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 #131
In long-term care insurance, ADLs normally include:
- A . Age, sex, income, and occupation
- B . Physicians, surgeons, dentists, and optometrists
- C . Spouse, children, parents, and siblings
- D . Dressing, eating, bathing, and mobility
Correct Answer: D
D
Explanation:
Virginia Code § 38.2-5200 defines Activities of Daily Living (ADLs) in long-term care (LTC) insurance as basic self-care tasks triggering benefits if the insured can’t perform them (typically 2 of 6).
Option D lists common ADLs: dressing, eating, bathing, and mobility (often with toileting and transferring), aligning with federal and Virginia standards (e.g., HIPAA).
Option A (age, sex, income, occupation) is underwriting data, not ADLs.
Option B (health providers) is unrelated to functional ability.
Option C (family members) might confuse beneficiaries, not ADLs. The study guide likely lists ADLs with examples―e.g., needing help bathing due to arthritis―emphasizing their role in LTC eligibility, making D the precise answer.
D
Explanation:
Virginia Code § 38.2-5200 defines Activities of Daily Living (ADLs) in long-term care (LTC) insurance as basic self-care tasks triggering benefits if the insured can’t perform them (typically 2 of 6).
Option D lists common ADLs: dressing, eating, bathing, and mobility (often with toileting and transferring), aligning with federal and Virginia standards (e.g., HIPAA).
Option A (age, sex, income, occupation) is underwriting data, not ADLs.
Option B (health providers) is unrelated to functional ability.
Option C (family members) might confuse beneficiaries, not ADLs. The study guide likely lists ADLs with examples―e.g., needing help bathing due to arthritis―emphasizing their role in LTC eligibility, making D the precise answer.
Question #132
False advertising regarding insurance policies would be found in all of the following EXCEPT:
- A . Past dividends paid on a policy being exaggerated
- B . Benefits under a policy being misrepresented
- C . An insurance policy being represented as a share of stock
- D . Policy benefits being compared with a competitor’s
Correct Answer: D
D
Explanation:
Detailed Answer in Step-by-Step Solution:
False advertising includes exaggerating dividends (A), misrepresenting benefits (B), or claiming a policy is a stock (C), all deceptive practices.
Comparing benefits with a competitor (D) is permissible if accurate and not misleading, thus not inherently false advertising.
The Virginia study guide, per state law, prohibits deceptive advertising but allows factual comparisons with competitors, provided they are truthful.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Unfair Trade Practices."
D
Explanation:
Detailed Answer in Step-by-Step Solution:
False advertising includes exaggerating dividends (A), misrepresenting benefits (B), or claiming a policy is a stock (C), all deceptive practices.
Comparing benefits with a competitor (D) is permissible if accurate and not misleading, thus not inherently false advertising.
The Virginia study guide, per state law, prohibits deceptive advertising but allows factual comparisons with competitors, provided they are truthful.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Unfair Trade Practices."
Question #133
An individual purchased an annuity with a series of premium payments continuing over a period of twenty years.
The purchase payments were made during the:
- A . Liquidation period
- B . Annuity period
- C . Period certain
- D . Accumulation period
Correct Answer: D
D
Explanation:
Detailed Answer in Step-by-Step Solution:
The accumulation period (D) is the phase in a deferred annuity where premiums are paid to build value before payouts begin.
The liquidation period (A) is not a standard term here; it might imply payout but isn’t correct.
The annuity period (B) is when payments are received, not paid.
Period certain (C) refers to a payout option, not premium payment phase.
The Virginia study guide defines the accumulation period as the time during which premium payments are made into a deferred annuity, accumulating value until the payout phase.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Annuities."
D
Explanation:
Detailed Answer in Step-by-Step Solution:
The accumulation period (D) is the phase in a deferred annuity where premiums are paid to build value before payouts begin.
The liquidation period (A) is not a standard term here; it might imply payout but isn’t correct.
The annuity period (B) is when payments are received, not paid.
Period certain (C) refers to a payout option, not premium payment phase.
The Virginia study guide defines the accumulation period as the time during which premium payments are made into a deferred annuity, accumulating value until the payout phase.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Annuities."
Question #134
One feature that distinguishes a continuous premium whole life policy from a limited payment whole life policy is:
- A . The length of time premiums will be paid
- B . The settlement options available
- C . The mortality table from which premiums are calculated
- D . The form in which dividends are paid
Correct Answer: A
A
Explanation:
Detailed Answer in Step-by-Step Solution:
A continuous premium whole life policy requires premiums for the insured’s lifetime (A), while a limited payment policy has a set payment period (e.g., 20 years).
Settlement options (B), mortality tables (C), and dividends (D) are similar across both types.
The Virginia study guide distinguishes continuous premium whole life (lifelong payments) from limited payment whole life (fixed-term payments), both providing permanent coverage.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Whole Life Insurance."
A
Explanation:
Detailed Answer in Step-by-Step Solution:
A continuous premium whole life policy requires premiums for the insured’s lifetime (A), while a limited payment policy has a set payment period (e.g., 20 years).
Settlement options (B), mortality tables (C), and dividends (D) are similar across both types.
The Virginia study guide distinguishes continuous premium whole life (lifelong payments) from limited payment whole life (fixed-term payments), both providing permanent coverage.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Whole Life Insurance."
Question #135
Which is an example of an endodontic service?
- A . Crowns
- B . Dentures
- C . Root canals
- D . Fillings
Correct Answer: C
C
Explanation:
Detailed Answer in Step-by-Step Solution:
Endodontic services involve treatment of the tooth’s interior (pulp and roots), with root canals (C) being a primary example.
Crowns (A) and fillings (D) are restorative, not endodontic. Dentures (B) are prosthetic, unrelated to endodontics.
The Virginia study guide classifies root canals as an endodontic procedure, distinct from restorative or prosthetic dental services, per standard dental insurance definitions.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Dental Insurance."
C
Explanation:
Detailed Answer in Step-by-Step Solution:
Endodontic services involve treatment of the tooth’s interior (pulp and roots), with root canals (C) being a primary example.
Crowns (A) and fillings (D) are restorative, not endodontic. Dentures (B) are prosthetic, unrelated to endodontics.
The Virginia study guide classifies root canals as an endodontic procedure, distinct from restorative or prosthetic dental services, per standard dental insurance definitions.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Dental Insurance."
Question #136
In a deferred annuity, which contract feature begins at a high level, often 5%-10%, and then diminishes until it disappears after a specified number of years?
- A . The surrender charge
- B . The front end sales load
- C . The guaranteed interest rate
- D . The expense charge
Correct Answer: A
A
Explanation:
Virginia Code § 38.2-3100 et seq. governs deferred annuities, where a surrender charge (option A) is a penalty for early withdrawal, starting high (e.g., 7-10%) and declining over a surrender period (e.g., 7-10 years) until it reaches zero.
Option B (front-end sales load) is a one-time fee deducted upfront, not diminishing over time.
Option C (guaranteed interest rate) is a fixed return (e.g., 2%), stable or adjustable, not disappearing.
Option D (expense charge) covers ongoing costs (e.g., mortality and expense fees), typically level, not phased out. The study guide likely illustrates this with a table―e.g., 10% year 1, 9% year 2, 0% year 10―emphasizing surrender charges as a liquidity deterrent, making A the matching feature.
A
Explanation:
Virginia Code § 38.2-3100 et seq. governs deferred annuities, where a surrender charge (option A) is a penalty for early withdrawal, starting high (e.g., 7-10%) and declining over a surrender period (e.g., 7-10 years) until it reaches zero.
Option B (front-end sales load) is a one-time fee deducted upfront, not diminishing over time.
Option C (guaranteed interest rate) is a fixed return (e.g., 2%), stable or adjustable, not disappearing.
Option D (expense charge) covers ongoing costs (e.g., mortality and expense fees), typically level, not phased out. The study guide likely illustrates this with a table―e.g., 10% year 1, 9% year 2, 0% year 10―emphasizing surrender charges as a liquidity deterrent, making A the matching feature.
Question #137
All of the following statements about tax-sheltered annuities (TSAs) are true EXCEPT:
- A . They are also known as 403(b) plans.
- B . Accumulation payments often come from voluntary salary reductions.
- C . The annuitant may have an individual account or contract.
- D . The investment gain each year is included in the participant’s gross income.
Correct Answer: D
D
Explanation:
Tax-sheltered annuities (TSAs), per IRC § 403(b) and Virginia Code § 38.2-3100 et seq., are retirement plans for nonprofit employees.
Option A is true; they’re synonymous with 403(b) plans.
Option B is true; contributions often come from voluntary salary reductions, tax-deferred until withdrawal.
Option C is true; participants can have individual contracts or accounts.
Option D is false; investment gains are tax-deferred, not included in gross income annually, only taxed upon distribution. The study guide highlights TSAs’ tax advantages, making D the incorrect statement.
D
Explanation:
Tax-sheltered annuities (TSAs), per IRC § 403(b) and Virginia Code § 38.2-3100 et seq., are retirement plans for nonprofit employees.
Option A is true; they’re synonymous with 403(b) plans.
Option B is true; contributions often come from voluntary salary reductions, tax-deferred until withdrawal.
Option C is true; participants can have individual contracts or accounts.
Option D is false; investment gains are tax-deferred, not included in gross income annually, only taxed upon distribution. The study guide highlights TSAs’ tax advantages, making D the incorrect statement.
Question #138
What is often payable to a life insurance policyowner when a medical condition drastically limits the insured’ s life expectancy?
- A . Death benefit
- B . Accelerated death benefit
- C . Reduced paid-up insurance
- D . Extended term insurance
Correct Answer: B
B
Explanation:
Virginia Code § 38.2-3117.1 permits life insurance policies to include an accelerated death benefit (ADB) provision, allowing the policyowner to receive a portion of the death benefit early if the insured is diagnosed with a terminal illness (typically less than 12-24 months life expectancy, per policy terms).
Option B correctly identifies this benefit, often used for medical expenses or quality-of-life needs.
Option A (death benefit) is paid only upon death, not during life, so it’s incorrect here.
Option C (reduced paid-up insurance) is a nonforfeiture option converting cash value to a smaller, paid-up policy, unrelated to terminal illness.
Option D (extended term insurance) uses cash value to extend term coverage, also not tied to life expectancy triggers. The study guide likely details ADB as a modern feature addressing critical health scenarios, distinguishing it from standard death benefits or nonforfeiture options, confirming B as the accurate choice.
B
Explanation:
Virginia Code § 38.2-3117.1 permits life insurance policies to include an accelerated death benefit (ADB) provision, allowing the policyowner to receive a portion of the death benefit early if the insured is diagnosed with a terminal illness (typically less than 12-24 months life expectancy, per policy terms).
Option B correctly identifies this benefit, often used for medical expenses or quality-of-life needs.
Option A (death benefit) is paid only upon death, not during life, so it’s incorrect here.
Option C (reduced paid-up insurance) is a nonforfeiture option converting cash value to a smaller, paid-up policy, unrelated to terminal illness.
Option D (extended term insurance) uses cash value to extend term coverage, also not tied to life expectancy triggers. The study guide likely details ADB as a modern feature addressing critical health scenarios, distinguishing it from standard death benefits or nonforfeiture options, confirming B as the accurate choice.
Question #139
A licensee is NOT required by Virginia law to keep which of the following records?
- A . Accounting records of premium payments
- B . Files of insurance applications on current policies issued
- C . Policy renewal notices
- D . Premium quotations of unissued policies
Correct Answer: D
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.
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.
Question #140
In general practice, which one of the following is true of the powers of the Bureau of Insurance with respect to access to an agent’s business records?
- A . Records can only be accessed by an order of a state court
- B . Authorization must come from the National Association of Insurance Commissioners (NAIC)
- C . Records must be produced upon the request of the Bureau of Insurance
- D . The Bureau of Insurance has no right to access an agent’s business records because of privacy considerations
Correct Answer: C
C
Explanation:
Detailed Answer in Step-by-Step Solution:
The Virginia Bureau of Insurance has authority to request and review an agent’s business records (C) to ensure compliance with state laws, without requiring a court order (A) or NAIC approval (B).
Option D (no access) is false; regulatory oversight overrides privacy in this context.
The Virginia study guide confirms that the Bureau of Insurance can demand records as part of its regulatory powers under Virginia insurance law, ensuring market conduct compliance.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Insurance Regulation."
C
Explanation:
Detailed Answer in Step-by-Step Solution:
The Virginia Bureau of Insurance has authority to request and review an agent’s business records (C) to ensure compliance with state laws, without requiring a court order (A) or NAIC approval (B).
Option D (no access) is false; regulatory oversight overrides privacy in this context.
The Virginia study guide confirms that the Bureau of Insurance can demand records as part of its regulatory powers under Virginia insurance law, ensuring market conduct compliance.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Insurance Regulation."