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Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance Exam Prep
Virginia Life, Annuities, and Health Insuranceination Series 1101 (Page 4 )

Updated On: 28-Aug-2026
Page 4 of 89
PDF with 440 Questions

The insurance with other insurers provision in an individual health insurance policy allows an insurer to pay benefits to the insureds on a pro-rata basis when the:

  1. Policy is within 31 days of the renewal date
  2. Policy has entered into the grace period for premium payment
  3. Insurer was not notified prior to the claim that the insured has other health coverage
  4. Insured has submitted claims in excess of $2,000 during the policy year

Answer(s): C

Explanation:

The "insurance with other insurers" provision, addressed in Virginia Code § 38.2-3514, is a coordination of benefits (COB) mechanism in individual health insurance policies designed to prevent over-insurance and duplicate payments when an insured has multiple policies covering the same loss. This provision allows the insurer to prorate benefits--paying a share based on the total coverage--when certain conditions are met. Option C states that the insurer wasn't notified prior to the claim of other coverage, which triggers proration. This aligns with standard COB rules: if the insurer isn't informed of other policies, it may assume primary liability initially but adjust to a pro- rata share upon discovery, ensuring equitable payment across insurers. Option A (within 31 days of renewal) is irrelevant; renewal proximity doesn't affect benefit coordination. Option B (grace period) relates to premium payment timing, not other insurance, and doesn't trigger proration. Option D ($2,000 claim threshold) is arbitrary and not a standard condition in Virginia law or study materials for this provision. The study guide likely emphasizes notification as key to COB, as Virginia follows NAIC model regulations requiring disclosure of other coverage (e.g., via application or claim forms). Without prior notice, the insurer applies proration retroactively, making C the correct choice.



An individual or business entity conducting business under an assumed or fictitious name must notify the Bureau of Insurance either at the time the license application is filed or:

  1. Within 30 calendar days from the date the name is adopted
  2. Within 60 calendar days from when the first policy is sold under the assumed name
  3. At the time of license renewal
  4. 30 days before the assumed name is no longer being used

Answer(s): A

Explanation:

Virginia Code § 38.2-1820 requires licensees (agents, agencies, or other entities) operating under an assumed or fictitious name to register that name with the Bureau of Insurance. This ensures transparency and consumer protection by linking all business names to the licensed entity. The statute specifies notification either at the time of license application or within 30 calendar days after adopting the assumed name, making option A correct. This timeline allows the Bureau to update records promptly without undue delay. Option B (60 days from first policy sale) introduces an unrelated trigger--policy sales--and extends the period beyond Virginia's requirement, making it incorrect. Option C (license renewal) delays notification unnecessarily, as renewals occur biennially (Virginia Code § 38.2-1822), conflicting with the need for timely registration. Option D (30 days before discontinuing the name) is illogical; notification is required when adopting, not abandoning, a name. The study guide likely stresses this 30-day rule to ensure compliance with Virginia's licensing oversight, reinforcing A as the precise answer based on regulatory intent and practice.



If an employee in poor health is part of a large group that is acceptable for group life insurance, that employee is:

  1. Ineligible for coverage under the plan
  2. Eligible for coverage, but on a rated basis
  3. Eligible for the same type of coverage as other employees
  4. Eligible for coverage more limited than that of other employees

Answer(s): 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.



A licensee must report an administrative action taken by another state or governmental agency to the Bureau of Insurance within how many calendar days after final disposition?

  1. 10 days
  2. 20 days
  3. 30 days
  4. 45 days

Answer(s): C

Explanation:

Virginia Code § 38.2-1826(C) mandates that licensees (agents, brokers, etc.) report administrative actions--such as license revocation or fines by another state or agency--to the Bureau of Insurance within 30 calendar days of the final disposition. "Final disposition" means the conclusion of the action (e.g., final order or settlement). This requirement ensures Virginia regulators can assess the licensee's fitness to hold a license and protect consumers. Option C (30 days) matches this statutory timeline precisely. Option A (10 days) is too short and not supported by Virginia law. Option B (20 days) lacks a basis in the Code or study materials. Option D (45 days) exceeds the mandated period, risking delayed oversight. The study guide likely emphasizes this 30-day rule as a critical compliance deadline, reinforced by Virginia's alignment with NAIC standards for licensee reporting, making C the definitive answer.



What is often payable to a life insurance policyowner when a medical condition drastically limits the insured's life expectancy?

  1. Death benefit
  2. Accelerated death benefit
  3. Reduced paid-up insurance
  4. Extended term insurance

Answer(s): B

Explanation:

Virginia Code § 38.2-3117.1 permits life insurance policies to include an accelerated death benefit

(ADB) provision, allowing the policyowner to receive a portion of the death benefit early if the insured is diagnosed with a terminal illness (typically less than 12-24 months life expectancy, per policy terms). Option B correctly identifies this benefit, often used for medical expenses or quality- of-life needs. Option A (death benefit) is paid only upon death, not during life, so it's incorrect here. Option C (reduced paid-up insurance) is a nonforfeiture option converting cash value to a smaller, paid-up policy, unrelated to terminal illness. Option D (extended term insurance) uses cash value to extend term coverage, also not tied to life expectancy triggers. The study guide likely details ADB as a modern feature addressing critical health scenarios, distinguishing it from standard death benefits or nonforfeiture options, confirming B as the accurate choice.



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