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Virginia Insurance Virginia Life, Annuities, and Health Insurance Examination Series 11-01 Sample Questions (Q143-Q148):
NEW QUESTION # 143
What is a situation or condition that increases the likelihood of an insured loss occurring?
- A. Hazard
- B. Exposure
- C. Peril
- D. Risk
Answer: A
Explanation:
In insurance terminology, per Virginia Code § 38.2-100 et seq., a hazard (option A) is a condition increasing the likelihood or severity of a loss from a covered peril (e.g., smoking increases fire risk). Option B (peril) is the cause of loss (e.g., fire, theft). Option C (exposure) is the extent of potential loss, not the condition itself.
Option D (risk) is the broader uncertainty of loss, encompassing hazards and perils. The study guide likely differentiates these with examples-e.g., icy roads (hazard) causing a crash (peril)-highlighting hazard's role in amplifying loss probability, making A the exact match.
NEW QUESTION # 144
In the solicitation and sale of Medicare Supplement insurance policies, when must an agent deliver the buyer' s guide?
- A. Prior to accepting any payment of premium
- B. At the time of application
- C. Only when the purchaser is a first-time buyer
- D. Only when the solicitation involves replacement
Answer: B
Explanation:
Detailed Answer in Step-by-Step Solution:
* The buyer's guide for Medicare Supplement insurance must be provided to the consumer at the time of application (B) to ensure they understand the policy's benefits and limitations before committing.
* Option A (replacement only) is incorrect; the guide is required for all sales, though additional notices apply for replacements.
* Option C (prior to payment) is too vague and not a specific requirement.
* Option D (first-time buyer) is not a condition under Virginia or federal rules.
Per the Virginia study guide, agents must deliver the buyer's guide at the time of application for Medicare Supplement policies, as mandated by federal and state regulations to promote informed decisions. Reference:
Virginia Life, Annuities, and Health Insurance study guide, section on "Medicare Supplement Insurance Regulations."
NEW QUESTION # 145
When a Medicare Supplement policy is purchased during the open enrollment period:
- A. The benefits may be lower than usual
- B. The exclusions may be more numerous than usual
- C. The premium cost may be higher than usual
- D. The policy must be issued regardless of health status
Answer: D
Explanation:
Detailed Answer in Step-by-Step Solution:
* The Medicare Supplement open enrollment period (6 months starting the first month a person is 65 and enrolled in Medicare Part B) guarantees issuance of a policy without regard to health status (D).
* Premiums (A), benefits (B), and exclusions (C) are standardized and not altered during this period due to health.
The Virginia study guide states that during the Medicare Supplement open enrollment, insurers must issue policies without medical underwriting, ensuring access regardless of health. Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Medicare Supplement Insurance."
NEW QUESTION # 146
An agreement attached to a health insurance policy which alters either the terms of the policy or the coverage is called:
- A. An insuring clause
- B. A rider
- C. An attachment
- D. A limit clause
Answer: B
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.
NEW QUESTION # 147
One premium payment covers which period of time in a single premium whole life policy?
- A. To the insured's age 65
- B. One year
- C. One month
- D. The full life of the policy
Answer: D
Explanation:
Detailed Answer in Step-by-Step Solution:
* A single premium whole life policy is a type of permanent life insurance where the entire premium for the policy's lifetime coverage is paid in one lump sum at issuance.
* Unlike policies with recurring premiums (e.g., monthly or annual), this single payment funds the policy for the insured's full life (D).
* Options A (one month) and B (one year) apply to term or recurring premium policies.
* Option C (to age 65) might relate to limited-pay policies, not single premium ones.
Per the Virginia study guide, a single premium whole life policy requires one payment upfront, providing coverage for the insured's entire life and building immediate cash value. Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Types of Life Insurance Policies."
NEW QUESTION # 148
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