CH 11 VA State Life and Health Insurance Exam
A) 5 years
Insurers must maintain a file of any life insurance marketing communications used with the
public, subject to the inspection by the Commission. These materials must be kept for either 5
years or until the filing of the next regular report on the insurer's examination, whichever is
longer. - ANS-How long must an insurer keep the records of marketing communication
pertaining to life insurance for each year?
A) 5 years
B) Until the report on the insurer's examination 2 years from now
C) 7 years
D) Until the Commission inspects that communication
A) A prohibited practice
Regardless of location, it is considered a misleading and deceptive practice to solicit life
insurance door-to-door to military service members. All sales presentations must be made after
a prearranged appointment. - ANS-A life insurance agent visits his service member friend on a
military base. The friend introduces the agent to his next door neighbor, another service
member, and the agent immediately begins a sales presentation. The presentation is
A) A prohibited practice
B) An unethical practice.
C) Permitted with the service member's introduction.
D) Allowed if no sales is made.
A) Active duty service members
The military sales regulation applies only to the solicitation or sale of life insurance and annuities
to an active duty service member. - ANS-What does military sales regulation protect?
A) Active duty service members
B) Retired military personnel and their families
C) Anybody who exempt from coverage due to the war exclusion
D) Producers who solicit insurance on military installations
A) At least annually, but not more than quarterly
Insurers will provide life policies, except extended term policies, a provision that after 3 policy
years allows policyholders to borrow any cash values in excess of the mandates reserves at a
specified interest rate which is either fixed or variable. The variable interest rate must be
calculated at least every 12 months, but not more than every 3 months. - ANS-How often can an
insurer calculate the adjustable interest rate in a life insurance policy?
, A) At least annually, but not more than quarterly
B) At least on a quarterly basis
C) Monthly
D) Every 3 years
A) Neither the agent nor the insurer has any further obligation to the consumer regarding
suitability
In those cases where the consumer refuses to provide the needed information or decides to
enter into a transaction not based on a recommendation by the agent or insurer, neither the
agent nor insurer has any obligation to the consumer regarding suitability. - ANS-When a
consumer refuses to provide the information necessary for the agent to make a suitable
recommendation for a life insurance product for that consumer, which of the following is true?
A) Neither the agent nor the insurer has any further obligation to the consumer regarding
suitability
B) The insurer is still responsible for the suitability of the recommendation
C) The agent may be sued by the consumer for the recommendation
D) The insurer may refuse to provide service to that consumer
A) Obtain a list of life insurance policies that will be replaced
The replacing insurance company must require from the producer a list of the applicant's life
insurance or annuity contracts to be replaced and a copy of the replacement notice provided to
the applicant, and send each existing insurance company a written communication advising of
the proposed replacement. - ANS-During replacement of life insurance, a replacing insurer must
do which of the following?
A) Obtain a list of life insurance policies that will be replaced
B) Guarantee a replacement for each existing policy
C) Designate a new producer for a replaced policy
D) Send a copy of the Notice Regarding Replacement to the Department of Insurance
A) Read the notice regarding replacement to the applicant
The agent is usually responsible for reading to the applicant at the time of application a notice
regarding replacements of insurance and annuity contracts. All the other duties must be
completed by the insurer. - ANS-Which of the following is NOT a responsibility of the replacing
insurer in life insurance policy replacement?
A) Read the notice regarding replacement to the applicant
B) Verify receipt of the replacement forms
C) Provide a free-look period to the applicant
D) Notify an existing insurer about the replacement
A) The group policy will pay the death benefit that the employee would have received regardless
of whether the application for coverage or premium payment was made.
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