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 #71
All of the following statements about universal life insurance are true EXCEPT:
- A . A mortality charge is subtracted from the cash value accumulations each month
- B . The policy stipulates the amount that will be used for company expenses
- C . Death benefits are taxed as ordinary income
- D . Policy loans affect the amount of interest credited to the policy cash value
Correct Answer: C
C
Explanation:
Universal life (Virginia Code § 38.2-3113.1) features: Option A is true; a mortality charge funds the death benefit, deducted monthly from cash value.
Option B is true; expense charges are disclosed (e.g., admin fees).
Option D is true; loans reduce the cash value earning interest.
Option C is false; death benefits are generally tax-free under IRC § 101(a)(1), not ordinary income, unless an exception (e.g., transfer for value) applies, which isn’t standard. The study guide likely contrasts universal life mechanics―e.g., $50 monthly mortality charge―with tax-free benefits, making C the exception.
C
Explanation:
Universal life (Virginia Code § 38.2-3113.1) features: Option A is true; a mortality charge funds the death benefit, deducted monthly from cash value.
Option B is true; expense charges are disclosed (e.g., admin fees).
Option D is true; loans reduce the cash value earning interest.
Option C is false; death benefits are generally tax-free under IRC § 101(a)(1), not ordinary income, unless an exception (e.g., transfer for value) applies, which isn’t standard. The study guide likely contrasts universal life mechanics―e.g., $50 monthly mortality charge―with tax-free benefits, making C the exception.
Question #72
All of the following statements about the interest ONLY settlement option in life insurance policies are true EXCEPT:
- A . The proceeds of the policy are left with the insurance company
- B . The option can be selected only by the beneficiary
- C . The interest on the principal amount is paid periodically to the beneficiary
- D . At some later date, the principal may be paid under one of the other options
Correct Answer: B
B
Explanation:
Virginia Code § 38.2-3115 governs life insurance settlement options. The interest-only option keeps proceeds with the insurer (option A, true), paying interest periodically to the beneficiary (option C, true, e.g., quarterly), and allows the principal to be withdrawn or redirected later (option D, true, e.g., switching to fixed period).
Option B is false; the policyowner can select this option during the policy term, not just the beneficiary post-death―though beneficiaries may elect it if not pre-specified. The study guide likely explains this flexibility with examples―e.g., a $100,000 policy earning 3% interest paid monthly―noting both parties’ roles, making B the exception since it restricts choice to the beneficiary alone.
B
Explanation:
Virginia Code § 38.2-3115 governs life insurance settlement options. The interest-only option keeps proceeds with the insurer (option A, true), paying interest periodically to the beneficiary (option C, true, e.g., quarterly), and allows the principal to be withdrawn or redirected later (option D, true, e.g., switching to fixed period).
Option B is false; the policyowner can select this option during the policy term, not just the beneficiary post-death―though beneficiaries may elect it if not pre-specified. The study guide likely explains this flexibility with examples―e.g., a $100,000 policy earning 3% interest paid monthly―noting both parties’ roles, making B the exception since it restricts choice to the beneficiary alone.
Question #73
All the following are considered Essential Health Benefits under the ACA, EXCEPT:
- A . Hospitalization
- B . Laboratory services
- C . Adult dental services
- D . Preventive care services
Correct Answer: C
C
Explanation:
Detailed Answer in Step-by-Step Solution:
The Affordable Care Act (ACA) mandates 10 Essential Health Benefits, including hospitalization (A), laboratory services (B), and preventive care (D), but adult dental services (C) are not included (pediatric dental care is, however).
Adult dental is often an optional or separate coverage, not a required benefit.
The Virginia study guide, aligned with ACA regulations, lists the 10 Essential Health Benefits, excluding adult dental services while including pediatric dental and vision as distinct categories.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Affordable Care Act."
C
Explanation:
Detailed Answer in Step-by-Step Solution:
The Affordable Care Act (ACA) mandates 10 Essential Health Benefits, including hospitalization (A), laboratory services (B), and preventive care (D), but adult dental services (C) are not included (pediatric dental care is, however).
Adult dental is often an optional or separate coverage, not a required benefit.
The Virginia study guide, aligned with ACA regulations, lists the 10 Essential Health Benefits, excluding adult dental services while including pediatric dental and vision as distinct categories.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Affordable Care Act."
Question #74
A health insurer must generally pay for all of the following types of claims EXCEPT:
- A . Those incurred before termination of coverage
- B . Those incurred after termination of coverage
- C . Those less than $20 above the deductible amount
- D . Those related to mental or nervous disorders
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Health insurance covers claims incurred during the policy period (A), not after termination (B), unless extended benefits (e.g., COBRA) apply, which is not indicated here.
Claims above the deductible (C), regardless of amount, are payable if covered.
Mental or nervous disorder claims (D) are typically covered unless excluded by the policy, which is not specified.
Thus, claims after termination (B) are the exception.
The Virginia study guide states that health insurance liability ends upon policy termination, barring specific continuation provisions, making post-termination claims generally non-payable.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health Insurance Coverage Terms."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Health insurance covers claims incurred during the policy period (A), not after termination (B), unless extended benefits (e.g., COBRA) apply, which is not indicated here.
Claims above the deductible (C), regardless of amount, are payable if covered.
Mental or nervous disorder claims (D) are typically covered unless excluded by the policy, which is not specified.
Thus, claims after termination (B) are the exception.
The Virginia study guide states that health insurance liability ends upon policy termination, barring specific continuation provisions, making post-termination claims generally non-payable.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health Insurance Coverage Terms."
Question #75
In individual health insurance, a proof of loss typically should be submitted to the insurer within:
- A . 30 days from the date of loss
- B . 60 days from the date of loss
- C . 90 days from the date of loss
- D . 120 days from the date of loss
Correct Answer: C
C
Explanation:
Detailed Answer in Step-by-Step Solution:
The proof of loss is a formal statement of a claim, and standard health insurance policies require it within 90 days of the loss (C), unless the policy specifies otherwise or state law extends it.
Options A (30 days) and B (60 days) are too short for most policies, while D (120 days) exceeds the typical requirement.
The Virginia study guide aligns with the NAIC model laws, stating that proof of loss must typically be filed within 90 days of the loss, though insurers may accept later submissions if not prejudicial.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health InsuranceClaims Provisions."
C
Explanation:
Detailed Answer in Step-by-Step Solution:
The proof of loss is a formal statement of a claim, and standard health insurance policies require it within 90 days of the loss (C), unless the policy specifies otherwise or state law extends it.
Options A (30 days) and B (60 days) are too short for most policies, while D (120 days) exceeds the typical requirement.
The Virginia study guide aligns with the NAIC model laws, stating that proof of loss must typically be filed within 90 days of the loss, though insurers may accept later submissions if not prejudicial.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Health InsuranceClaims Provisions."
Question #76
The voluntary act of terminating an insurance contract is called:
- A . Elimination
- B . Rejection
- C . Finalization
- D . Cancellation
Correct Answer: D
D
Explanation:
Cancellation, per Virginia Code § 38.2-3106 (life) and § 38.2-3508 (health), is the voluntary termination of a policy by the insured or insurer. Options A, B, and C aren’t standard terms for this action in Virginia insurance law. The study guide defines cancellation as a deliberate act, distinct from lapse (nonpayment) or nonrenewal, making D the correct term.
D
Explanation:
Cancellation, per Virginia Code § 38.2-3106 (life) and § 38.2-3508 (health), is the voluntary termination of a policy by the insured or insurer. Options A, B, and C aren’t standard terms for this action in Virginia insurance law. The study guide defines cancellation as a deliberate act, distinct from lapse (nonpayment) or nonrenewal, making D the correct term.
Question #77
Responsibilities of the life insurance agent in the process of underwriting include all of the following
EXCEPT:
- A . Gathering complete information for the application
- B . Determining the final rate classification
- C . Seeking any additional information requested by the insurer
- D . Notifying the insurer of any material information not in the application
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Agents assist underwriting by collecting application data (A), obtaining additional info (C), and reporting material facts (D), but determining the final rate classification (B) is the insurer’s underwriter’ s role, not the agent’s.
Rate classification involves risk assessment, which is beyond an agent’s authority.
The Virginia study guide specifies that agents facilitate underwriting by providing accurate information, while the insurer’s underwriters set rates based on that data.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Underwriting Process."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Agents assist underwriting by collecting application data (A), obtaining additional info (C), and reporting material facts (D), but determining the final rate classification (B) is the insurer’s underwriter’ s role, not the agent’s.
Rate classification involves risk assessment, which is beyond an agent’s authority.
The Virginia study guide specifies that agents facilitate underwriting by providing accurate information, while the insurer’s underwriters set rates based on that data.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Underwriting Process."
Question #78
In HMO coverage, preventive services include:
- A . Rehabilitation therapy
- B . Treatment for alcoholism
- C . Childhood immunizations
- D . Home health services
Correct Answer: C
C
Explanation:
Health Maintenance Organizations (HMOs) in Virginia, per Virginia Code § 38.2-4306, emphasize preventive care to reduce long-term costs. Preventive services, as defined in the study guide and aligned with ACA standards, include childhood immunizations (option C), such as vaccines for measles or polio, offered at no
C
Explanation:
Health Maintenance Organizations (HMOs) in Virginia, per Virginia Code § 38.2-4306, emphasize preventive care to reduce long-term costs. Preventive services, as defined in the study guide and aligned with ACA standards, include childhood immunizations (option C), such as vaccines for measles or polio, offered at no
cost to members.
Option A (rehabilitation therapy) is restorative, not preventive, addressing existing conditions.
Option B (treatment for alcoholism) is a treatment service, not prevention, though HMOs cover it separately.
Option D (home health services) supports recovery or chronic care, not primary prevention. The study guide likely lists immunizations as a core preventive benefit, contrasting them with treatment-oriented services, confirming C as the correct answer.
Question #79
Under Virginia standards for marketing long-term care coverage, all of these are prohibited sales practices EXCEPT:
- A . Twisting
- B . Replacing existing coverage
- C . High pressure tactics
- D . Cold lead advertising
Correct Answer: D
D
Explanation:
Virginia Code § 38.2-5207 and 14VAC5-200-185 outline marketing standards for long-term care (LTC) insurance to protect consumers.
Option A (twisting)―misrepresenting a policy to induce replacement―is prohibited as an unfair practice (Virginia Code § 38.2-502).
Option C (high pressure tactics)―aggressive sales forcing quick decisions―violates ethical standards and is banned (14VAC5-200-40).
Option B (replacing existing coverage) is incorrect as stated; replacement itself isn’t prohibited but requires disclosure via a replacement notice (14VAC5-200-75), making it regulated, not banned outright―however, the question implies unauthorized or deceptive replacement, which is prohibited.
Option D (cold lead advertising)― soliciting via broad, unsolicited leads (e.g., mailers)―is permitted if it complies with disclosure rules and isn’ t deceptive (14VAC5-200-50). The study guide likely lists twisting and high pressure as unethical, with examples like misstating benefits, while allowing cold lead ads with proper labeling (e.g., “advertisement”), making D the exception.
D
Explanation:
Virginia Code § 38.2-5207 and 14VAC5-200-185 outline marketing standards for long-term care (LTC) insurance to protect consumers.
Option A (twisting)―misrepresenting a policy to induce replacement―is prohibited as an unfair practice (Virginia Code § 38.2-502).
Option C (high pressure tactics)―aggressive sales forcing quick decisions―violates ethical standards and is banned (14VAC5-200-40).
Option B (replacing existing coverage) is incorrect as stated; replacement itself isn’t prohibited but requires disclosure via a replacement notice (14VAC5-200-75), making it regulated, not banned outright―however, the question implies unauthorized or deceptive replacement, which is prohibited.
Option D (cold lead advertising)― soliciting via broad, unsolicited leads (e.g., mailers)―is permitted if it complies with disclosure rules and isn’ t deceptive (14VAC5-200-50). The study guide likely lists twisting and high pressure as unethical, with examples like misstating benefits, while allowing cold lead ads with proper labeling (e.g., “advertisement”), making D the exception.
Question #80
If an employee in poor health is part of a large group that is acceptable for group life insurance, that employee is:
- A . Ineligible for coverage under the plan
- B . Eligible for coverage, but on a rated basis
- C . Eligible for the same type of coverage as other employees
- D . Eligible for coverage more limited than that of other employees
Correct Answer: C
C
Explanation:
Group life insurance in Virginia, governed by Virginia Code § 38.2-3318 et seq., operates on a “group underwriting” basis, meaning coverage is issued to the group as a whole without individual health assessments. For large groups (typically over 10 employees, though Virginia defines “large” contextually), insurers accept the entire eligible group without requiring evidence of insurability, provided the group meets participation and eligibility standards (e.g., active employees).
Option C reflects this: an employee in poor health, as part of an acceptable group, receives the same coverage as others, as health status doesn’t affect eligibility or terms.
Option A (ineligible) is false; group plans don’t exclude based on individual health.
Option B (rated basis) applies to individual policies where substandard risks increase premiums, not group plans where risk is pooled.
Option D (limited coverage) contradicts the uniformity of group coverage terms. The study guide likely highlights this non-discriminatory feature of group life, ensuring equal benefits for all eligible members, making C the correct answer per Virginia’s legal and practical framework.
C
Explanation:
Group life insurance in Virginia, governed by Virginia Code § 38.2-3318 et seq., operates on a “group underwriting” basis, meaning coverage is issued to the group as a whole without individual health assessments. For large groups (typically over 10 employees, though Virginia defines “large” contextually), insurers accept the entire eligible group without requiring evidence of insurability, provided the group meets participation and eligibility standards (e.g., active employees).
Option C reflects this: an employee in poor health, as part of an acceptable group, receives the same coverage as others, as health status doesn’t affect eligibility or terms.
Option A (ineligible) is false; group plans don’t exclude based on individual health.
Option B (rated basis) applies to individual policies where substandard risks increase premiums, not group plans where risk is pooled.
Option D (limited coverage) contradicts the uniformity of group coverage terms. The study guide likely highlights this non-discriminatory feature of group life, ensuring equal benefits for all eligible members, making C the correct answer per Virginia’s legal and practical framework.