VA L&H Insurance Exam Questions and Answers, Exams of Hydraulics

Download VA L&H Insurance Exam Questions and Answers and more Exams Hydraulics in PDF only on Docsity! VA L&H 64 Questions with Complete Solutions. Does an insurer's name have to clearly identified on all of its marketing Does an insurer's name have to clearly identified on all of its marketing communications? - Correct Answer Yes Each insurer shall maintain at its home office a complete file containing a specimen copy of every printed communication of its individual policies for how many years? - Correct Answer 4 What terms can insurer advertising not use? - Correct Answer investment, investment plan, founder's plan, charter plan, expansion plan, profit, profits, profit sharing, deposit, interest plan, savings, savings plan If a life policy is called "Non-medical," "No medical examination required," or similar terms where issuance of a policy is not guaranteed, the insurer must clearly disclose that issuance of the policy may depend upon - Correct Answer the answers to the health questions It is illegal to offer a gift of over _____ if a life insurance application, inquiry card, or reinstatement application is returned within a specified period of time. - Correct Answer $50 The use of words such as _____, _____ or other such misleading or confusing terminology to refer to such a premium is prohibited. - Correct Answer deposit premium, investment It is illegal to state that the applicant is buying stock when in fact: - Correct Answer life insurance is being sold It is illegal to state that premiums may be: - Correct Answer withdrawn It is illegal to state that prospective purchasers become group members and enjoy special privileges unless: - Correct Answer such is a fact It is illegal to state that mere size of a life insurer or its total insurance in force necessarily affects either the _______ of the insurer or the _____ of the policies issued by the insurer - Correct Answer solvency, reliability It is illegal to state that a mutual insurer's payment of dividends is: - Correct Answer guaranteed It is illegal to state that dividends are other than: - Correct Answer mainly a refund or return of part of the premium paid It is illegal to state that all older policies are more ___ than newer policies or that all newer policies are more ___ than older policies - Correct Answer costly, costly It is illegal to state that a prospect who agrees to furnish names of potential purchasers will be: - Correct Answer entitled to any specific benefits It is illegal to state that the producer is a "financial planner," "investment advisor," "financial consultant," or "financial counselor" unless: - Correct Answer such is actually the case It is illegal to state that only a _____ number of policies will be _____ - Correct Answer limited, sold It is illegal to state that the policy must be purchased within a set enrollment period unless there is a gap of at least ___ months before a similar policy will again be offered; - Correct Answer 6 It is illegal to state that any financial ratio, illustrative material or advertisement, including pictures, diagrams, charts, projections, or other material, has been approved or sanctioned by the ____ or the ____ unless such is actually the case. - Correct Answer Commission, Bureau of Insurance It is illegal to state that the agent is a "financial planner," "investment advisor," "financial consultant," or "financial counselor" in such a way as to imply that the person, who is engaged in the business of insurance, The Replacing Insurer must keep and monitor detailed records of the replacement activity of all Producers to ascertain whether a Producer has: - Correct Answer an excessive amount of replacements When it receives notification from a Replacing Insurer, the Existing Insurer must within _____ days send a letter notifying the policy owner of the right to receive information regarding ______ including, _______ or ________. - Correct Answer 5, the existing policy, an illustration, policy summary When it receives notification from a Replacing Insurer, the Existing Insurer must if the policy owner requests, provide the requested information within ____ days. - Correct Answer 5 When it receives notification from a Replacing Insurer, the Existing Insurer must retain copies of all replacement notifications received, indexed by Replacing Insurer, for at least: - Correct Answer 5 years When it receives notification from a Replacing Insurer, the Existing Insurer must upon receipt of a request to borrow or withdraw any cash, send a notice that the release of cash may affect the: ______, _____, _____, or ______ of the policy from which the values are released. - Correct Answer guaranteed elements, non-guaranteed elements, face amount, surrender value A "Direct Response Insurer" must require each applicant to sign a statement through which the Insurer asks whether the applicant intends to: - Correct Answer replace an existing policy. If the applicant indicates a replacement is not intended or if the applicant fails to respond to the statement, the Direct Response Insurer must send with the policy a ______ if the applicant indicates a ______ is not intended or fails to ______. - Correct Answer replacement notice, replacement, respond to the question If the applicant indicates a replacement is intended, the Direct Response Insurer must provide the applicant with a _____ and obtain a signed copy of the _____ from the applicant, and _____ the Existing Insurer. - Correct Answer replacement notice, replacement notice, warn A life insurance policy may provide for an accelerated death benefit if a qualified health care provider or court has determined that the insured is unable to perform ____ of the following ADLs: bathing, dressing, continence, eating, toileting, or transferring; or requires ______ by another person. - Correct Answer two, substantial supervision When a policy has an accelerated death benefit, the insurer must send a statement that warns that _____ advice should be obtained, and discloses the effect that the payment will have on the policy's ____ value and _____ benefit, and eligibility for ______ or other government assistance. - Correct Answer tax, cash, death, Medicaid Application for conversion of a ______ policy to an _____ policy must be made within _____ days of termination of ______. - Correct Answer group life, individual, 31, group coverage Each individual permanent life insurance policy must have a loan value after _____, with a maximum interest rate of ______ or an adjustable _______ as permitted by law. - Correct Answer 3 years, 8%, maximum interest rate A "Viator" is a consumer who sells his or her ______ to a _______ for a _______ equal to some ______ of the policy's ______. - Correct Answer life insurance policy, Viatical Settlement Provider, lump sum payment, percentage, death benefit The Viatical Provider names ____ as the policy's beneficiary and will continue to make the premium payments until ______. The Viatical Provider then collects ______ of the policy. - Correct Answer itself, the Viator dies, the full face value Viatical settlements are regulated by ______. In nearly all states, including Virginia, Viatical Settlement Brokers (Viatical Brokers) are required to be _____. - Correct Answer state insurance law, licensed The task of the Viatical Broker is to meet with _____, explain the concept of the _____, and with the _____ consent, contact various _______ to see which will pay the most for the policy. - Correct Answer Viators, viatical settlement, Viator's, Viatical Providers State regulations and laws vary widely, but most require viatical brokers and providers to be _____. - Correct Answer licensed Viatical Settlement Brokers in Virginia are presumed to be agents of _______ but are required to protect the privacy of the _____. - Correct Answer Viatical Settlement Providers, Viator Before entering into any agreement with a Viator in Virginia, the Viatical Broker is required to provide the Viator with a written form disclosing that there are ______ to a viatical settlement (such as an accelerated death benefit); there are ______ implications of a viatical settlement; viatical proceeds could be seized by____; eligibility for _____ or other government benefits may be altered by the viatical settlement; the Broker will disclose information received from the Viator to ______; the _____ has a brochure describing settlements that must be given to the Viator; the ______ will have a substantial impact on the Viator's ability to access the policy's ______ value and _____ value; funds must be distributed by the Viatical Provider within _____ of a settlement agreement; the Viator has _____ after receipt of the funds to rescind the agreement; and the agreement will automatically be rescinded if the Viator _ - Correct Answer alternatives, tax, creditors, Medicaid, Viatical Providers, Insurance Commissioner, viatical settlement, cash, loan, 3 days, 15 days, dies The Viatical Provider must provide the relationship, if any, between the _____ and the _____. - Correct Answer Viatical Provider, insurance company The Viatical Provider must provide the _____ of all death benefits payable under the policy. - Correct Answer dollar amount The Viatical Provider must provide _____ of an independent 3rd party escrow agent who will hold documents for the parties. - Correct Answer the name Before entering into a viatical agreement with the Viator, the viatical Provider must obtain a _____ from a physician that the Viator is of sound mind to contract; and the Viator's release of ____ records. - Correct Answer written statement, medical The ____ and the ____ have recommended model Military Sales rules which most states have adopted in varying forms. - Correct Answer NAIC, Department of Defense The Military Sales rules apply to ____ or ____ but do not apply to _____ insurance, _____ insurance, or _____ where there is no face-to-face solicitation. - Correct Answer individual life policies, annuities, credit, group life, group annuities is generally engaged in an ____ in which compensation is unrelated to _____ unless such actually is the case. - Correct Answer advisory business, sales It is illegal to state that annuities are _____ unless the marketing communication insofar as possible describes the tax consequences. - Correct Answer accorded preferential tax treatment If the term "student insurance forms enclosed" or other similar term is used on the envelope, it must appear: - Correct Answer in one continuous line Any slogan affixed by an insurer or agent on an envelope to the left of the postal meter stamp may not focus on: - Correct Answer education Prior to selling an annuity, the Producer must make reasonable efforts to ascertain the consumer's ____ and _____ status, the consumer's _____ objectives, and that the recommended annuity is _____ for the consumer. - Correct Answer financial, tax, investment, suitable The replacement rules don't apply to ____ insurance or _____ insurance or ______ annuities. - Correct Answer credit life, group life, group A Producer who initiates an application for life insurance (these rules also apply to annuities) must obtain a _____ signed by both the ______ and the _____ as to whether the applicant has existing policies. - Correct Answer statement, applicant, Producer If the answer to obtaining a statement about existing policies is "no," the Producer has ______ replacement obligations. - Correct Answer no more If the answer to obtaining a statement about existing policies is "yes," the Replacing Producer must deliver and read aloud to the applicant a ______ form approved by the Insurance Commissioner. - Correct Answer replacement notice True or False: The Replacement Notice must be read aloud to the applicant unless the applicant does not wish the Replacement Notice to be read aloud. - Correct Answer True The "Replacement Notice" must be signed by both the: - Correct Answer applicant and the Replacing Producer The Replacing Producer must advise the applicant that the replacement policy will contain a new: - Correct Answer 2-year suicide period The Replacing Producer must leave a copy of the _______ with the applicant. - Correct Answer Replacement Notice The Replacing Producer must leave a copy of all _____ material with the applicant. - Correct Answer sales The Replacing Producer must submit to the Replacing Insurer a list of any company- approved ______ materials used, copies of all individualized ____ materials, the signed ______ regarding whether the applicant has existing policies, and the signed ______. - Correct Answer marketing, sales, statement, Replacement Notice Where a replacement is involved in the transaction, the Replacing Insurer must within ______ days, give _____ warning to the _____ Insurer. - Correct Answer 5, written, Existing Where a replacement is involved in the transaction, the Replacing Insurer must, if the Existing Insurer so requests, send a copy of the _____ or ______ to the Existing Insurer within ____ days. - Correct Answer replacement policy's illustration, policy summary, 5 Where a replacement is involved in the transaction, the Replacing Insurer must provide the applicant a ____ day full refund right for the new policy. - Correct Answer 10 If the Replacing Insurer requires the use of only company approved sales materials and prohibits the use of any other sales materials, the Replacing Insurer may, within _____ days of the issuance of the policy or contract, notify the applicant by sending a letter or by verbal communication by a person whose duties are separate from the marketing area of the Insurer, that the Replacing Producer has represented that copies of all sales material have been _______, or provide the applicant with a ______ to contact company personnel involved in the compliance function if copies of all sales materials were not _____. - Correct Answer 10, left with the applicant, toll free number, left with the applicant The Replacing Insurer must keep copies of these documents and notices for at least ____ years. - Correct Answer 5 The Replacing Insurer must keep and monitor detailed records of the replacement activity of all Producers to ascertain whether a Producer has: - Correct Answer an excessive amount of replacements When it receives notification from a Replacing Insurer, the Existing Insurer must within _____ days send a letter notifying the policy owner of the right to receive information regarding ______ including, _______ or ________. - Correct Answer 5, the existing policy, an illustration, policy summary When it receives notification from a Replacing Insurer, the Existing Insurer must if the policy owner requests, provide the requested information within ____ days. - Correct Answer 5 When it receives notification from a Replacing Insurer, the Existing Insurer must retain copies of all replacement notifications received, indexed by Replacing Insurer, for at least: - Correct Answer 5 years When it receives notification from a Replacing Insurer, the Existing Insurer must upon receipt of a request to borrow or withdraw any cash, send a notice that the release of cash may affect the: ______, _____, _____, or ______ of the policy from which the values are released. - Correct Answer guaranteed elements, non-guaranteed elements, face amount, surrender value A "Direct Response Insurer" must require each applicant to sign a statement through which the Insurer asks whether the applicant intends to: - Correct Answer replace an existing policy. If the applicant indicates a replacement is not intended or if the applicant fails to respond to the statement, the Direct Response Insurer must send with the policy a ______ if the applicant indicates a ______ is not intended or fails to ______. - Correct Answer replacement notice, replacement, respond to the question If the applicant indicates a replacement is intended, the Direct Response Insurer must provide the applicant with a _____ and obtain a signed copy of the _____ from the applicant, and _____ the Existing Insurer. - Correct Answer replacement notice, replacement notice, warn