Virginia Insurance Virginia Life Annuities and Health Insurance Practice Exams
Last updated on Oct 22,2026- 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 22,2026
Question #91
All of the following factors influence the underwriting of group health insurance for an association EXCEPT:
- A . The average age of the membership
- B . Prior claims experience of the association
- C . Marital status of the members
- D . Type of trade or occupation of the association’s members
Correct Answer: C
C
Explanation:
Detailed Answer in Step-by-Step Solution:
Group health underwriting considers average age (A), claims history (B), and occupation type (D) to assess risk, but marital status (C) is typically irrelevant for group policies, unlike individual underwriting.
The Virginia study guide notes that group underwriting focuses on collective risk factors like age, claims experience, and occupation, not personal details like marital status.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Group Insurance Underwriting."
C
Explanation:
Detailed Answer in Step-by-Step Solution:
Group health underwriting considers average age (A), claims history (B), and occupation type (D) to assess risk, but marital status (C) is typically irrelevant for group policies, unlike individual underwriting.
The Virginia study guide notes that group underwriting focuses on collective risk factors like age, claims experience, and occupation, not personal details like marital status.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Group Insurance Underwriting."
Question #92
Which of these is true of a conditionally renewable individual health contract?
- A . A covered individual’s health status may be a condition for renewal
- B . Premiums are guaranteed as long as renewal conditions are met
- C . The insurer may refuse renewal if they move outside of the stated geographical location
- D . The insurer may change the conditions of renewability at any time
Correct Answer: A
A
Explanation:
Virginia Code § 38.2-3508 allows conditionally renewable health policies, where renewal isn’t guaranteed and depends on insurer-specified conditions.
Option A is true; health status (e.g., new chronic illness) can be a renewal condition, unlike guaranteed renewable policies.
Option B is false; premiums can increase based on risk, not guaranteed.
Option C is incorrect; geographic moves typically don’t void renewability unless specified, but health status is more common.
Option D is wrong; conditions are set at issuance, not altered arbitrarily. The study guide likely contrasts this with guaranteed renewable policies, using examples like non-renewal for worsening health, making A the true statement.
A
Explanation:
Virginia Code § 38.2-3508 allows conditionally renewable health policies, where renewal isn’t guaranteed and depends on insurer-specified conditions.
Option A is true; health status (e.g., new chronic illness) can be a renewal condition, unlike guaranteed renewable policies.
Option B is false; premiums can increase based on risk, not guaranteed.
Option C is incorrect; geographic moves typically don’t void renewability unless specified, but health status is more common.
Option D is wrong; conditions are set at issuance, not altered arbitrarily. The study guide likely contrasts this with guaranteed renewable policies, using examples like non-renewal for worsening health, making A the true statement.
Question #93
Which type of health insurance helps to pay for the cost of care in cases where hospitalization is not required but the individuals are unable to care for themselves?
- A . Medicare
- B . Long-term care
- C . Major medical
- D . Disability income
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Long-term care insurance (B) is designed to cover custodial care (e.g., help with daily activities like bathing or dressing) when individuals cannot care for themselves, often outside a hospital setting.
Medicare (A) provides limited long-term care coverage (e.g., skilled nursing for a short period), not comprehensive custodial care.
Major medical (C) covers hospital and medical expenses, not long-term custodial care.
Disability income (D) replaces lost income, not care costs.
The Virginia study guide defines long-term care insurance as coverage for extended care needs, such as in nursing homes or at home, when individuals cannot perform activities of daily living, distinguishing it from Medicare or major medical plans.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Types of Health Insurance."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Long-term care insurance (B) is designed to cover custodial care (e.g., help with daily activities like bathing or dressing) when individuals cannot care for themselves, often outside a hospital setting.
Medicare (A) provides limited long-term care coverage (e.g., skilled nursing for a short period), not comprehensive custodial care.
Major medical (C) covers hospital and medical expenses, not long-term custodial care.
Disability income (D) replaces lost income, not care costs.
The Virginia study guide defines long-term care insurance as coverage for extended care needs, such as in nursing homes or at home, when individuals cannot perform activities of daily living, distinguishing it from Medicare or major medical plans.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Types of Health Insurance."
Question #94
All of the following have a restricted ability to enter into a contract EXCEPT:
- A . Individuals who are intoxicated
- B . Individuals who are mentally ill
- C . Minors under a certain age
- D . Individuals who are retired
Correct Answer: D
D
Explanation:
Virginia contract law, reflected in Virginia Code § 38.2-102, requires capacity to form an insurance contract.
Option A (intoxicated individuals) lacks capacity if impaired, voiding consent.
Option B (mentally ill individuals) may lack comprehension, restricting ability unless adjudicated competent.
Option C (minors, typically under 18 per § 38.2-3405) can’t contract without guardian consent, except for necessities.
Option D (retired individuals) has no legal restriction; retirement is a status, not a capacity limiter―e.g., a 65-year-old retiree can buy insurance freely. The study guide likely covers capacity in a legal basics section, with examples like a drunk person’s void policy versus a retiree’s valid one, making D the exception.
D
Explanation:
Virginia contract law, reflected in Virginia Code § 38.2-102, requires capacity to form an insurance contract.
Option A (intoxicated individuals) lacks capacity if impaired, voiding consent.
Option B (mentally ill individuals) may lack comprehension, restricting ability unless adjudicated competent.
Option C (minors, typically under 18 per § 38.2-3405) can’t contract without guardian consent, except for necessities.
Option D (retired individuals) has no legal restriction; retirement is a status, not a capacity limiter―e.g., a 65-year-old retiree can buy insurance freely. The study guide likely covers capacity in a legal basics section, with examples like a drunk person’s void policy versus a retiree’s valid one, making D the exception.
Question #95
When a health insurer requires a covered individual to undergo a physical examination, who pays the cost of the examination?
- A . The premium payor
- B . The principal insured individual
- C . The patient or parent of the patient
- D . The insurer
Correct Answer: D
D
Explanation:
Detailed Answer in Step-by-Step Solution:
If a health insurer requires a physical exam (e.g., for underwriting or claims), the insurer pays the cost (D), as it’s their condition for coverage or payment.
The premium payor (A), insured (B), or patient (C) aren’t responsible for insurer-mandated exams.
The Virginia study guide specifies that insurer-required exams, such as for contesting claims, are at the insurer’s expense, per the physical examination provision.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health Insurance Policy Provisions."
D
Explanation:
Detailed Answer in Step-by-Step Solution:
If a health insurer requires a physical exam (e.g., for underwriting or claims), the insurer pays the cost (D), as it’s their condition for coverage or payment.
The premium payor (A), insured (B), or patient (C) aren’t responsible for insurer-mandated exams.
The Virginia study guide specifies that insurer-required exams, such as for contesting claims, are at the insurer’s expense, per the physical examination provision.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health Insurance Policy Provisions."
Question #96
Claims settlement practices of insurers are regulated by:
- A . The Internal Revenue Service
- B . The National Association of Insurance Commissioners
- C . Claims adjusters
- D . State insurance departments
Correct Answer: D
D
Explanation:
Virginia Code § 38.2-510 regulates unfair claim settlement practices, enforced by the State Corporation Commission’s Bureau of Insurance―a state insurance department (option D). This includes timely claim processing and fair payment, with penalties for violations.
Option A (IRS) oversees tax compliance, not insurance claims.
Option B (NAIC) develops model laws and guidelines (e.g., Unfair Claims Settlement Practices Act), but lacks enforcement power; states adopt and regulate these standards.
Option C (claims adjusters) are practitioners, not regulators. The study guide likely emphasizes Virginia’s Bureau as the authority, citing examples like investigating delayed claims, aligning with state-level oversight under § 38.2-200 et seq., making D the correct regulator.
D
Explanation:
Virginia Code § 38.2-510 regulates unfair claim settlement practices, enforced by the State Corporation Commission’s Bureau of Insurance―a state insurance department (option D). This includes timely claim processing and fair payment, with penalties for violations.
Option A (IRS) oversees tax compliance, not insurance claims.
Option B (NAIC) develops model laws and guidelines (e.g., Unfair Claims Settlement Practices Act), but lacks enforcement power; states adopt and regulate these standards.
Option C (claims adjusters) are practitioners, not regulators. The study guide likely emphasizes Virginia’s Bureau as the authority, citing examples like investigating delayed claims, aligning with state-level oversight under § 38.2-200 et seq., making D the correct regulator.
Question #97
An insurance company writing business in a state other than the one in which it is domiciled is called:
- A . A foreign insurer
- B . A domestic insurer
- C . An alien insurer
- D . A captive insurer
Correct Answer: A
A
Explanation:
Detailed Answer in Step-by-Step Solution:
A foreign insurer (A) is an insurance company operating in a state other than its state of domicile (where it is incorporated).
A domestic insurer (B) operates in its home state. An alien insurer (C) is domiciled outside the U.S. A captive insurer (D) insures its parent company, not based on location.
The Virginia study guide defines a foreign insurer as one licensed to do business in Virginia but incorporated in another state, per insurance regulatory terminology.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Insurance Company Types."
A
Explanation:
Detailed Answer in Step-by-Step Solution:
A foreign insurer (A) is an insurance company operating in a state other than its state of domicile (where it is incorporated).
A domestic insurer (B) operates in its home state. An alien insurer (C) is domiciled outside the U.S. A captive insurer (D) insures its parent company, not based on location.
The Virginia study guide defines a foreign insurer as one licensed to do business in Virginia but incorporated in another state, per insurance regulatory terminology.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Insurance Company Types."
Question #98
An individual currently owns a long-term care policy.
At the time of application for similar coverage, which item must be signed by the applicant and retained by the insurer?
- A . A cancellation notice
- B . A substitution notice
- C . A replacement notice
- D . A duplication notice
Correct Answer: C
C
Explanation:
Virginia Code § 38.2-5207.1 and 14VAC5-200-75 regulate replacement of long-term care (LTC) insurance, requiring a replacement notice when an applicant with existing coverage applies for a new policy that may replace it. This signed notice, provided to the applicant and retained by the insurer, ensures transparency about potential duplication or lapse of the original policy, protecting consumers from unintended coverage gaps or costs.
Option C (replacement notice) fits this requirement.
Option A (cancellation notice) relates to terminating a policy, not applying for a new one.
Option B (substitution notice) isn’t a standard term; “replacement” is the legal phrase.
Option D (duplication notice) might imply overlap but lacks regulatory specificity. The study guide likely includes a sample replacement form, stressing its role in LTC sales compliance, confirming C as the correct choice.
C
Explanation:
Virginia Code § 38.2-5207.1 and 14VAC5-200-75 regulate replacement of long-term care (LTC) insurance, requiring a replacement notice when an applicant with existing coverage applies for a new policy that may replace it. This signed notice, provided to the applicant and retained by the insurer, ensures transparency about potential duplication or lapse of the original policy, protecting consumers from unintended coverage gaps or costs.
Option C (replacement notice) fits this requirement.
Option A (cancellation notice) relates to terminating a policy, not applying for a new one.
Option B (substitution notice) isn’t a standard term; “replacement” is the legal phrase.
Option D (duplication notice) might imply overlap but lacks regulatory specificity. The study guide likely includes a sample replacement form, stressing its role in LTC sales compliance, confirming C as the correct choice.
Question #99
In addition to the applicant, who signs an application for health insurance?
- A . The applicant’s spouse
- B . The applicant’s dependents
- C . The inspection company representative
- D . The agent
Correct Answer: D
D
Explanation:
Detailed Answer in Step-by-Step Solution:
The health insurance application is signed by the applicant (who provides personal info) and the agent (D), who certifies the information’s accuracy and their role in the process.
The spouse (A) or dependents (B) don’t sign unless they’re co-applicants. An inspection representative (C) is not involved in the application process.
The Virginia study guide specifies that the agent signs the application alongside the applicant to verify the submission and their involvement, per standard industry practice.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Application Process."
D
Explanation:
Detailed Answer in Step-by-Step Solution:
The health insurance application is signed by the applicant (who provides personal info) and the agent (D), who certifies the information’s accuracy and their role in the process.
The spouse (A) or dependents (B) don’t sign unless they’re co-applicants. An inspection representative (C) is not involved in the application process.
The Virginia study guide specifies that the agent signs the application alongside the applicant to verify the submission and their involvement, per standard industry practice.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Application Process."
Question #100
No existing agent’s license will be revoked until:
- A . The agent has been afforded a right to a hearing on the charges
- B . At least three violations have been incurred
- C . A jury has decided upon such action
- D . A cease and desist order has been issued
Correct Answer: A
A
Explanation:
Detailed Answer in Step-by-Step Solution:
Virginia law requires due process, meaning an agent’s license cannot be revoked until they’ve had a hearing (A) to contest the charges.
Options B (three violations), C (jury), and D (cease and desist) are not prerequisites for revocation proceedings.
The Virginia study guide mandates that the Bureau of Insurance provide a hearing before revoking a license, ensuring fairness under state administrative law.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "License Regulation."
A
Explanation:
Detailed Answer in Step-by-Step Solution:
Virginia law requires due process, meaning an agent’s license cannot be revoked until they’ve had a hearing (A) to contest the charges.
Options B (three violations), C (jury), and D (cease and desist) are not prerequisites for revocation proceedings.
The Virginia study guide mandates that the Bureau of Insurance provide a hearing before revoking a license, ensuring fairness under state administrative law.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "License Regulation."