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 #51
An individual health insurance policy must include:
- A . Coverage for pre-existing conditions
- B . A 10-day free look provision
- C . Only the optional uniform provisions
- D . A 60-day grace period
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Individual health insurance policies in Virginia must include a 10-day free look provision (B), allowing the policyholder to review and return the policy for a full refund.
Option A (pre-existing conditions) is not mandatory unless required by the ACA, and exclusions may apply.
Option C (only optional provisions) is incorrect; mandatory provisions are required, not just optional ones.
Option D (60-day grace period) is excessive; the standard is typically 30 or 31 days for health insurance.
The Virginia study guide mandates a 10-day free look period for individual health insurance policies, ensuring consumer protection, as per state law and NAIC standards.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health Insurance Policy Provisions."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Individual health insurance policies in Virginia must include a 10-day free look provision (B), allowing the policyholder to review and return the policy for a full refund.
Option A (pre-existing conditions) is not mandatory unless required by the ACA, and exclusions may apply.
Option C (only optional provisions) is incorrect; mandatory provisions are required, not just optional ones.
Option D (60-day grace period) is excessive; the standard is typically 30 or 31 days for health insurance.
The Virginia study guide mandates a 10-day free look period for individual health insurance policies, ensuring consumer protection, as per state law and NAIC standards.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health Insurance Policy Provisions."
Question #52
Which is true about an adjustable life insurance policy?
- A . The policy while in force can alternate between forms of term life insurance and whole life insurance
- B . The only nonforfeiture option available is cash
- C . No settlement options are available
- D . It is a form of retirement income annuity
Correct Answer: A
A
Explanation:
Adjustable life insurance (Virginia Code § 38.2-3113.1) allows flexibility in face amount and premiums, effectively shifting between term (lower cost, no cash value) and whole life (higher cost, cash value) features while in force (option A).
Option B is false; nonforfeiture options include cash, reduced paid-up, or extended term.
Option C is false; settlement options (e.g., lump sum) apply as with other policies.
Option D is wrong; it’ s life insurance, not an annuity. The study guide likely explains this adaptability―e.g., increasing premiums to build cash value (whole life)―making A the true statement.
A
Explanation:
Adjustable life insurance (Virginia Code § 38.2-3113.1) allows flexibility in face amount and premiums, effectively shifting between term (lower cost, no cash value) and whole life (higher cost, cash value) features while in force (option A).
Option B is false; nonforfeiture options include cash, reduced paid-up, or extended term.
Option C is false; settlement options (e.g., lump sum) apply as with other policies.
Option D is wrong; it’ s life insurance, not an annuity. The study guide likely explains this adaptability―e.g., increasing premiums to build cash value (whole life)―making A the true statement.
Question #53
A typical disability income insurance policy EXCLUDES benefits for which one of the following causes of loss?
- A . Permanent injuries
- B . Intentional self-inflicted injuries
- C . Sporting accidents
- D . Falls
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Disability income policies exclude benefits for intentional self-inflicted injuries (B) to prevent abuse or fraud.
Permanent injuries (A), sporting accidents (C), and falls (D) are typically covered unless specifically excluded by the policy.
The Virginia study guide states that disability income insurance excludes self-inflicted injuries as a standard provision to ensure coverage applies to unforeseen events.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Disability Income Insurance."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Disability income policies exclude benefits for intentional self-inflicted injuries (B) to prevent abuse or fraud.
Permanent injuries (A), sporting accidents (C), and falls (D) are typically covered unless specifically excluded by the policy.
The Virginia study guide states that disability income insurance excludes self-inflicted injuries as a standard provision to ensure coverage applies to unforeseen events.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Disability Income Insurance."
Question #54
Under the notice of claim provision, notice given to a health insurance company’s agent is:
- A . An incomplete preliminary notice of claim
- B . Notice to the company
- C . Not valid notice to the company
- D . Contrary to the uniform mandatory provisions
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The notice of claim provision typically deems notice to an agent as notice to the company (B), as agents act on the insurer’s behalf.
Options A (incomplete), C (not valid), and D (contrary) contradict standard practice unless the policy specifies otherwise.
The Virginia study guide, per NAIC model laws, confirms that notice to an agent satisfies the notice of claim requirement, equating it to notice to the insurer.
Reference: Virginia Life, Annuities, andHealth Insurance study guide, section on "Health Insurance Claims Provisions."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The notice of claim provision typically deems notice to an agent as notice to the company (B), as agents act on the insurer’s behalf.
Options A (incomplete), C (not valid), and D (contrary) contradict standard practice unless the policy specifies otherwise.
The Virginia study guide, per NAIC model laws, confirms that notice to an agent satisfies the notice of claim requirement, equating it to notice to the insurer.
Reference: Virginia Life, Annuities, andHealth Insurance study guide, section on "Health Insurance Claims Provisions."
Question #55
Under a single premium deferred annuity (SPDA), the annuitant generally:
- A . Will receive benefit payments beginning immediately
- B . Can make tax-free withdrawals until the principal is recovered
- C . Is designated as the beneficiary
- D . Is permitted to make only one premium payment
Correct Answer: D
D
Explanation:
Detailed Answer in Step-by-Step Solution:
A single premium deferred annuity (SPDA) involves one lump-sum payment (D), with benefits deferred until a later date, not immediate (A).
Withdrawals (B) are taxable as earnings first, not tax-free. The annuitant (C) receives payments, not the beneficiary, who gets proceeds if the annuitant dies.
The Virginia study guide defines an SPDA as an annuity funded by a single premium, with accumulation deferred until payout, distinguishing it from immediate annuities.
Reference: VirginiaLife, Annuities, and Health Insurance study guide, section on "Annuities."
D
Explanation:
Detailed Answer in Step-by-Step Solution:
A single premium deferred annuity (SPDA) involves one lump-sum payment (D), with benefits deferred until a later date, not immediate (A).
Withdrawals (B) are taxable as earnings first, not tax-free. The annuitant (C) receives payments, not the beneficiary, who gets proceeds if the annuitant dies.
The Virginia study guide defines an SPDA as an annuity funded by a single premium, with accumulation deferred until payout, distinguishing it from immediate annuities.
Reference: VirginiaLife, Annuities, and Health Insurance study guide, section on "Annuities."
Question #56
All of the following are types of insurance policy exchanges that can be made without current taxation EXCEPT:
- A . The exchange of an annuity for a life insurance policy
- B . The exchange of a life insurance policy for an annuity
- C . An annuity exchanged for another annuity contract
- D . A life insurance policy exchanged for another life policy
Correct Answer: A
A
Explanation:
Under IRC § 1035, certain insurance exchanges avoid immediate taxation: option B (life to annuity), option C (annuity to annuity), and option D (life to life) qualify if like-kind and properly executed, deferring gains.
Option A (annuity to life) isn’t permitted tax-free; annuities (income-focused) and life insurance (death-benefit-focused) aren’t “like-kind,” triggering taxable gain recognition. Virginia Code § 38.2-3100 et seq. aligns with federal tax rules. The study guide likely explains § 1035 exchanges with examples―e.g., swapping a $50,000 life policy for an annuity tax-free (B)―noting A’s taxable status due to product mismatch, making it the exception.
A
Explanation:
Under IRC § 1035, certain insurance exchanges avoid immediate taxation: option B (life to annuity), option C (annuity to annuity), and option D (life to life) qualify if like-kind and properly executed, deferring gains.
Option A (annuity to life) isn’t permitted tax-free; annuities (income-focused) and life insurance (death-benefit-focused) aren’t “like-kind,” triggering taxable gain recognition. Virginia Code § 38.2-3100 et seq. aligns with federal tax rules. The study guide likely explains § 1035 exchanges with examples―e.g., swapping a $50,000 life policy for an annuity tax-free (B)―noting A’s taxable status due to product mismatch, making it the exception.
Question #57
The benefit supplement attached to a life insurance policy which insures all members of a family is called a:
- A . Spouse term rider
- B . Children’s term rider
- C . Family term rider
- D . Survivorship term rider
Correct Answer: C
C
Explanation:
Virginia Code § 38.2-3109 allows life insurance riders to extend coverage. A family term rider (option C) attaches to a primary policy (e.g., the breadwinner’s) and provides term insurance for all family members― spouse and children―under one supplement, often with a single premium.
Option A (spouse term rider) covers only the spouse, not children.
Option B (children’s term rider) insures only children, excluding the spouse.
Option D (survivorship term rider) isn’t a standard term; “survivorship” typically refers to joint life policies paying at the second death, not family coverage. The study guide likely describes the family term rider as a cost-effective way to insure dependents, with examples showing level term benefits for each member, making C the accurate answer.
C
Explanation:
Virginia Code § 38.2-3109 allows life insurance riders to extend coverage. A family term rider (option C) attaches to a primary policy (e.g., the breadwinner’s) and provides term insurance for all family members― spouse and children―under one supplement, often with a single premium.
Option A (spouse term rider) covers only the spouse, not children.
Option B (children’s term rider) insures only children, excluding the spouse.
Option D (survivorship term rider) isn’t a standard term; “survivorship” typically refers to joint life policies paying at the second death, not family coverage. The study guide likely describes the family term rider as a cost-effective way to insure dependents, with examples showing level term benefits for each member, making C the accurate answer.
Question #58
The entire contract clause in a life insurance policy states that the complete contract between the insurer and the policyowner usually consists of the policy and the:
- A . Conditional premium receipt
- B . Attached application
- C . Waiver of premium rider
- D . Declaration page
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The entire contract clause includes the policy and the attached application (B), ensuring all terms and representations are part of the agreement.
The premium receipt (A) is temporary, the waiver rider (C) is optional, and the declaration page (D) is part of the policy, not separate.
The Virginia study guide states that the entire contract provision encompasses the policy and attached application, defining the full legal agreement.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Life Insurance Policy Provisions."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
The entire contract clause includes the policy and the attached application (B), ensuring all terms and representations are part of the agreement.
The premium receipt (A) is temporary, the waiver rider (C) is optional, and the declaration page (D) is part of the policy, not separate.
The Virginia study guide states that the entire contract provision encompasses the policy and attached application, defining the full legal agreement.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Life Insurance Policy Provisions."
Question #59
All of the following are underwriting criteria for individual life insurance EXCEPT:
- A . Gender
- B . Religion
- C . Occupation
- D . Ability to pay premiums
Correct Answer: B
B
Explanation:
Virginia Code § 38.2-3107 governs life insurance underwriting, where insurers assess risk using factors like gender (option A, affecting mortality rates), occupation (option C, e.g., hazardous jobs increase risk), and ability to pay premiums (option D, ensuring policy sustainability).
Option B (religion) is not a permissible criterion; Virginia Code § 38.2-211 prohibits unfair discrimination in insurance based on religion, race, or other protected traits, reflecting federal and state anti-discrimination laws. The study guide likely explains underwriting with examples―e.g., higher premiums for a male firefighter―but flags religion as an illegal factor, with case studies of compliance, making B the exception.
B
Explanation:
Virginia Code § 38.2-3107 governs life insurance underwriting, where insurers assess risk using factors like gender (option A, affecting mortality rates), occupation (option C, e.g., hazardous jobs increase risk), and ability to pay premiums (option D, ensuring policy sustainability).
Option B (religion) is not a permissible criterion; Virginia Code § 38.2-211 prohibits unfair discrimination in insurance based on religion, race, or other protected traits, reflecting federal and state anti-discrimination laws. The study guide likely explains underwriting with examples―e.g., higher premiums for a male firefighter―but flags religion as an illegal factor, with case studies of compliance, making B the exception.
Question #60
An information security program shall be designed to do all of the following, EXCEPT:
- A . Ensure policyholder access to their information without substantial inconvenience
- B . Ensure the confidentiality of policyholder information
- C . Protect against any anticipated threats or hazards to the integrity of the information
- D . Protect against unauthorized access to the information
Correct Answer: A
A
Explanation:
Virginia Code § 38.2-623 mandates insurers to implement information security programs to safeguard nonpublic personal information, aligning with the NAIC’s Model Regulation for Privacy. These programs must ensure confidentiality (option B), protect against threats or hazards (option C), and prevent unauthorized access (option D)―all core objectives to secure data against breaches or misuse.
Option A (ensure policyholder access without substantial inconvenience) is not a requirement of the security program; while Virginia Code § 38.2-610 allows policyholders to request their information, this is a separate consumer right, not a security program goal. The study guide likely details these mandates in a privacy section, emphasizing protection over access facilitation, as security focuses on safeguarding, not convenience. For example, encryption (B, D) and risk assessments (C) are standard, but streamlining access (A) could even conflict with security if overly permissive, making A the exception.
A
Explanation:
Virginia Code § 38.2-623 mandates insurers to implement information security programs to safeguard nonpublic personal information, aligning with the NAIC’s Model Regulation for Privacy. These programs must ensure confidentiality (option B), protect against threats or hazards (option C), and prevent unauthorized access (option D)―all core objectives to secure data against breaches or misuse.
Option A (ensure policyholder access without substantial inconvenience) is not a requirement of the security program; while Virginia Code § 38.2-610 allows policyholders to request their information, this is a separate consumer right, not a security program goal. The study guide likely details these mandates in a privacy section, emphasizing protection over access facilitation, as security focuses on safeguarding, not convenience. For example, encryption (B, D) and risk assessments (C) are standard, but streamlining access (A) could even conflict with security if overly permissive, making A the exception.