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 #11
Disability income insurance policies usually provide coverage for loss of income resulting from:
- A . Self-inflicted injuries
- B . Injuries incurred while in military service
- C . Disability resulting from war
- D . Accidental injuries
Correct Answer: D
D
Explanation:
Detailed Answer in Step-by-Step Solution:
Disability income insurance covers loss of income from accidental injuries (D), provided they aren’t excluded.
Self-inflicted injuries (A), military service injuries (B), and war-related disabilities (C) are standard exclusions in most policies.
The Virginia study guide specifies that disability income insurance pays for accidental or illness-related income loss, excluding self-inflicted, military, or war-related causes.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Disability Income Insurance."
D
Explanation:
Detailed Answer in Step-by-Step Solution:
Disability income insurance covers loss of income from accidental injuries (D), provided they aren’t excluded.
Self-inflicted injuries (A), military service injuries (B), and war-related disabilities (C) are standard exclusions in most policies.
The Virginia study guide specifies that disability income insurance pays for accidental or illness-related income loss, excluding self-inflicted, military, or war-related causes.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Disability Income Insurance."
Question #12
All of the following are advantages of whole life insurance EXCEPT:
- A . Policy loans may be available
- B . Long-term protection is provided
- C . The initial cost of coverage is lower than for an equivalent amount of term insurance
- D . There is a cash value if the policy is terminated after a sufficient period of time
Correct Answer: C
C
Explanation:
Detailed Answer in Step-by-Step Solution:
Whole life insurance offers policy loans (A), lifelong protection (B), and cash value (D), but its initial cost (C) is higher than term insurance for the same death benefit due to the savings component.
Term insurance is cheaper initially, making C the exception.
The Virginia study guide highlights that whole life provides permanent coverage and cash value, but at a higher initial premium than term insurance, which offers temporary, lower-cost protection.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Types of Life Insurance."
C
Explanation:
Detailed Answer in Step-by-Step Solution:
Whole life insurance offers policy loans (A), lifelong protection (B), and cash value (D), but its initial cost (C) is higher than term insurance for the same death benefit due to the savings component.
Term insurance is cheaper initially, making C the exception.
The Virginia study guide highlights that whole life provides permanent coverage and cash value, but at a higher initial premium than term insurance, which offers temporary, lower-cost protection.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Types of Life Insurance."
Question #13
A licensee must report an administrative action taken by another state or governmental agency tothe Bureau of Insurance within how many calendar days after final disposition?
- A . 10 days
- B . 20 days
- C . 30 days
- D . 45 days
Correct Answer: C
C
Explanation:
Virginia Code § 38.2-1826(C) mandates that licensees (agents, brokers, etc.) report administrative actions― such as license revocation or fines by another state or agency―to the Bureau of Insurance within 30 calendar days of the final disposition. “Final disposition” means the conclusion of the action (e.g., final order or settlement). This requirement ensures Virginia regulators can assess the licensee’s fitness to hold a license and protect consumers.
Option C (30 days) matches this statutory timeline precisely.
Option A (10 days) is too short and not supported by Virginia law.
Option B (20 days) lacks a basis in the Code or study materials.
Option D (45 days) exceeds the mandated period, risking delayed oversight. The study guide likely emphasizes this 30-day rule as a critical compliance deadline, reinforced by Virginia’s alignment with NAIC standards for licensee reporting, making C the definitive answer.
C
Explanation:
Virginia Code § 38.2-1826(C) mandates that licensees (agents, brokers, etc.) report administrative actions― such as license revocation or fines by another state or agency―to the Bureau of Insurance within 30 calendar days of the final disposition. “Final disposition” means the conclusion of the action (e.g., final order or settlement). This requirement ensures Virginia regulators can assess the licensee’s fitness to hold a license and protect consumers.
Option C (30 days) matches this statutory timeline precisely.
Option A (10 days) is too short and not supported by Virginia law.
Option B (20 days) lacks a basis in the Code or study materials.
Option D (45 days) exceeds the mandated period, risking delayed oversight. The study guide likely emphasizes this 30-day rule as a critical compliance deadline, reinforced by Virginia’s alignment with NAIC standards for licensee reporting, making C the definitive answer.
Question #14
Who usually selects the beneficiary of a life insurance policy?
- A . The policyowner
- B . The insurer
- C . The beneficiary
- D . The agent
Correct Answer: A
A
Explanation:
Detailed Answer in Step-by-Step Solution:
The policyowner (A) has the right to designate the beneficiary, as they control the policy’s terms and ownership rights.
The insurer (B) issues the policy, the beneficiary (C) receives proceeds, and the agent (D) facilitates but doesn’t decide.
The Virginia study guide confirms that the policyowner selects the beneficiary, exercising a fundamental ownership right, unless assigned otherwise.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Beneficiary Designations."
A
Explanation:
Detailed Answer in Step-by-Step Solution:
The policyowner (A) has the right to designate the beneficiary, as they control the policy’s terms and ownership rights.
The insurer (B) issues the policy, the beneficiary (C) receives proceeds, and the agent (D) facilitates but doesn’t decide.
The Virginia study guide confirms that the policyowner selects the beneficiary, exercising a fundamental ownership right, unless assigned otherwise.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Beneficiary Designations."
Question #15
Unless an insured has made fraudulent statements on the application for individual health coverage, subsequent claims may not be denied under the provision for:
- A . Legal actions
- B . Time limit on certain defenses
- C . Grace period
- D . Time payment of claims
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The "time limit on certain defenses" provision (B), often tied to incontestability, limits the insurer’s ability to deny claims based on application errors after a period (e.g., 2 years), unless fraud is proven.
Legal actions (A) governs lawsuits, grace period (C) covers premium delays, and time payment of claims (D) sets claim payment deadlines―none relate to application defenses.
The Virginia study guide explains that the time limit on certain defenses provision protects insureds by restricting post-issuance claim denials after a contestable period, absent fraud.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health Insurance Policy Provisions."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The "time limit on certain defenses" provision (B), often tied to incontestability, limits the insurer’s ability to deny claims based on application errors after a period (e.g., 2 years), unless fraud is proven.
Legal actions (A) governs lawsuits, grace period (C) covers premium delays, and time payment of claims (D) sets claim payment deadlines―none relate to application defenses.
The Virginia study guide explains that the time limit on certain defenses provision protects insureds by restricting post-issuance claim denials after a contestable period, absent fraud.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health Insurance Policy Provisions."
Question #16
To cancel a health insurance policy, which one of the following must the insured do?
- A . Notify the insurer in writing
- B . Replace the current policy with another
- C . Challenge at least two uniform mandatory provisions
Correct Answer: A
A
Explanation:
Virginia Code § 38.2-3508 governs cancellation of individual health insurance policies. For the insured to cancel, they must notify the insurer in writing (option A), specifying intent to terminate, typically effective upon receipt or a stated date, per policy terms. This formal notice ensures clarity and protects both parties, aligning with contract law principles.
Option B (replace with another policy) is a practical choice but not a legal requirement; cancellation can occur without replacement.
Option C (challenge mandatory provisions) is nonsensical; uniform provisions (e.g., grace period, per § 38.2-3503) are standard and unrelated to cancellation. The study guide likely outlines this process in a policyholder rights section, with examples―e. g., a letter stating “Cancel effective 5/1/2025”―emphasizing written notice as the sole requirement, making A the correct action.
A
Explanation:
Virginia Code § 38.2-3508 governs cancellation of individual health insurance policies. For the insured to cancel, they must notify the insurer in writing (option A), specifying intent to terminate, typically effective upon receipt or a stated date, per policy terms. This formal notice ensures clarity and protects both parties, aligning with contract law principles.
Option B (replace with another policy) is a practical choice but not a legal requirement; cancellation can occur without replacement.
Option C (challenge mandatory provisions) is nonsensical; uniform provisions (e.g., grace period, per § 38.2-3503) are standard and unrelated to cancellation. The study guide likely outlines this process in a policyholder rights section, with examples―e. g., a letter stating “Cancel effective 5/1/2025”―emphasizing written notice as the sole requirement, making A the correct action.
Question #17
Immediate annuities are often purchased by people who:
- A . Desire a tax deduction in the current year
- B . Want to contribute to a tax-sheltered annuity
- C . Have a lump sum to invest at retirement
- D . Want to accumulate funds for retirement at a later date
Correct Answer: C
C
Explanation:
Virginia Code § 38.2-3100 et seq. defines immediate annuities as contracts starting payments within one year of purchase, typically funded with a lump sum.
Option C fits: retirees with savings (e.g., $200,000 from a 401 (k)) buy immediate annuities for instant income.
Option A (tax deduction) applies to contributions to qualified plans, not immediate annuities, which use after-tax funds unless from a rollover.
Option B (tax-sheltered annuity) refers to 403(b) plans, not immediate annuities.
Option D (accumulate funds) suits deferred annuities, not immediate ones. The study guide likely contrasts immediate (C) with deferred annuities (D), using examples like a 65-year-old converting a lump sum to monthly payments, making C the typical buyer.
C
Explanation:
Virginia Code § 38.2-3100 et seq. defines immediate annuities as contracts starting payments within one year of purchase, typically funded with a lump sum.
Option C fits: retirees with savings (e.g., $200,000 from a 401 (k)) buy immediate annuities for instant income.
Option A (tax deduction) applies to contributions to qualified plans, not immediate annuities, which use after-tax funds unless from a rollover.
Option B (tax-sheltered annuity) refers to 403(b) plans, not immediate annuities.
Option D (accumulate funds) suits deferred annuities, not immediate ones. The study guide likely contrasts immediate (C) with deferred annuities (D), using examples like a 65-year-old converting a lump sum to monthly payments, making C the typical buyer.
Question #18
In health insurance, the insurance policy, the endorsements, and any relevant papers attached to the policy make up the:
- A . Completed application
- B . Entire contract
- C . Uniform mandatory policy provisions
- D . Notice of coverage
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
In health insurance, the "entire contract" refers to all the documents that collectively form the legal agreement between the insurer and the policyholder.
This includes the insurance policy itself (the main document outlining coverage), any endorsements (modifications or additions to the policy), and attached papers such as the application (if attached).
The completed application (A) is part of the contract only if attached, but it alone does not constitute the entire contract.
Uniform mandatory policy provisions (C) are specific clauses required by law within the policy, not the whole contract.
Notice of coverage (D) is a notification, not the contract itself.
Therefore, the correct answer is "entire contract."
The concept of the "entire contract" is a standard provision in health and life insurance policies. Per the Virginia insurance study guide, the entire contract clause ensures that all terms and conditions are contained within the policy, endorsements, and attached documents (like the application), protecting both parties by defining the full scope of the agreement.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Policy Provisions and Contracts."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
In health insurance, the "entire contract" refers to all the documents that collectively form the legal agreement between the insurer and the policyholder.
This includes the insurance policy itself (the main document outlining coverage), any endorsements (modifications or additions to the policy), and attached papers such as the application (if attached).
The completed application (A) is part of the contract only if attached, but it alone does not constitute the entire contract.
Uniform mandatory policy provisions (C) are specific clauses required by law within the policy, not the whole contract.
Notice of coverage (D) is a notification, not the contract itself.
Therefore, the correct answer is "entire contract."
The concept of the "entire contract" is a standard provision in health and life insurance policies. Per the Virginia insurance study guide, the entire contract clause ensures that all terms and conditions are contained within the policy, endorsements, and attached documents (like the application), protecting both parties by defining the full scope of the agreement.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Policy Provisions and Contracts."
Question #19
An insured with a long-term care (LTC) policy knowingly and intentionally misrepresented relevant facts relating to the insured’s health.
How long does an insurer have to contest the coverage?
- A . Any time up to six months
- B . Any time up to two years
- C . Any time during the duration of the policy
- D . The insurer is prohibited from contesting the coverage
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The incontestability provision in LTC policies typically limits the insurer’s ability to contest coverage based on misrepresentations to two years (B) from issuance, unless fraud is proven (which may extend this in some states).
Option A (six months) is too short.
Option C (entire duration) applies only to fraud in some cases, not standard misrepresentations.
Option D (prohibited) is incorrect due to the contestable period.
The Virginia study guide, aligned with NAIC standards, notes a two-year contestable period for health-related policies like LTC, after which misrepresentations cannot be challenged absent fraud.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Incontestability."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The incontestability provision in LTC policies typically limits the insurer’s ability to contest coverage based on misrepresentations to two years (B) from issuance, unless fraud is proven (which may extend this in some states).
Option A (six months) is too short.
Option C (entire duration) applies only to fraud in some cases, not standard misrepresentations.
Option D (prohibited) is incorrect due to the contestable period.
The Virginia study guide, aligned with NAIC standards, notes a two-year contestable period for health-related policies like LTC, after which misrepresentations cannot be challenged absent fraud.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Incontestability."
Question #20
Which is a lawful cause for cancellation of an individual long-term care insurance policy by the insurer?
- A . Nonpayment of premium
- B . Medicaid eligibility
- C . Insurer insolvency
- D . Nuisance claims
Correct Answer: A
A
Explanation:
Virginia Code § 38.2-5208 allows LTC policy cancellation by the insurer for nonpayment of premium (option A) after a 31-day grace period and notice, a standard contract right.
Option B (Medicaid eligibility) isn’t a cancellation cause; it may coordinate benefits, not terminate coverage.
Option C (insurer insolvency) affects payment ability, not lawful cancellation grounds.
Option D (nuisance claims) isn’t a legal basis; claims frequency doesn’t void coverage unless fraudulent (Virginia Code § 38.2-309). The study guide likely lists nonpayment as the primary insurer-initiated cancellation reason, with examples like missed payments triggering notice, making A the lawful cause.
A
Explanation:
Virginia Code § 38.2-5208 allows LTC policy cancellation by the insurer for nonpayment of premium (option A) after a 31-day grace period and notice, a standard contract right.
Option B (Medicaid eligibility) isn’t a cancellation cause; it may coordinate benefits, not terminate coverage.
Option C (insurer insolvency) affects payment ability, not lawful cancellation grounds.
Option D (nuisance claims) isn’t a legal basis; claims frequency doesn’t void coverage unless fraudulent (Virginia Code § 38.2-309). The study guide likely lists nonpayment as the primary insurer-initiated cancellation reason, with examples like missed payments triggering notice, making A the lawful cause.