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[General] 100% Virginia-Life-Annuities-and-Health-Insurance Exam Coverage - Virginia-Life-

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【General】 100% Virginia-Life-Annuities-and-Health-Insurance Exam Coverage - Virginia-Life-

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Virginia Insurance Virginia Life, Annuities, and Health Insurance Examination Series 11-01 Sample Questions (Q68-Q73):NEW QUESTION # 68
An insurance company writing business in a state other than the one in which it is domiciled is called:
  • A. A captive insurer
  • B. A foreign insurer
  • C. An alien insurer
  • D. A domestic insurer
Answer: B
Explanation:
Detailed Answer in Step-by-Step Solution:
* A foreign insurer (A) is an insurance company operating in a state other than its state of domicile (where it is incorporated).
* A domestic insurer (B) operates in its home state. An alien insurer (C) is domiciled outside the U.S. A captive insurer (D) insures its parent company, not based on location.
The Virginia study guide defines a foreign insurer as one licensed to do business in Virginia but incorporated in another state, per insurance regulatory terminology. Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Insurance Company Types."

NEW QUESTION # 69
To be complete, an application for health insurance must contain all of the following EXCEPT:
  • A. Applicant's name and address
  • B. Applicant's signature
  • C. Initial premium
  • D. Date of application
Answer: C
Explanation:
Virginia Code § 38.2-3501 requires health insurance applications to include essential details for underwriting and contract formation: the applicant's name and address (option A), signature (option B) to affirm accuracy, and date (option C) to establish timing. These are mandatory for a complete application. Option D (initial premium) is not required on the application itself; while payment may accompany it to bind coverage (e.g., via a conditional receipt), it's a separate transaction, not an application component. The study guide likely lists these elements in a sample application, noting that premium submission is optional until acceptance, making D the exception.

NEW QUESTION # 70
A licensee is NOT required by Virginia law to keep which of the following records?
  • A. Accounting records of premium payments
  • B. Premium quotations of unissued policies
  • C. Policy renewal notices
  • D. Files of insurance applications on current policies issued
Answer: B
Explanation:
Virginia Code § 38.2-1809 mandates that licensees maintain specific records for regulatory oversight and consumer protection. Option A (accounting records of premium payments) is required to track funds received and remitted, ensuring financial accountability (e.g., premiums collected for a $1,000 policy). Option B (files of insurance applications on current policies) must be kept as part of the contract and for audit purposes, per
38.2-1810. Option C (policy renewal notices) is required to document communication with policyholders about ongoing coverage, ensuring transparency. Option D (premium quotations of unissued policies) is not mandated; while agents may provide quotes (e.g., $500 annually for a term policy), these are preliminary offers, not binding until a policy is issued, and Virginia law doesn't require retaining them unless they result in a transaction. The study guide likely details recordkeeping in a compliance chapter, contrasting required records (A, B, C) with optional ones like quotes (D), using examples-e.g., keeping a paid policy's file but not a rejected quote-making D the item not required. This reflects Virginia's focus on executed contracts over prospective ones.

NEW QUESTION # 71
The interest that an insurance company earns on life insurance premiums paid helps to:
  • A. Decrease the mortality rate
  • B. Increase the mortality rate
  • C. Increase the life insurance premium rate
  • D. Decrease the life insurance premium rate
Answer: D
Explanation:
Detailed Answer in Step-by-Step Solution:
* Life insurance premiums are calculated based on three factors: mortality (death rates), interest (investment earnings), and expenses (operating costs).
* When an insurer earns interest on premiums invested, it increases the funds available to pay claims, reducing the amount needed from policyholders.
* This results in a decrease in the premium rate (C), as higher interest earnings offset the cost of coverage.
* Option A (increase premium rate) would occur if interest earnings decreased.
* Options B and D (mortality rate changes) are unrelated to interest, as mortality is a statistical factor, not a financial one.
The Virginia study guide explains that interest earned on premiums is a key component of pricing life insurance, allowing insurers to lower premium rates when investment returns are favorable. Reference:
Virginia Life, Annuities, and Health Insurance study guide, section on "remium Determination."

NEW QUESTION # 72
The prevention and correction of dental and oral irregularities through the use of mechanical corrective devices is called:
  • A. Endodontics
  • B. Orthodontics
  • C. Prosthodontics
  • D. Periodontics
Answer: B
Explanation:
In the context of health insurance, particularly dental coverage, Virginia Code § 38.2-3407.1 et seq. governs mandated benefits, though dental specifics often appear in policy riders or standalone plans. Orthodontics (option A) is the branch of dentistry focused on preventing and correcting irregularities of the teeth and jaws using mechanical devices like braces or aligners, precisely matching the question's description. Endodontics (option B) deals with the tooth's interior (e.g., root canals), not mechanical correction of alignment.
Periodontics (option C) addresses gum diseases and supporting structures, not tooth positioning.
Prosthodontics (option D) involves replacing missing teeth with prosthetics (e.g., dentures), not correcting irregularities mechanically. The study guide likely defines these terms in a health insurance section, emphasizing orthodontics' role in alignment correction-both preventive (e.g., avoiding bite issues) and corrective-making A the clear answer. Examples like braces for malocclusion reinforce this distinction from other specialties.

NEW QUESTION # 73
......
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