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 #121
Coverage under a cancelable health insurance policy may be terminated by:
- A . The insurer only
- B . The insured only
- C . Either the insured or the insurer
- D . An arbitration committee
Correct Answer: C
C
Explanation:
Virginia Code § 38.2-3508 defines a cancelable health policy as one either party―the insured or insurer―can terminate before its term ends, with notice (e.g., 30 days).
Option C reflects this mutual right.
Option A (insurer only) and option B (insured only) are too restrictive; cancelable policies aren’t unilateral.
Option D (arbitration committee) isn’t a standard mechanism; cancellation follows policy terms, not third-party rulings. The study guide likely contrasts cancelable with non-cancelable policies, using examples like an insurer canceling for nonpayment or an insured canceling due to better rates, making C the correct scope.
C
Explanation:
Virginia Code § 38.2-3508 defines a cancelable health policy as one either party―the insured or insurer―can terminate before its term ends, with notice (e.g., 30 days).
Option C reflects this mutual right.
Option A (insurer only) and option B (insured only) are too restrictive; cancelable policies aren’t unilateral.
Option D (arbitration committee) isn’t a standard mechanism; cancellation follows policy terms, not third-party rulings. The study guide likely contrasts cancelable with non-cancelable policies, using examples like an insurer canceling for nonpayment or an insured canceling due to better rates, making C the correct scope.
Question #122
The owner of a life insurance policy who enters into a viatical settlement contract is called:
- A . A viatical settlement provider
- B . A viatical settlement broker
- C . A viator
- D . A viatee
Correct Answer: C
C
Explanation:
Detailed Answer in Step-by-Step Solution:
A viatical settlement involves a terminally ill policyowner selling their life insurance policy for a lump sum. The policyowner in this transaction is called the viator (C).
The viatical settlement provider (A) is the entity purchasing the policy.
The viatical settlement broker (B) facilitates the transaction.
"Viatee" (D) is not a recognized term in this context.
The Virginia study guide defines the viator as the insured policyowner who sells their policy in a viatical settlement, typically due to a terminal illness.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Viatical Settlements."
C
Explanation:
Detailed Answer in Step-by-Step Solution:
A viatical settlement involves a terminally ill policyowner selling their life insurance policy for a lump sum. The policyowner in this transaction is called the viator (C).
The viatical settlement provider (A) is the entity purchasing the policy.
The viatical settlement broker (B) facilitates the transaction.
"Viatee" (D) is not a recognized term in this context.
The Virginia study guide defines the viator as the insured policyowner who sells their policy in a viatical settlement, typically due to a terminal illness.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Viatical Settlements."
Question #123
The insurance with other insurers provision in an individual health insurance policy allows an insurer to pay benefits to the insureds on a pro-rata basis when the:
- A . Policy is within 31 days of the renewal date
- B . Policy has entered into the grace period for premium payment
- C . Insurer was not notified prior to the claim that the insured has other health coverage
- D . Insured has submitted claims in excess of $2,000 during the policy year
Correct Answer: C
C
Explanation:
The "insurance with other insurers" provision, addressed in Virginia Code § 38.2-3514, is a coordination of benefits (COB) mechanism in individual health insurance policies designed to prevent over-insurance and duplicate payments when an insured has multiple policies covering the same loss. This provision allows the insurer to prorate benefits―paying a share based on the total coverage―when certain conditions are met.
Option C states that the insurer wasn’t notified prior to the claim of other coverage, which triggers proration. This aligns with standard COB rules: if the insurer isn’t informed of other policies, it may assume primary liability initially but adjust to a pro-rata share upon discovery, ensuring equitable payment across insurers.
Option A (within 31 days of renewal) is irrelevant; renewal proximity doesn’t affect benefit coordination.
Option B (grace period) relates to premium payment timing, not other insurance, and doesn’t trigger proration.
Option D ($2,000 claim threshold) is arbitrary and not a standard condition in Virginia law or study materials for this provision. The study guide likely emphasizes notification as key to COB, as Virginia follows NAIC model regulations requiring disclosure of other coverage (e.g., via application or claim forms). Without prior notice, the insurer applies proration retroactively, making C the correct choice.
C
Explanation:
The "insurance with other insurers" provision, addressed in Virginia Code § 38.2-3514, is a coordination of benefits (COB) mechanism in individual health insurance policies designed to prevent over-insurance and duplicate payments when an insured has multiple policies covering the same loss. This provision allows the insurer to prorate benefits―paying a share based on the total coverage―when certain conditions are met.
Option C states that the insurer wasn’t notified prior to the claim of other coverage, which triggers proration. This aligns with standard COB rules: if the insurer isn’t informed of other policies, it may assume primary liability initially but adjust to a pro-rata share upon discovery, ensuring equitable payment across insurers.
Option A (within 31 days of renewal) is irrelevant; renewal proximity doesn’t affect benefit coordination.
Option B (grace period) relates to premium payment timing, not other insurance, and doesn’t trigger proration.
Option D ($2,000 claim threshold) is arbitrary and not a standard condition in Virginia law or study materials for this provision. The study guide likely emphasizes notification as key to COB, as Virginia follows NAIC model regulations requiring disclosure of other coverage (e.g., via application or claim forms). Without prior notice, the insurer applies proration retroactively, making C the correct choice.
Question #124
Which statement is true of trade association groups eligible for group medical benefits?
- A . Members of the association are usually in the same industry
- B . Such associations are formed for the purpose of purchasing insurance
- C . The association membership primarily consists of large employers
- D . Employer contributions are usually waived
Correct Answer: A
A
Explanation:
Detailed Answer in Step-by-Step Solution:
Trade association groups (A) are eligible for group medical benefits because members share a common industry or profession, not just insurance purposes (B).
Membership isn’t limited to large employers (C), and employer contributions (D) depend on the plan, not waived by default.
The Virginia study guide notes that trade associations qualify for group coverage due to a common industry tie among members, distinguishing them from groups formed solely for insurance.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Group Insurance Eligibility."
A
Explanation:
Detailed Answer in Step-by-Step Solution:
Trade association groups (A) are eligible for group medical benefits because members share a common industry or profession, not just insurance purposes (B).
Membership isn’t limited to large employers (C), and employer contributions (D) depend on the plan, not waived by default.
The Virginia study guide notes that trade associations qualify for group coverage due to a common industry tie among members, distinguishing them from groups formed solely for insurance.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Group Insurance Eligibility."
Question #125
On an application for individual health insurance, all of the following are typically included on the agent’s report EXCEPT:
- A . Agent’s relationship to the applicant
- B . Applicant’s financial status
- C . Applicant’s general character
- D . Applicant’s signature
Correct Answer: D
D
Explanation:
Detailed Answer in Step-by-Step Solution:
The agent’s report includes the agent’s observations, such as relationship to the applicant (A), financial status (B), and general character (C), to aid underwriting.
The applicant’s signature (D) is on the application itself, not the agent’s separate report.
The Virginia study guide specifies that the agent’s report supplements the application with the agent’s insights, while the applicant signs the main application, not the report.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Application Process."
D
Explanation:
Detailed Answer in Step-by-Step Solution:
The agent’s report includes the agent’s observations, such as relationship to the applicant (A), financial status (B), and general character (C), to aid underwriting.
The applicant’s signature (D) is on the application itself, not the agent’s separate report.
The Virginia study guide specifies that the agent’s report supplements the application with the agent’s insights, while the applicant signs the main application, not the report.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Application Process."
Question #126
In the solicitation and sale of Medicare Supplement insurance policies, when must an agent deliver the buyer’s guide?
- A . Only when the solicitation involves replacement
- B . At the time of application
- C . Prior to accepting any payment of premium
- D . Only when the purchaser is a first-time buyer
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The buyer’s guide for Medicare Supplement insurance must be provided to the consumer at the time of application (B) to ensure they understand the policy’s benefits and limitations before committing.
Option A (replacement only) is incorrect; the guide is required for all sales, though additional notices apply for replacements.
Option C (prior to payment) is too vague and not a specific requirement.
Option D (first-time buyer) is not a condition under Virginia or federal rules.
Per the Virginia study guide, agents must deliver the buyer’s guide at the time of application for Medicare Supplement policies, as mandated by federal and state regulations to promote informed decisions.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Medicare Supplement Insurance Regulations."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The buyer’s guide for Medicare Supplement insurance must be provided to the consumer at the time of application (B) to ensure they understand the policy’s benefits and limitations before committing.
Option A (replacement only) is incorrect; the guide is required for all sales, though additional notices apply for replacements.
Option C (prior to payment) is too vague and not a specific requirement.
Option D (first-time buyer) is not a condition under Virginia or federal rules.
Per the Virginia study guide, agents must deliver the buyer’s guide at the time of application for Medicare Supplement policies, as mandated by federal and state regulations to promote informed decisions.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Medicare Supplement Insurance Regulations."
Question #127
The injury or damage sustained by the insured is called:
- A . A claim
- B . A peril
- C . A loss
- D . An accident
Correct Answer: C
C
Explanation:
Virginia Code § 38.2-100 et seq. defines insurance terms. A loss (option C) is the actual injury or damage sustained (e.g., a broken leg or burned house), the event insurance covers.
Option A (claim) is the request for payment post-loss, not the loss itself.
Option B (peril) is the cause (e.g., fire, collision), not the result.
Option D (accident) is a type of peril or event, not the damage. The study guide likely clarifies this chain―e.g., a car crash (peril/accident) causes $5,000 damage (loss), prompting a claim―using examples to distinguish loss as the outcome, making C the precise term.
C
Explanation:
Virginia Code § 38.2-100 et seq. defines insurance terms. A loss (option C) is the actual injury or damage sustained (e.g., a broken leg or burned house), the event insurance covers.
Option A (claim) is the request for payment post-loss, not the loss itself.
Option B (peril) is the cause (e.g., fire, collision), not the result.
Option D (accident) is a type of peril or event, not the damage. The study guide likely clarifies this chain―e.g., a car crash (peril/accident) causes $5,000 damage (loss), prompting a claim―using examples to distinguish loss as the outcome, making C the precise term.
Question #128
A coordination of benefits provision is included in group health insurance to reduce:
- A . Dependent coverage
- B . Overinsurance
- C . Probationary periods
- D . Waiting periods
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The coordination of benefits (COB) provision prevents overinsurance (B) by ensuring that total payments from multiple group plans don’t exceed 100% of covered expenses, avoiding duplication.
It doesn’t affect dependent coverage (A), probationary periods (C), or waiting periods (D), which are unrelated to claim payments.
The Virginia study guide describes COB as a mechanism to coordinate payments among multiple insurers, reducing overinsurance and ensuring fair claim distribution.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Group Health Insurance Provisions."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The coordination of benefits (COB) provision prevents overinsurance (B) by ensuring that total payments from multiple group plans don’t exceed 100% of covered expenses, avoiding duplication.
It doesn’t affect dependent coverage (A), probationary periods (C), or waiting periods (D), which are unrelated to claim payments.
The Virginia study guide describes COB as a mechanism to coordinate payments among multiple insurers, reducing overinsurance and ensuring fair claim distribution.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Group Health Insurance Provisions."
Question #129
Since HMOs negotiate provider networks in advance of care, HMO members:
- A . Pay the entire cost for all use of non-HMO providers, regardless of circumstances
- B . Have a limited choice of care providers
- C . Waive the right to re-enroll in an insurance company indemnity plan
- D . Are encouraged to carry individual health insurance coverage
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
HMOs limit members to a pre-negotiated network of providers (B), restricting choice to control costs.
Non-network care (A) may be covered in emergencies, not always fully out-of-pocket. Options C (waive re-enrollment) and D (individual coverage) are not HMO features.
The Virginia study guide describes HMOs as managed care plans with a restricted provider network, emphasizing cost control through limited choice.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Managed Care Plans."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
HMOs limit members to a pre-negotiated network of providers (B), restricting choice to control costs.
Non-network care (A) may be covered in emergencies, not always fully out-of-pocket. Options C (waive re-enrollment) and D (individual coverage) are not HMO features.
The Virginia study guide describes HMOs as managed care plans with a restricted provider network, emphasizing cost control through limited choice.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Managed Care Plans."
Question #130
What is a situation or condition that increases the likelihood of an insured loss occurring?
- A . Hazard
- B . Peril
- C . Exposure
- D . Risk
Correct Answer: A
A
Explanation:
In insurance terminology, per Virginia Code § 38.2-100 et seq., a hazard (option A) is a condition increasing the likelihood or severity of a loss from a covered peril (e.g., smoking increases fire risk).
Option B (peril) is the cause of loss (e.g., fire, theft).
Option C (exposure) is the extent of potential loss, not the condition itself.
Option D (risk) is the broader uncertainty of loss, encompassing hazards and perils. The study guide likely differentiates these with examples―e.g., icy roads (hazard) causing a crash (peril)―highlighting hazard’s role in amplifying loss probability, making A the exact match.
A
Explanation:
In insurance terminology, per Virginia Code § 38.2-100 et seq., a hazard (option A) is a condition increasing the likelihood or severity of a loss from a covered peril (e.g., smoking increases fire risk).
Option B (peril) is the cause of loss (e.g., fire, theft).
Option C (exposure) is the extent of potential loss, not the condition itself.
Option D (risk) is the broader uncertainty of loss, encompassing hazards and perils. The study guide likely differentiates these with examples―e.g., icy roads (hazard) causing a crash (peril)―highlighting hazard’s role in amplifying loss probability, making A the exact match.