Valid Virginia Insurance - New Virginia-Life-Annuities-and-Health-Insurance Test Sims
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Passing the Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance exam at first attempt is a goal that many candidates strive for. However, some of them think that good Virginia Life, Annuities, and Health Insurance Examination Series 11-01 (Virginia-Life-Annuities-and-Health-Insurance) study material is not important, but this is not true. The right Virginia-Life-Annuities-and-Health-Insurance preparation material is crucial for success in the exam. And applicants who don’t find updated Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance prep material ultimately fail in the real examination and waste money. That's why BraindumpQuiz offers actual Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance exam questions to help candidates pass the exam and save their resources.
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Virginia Insurance Virginia Life, Annuities, and Health Insurance Examination Series 11-01 Sample Questions (Q237-Q242):
NEW QUESTION # 237
(A single premium whole life insurance policy may be defined as a policy that provides:)
- A. Protection for life as a paid-up policy
- B. Protection for only a limited number of years
- C. A life annuity benefit in addition to insurance
- D. A decreasing amount of insurance over its duration
Answer: A
Explanation:
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.
NEW QUESTION # 238
When the amount of a policy loan plus interest exceeds a life insurance policy's cash value:
- A. The policy is converted to paid-up whole life insurance.
- B. The policy is no longer in force.
- C. The policy is converted to extended term insurance.
- D. The automatic premium loan option becomes effective.
Answer: B
Explanation:
If the amount of a policy loan plus accrued interest exceeds the life insurance policy's cash value, the policy will generally lapse and become no longer in force. This occurs because the insurer cannot lend more than the available cash value, and the outstanding loan would exceed the policy's value, leading to its termination.
NEW QUESTION # 239
All of the following statements about insurance are true EXCEPT:
- A. The insured transfers the risk of loss to the insurer
- B. As the number of insured units increases, the number of losses decreases
- C. A large uncertain loss is exchanged for a small certain expenditure
- D. The insured may retain part of the loss through deductibles
Answer: B
Explanation:
Insurance works on the law of large numbers, which states that as the number of exposure units increases, the predictability of losses increases-not that the number of losses decreases. Losses still occur, but they become more statistically predictable.
Exact Extract (Virginia Insurance Fundamentals Study Guide): "Law of large numbers-predictability of loss increases as the number of similar exposure units increases. The number of losses does not decrease." Reference (Virginia Documents / Study Guide):
- Virginia General Insurance Concepts, Risk and Principles of Insurance
NEW QUESTION # 240
(In accordance with IRS regulations, which of the following is the MAXIMUM percentage of an employee's pay that is allowed through a simplified employee pension (SEP) plan?)
- A. 15%
- B. 25%
- C. 5%
- D. 30%
Answer: B
Explanation:
A simplified employee pension (SEP) plan is a retirement plan that allows employers to make tax-deductible contributions to individual retirement accounts established for employees. Under IRS regulations, employer contributions to a SEP plan are limited to a maximum of 25% of an employee's compensation, subject to an overall annual dollar limit. SEP plans are popular among small businesses because they are easy to establish and administer and have minimal reporting requirements. Contributions are made solely by the employer, not the employee, and must be allocated using the same percentage of compensation for all eligible employees. The exam tests the maximum allowable percentage of pay, which is 25%.
NEW QUESTION # 241
Medicare Part A Hospital Insurance is normally available regardless of age to any individual who, for at least 24 months, has been a recipient of:
- A. Corporate or self-employment retirement benefits
- B. Workers' compensation benefits
- C. Railroad retirement income benefits
- D. Social Security disability benefits
Answer: D
Explanation:
Medicare Part A is generally available at age 65, but younger individuals may qualify if they have received Social Security disability benefits for at least 24 months.
Exact Extract (Virginia Medicare Study Guide): "Individuals under age 65 become eligible for Medicare Part A after receiving Social Security disability benefits for 24 months." Reference (Virginia Documents / Study Guide):
- Virginia Health Insurance Examination Outline, Medicare Eligibility
NEW QUESTION # 242
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