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Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance Exam
Virginia Life, Annuities, and Health Insuranceination Series 1101 (Page 8 )

Updated On: 4-Feb-2026
Page 8 of 89
PDF with 440 Questions

Anything of value given to produce a contract is the definition of:

  1. A grant
  2. A codicil
  3. A consideration
  4. A covenant

Answer(s): C

Explanation:

In insurance contract law, per Virginia Code § 38.2-102, a contract requires consideration-- something of value exchanged to make it legally binding. Option C (consideration) fits this definition:
the insured's premium payment and the insurer's promise of coverage form the mutual value.

Option A (grant) implies a unilateral transfer, not a contract element. Option B (codicil) is a will amendment, irrelevant to insurance contracts. Option D (covenant) is a promise within a contract, not the value exchanged. The study guide likely explains consideration as a foundational principle, using examples like a $500 premium for a $100,000 policy, distinguishing it from other legal terms. Virginia follows common law requiring consideration for enforceability, making C the precise answer.



At policy delivery, to ensure that the insured has NOT experienced adverse medical conditions since the time of application for life insurance, the insured may be required to sign a:

  1. Disclosure notice
  2. Statement of good health
  3. Conditional receipt
  4. Notice of information practices

Answer(s): B

Explanation:

Virginia Code § 38.2-3106 governs life insurance delivery, where insurers may require a statement of good health (option B) at policy issuance to confirm no material health changes occurred since the application (e.g., a new cancer diagnosis). This signed document protects the insurer from undisclosed risks between underwriting and delivery, potentially voiding coverage if false (subject to incontestability, § 38.2-3105). Option A (disclosure notice) relates to privacy or policy terms, not health updates. Option C (conditional receipt) is issued at application with premium payment, providing temporary coverage, not a delivery requirement. Option D (notice of information practices) informs about data use (per § 38.2-604), not health status. The study guide likely illustrates this with a scenario--e.g., an insured signing to confirm no heart attack post-application--making B the standard practice.



Claims settlement practices of insurers are regulated by:

  1. The Internal Revenue Service
  2. The National Association of Insurance Commissioners
  3. Claims adjusters
  4. State insurance departments

Answer(s): D

Explanation:

Virginia Code § 38.2-510 regulates unfair claim settlement practices, enforced by the State Corporation Commission's Bureau of Insurance--a state insurance department (option D). This includes timely claim processing and fair payment, with penalties for violations. Option A (IRS) oversees tax compliance, not insurance claims. Option B (NAIC) develops model laws and guidelines (e.g., Unfair Claims Settlement Practices Act), but lacks enforcement power; states adopt and regulate these standards. Option C (claims adjusters) are practitioners, not regulators. The study guide likely emphasizes Virginia's Bureau as the authority, citing examples like investigating delayed claims, aligning with state-level oversight under § 38.2-200 et seq., making D the correct regulator.



All of the following are typical health maintenance organization (HMO) preventive care services provided by a primary care physician EXCEPT:

  1. Well-baby checkups
  2. Immunizations for children
  3. Experimental surgery
  4. Physical examinations

Answer(s): C

Explanation:

Virginia Code § 38.2-4306 requires HMOs to offer preventive care, coordinated by primary care physicians (PCPs), focusing on health maintenance. Option A (well-baby checkups), option B (immunizations for children), and option D (physical examinations) are standard preventive services--e.g., growth monitoring, vaccines, and annual exams--covered at no cost under ACA- aligned plans (Virginia Code § 38.2-3440). Option C (experimental surgery) is not preventive; it's a treatment, often excluded or requiring special approval due to its unproven nature, not a PCP's routine role. The study guide likely lists HMO preventive benefits with examples (e.g., flu shots), contrasting them with non-preventive interventions like surgery, making C the exception.



All of the following are underwriting criteria for individual life insurance EXCEPT:

  1. Gender
  2. Religion
  3. Occupation
  4. Ability to pay premiums

Answer(s): B

Explanation:

Virginia Code § 38.2-3107 governs life insurance underwriting, where insurers assess risk using factors like gender (option A, affecting mortality rates), occupation (option C, e.g., hazardous jobs increase risk), and ability to pay premiums (option D, ensuring policy sustainability). Option B (religion) is not a permissible criterion; Virginia Code § 38.2-211 prohibits unfair discrimination in insurance based on religion, race, or other protected traits, reflecting federal and state anti-

discrimination laws. The study guide likely explains underwriting with examples--e.g., higher premiums for a male firefighter--but flags religion as an illegal factor, with case studies of compliance, making B the exception.



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