Virginia Life and Health Practice Exam

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• What is typically required to reactivate a lapsed insurance policy?
• What is the purpose of a summary of benefits and coverage (SBC)?
• What does "deductible" refer to in an insurance policy?
• What type of beneficiary can be changed at any time by the policyowner?
• How does group health insurance typically differ from individual plans?
• Which life insurance option typically provides no payout when the insured dies as a result of their own actions?
• What is the purpose of underwriting guidelines?
• What term describes attachments added to life insurance policies that can modify existing provisions?
• Which clause in a life insurance policy protects the insurer's financial interests against misrepresentations?
• What does a death benefit refer to in a life insurance policy?
• What does a "certificate of insurance" provide?
• What is the primary distinction between a fixed and a variable life insurance policy?
• When a life insurance policy includes an incontestable clause, how long must the insurer wait before denying a claim based on misrepresentation?
• Which aspect is important when evaluating in-network vs. out-of-network health services?
• What is an "insurable interest"?
• If an insured selects a joint and 2/3 survivor settlement option, what benefit does the surviving beneficiary receive?
• What is involved in "premium financing"?
• What is a major medical insurance policy?
• What does "managed care" refer to in health insurance?
• An insured has a life insurance policy with an Accidental Death and Dismemberment rider amounting to $50,000. If both arms are lost in an accident, how much will be paid?
• Why might a policyholder reconsider withdrawing cash value from a life insurance policy?
• What does "fair market value" refer to in the context of insurance?
• What does "risk pooling" refer to in insurance?
• What does the term "out-of-pocket maximum" signify?
• What do age limits in life insurance typically refer to?
• What is a significant risk associated with fixed life insurance policies?
• What is a waiting period in health insurance?
• What does "pre-existing condition" mean in health insurance?
• A father adds a Payor Benefit rider to a life insurance policy on his teenage daughter. Under what condition will the rider waive premium payments?
• What does the "Morbidity rate" measure in health insurance?
• What is the purpose of continuing education for insurance agents?
• What should policyholders be aware of regarding surrender charges?
• What happens when a policy is surrendered for its cash value?
• If a man names his wife as the only beneficiary of his whole life policy and she dies, what happens to the policy proceeds when he dies?
• What does a "rider" in an insurance policy represent?
• Which of the following riders provides coverage only when certain conditions are met, often requiring proof of insurability?
• What is the term for a clause that prevents an insurance company from denying a death claim after a certain period of time has passed?
• What is the primary purpose of the Affordable Care Act (ACA)?
• What is typically not a requirement for enrolling in a Medicare plan?
• What is a health insurance policy's deductible?
• How does fair market value assist in property insurance?
• What type of assignment allows the policyowner to relinquish all policy rights?
• What defines a "surrender charge" in life insurance terms?
• If a life insurance policy is described as "permanent," what does it mean?
• Which statement best describes life coverage?
• Which of the following is true about group health insurance?
• What is the purpose of riders in insurance policies?
• What might happen if a policyholder cancels their life insurance policy before the specified period?
• What can be inferred about the relationship between surrender charges and policy duration?
• Which settlement option specifies a guaranteed period for payments to continue to a designated beneficiary?
• What does "reinsurance" involve?
• What characterizes whole life insurance?
• What is the Grievance process in health insurance?
• What is considered "medically necessary" care?
• In a life insurance policy, what does "permanency" imply?
• What role do actuaries play in the insurance industry?
• What will the beneficiary receive if an insured with a triple indemnity rider dies in an accident where fault was attributed to them?
• The provision that states both the policy and the application form the contract is known as what?
• Which of the following best describes the impact of fair market value on life insurance?
• Which term refers to a specified amount the insured must pay for healthcare services?
• What is the significance of the deductible in a health insurance plan?
• What is a "non-forfeiture" clause in a life insurance policy?
• What is the difference between a mutual insurance company and a stock insurance company?
• What does the underwriting process assess in insurance applications?
• Which statement about beneficiary designations is NOT true?
• What is true regarding a children’s rider added to a permanent life insurance policy?
• What term describes the rider added to a life insurance policy allowing future purchase of additional insurance without proof of insurability?
• An insured's life insurance policy includes a conversion option. What does this generally allow?
• What does the term "cash value" mean in the context of permanent life insurance?
• What is Medicaid?
• What does the term "underwriting" refer to in insurance?
• What happens to the proceeds of a life insurance policy if the sole beneficiary dies before the insured and no changes are made to the beneficiary designation?
• What distinguishes "universal life insurance" from other life insurance types?
• What is considered a benefit of having health insurance?
• In the absence of a stated settlement option in a life policy, who will select the settlement option after the insured's death?
• Which of the following statements about Waiver of Premium riders is incorrect?
• What is the primary role of an agent in life insurance?
• An employee misstates their age when enrolling in a group life plan. What will happen if the employee dies after reaching the maximum age of the policy?
• What is the primary purpose of long-term care insurance?
• What does a waiting period in health insurance signify?
• In insurance, what are "accrued benefits"?
• What is co-insurance in a health insurance policy?
• Why might an insurance policy include riders?
• What is a "face amount" in a life insurance policy?
• What does "subrogation" allow an insurer to do?
• What is meant by "beneficiary" in a life insurance context?
• If an insured with a Waiver of Premium rider becomes disabled, which of the following is true regarding their premiums?
• What does a policy assignment typically do?
• Which of the following is typically NOT excluded from life insurance policies?
• What does a "comprehensive" health insurance plan typically cover?
• What is another term for the cash payment settlement option?
• What defines a pre-existing condition in health insurance?
• What is the main difference between term life insurance and whole life insurance?
• What does the term "exclusion" mean in an insurance policy?
• What is Medicare?
• In health insurance, what is meant by "deductible"?
• What type of life insurance provides coverage for a specific period of time?
• When life insurance benefits for minors are designated, who can control the proceeds?
• What does "agent authority" refer to in insurance?
• What is the purpose of a long-term care insurance policy?
• In the event of accidental death, for which of the following losses would an insured typically receive the principal amount of the policy?
• Which of the following is NOT typically covered by Medicaid?
• What does "in-network" mean in health insurance?
• What type of policy adds coverage for specific events not originally included?
• In which situation would the insured NOT receive a pay out from an accidental death and dismemberment rider?
• What is a “lapse” in a life insurance policy?
• What is a "contestability period" in a life insurance policy?
• Which type of insurance policy focuses mainly on protecting against the risk of severe health issues?
• What is the difference between a participating and a non-participating insurance policy?
• Who is referred to as the "policyholder" in insurance?
• If Bonnie wants to retain all ownership rights while naming her husband as a beneficiary, what type of beneficiary designation should she choose?
• What distinguishes variable life insurance from other types?
• Which of the following riders allows for additional insurance to be purchased at predetermined intervals?
• What is the start point of the mandatory 10-day free look period for a Life insurance policy?
• What does "representation" in an insurance application imply?
• What is the term for adding additional coverage to an existing policy?
• How many days are typically included in Medicare's "Lifetime reserve days"?
• What is an insurance agent's fiduciary duty?
• Earl uses an existing life insurance policy to secure a loan for his daughter's college. What is this process called?
• What is "fractional premium" in insurance?
• What is a key feature of a Whole Life Insurance policy concerning cash value?
• What does policy premium refer to?
• What does a life income settlement option base its payments on?
• What is the "grace period" in insurance?
• What defines a group life insurance policy?
• What do "Lifetime reserve days" coverage in Medicare provide?
• What is the role of the Virginia Bureau of Insurance?
• What is involved in insurance fraud?
• Which provision involves assigning a part of the policy benefits to another party?
• What is the primary purpose of determining fair market value in insurance?
• Under what condition could a daughter, named as a contingent beneficiary, collect the death benefit if her father dies?
• What term refers to the individual who has the right to make changes to a life insurance policy?
• What is an insurance premium?
• What does "controlled business" refer to in the insurance industry?
• Which rider provides coverage against potential cost due to not paying premiums if the insured becomes unable to work due to disability?
• What type of coverage does long-term care insurance typically provide?
• In a life insurance policy, who is a beneficiary?
• What is the definition of "premium" in insurance?
• What happens if the policy owner with an automatic premium loan provision dies before repaying the loan?
• In which area does "actuarial science" primarily apply within insurance?
• Why is understanding surrender charges important for policyholders?
• In the event of a policy surrender, what is the likely outcome for policyholders?
• In the context of life insurance, what is one effect of inflation protection options?
• What does a lapse in an insurance policy mean?
• What is the main goal of insurance fraud laws?
• Which rider, when added to a permanent life insurance policy, allows for additional temporary insurance?
• What amount would a beneficiary receive if Walter, with a $100,000 term policy and accidental death rider, died from injuries after an accident?
• What happens to amounts due from the policy if a beneficiary dies before receiving them?
• Under which nonforfeiture option does the insurance company pay the surrender value with no further obligations to the policyowner?
• What is typically true about term life insurance?
• What kind of coverage does a children's rider typically provide?
• The life income joint and survivor settlement option guarantees what to recipients?
• Which provision allows a policyholder to change the beneficiary of a life insurance policy?
• If an insured misstates their age on a life insurance application, what might be the consequence?
• After 20 years, who has the right to the cash values of a Whole Life Insurance policy?
• What is the definition of "moral hazard" in insurance?
• What does the essential health benefits requirement under the ACA entail?
• What is the role of an underwriter in life insurance?
• In the context of life insurance, what does the term “beneficiary” generally refer to?
• What happens to a life insurance policy if the insured reaches the maximum age stated in their group term plan?
• What is the primary purpose of a fixed period settlement option?
• Which of the following is an example of third-party ownership of insurance?
• What characterizes a short-term health insurance plan?
• Insurance fraud can involve which of the following?
• Which term best describes the ability of an insurance company to reclaim costs from third parties?
• Who primarily benefits from accurate assessments of fair market value in insurance?
• In a health insurance policy, what is a "network"?
• What is one key difference between individual and group health insurance?
• What happens to the accumulated cash value of a whole life insurance policy if a policyholder chooses to receive a cash surrender?
• If a life insurance policy has an irrevocable beneficiary designation, what does this mean?
• What is the name of the rider that allows an insurance company to forgo premium collection if the insured becomes disabled?
• What does the cash value of a variable life insurance policy depend upon?
• What is the primary role of the Virginia Bureau of Insurance?
• When Mary chose the life income settlement option after her husband’s death, which factor would NOT determine her payment amount?
• What is a primary care provider (PCP)?
• What is the role of a claims adjuster?
• What is true regarding nonforfeiture values in life insurance policies?
• When a life insurance policy is cancelled and the insured chooses the extended term nonforfeiture option, how is the cash value used?
• What is an accelerated death benefit?
• Which type of settlement guarantees payments for a defined term, regardless of whether the original recipient is still living?
• What is the primary benefit of having an insurance policy with a "low loss ratio"?
• Which of the following statements about dividends is NOT true?
• Which of the following best describes a contingent beneficiary?
• What does "solvency" refer to in the context of life and health insurance companies?
• What does Medicare primarily cover?
• What is the minimum age to obtain a life and health insurance license in Virginia?
• What characterizes universal life insurance?
• What occurs to the face amount of a life insurance policy when a reduced-paid up non-forfeiture option is chosen?
• What is the primary purpose of a life insurance policy?
• How can inflation affect life insurance policies over time?
• An insured pays $1,200 annually for her life insurance premium and uses $300 worth of accumulated dividends to reduce the next year's premium. What option does this describe?
• What provision allows a life insurance policy to be used as collateral for a loan?
• What is the principle of indemnity in insurance?
• Upon policy surrender, what is the relationship between the cash value and future coverage?
• If an insured becomes quadriplegic, how will their premiums be affected with a Waiver of Premium rider?
• The Waiver of Cost rider is typically associated with which type of life insurance?
• Which non-forfeiture option typically provides coverage for the longest period of time?
• What does the cash value component of whole life insurance represent?
• If a policyholder conceals information during the application process and dies after the policy has been in effect for five years, what can the insurance company do?
• What is a copayment in health insurance?
• What is an insurance "endorsement"?
• When is a surrender charge typically applied?
• Which of the following best describes a critical aspect of comprehensive health insurance?
• In health insurance, what does "EOB" stand for?
• What is the primary purpose of a life insurance policy?
• What does the "coinsurance" clause in health policies require?
• What is the main advantage of naming a contingent beneficiary in a life insurance policy?
• What protections are offered by the Virginia Life and Health Insurance Guaranty Association?
• What is the function of a "waiver of premium" rider?
• What is an exclusion in an insurance policy?
• What is the primary purpose of a suicide provision in a life insurance policy?
• What is the main purpose of Medicaid?
• What is "loss ratio" in insurance?
• Which of the following best describes "managed care"?
• What is referred to by "coinsurance"?
• What does "risk assessment" refer to in the context of underwriting?
• What role do surrender charges play in policyholder decisions?
• Which named beneficiary cannot receive the death benefit directly from the insurer if the insured dies?
• What is a premium tax credit in health insurance?
• What does a "co-payment" mean in health insurance?
• What is typically included in the term "insurance premium"?
• What does open enrollment refer to?
• The grievance process allows members of health insurance plans to:
• In underwriting, what is primarily evaluated during a risk assessment?
• What is an open enrollment period?
• Which benefit does the Cash Surrender nonforfeiture option provide to the policyholder?
• Which description fits the concept of insurable interest in life insurance?
• What is meant by the term "self-insurance"?
• What is the primary purpose of life insurance?
• Which statement regarding the guaranteed insurability rider is FALSE?
• Which of the following is NOT a right entitled to the policyowner under the Ownership provision?
• What are the two types of assignments in life insurance?
• What does a life and health insurance agent license enable an individual to do?
• Who has the first claim to the death proceeds of a life insurance policy when the insured dies?
• What is the effect of the waiver of premium rider in a life insurance policy?