Virginia-Life-Annuities-and-Health-Insurance Exam Dumps - Virginia Life, Annuities, and Health Insurance Examination Series 11-01

The agent’s report includes observations on the applicant’s financial status, character, and other relevant factors, but the applicant’s signature belongs on the application form, not the agent’s report.

Exact Extract (Virginia Health Insurance Study Guide): “The agent’s report is confidential and includes information on financial condition and character. It does not contain the applicant’s signature.”

References (Virginia Documents / Study Guide):

— Virginia Health Insurance Examination Outline, Field Underwriting

Virginia law treats a licensed agent as the agent of the insurer that issued the insurance sold, solicited, or negotiated by that agent in controversies between the insured (or beneficiary) and the insurer. This statutory framework reflects the principle that, when the agent is acting within the scope of authority granted by the insurer (the “agency contract” authority), the insurer is responsible to the consumer for those acts in the transaction. That is why option A is the best answer among the choices presented.

The other options are inconsistent with Virginia’s allocation of responsibility. The insurer is not automatically “exempt” simply because an agent makes a misrepresentation; misrepresentations can create insurer responsibility in disputes with insureds, and the law’s default is that the agent is the insurer’s agent in such controversies. Nor does the insurer “transfer all liability” to the agent—agency status means the insurer can be bound by and accountable for authorized acts. Finally, limiting responsibility to “express authority only” is too narrow: agency authority in practice includes the authority actually granted and recognized in the insurer-agent relationship in the sale/solicitation/negotiation context addressed by Virginia statute. The statute’s consumer-protection focus is to prevent insurers from avoiding responsibility when their agents act on their behalf in insurance transactions.

The "benefit period" in a long-term care insurance policy refers to the length of time over which the insurer will pay benefits for covered services. This period can vary depending on the terms of the policy, and it typically starts when the policyholder begins receiving care and continues for a specified duration or until the benefit limit is exhausted. The other options, such as the hospitalization period or recovery period, do not relate to the time claims are paid under long-term care policies.

Keogh plans, established under the Internal Revenue Code, are retirement plans for self-employed individuals and small businesses, also known as HR 10 plans (option B) after the 1962 legislation (H.R. 10) creating them. They allow tax-deferred contributions, similar to qualified plans. Option A (Section 457 plans) applies to government and nonprofit employees, not self-employed individuals. Option C (403(b) plans) is for nonprofit employees (e.g., teachers), distinct from Keogh’s self-employed focus. Option D (Section 2503(c) trusts) relates to gifting for minors, not retirement. The study guide likely contrasts Keogh (HR 10) with other plans in a retirement section, noting its tax benefits and eligibility, confirming B as the correct synonym.

A single premium whole life insurance policy is a form of permanent life insurance in which the policyowner pays the entire premium in one lump sum at policy issuance. In exchange for this single payment, the policy provides lifetime protection and is immediately paid-up, meaning no additional premiums are required. The policy accumulates cash value and provides a guaranteed death benefit for the insured’s entire life. It does not provide coverage for a limited term, nor does it feature a decreasing face amount. While annuities provide income benefits, a single premium whole life policy remains primarily a life insurance contract. Therefore, the defining feature of this policy is that it provides protection for life as a paid-up policy.

A revocable beneficiary designation allows the policyowner to change beneficiaries at any time without the consent of the existing beneficiary. This right remains solely with the policyowner.

Exact Extract (Virginia Health Insurance Study Guide): “Revocable beneficiaries—policyowner retains the right to change the beneficiary designation at will.”

References (Virginia Documents / Study Guide):

— Virginia Life & Health Insurance Examination Outline, Beneficiary Designations

When money is transferred directly from one IRA into another IRA of the same type (a direct rollover), it is considered a nontaxable event. This means no taxes are owed on the transfer at the time of the transaction, as long as the transfer is made directly between financial institutions and not to the account holder personally. Taxes would only apply when funds are eventually withdrawn from the IRA.

Universal life insurance provides flexible premiums, adjustable death benefits, and transparent monthly deductions for mortality and expenses. Death benefits paid to beneficiaries are generally income-tax free, making option C incorrect.

Mortality charges and expense charges are deducted monthly from the cash value, and policy loans reduce the cash value, which can affect interest credited. These features align with Virginia exam standards.

Because death benefits are not taxed as ordinary income, option C is the correct EXCEPT answer.