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 #81
An IRA owner names the spouse as beneficiary.
Which is true if the owner dies before any distributions are made?
- A . All future distributions are forfeited
- B . The surviving spouse can roll the account into another IRA
- C . Distributions must begin within six months of the decedent’s death
- D . Distributions must begin in the year after the deceased would have reached age 70½
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
If an IRA owner dies before distributions, the surviving spouse beneficiary can roll the IRA into their own IRA (B), treating it as their own and delaying distributions until their required beginning date.
Option A (forfeited) is false; assets pass to the beneficiary. Options C and D apply to non-spouse beneficiaries under older rules, not spousal rollovers.
The Virginia study guide, per IRS rules, allows a surviving spouse to roll an inherited IRA into their own, avoiding immediate taxation or forced distributions.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Retirement Plans."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
If an IRA owner dies before distributions, the surviving spouse beneficiary can roll the IRA into their own IRA (B), treating it as their own and delaying distributions until their required beginning date.
Option A (forfeited) is false; assets pass to the beneficiary. Options C and D apply to non-spouse beneficiaries under older rules, not spousal rollovers.
The Virginia study guide, per IRS rules, allows a surviving spouse to roll an inherited IRA into their own, avoiding immediate taxation or forced distributions.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Retirement Plans."
Question #82
Which of the following terms may NOT be used in the advertisement of Accident and Sickness Insurance?
- A . Reductions
- B . Exclusions
- C . Pre-existing conditions
- D . Unlimited Benefits
Correct Answer: D
D
Explanation:
Virginia Code § 38.2-503 prohibits unfair or deceptive advertising in insurance, including Accident and Sickness policies. Terms like “reductions” (option A), “exclusions” (option B), and “pre-existing conditions” (option C) are factual policy features that must be disclosed clearly under Virginia Administrative Code 14VAC5-41-10 et seq., ensuring transparency. However, “unlimited benefits” (option D) is misleading if untrue, as all policies have limits (e.g., maximum benefits or coverage caps). Advertising “unlimited benefits” without substantiation violates Virginia’s rules against exaggerated or false claims, risking consumer deception. The study guide likely warns against such terms, citing examples where insurers faced penalties for overstating coverage, making D the prohibited choice.
D
Explanation:
Virginia Code § 38.2-503 prohibits unfair or deceptive advertising in insurance, including Accident and Sickness policies. Terms like “reductions” (option A), “exclusions” (option B), and “pre-existing conditions” (option C) are factual policy features that must be disclosed clearly under Virginia Administrative Code 14VAC5-41-10 et seq., ensuring transparency. However, “unlimited benefits” (option D) is misleading if untrue, as all policies have limits (e.g., maximum benefits or coverage caps). Advertising “unlimited benefits” without substantiation violates Virginia’s rules against exaggerated or false claims, risking consumer deception. The study guide likely warns against such terms, citing examples where insurers faced penalties for overstating coverage, making D the prohibited choice.
Question #83
When an HIV test is requested by a health insurer, who signs the consent form?
- A . The applicant
- B . The applicant’s physician
- C . The insurance agent
- D . The medical laboratory technician
Correct Answer: A
A
Explanation:
Virginia Code § 38.2-600 requires written consent for HIV testing in insurance underwriting, signed by the applicant (option A) to comply with privacy laws (e.g., Virginia Code § 32.1-36.1). This ensures the individual authorizes the test, protecting their rights.
Option B (physician) may order tests but doesn’t consent for insurance.
Option C (agent) facilitates but can’t consent.
Option D (technician) performs the test, not authorizes it. The study guide likely stresses this consent process in a privacy section, with examples of applicants signing before blood draws, making A the correct party.
A
Explanation:
Virginia Code § 38.2-600 requires written consent for HIV testing in insurance underwriting, signed by the applicant (option A) to comply with privacy laws (e.g., Virginia Code § 32.1-36.1). This ensures the individual authorizes the test, protecting their rights.
Option B (physician) may order tests but doesn’t consent for insurance.
Option C (agent) facilitates but can’t consent.
Option D (technician) performs the test, not authorizes it. The study guide likely stresses this consent process in a privacy section, with examples of applicants signing before blood draws, making A the correct party.
Question #84
An agreement attached to a health insurance policy which alters either the terms of the policy or the coverage is called:
- A . A limit clause
- B . An attachment
- C . An insuring clause
- D . A rider
Correct Answer: D
D
Explanation:
Virginia Code § 38.2-3500 et seq. allows health insurance policies to include riders―supplemental agreements modifying coverage or terms (e.g., adding dental benefits or exclusions).
Option D (rider) is the standard term.
Option A (limit clause) isn’t a distinct attachment; limits are within thepolicy.
Option B (attachment) is vague and not insurance-specific.
Option C (insuring clause) is the core promise of coverage, not an alteration. The study guide likely defines riders with examples―e.g., a maternity rider increasing premiums―distinguishing them from policy staples, confirming D as the answer.
D
Explanation:
Virginia Code § 38.2-3500 et seq. allows health insurance policies to include riders―supplemental agreements modifying coverage or terms (e.g., adding dental benefits or exclusions).
Option D (rider) is the standard term.
Option A (limit clause) isn’t a distinct attachment; limits are within thepolicy.
Option B (attachment) is vague and not insurance-specific.
Option C (insuring clause) is the core promise of coverage, not an alteration. The study guide likely defines riders with examples―e.g., a maternity rider increasing premiums―distinguishing them from policy staples, confirming D as the answer.
Question #85
If a patient with a preferred provider organization (PPO) chooses to use a non-PPO provider, the patient usually can expect:
- A . To have higher out-of-pocket expenses
- B . To pay the full cost of care
- C . 100% reimbursement for the service provided
- D . A one-year waiting period before re-enrolling in the PPO
Correct Answer: A
A
Explanation:
Detailed Answer in Step-by-Step Solution:
In a PPO, using a non-PPO provider (out-of-network) leads to higher out-of-pocket expenses (A) due to lower reimbursement rates and potential excess charges.
Option B (full cost) is inaccurate; some coverage applies.
Option C (100% reimbursement) is false.
Option D (waiting period) is unrelated.
The Virginia study guide reiterates that PPOs cover out-of-network care but at a reduced level, increasing the insured’s costs compared to in-network use.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Managed Care Plans."
A
Explanation:
Detailed Answer in Step-by-Step Solution:
In a PPO, using a non-PPO provider (out-of-network) leads to higher out-of-pocket expenses (A) due to lower reimbursement rates and potential excess charges.
Option B (full cost) is inaccurate; some coverage applies.
Option C (100% reimbursement) is false.
Option D (waiting period) is unrelated.
The Virginia study guide reiterates that PPOs cover out-of-network care but at a reduced level, increasing the insured’s costs compared to in-network use.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Managed Care Plans."
Question #86
All of the following are common features found in health maintenance organizations (HMOs) EXCEPT:
- A . Wellness programs
- B . Discounts on local health spa memberships
- C . Twenty-four hour access to emergency care
- D . Outpatient medical services
Correct Answer: B
B
Explanation:
Virginia Code § 38.2-4306 mandates HMO benefits, focusing on comprehensive care.
Option A (wellness programs) is common, promoting prevention (e.g., smoking cessation).
Option C (24-hour emergency care) is required, ensuring access via PCP coordination or direct ER services.
Option D (outpatient services) is standard, covering clinic visits.
Option B (discounts on local health spa memberships) isn’t a typical HMO feature; while some plans offer wellness incentives, spa discounts are ancillary, not a core benefit under Virginia law or NAIC HMO models. The study guide likely lists HMO staples (A, C, D) with examples―e.g., annual checkups (D)―contrasting them with optional perks like B, making it the exception.
B
Explanation:
Virginia Code § 38.2-4306 mandates HMO benefits, focusing on comprehensive care.
Option A (wellness programs) is common, promoting prevention (e.g., smoking cessation).
Option C (24-hour emergency care) is required, ensuring access via PCP coordination or direct ER services.
Option D (outpatient services) is standard, covering clinic visits.
Option B (discounts on local health spa memberships) isn’t a typical HMO feature; while some plans offer wellness incentives, spa discounts are ancillary, not a core benefit under Virginia law or NAIC HMO models. The study guide likely lists HMO staples (A, C, D) with examples―e.g., annual checkups (D)―contrasting them with optional perks like B, making it the exception.
Question #87
Giving policyholders some part of the agent’s commission as an inducement to purchase insurance is an unfair trade practice known as:
- A . Twisting
- B . Rebating
- C . Replacement
- D . Retention
Correct Answer: B
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Rebating (B) is the illegal practice of offering a portion of an agent’s commission or other financial incentives to induce a sale, prohibited in most states, including Virginia, to ensure fair competition.
Twisting (A) involves misrepresenting policies to replace existing coverage. Replacement (C) is switching policies, not necessarily with a rebate. Retention (D) is not a recognized term here.
The Virginia study guide defines rebating as an unfair trade practice under Virginia insurance law, aimed at preventing agents from undercutting prices with commission kickbacks.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Unfair Trade Practices."
B
Explanation:
Detailed Answer in Step-by-Step Solution:
Rebating (B) is the illegal practice of offering a portion of an agent’s commission or other financial incentives to induce a sale, prohibited in most states, including Virginia, to ensure fair competition.
Twisting (A) involves misrepresenting policies to replace existing coverage. Replacement (C) is switching policies, not necessarily with a rebate. Retention (D) is not a recognized term here.
The Virginia study guide defines rebating as an unfair trade practice under Virginia insurance law, aimed at preventing agents from undercutting prices with commission kickbacks.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Unfair Trade Practices."
Question #88
In long-term care insurance, the guarantee of insurability option provides the insured with the ability to:
- A . Purchase additional insurance at a later date
- B . Replace the policy at any time with one from a different insurer
- C . Extend coverage under the policy for the insured’s lifetime
- D . Keep the same premium for the entire contract period
Correct Answer: A
A
Explanation:
Virginia Code § 38.2-5202 allows a guaranteed insurability option in LTC insurance, letting the insured buy additional coverage later (option A) without proving insurability, typically at set intervals or life events (e.g., inflation adjustment).
Option B (replace with another insurer) isn’t a policy feature; it’s a market action.
Option C (lifetime extension) confuses with benefit periods, not insurability.
Option D (fixed premium) relates to non-cancelable policies, not this rider. The study guide likely describes this with examples―e.g., adding $1,000 monthly benefit at age 70―emphasizing future flexibility, making A the correct ability.
A
Explanation:
Virginia Code § 38.2-5202 allows a guaranteed insurability option in LTC insurance, letting the insured buy additional coverage later (option A) without proving insurability, typically at set intervals or life events (e.g., inflation adjustment).
Option B (replace with another insurer) isn’t a policy feature; it’s a market action.
Option C (lifetime extension) confuses with benefit periods, not insurability.
Option D (fixed premium) relates to non-cancelable policies, not this rider. The study guide likely describes this with examples―e.g., adding $1,000 monthly benefit at age 70―emphasizing future flexibility, making A the correct ability.
Question #89
If a patient with a preferred provider plan chooses to use a non-preferred provider, the patient usually can expect:
- A . To have higher out-of-pocket expenses
- B . To pay the full cost of care
- C . 100% reimbursement for the service provided
- D . A one-year waiting period before re-enrolling in the preferred provider plan
Correct Answer: A
A
Explanation:
Detailed Answer in Step-by-Step Solution:
In a PPO, using a non-preferred (out-of-network) provider typically results in higher out-of-pocket expenses (A) due to lower reimbursement rates (e.g., 60% vs. 80% in-network) and potential excess charges.
Option B (full cost) may apply to HMOs, not PPOs, which still offer some coverage.
Option C (100% reimbursement) is false.
Option D (waiting period) is unrelated to provider choice.
The Virginia study guide explains that PPOs offer flexibility to use out-of-network providers, but at a higher cost to the insured due to reduced coinsurance or additional charges.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Managed Care Plans."
A
Explanation:
Detailed Answer in Step-by-Step Solution:
In a PPO, using a non-preferred (out-of-network) provider typically results in higher out-of-pocket expenses (A) due to lower reimbursement rates (e.g., 60% vs. 80% in-network) and potential excess charges.
Option B (full cost) may apply to HMOs, not PPOs, which still offer some coverage.
Option C (100% reimbursement) is false.
Option D (waiting period) is unrelated to provider choice.
The Virginia study guide explains that PPOs offer flexibility to use out-of-network providers, but at a higher cost to the insured due to reduced coinsurance or additional charges.
Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Managed Care Plans."
Question #90
The prevention and correction of dental and oral irregularities through the use of mechanical corrective devices is called:
- A . Orthodontics
- B . Endodontics
- C . Periodontics
- D . Prosthodontics
Correct Answer: A
A
Explanation:
In the context of health insurance, particularly dental coverage, Virginia Code § 38.2-3407.1 et seq. governs mandated benefits, though dental specifics often appear in policy riders or standalone plans. Orthodontics (option A) is the branch of dentistry focused on preventing and correcting irregularities of the teeth and jaws using mechanical devices like braces or aligners, precisely matching the question’s description. Endodontics (option B) deals with the tooth’s interior (e.g., root canals), not mechanical correction of alignment.
Periodontics (option C) addresses gum diseases and supporting structures, not tooth positioning. Prosthodontics (option D) involves replacing missing teeth with prosthetics (e.g., dentures), not correcting irregularities mechanically. The study guide likely defines these terms in a health insurance section, emphasizing orthodontics’ role in alignment correction―both preventive (e.g., avoiding bite issues) and corrective―making A the clear answer. Examples like braces for malocclusion reinforce this distinction from other specialties.
A
Explanation:
In the context of health insurance, particularly dental coverage, Virginia Code § 38.2-3407.1 et seq. governs mandated benefits, though dental specifics often appear in policy riders or standalone plans. Orthodontics (option A) is the branch of dentistry focused on preventing and correcting irregularities of the teeth and jaws using mechanical devices like braces or aligners, precisely matching the question’s description. Endodontics (option B) deals with the tooth’s interior (e.g., root canals), not mechanical correction of alignment.
Periodontics (option C) addresses gum diseases and supporting structures, not tooth positioning. Prosthodontics (option D) involves replacing missing teeth with prosthetics (e.g., dentures), not correcting irregularities mechanically. The study guide likely defines these terms in a health insurance section, emphasizing orthodontics’ role in alignment correction―both preventive (e.g., avoiding bite issues) and corrective―making A the clear answer. Examples like braces for malocclusion reinforce this distinction from other specialties.