25 Free Virginia Life, Annuities & Health Exam Practice Questions (2026)

Question 1 (Chapter 1)

Which of the following statements accurately describes the relationship between an agent's license, appointment, and contract with an insurer in Virginia?

• A) The agent's appointment with the insurer is the same as their contract; the license is issued by the insurer upon appointment.
• B) The license is issued by the State Corporation Commission, the appointment is the insurer's authorization to act on its behalf, and the contract is the separate agreement governing the agent's relationship with the insurer.
• C) The contract with the insurer serves as both the license and appointment; no separate SCC license is needed if a contract exists.
• D) The appointment is issued by the Bureau of Insurance, and the license is merely a record of that appointment.

Question 2 (Chapter 1)

Which of the following best describes the fiduciary responsibility of an insurance agent regarding premium funds collected from policyholders?

• A) The agent may commingle premium funds with personal or business accounts as long as records are kept
• B) The agent holds premium funds in a fiduciary capacity for the insurer and must not use them for their own benefit
• C) The agent owns the premium funds once collected and may invest them until remittance to the insurer
• D) The agent is only responsible for premium funds if they fail to remit them to the insurer on time

Question 3 (Chapter 2)

An insurance producer in Virginia is discussing policy options with a client. The producer states that the insurer will pay the death benefit only if the insured dies while the policy is in force. This statement describes which fundamental characteristic of an insurance contract?

• A) Conditional
• B) Aleatory
• C) Unilateral
• D) Personal

Question 4 (Chapter 2)

Under Virginia law, which statement is correct regarding the insurable interest requirement for a life insurance policy?

• A) Insurable interest must exist only at the time the death claim is filed.
• B) Insurable interest must exist at the time the policy is issued and must continue throughout the policy's life.
• C) Insurable interest is not required for life insurance policies in Virginia.
• D) Insurable interest must exist at the time the policy is issued but need not continue thereafter.

Question 5 (Chapter 2)

A Virginia insurance producer is explaining the concept of 'adverse selection' to a client. Which of the following best illustrates adverse selection in the context of life insurance underwriting?

• A) An applicant with a hazardous occupation pays a higher premium due to increased risk of injury.
• B) An applicant with a known terminal illness seeks to purchase life insurance shortly before expected death.
• C) An applicant who is in excellent health applies for a large amount of coverage to protect their family's future income.
• D) An applicant chooses to retain risk by selecting a high deductible on their health insurance policy.

Question 6 (Chapter 3)

A 35-year-old Virginia resident purchases a 20-year level premium term life insurance policy with a $250,000 death benefit. Which statement accurately describes the premium and death benefit during the policy term?

• A) The premium increases each year, but the death benefit remains level.
• B) The premium is paid only for the first 10 years, after which the policy is paid up but coverage ends.
• C) The death benefit decreases annually, while the premium remains fixed.
• D) The premium remains level for 20 years, and the death benefit remains $250,000 throughout the term.

Question 7 (Chapter 3)

Under Virginia law (§ 38.2-3332–3334), what right does an employee have upon termination of employment if they were covered under a group life insurance policy?

• A) The right to convert the group coverage to an individual life insurance policy without evidence of insurability.
• B) The right to receive a cash refund of premiums paid.
• C) The right to continue the exact same group coverage indefinitely at the same premium.
• D) The right to name a new beneficiary without insurer approval.

Question 8 (Chapter 4)

A Virginia life insurance policyowner wants to ensure that if he dies simultaneously with his primary beneficiary in a common accident, the death benefit will pass to his contingent beneficiary. Which provision should he include in the policy?

• A) Common disaster clause
• B) Spendthrift clause
• C) Incontestability clause
• D) Automatic premium loan provision

Question 9 (Chapter 4)

A Virginia life insurance policyowner takes an automatic premium loan when a premium is due and there is insufficient cash value to cover it. The loan is taken from the policy's cash value to prevent a lapse. Which statement is true regarding this automatic premium loan?

• A) The loan accrues interest at the policy's specified rate and increases the outstanding loan balance, which may reduce the death benefit if not repaid.
• B) The loan does not accrue interest because it is automatic and intended to prevent lapse.
• C) The loan must be repaid within 30 days to avoid tax consequences.
• D) The loan is forgiven by the insurer if the policy remains in force for one year after the loan is taken.

Question 10 (Chapter 4)

A Virginia resident purchases a whole life policy and pays premiums annually. After three years, he misses a premium payment and the policy lapses. He wishes to reinstate the policy. According to Virginia law, which of the following is required for reinstatement?

• A) Payment of the overdue premium only
• B) Payment of the overdue premium with interest and evidence of insurability
• C) Submission of a new application and payment of the first year's premium
• D) No requirements if reinstated within 30 days of lapse

Question 11 (Chapter 5)

A 62-year-old Virginia resident purchases a single premium immediate annuity (SPIA) with a 'life with 20-year period certain' settlement option. The annuitant dies after receiving payments for 8 years. Which statement correctly describes the remaining benefit payments?

• A) Payments continue to the beneficiary for the remaining 12 years of the 20-year guarantee period.
• B) Payments cease immediately because the annuitant has died.
• C) The beneficiary receives a lump sum equal to the commuted value of the remaining 12 years of payments.
• D) Payments continue to the beneficiary for the annuitant's remaining life expectancy.

Question 12 (Chapter 5)

A Virginia resident, age 73, must take a required minimum distribution (RMD) from a traditional IRA. The IRA balance on December 31 of the prior year was $500,000. The Uniform Lifetime Table factor for age 73 is 26.5. The account owner's spouse is the sole beneficiary and is 10 years younger. What is the RMD amount?

• A) $18,868 (using Uniform Lifetime Table)
• B) $20,000 (using Joint Life Table)
• C) $18,868, but the Joint Life Table must be used because the spouse is more than 10 years younger.
• D) $18,868

Question 13 (Chapter 5)

A Virginia resident, age 60, purchases a deferred fixed annuity with a 10-year surrender charge schedule that starts at 8% and declines by 1% each year. If the owner surrenders the annuity at the end of year 6, what is the surrender charge percentage applied to the cash value?

• A) 3%
• B) 4%
• C) 2%
• D) 5%

Question 14 (Chapter 6)

Which of the following is an example of a 'blanket insurance' health policy as described in the Virginia Life, Annuities, and Health Insurance Examination content outline?

• A) A policy purchased by an individual to cover only outpatient prescription drugs
• B) A policy that pays a fixed $100 per day for hospitalization due to any cause
• C) A policy sold to a labor union that covers only vision care exams and glasses for members
• D) A policy issued to a college that covers all intercollegiate athletes for injuries sustained during official team practices and games

Question 15 (Chapter 6)

Under Virginia's genetic information privacy laws, which of the following actions is prohibited for an insurer when underwriting an individual health insurance policy?

• A) Requesting that the applicant undergo a genetic test as part of the underwriting process
• B) Considering family medical history when classifying risk for coverage
• C) Using information obtained from the Medical Information Bureau (MIB) that includes genetic test results
• D) Using the results of a genetic test to determine eligibility for coverage if the applicant has not exhibited symptoms of the condition

Question 16 (Chapter 6)

Which of the following statements about the 'unpaid premium' uniform optional provision (§ 38.2-3504) in an individual health insurance policy is correct?

• A) It permits the insurer to deduct any unpaid premium from the claim payment before issuing benefits to the insured.
• B) It allows the insurer to deny a claim if the premium is unpaid, even if the loss occurs during the grace period.
• C) It requires the insurer to waive the premium if the insured is hospitalized for more than 30 days.
• D) It allows the insured to skip premium payments for up to three months per year without penalty.

Question 17 (Chapter 6)

A Virginia resident has an individual health insurance policy that includes the 'change of occupation' uniform optional provision. The policyholder switches from a desk job to construction work, which increases their risk of injury. What effect does this provision have on the policy?

• A) The policy automatically terminates effective the date of the occupation change
• B) The insurer must continue coverage at the same premium rate regardless of the occupation change
• C) The policyholder must purchase a separate accident-only policy to maintain coverage for work-related injuries
• D) The insurer may adjust the premium to reflect the increased risk associated with the new occupation

Question 18 (Chapter 6)

Under Virginia law, which of the following statements is true regarding the 'illegal occupation' uniform optional provision in an individual health insurance policy?

• A) The insurer may deny a claim if the loss occurred while the insured was engaged in an illegal occupation at the time of the loss
• B) The policy automatically terminates if the insured begins working in an illegal occupation
• C) The insurer must continue to pay benefits for losses arising from an illegal occupation if the policy was in force when the occupation began
• D) The provision only applies if the illegal occupation is a felony, not a misdemeanor

Question 19 (Chapter 7)

A Virginia resident receives a disability income benefit under their individual policy. They also begin receiving Social Security Disability Insurance (SSDI) benefits. Which rider would most likely prevent an overinsurance situation by adjusting the policy benefit downward when SSDI is received?

• A) Cost of Living Adjustment (COLA) rider
• B) Future Increase Option (FIO) rider
• C) Waiver of Premium rider
• D) Social Insurance Supplement (SIS) rider

Question 20 (Chapter 7)

In Virginia, what is the primary purpose of a predetermination of benefits requirement in a dental insurance plan?

• A) To require the insured to obtain approval from the insurer before undergoing major dental work, so the insurer can confirm coverage and the benefit amount.
• B) To allow the insured to choose any dentist without network restrictions.
• C) To eliminate the need for deductibles and coinsurance on preventive services.
• D) To automatically increase the annual maximum benefit based on the Consumer Price Index.

Question 21 (Chapter 7)

A Virginia employer offers a group long-term disability (LTD) plan that defines disability as the inability to perform the material duties of one's own occupation for the first 24 months, after which it changes to the inability to perform any occupation for which the employee is reasonably suited by education, training, or experience. This design is known as:

• A) Flat benefit structure.
• B) Presumptive disability clause.
• C) Residual disability provision.
• D) Own-occupation to any-occupation transition.

Question 22 (Chapter 7)

Under Virginia law, what is the maximum age at which a dependent child can remain on a parent's group health plan if the child is not a full-time student and does not have a disability?

• A) Age 25
• B) Age 18
• C) Age 21
• D) Age 26

Question 23 (Chapter 8)

Under Virginia regulations for Medicare supplement (Medigap) insurance, what is the purpose of the 'free look' period as defined in 14VAC5-170-150 and § 38.2-3604?

• A) Allows the insurer to cancel the policy within 30 days if the applicant omitted medical history.
• B) Requires the agent to provide a new outline of coverage every year during the policy term.
• C) Permits the policyholder to switch to a different Medigap plan without underwriting after the first year.
• D) Gives the policyholder the right to return the policy and receive a full refund within 30 days of delivery.

Question 24 (Chapter 8)

Under Virginia's long-term care insurance regulations, what is the purpose of the nonforfeiture benefit as defined in § 38.2-5210 and 14VAC5-200-185?

• A) It provides a reduced paid-up benefit or extended term option if the policy lapses due to nonpayment of premium after a certain period.
• B) It allows the policyholder to receive a refund of all premiums paid if they cancel the policy within the first 30 days.
• C) It guarantees that the policy will never be canceled by the insurer for any reason.
• D) It requires the insurer to pay benefits immediately upon application, regardless of the elimination period.

Question 25 (Chapter 8)

Under Virginia's long-term care insurance regulations, what is the purpose of the personal worksheet as required in 14VAC5-200-175?

• A) To assist the applicant in determining whether they can afford the premiums now and in the future.
• B) To calculate the exact amount of long-term care benefits the policyholder will receive upon claim.
• C) To determine the policyholder's eligibility for Medicaid long-term care benefits.
• D) To replace the need for a suitability assessment by the insurance agent.