Virginia Insurance Virginia Life Annuities and Health Insurance Practice Exams
Last updated on Oct 21,2026- Exam Code: Virginia Life Annuities and Health Insurance
- Exam Name: Virginia Life, Annuities, and Health Insurance Examination Series 11-01
- Certification Provider: Virginia Insurance
- Latest update: Oct 21,2026
Question #1
Renewal of small employer health insurance plans may be denied for all of the following reasons EXCEPT:
- A . Nonpayment of premiums
- B . Having less than the required number of participants
- C . Overuse of physician and hospital services
- D . Fraud by the employer
Correct Answer: C
C
Explanation:
Virginia Code § 38.2-3432.1, aligned with the Affordable Care Act (ACA), mandates guaranteed renewability for small employer health plans (1-50 employees in Virginia). Insurers can deny renewal for nonpayment of premiums (option A), insufficient participants (option B, e.g., falling below one eligible employee), or fraud (option D), per Virginia Code § 38.2-3407. However, option C―overuse of services (high claims)―a―is not a permissible reason for denial, as renewability cannot be based on claims experience or health status. The study guide emphasizes this protection under Virginia’s small group market rules, making C the exception.
C
Explanation:
Virginia Code § 38.2-3432.1, aligned with the Affordable Care Act (ACA), mandates guaranteed renewability for small employer health plans (1-50 employees in Virginia). Insurers can deny renewal for nonpayment of premiums (option A), insufficient participants (option B, e.g., falling below one eligible employee), or fraud (option D), per Virginia Code § 38.2-3407. However, option C―overuse of services (high claims)―a―is not a permissible reason for denial, as renewability cannot be based on claims experience or health status. The study guide emphasizes this protection under Virginia’s small group market rules, making C the exception.
Question #2
Including a guaranteed insurability rider on a life insurance policy means that:
- A . The original policy was sold on a non-medical basis.
- B . The company will require evidence of insurability for any future purchase of life insurance.
- C . Any extra premium charged for a health impairment will be discontinued if standard insurability is proved later.
- D . The policyowner may purchase additional life insurance periodically without proving insurability.
Correct Answer: D
D
Explanation:
Virginia Code § 38.2-3209 allows a guaranteed insurability rider, enabling the policyowner to buy additional coverage at specified intervals (e.g., every 3 years or life events like marriage) without proving insurability.
Option D matches this definition.
Option A is unrelated; non-medical underwriting isn’t implied.
Option B contradicts the rider’s purpose, which waives insurability proof.
Option C is false; premium adjustments aren’ t part of this rider. The study guide describes this rider as a planning tool for future needs, confirming D.
D
Explanation:
Virginia Code § 38.2-3209 allows a guaranteed insurability rider, enabling the policyowner to buy additional coverage at specified intervals (e.g., every 3 years or life events like marriage) without proving insurability.
Option D matches this definition.
Option A is unrelated; non-medical underwriting isn’t implied.
Option B contradicts the rider’s purpose, which waives insurability proof.
Option C is false; premium adjustments aren’ t part of this rider. The study guide describes this rider as a planning tool for future needs, confirming D.
Question #3
The preventive medical care benefit sometimes provided in a Medicare supplement policy covers:
- A . Home health care
- B . Skilled nursing care
- C . Hospitalization
- D . Annual physical exams
Correct Answer: D
D
Explanation:
Detailed Answer in Step-by-Step Solution:
Medicare supplement (Medigap) policies may include preventive care benefits like annual physical exams (D), which original Medicare doesn’t fully cover.
Home health (A), skilled nursing (B), and hospitalization (C) are covered by Medicare Parts A and B, not typically supplemental preventive benefits.
The Virginia study guide notes that some Medigap plans offer additional preventive services, such as annual exams, beyond Medicare’s scope.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Medicare Supplement Insurance."
D
Explanation:
Detailed Answer in Step-by-Step Solution:
Medicare supplement (Medigap) policies may include preventive care benefits like annual physical exams (D), which original Medicare doesn’t fully cover.
Home health (A), skilled nursing (B), and hospitalization (C) are covered by Medicare Parts A and B, not typically supplemental preventive benefits.
The Virginia study guide notes that some Medigap plans offer additional preventive services, such as annual exams, beyond Medicare’s scope.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Medicare Supplement Insurance."
Question #4
A licensed agent must report a felony conviction to the Commission within how many calendar days?
- A . 10 days
- B . 20 days
- C . 30 days
- D . 60 days
Correct Answer: C
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.
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.
Question #5
The overall authority of an insurance agent includes all of the following EXCEPT:
- A . Apparent authority
- B . Express or specific authority
- C . Implied authority
- D . Residual authority
Correct Answer: D
D
Explanation:
Virginia insurance law (Title 38.2, Chapter 18) recognizes three types of agent authority: express, implied, and apparent. Express authority (option B) is explicitly granted by the insurer in the agency agreement (e.g., soliciting policies), per Virginia Code § 38.2-1800 et seq. Implied authority (option C) is unwritten power to perform incidental acts necessary for express duties (e.g., collecting premiums). Apparent authority (option A) arises when a third party reasonably believes the agent has authority based on the insurer’s actions (e.g., providing branded materials), binding the insurer legally.
Option D (residual authority) is not a recognized term in Virginia insurance or agency law; “residual” might relate to markets or benefits elsewhere, but not agent authority. The study guide likely outlines these three authorities with examples, excluding D as a fabricated or irrelevant concept, making it the exception.
D
Explanation:
Virginia insurance law (Title 38.2, Chapter 18) recognizes three types of agent authority: express, implied, and apparent. Express authority (option B) is explicitly granted by the insurer in the agency agreement (e.g., soliciting policies), per Virginia Code § 38.2-1800 et seq. Implied authority (option C) is unwritten power to perform incidental acts necessary for express duties (e.g., collecting premiums). Apparent authority (option A) arises when a third party reasonably believes the agent has authority based on the insurer’s actions (e.g., providing branded materials), binding the insurer legally.
Option D (residual authority) is not a recognized term in Virginia insurance or agency law; “residual” might relate to markets or benefits elsewhere, but not agent authority. The study guide likely outlines these three authorities with examples, excluding D as a fabricated or irrelevant concept, making it the exception.
Question #6
What are long-term care insurance "ADL’s"?
- A . Aggregate dollar limits
- B . Aggregate days limitation
- C . Activities of daily living
- D . Approved doctor lists
Correct Answer: C
C
Explanation:
Virginia Code § 38.2-5200 defines ADLs (Activities of Daily Living, option C) as essential tasks―e.g., bathing, dressing, eating―used to determine LTC benefit eligibility (typically inability to perform 2 of 6).
Option A (aggregate dollar limits) refers to coverage caps, not ADLs.
Option B(aggregate days limitation) might confuse with elimination periods, not ADLs.
Option D (approved doctor lists) relates to provider networks, not functional criteria. The study guide likely details ADLs with examples―e.g., needing help with mobility―emphasizing their role in claims, making C the correct term.
C
Explanation:
Virginia Code § 38.2-5200 defines ADLs (Activities of Daily Living, option C) as essential tasks―e.g., bathing, dressing, eating―used to determine LTC benefit eligibility (typically inability to perform 2 of 6).
Option A (aggregate dollar limits) refers to coverage caps, not ADLs.
Option B(aggregate days limitation) might confuse with elimination periods, not ADLs.
Option D (approved doctor lists) relates to provider networks, not functional criteria. The study guide likely details ADLs with examples―e.g., needing help with mobility―emphasizing their role in claims, making C the correct term.
Question #7
Which is true about the conversion privilege in term life insurance?
- A . The policyowner may convert to another term policy of the insured’s choice
- B . The policyowner may convert to permanent life insurance on an attained age basis without evidence of insurability
- C . The policyowner may convert to an annuity at attained age rates only if evidence of insurability is provided
- D . The policyowner may obtain additional term insurance at issue age rates without evidence of insurability
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The conversion privilege in term insurance allows conversion to a permanent policy (e.g., whole life) at the insured’s current (attained) age without proving insurability (B), typically before the term expires.
Option A (another term policy) is not standard.
Option C (annuity with insurability) is incorrect; conversion is to life insurance.
Option D (issue age rates) doesn’t apply; rates adjust to attained age.
The Virginia study guide explains that the conversion privilege ensures continued coverage by allowing term policies to convert to permanent ones without medical exams, based on attained age.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Term Insurance Features."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The conversion privilege in term insurance allows conversion to a permanent policy (e.g., whole life) at the insured’s current (attained) age without proving insurability (B), typically before the term expires.
Option A (another term policy) is not standard.
Option C (annuity with insurability) is incorrect; conversion is to life insurance.
Option D (issue age rates) doesn’t apply; rates adjust to attained age.
The Virginia study guide explains that the conversion privilege ensures continued coverage by allowing term policies to convert to permanent ones without medical exams, based on attained age.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Term Insurance Features."
Question #8
Assuming no indebtedness or dividend accumulations, how much will the insurer pay under a life insurance policy if the insured dies during the grace period without having paid the premium?
- A . The face amount of the policy
- B . The cash value of the policy
- C . The face amount of the policy less the premium due
- D . The reduced amount of paid-up insurance provided under the nonforfeiture provisions
Correct Answer: A
A
Explanation:
Detailed Answer in Step-by-Step Solution:
The grace period in a life insurance policy (typically 30 or 31 days) allows the policy to remain in force even if the premium is unpaid, provided the insured dies during this period.
If death occurs during the grace period, the insurer must pay the full death benefit (face amount), minus any unpaid premium, but only if explicitly stated. In this question, no indebtedness or dividends complicate the scenario, and standard practice assumes full payment unless otherwise specified.
Option B (cash value) applies to surrender, not death claims.
Option C (face amount less premium due) is a possibility in some policies, but absent specific policy language here, the default is full payment.
Option D (nonforfeiture provisions) applies if the policy lapses, not during the grace period.
Thus, the insurer pays the face amount (A).
The Virginia study guide states that the grace period provision protects the policyholder by keeping coverage active for a short period after a missed premium, and upon death during this time, the full face amount is payable unless loans or specific deductions apply.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Standard Policy Provisions – Grace Period."
A
Explanation:
Detailed Answer in Step-by-Step Solution:
The grace period in a life insurance policy (typically 30 or 31 days) allows the policy to remain in force even if the premium is unpaid, provided the insured dies during this period.
If death occurs during the grace period, the insurer must pay the full death benefit (face amount), minus any unpaid premium, but only if explicitly stated. In this question, no indebtedness or dividends complicate the scenario, and standard practice assumes full payment unless otherwise specified.
Option B (cash value) applies to surrender, not death claims.
Option C (face amount less premium due) is a possibility in some policies, but absent specific policy language here, the default is full payment.
Option D (nonforfeiture provisions) applies if the policy lapses, not during the grace period.
Thus, the insurer pays the face amount (A).
The Virginia study guide states that the grace period provision protects the policyholder by keeping coverage active for a short period after a missed premium, and upon death during this time, the full face amount is payable unless loans or specific deductions apply.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Standard Policy Provisions – Grace Period."
Question #9
Which term refers to the period of time from the beginning of confinement to the beginning of benefits under a long-term care insurance policy?
- A . The trial period
- B . The exclusion period
- C . The qualifying period
- D . The elimination period
Correct Answer: D
D
Explanation:
In long-term care (LTC) insurance, the elimination period, per Virginia Code § 38.2-5202, is the waiting period between the onset of a qualifying condition (e.g., confinement due to inability to perform ADLs) and the start of benefit payments. It’s akin to a deductible in days (e.g., 30, 60, or 90 days), during which the insured must cover costs.
Option D correctly names this period.
Option A (trial period) isn’t a standard LTC term.
Option B (exclusion period) might confuse with pre-existing condition exclusions, but it’s not the waiting period for benefits.
Option C (qualifying period) could imply eligibility determination, but “elimination period” is the precise industry term. The study guide likely defines this as a cost-sharing feature, with examples illustrating how longer periods reduce premiums, solidifying D as the answer.
D
Explanation:
In long-term care (LTC) insurance, the elimination period, per Virginia Code § 38.2-5202, is the waiting period between the onset of a qualifying condition (e.g., confinement due to inability to perform ADLs) and the start of benefit payments. It’s akin to a deductible in days (e.g., 30, 60, or 90 days), during which the insured must cover costs.
Option D correctly names this period.
Option A (trial period) isn’t a standard LTC term.
Option B (exclusion period) might confuse with pre-existing condition exclusions, but it’s not the waiting period for benefits.
Option C (qualifying period) could imply eligibility determination, but “elimination period” is the precise industry term. The study guide likely defines this as a cost-sharing feature, with examples illustrating how longer periods reduce premiums, solidifying D as the answer.
Question #10
Ambulatory care centers are most often used by patients who require:
- A . Physical therapy
- B . Wellness centers
- C . Outpatient surgical procedures
- D . Overnight accommodations
Correct Answer: C
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.
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.