periods. Option D (60 days) exceeds the mandated timeline, delaying oversight. The study guide likely highlights this 30-day deadline in a licensing compliance section, with examples--e.g., an agent convicted of fraud on June 1 must report by July 1--aligning with Virginia's adoption of NAIC standards for licensee integrity (Virginia Code § 38.2-1800 et seq.), making C the precise requirement.

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QUESTION: 72

A licensee is NOT required by Virginia law to keep which of the following records?

Accounting records of premium payments
Files of insurance applications on current policies issued
Policy renewal notices
Premium quotations of unissued policies

Answer(s): D

Explanation:

Virginia Code § 38.2-1809 mandates that licensees maintain specific records for regulatory oversight and consumer protection. Option A (accounting records of premium payments) is required to track funds received and remitted, ensuring financial accountability (e.g., premiums collected for a $1,000 policy). Option B (files of insurance applications on current policies) must be kept as part of the contract and for audit purposes, per § 38.2-1810. Option C (policy renewal notices) is required to document communication with policyholders about ongoing coverage, ensuring transparency. Option D (premium quotations of unissued policies) is not mandated; while agents may provide quotes (e.g., $500 annually for a term policy), these are preliminary offers, not binding until a policy is issued, and Virginia law doesn't require retaining them unless they result in a transaction. The study guide likely details recordkeeping in a compliance chapter, contrasting required records (A, B, C) with optional ones like quotes (D), using examples--e.g., keeping a paid policy's file but not a rejected quote--making D the item not required. This reflects Virginia's focus on executed contracts over prospective ones.

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Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance Exam (page: 9) Virginia Insurance Virginia Life, Annuities, and Health Insuranceination Series 1101 Updated on: 09-Feb-2026

QUESTION: 65

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QUESTION: 66

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QUESTION: 67

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QUESTION: 68

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QUESTION: 69

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QUESTION: 70

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QUESTION: 71

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QUESTION: 72

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Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance Exam (page: 9)
Virginia Insurance Virginia Life, Annuities, and Health Insuranceination Series 1101
Updated on: 09-Feb-2026