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Free Virginia-Life-Annuities-and-Health-Insurance Exam Braindumps
Virginia Life, Annuities, and Health Insuranceination Series 1101 Questions 191–195 (page: 40)

Updated On: 10-Feb-2026
Page 40 of 89
PDF with 440 Questions

Which concept states that the insured is entitled to the coverage under a policy that a sensible and prudent buyer would expect it to provide?

  1. Indemnity
  2. Reasonable expectations
  3. Subrogation
  4. Utmost good faith

Answer(s): B

Explanation:

The doctrine of reasonable expectations holds that insurance contracts will be interpreted as a reasonable person would expect, even if fine print suggests otherwise. Exact extract: "Under the principle of reasonable expectations, coverage is interpreted in line with what a prudent policyholder would believe was provided." This prevents insurers from denying claims based on obscure or technical language.


Reference:

Virginia Insurance Law Principles -- Contract Interpretation.
===========



An individual purchased a life annuity ten-years certain with benefits paid monthly.
What would the beneficiary receive if the annuitant died one day after receiving the 119th monthly benefit payment?

  1. Nothing at all
  2. 120 benefit payments
  3. One benefit payment
  4. Benefit payments for life

Answer(s): C

Explanation:

A 10-year certain annuity guarantees payments for 120 months. If the annuitant dies after receiving

119 payments, only one more payment remains for the beneficiary. Exact extract: "Life with 10-year certain annuities guarantee at least 120 payments; if the annuitant dies before that period, remaining payments go to the beneficiary." After 120 months, no benefits continue.


Reference:

Virginia Annuities Study Guide -- Annuity Settlement Options.



Which one of the following statements describes the fixed-period installments settlement option in life insurance policies?

  1. The beneficiary receives a specified amount of money until proceeds are exhausted
  2. The beneficiary receives regular payments of principal and interest for a specified period
  3. The beneficiary is guaranteed dividend payments for a specified period
  4. The beneficiary receives nothing until the end of the specified period

Answer(s): B

Explanation:

The fixed-period installment option provides that the death benefit proceeds, together with interest, are paid in equal installments to the beneficiary over a specified number of years. Each installment consists of principal and interest until the proceeds are fully distributed at the end of the fixed period. This ensures a guaranteed stream of income for the chosen period regardless of when the proceeds are exhausted.
Exact Extract (Virginia Life & Annuities Study Guide): "Settlement options include: fixed-period installments--payment of proceeds in equal installments over a specified period of years, consisting of principal and interest."
Reference (Virginia Documents / Study Guide):
-- Virginia Life & Annuities Insurance Examination Outline, Section 5.3 Settlement Options -- Code of Virginia §38.2-3117.2 (Requirement to provide settlement option explanations to beneficiaries)



Under what circumstances will a contingent beneficiary be entitled to proceeds from a life insurance policy?

  1. After proceeds are paid to the primary beneficiary
  2. After all outstanding debts of the insured have been settled
  3. If the primary beneficiary has predeceased the insured
  4. If the contingent beneficiary is a child of the insured

Answer(s): C

Explanation:

A contingent beneficiary is the person designated to receive life insurance proceeds only if the primary beneficiary is unable to do so, usually because the primary beneficiary has died before the insured. This designation ensures that benefits are still directed to another party without passing through the estate.
Exact Extract (Virginia Life & Annuities Study Guide): "Contingent beneficiary--person designated to receive policy proceeds if the primary beneficiary dies before the insured." Reference (Virginia Documents / Study Guide):

-- Virginia Life & Annuities Insurance Examination Outline, Section 5.2 Beneficiaries -- Virginia Consumer's Guide to Life Insurance, Beneficiary Designation Section



Under Medicare Supplement insurance, what form provides information about services, benefits, copayments, deductibles, exclusions, premiums, and the insurer?

  1. The outline of coverage
  2. The notice of benefit change
  3. The supplemental disclosure form
  4. The notice of replacement

Answer(s): A

Explanation:

An outline of coverage must be given to all applicants at the time of application. This document clearly describes the benefits, services, copayments, deductibles, exclusions, limitations, and premium details so that consumers can make informed choices. Virginia regulations require insurers to deliver this document in a standard format prescribed by the Bureau of Insurance. Exact Extract (Virginia Medicare Supplement Regulations): "Issuers shall provide an outline of coverage to all applicants at the time the application is presented... It shall include a description of benefits, services, exclusions, copayments, deductibles, and premiums." Reference (Virginia Documents / Study Guide):
-- Virginia Administrative Code 14VAC5-170-150 (Required disclosure provisions ­ Outline of Coverage)
-- Code of Virginia §38.2-3606 (Outline of Coverage requirement)



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