VA L&H Exam Flashcards

Q: What is the pass rate for the Virginia Life & Health exam?

Virginia's SCC and Prometric do not publicly report a statewide pass rate. What is published: a 70% combined passing score (national and Virginia-specific content are not scored separately), 150 total items (140 scored + 10 unscored pretest) delivered in 150 minutes, and a $35 exam fee per attempt.

Q: How many questions are on the VA Series 11-01 exam and how much time do I get?

The Series 11-01 combined Life, Annuities and Health exam has 150 questions total: 140 scored plus 10 unscored pretest research items you cannot identify. You get 150 minutes (2.5 hours), roughly one minute per question, so answer every item as if it counts.

Q: Does Virginia require pre-licensing education before the exam?

No. Virginia has no mandatory pre-licensing classroom hours; candidates self-study, typically 40-60 hours. You must still pass electronic fingerprinting through Fieldprint (about $34.95, valid 90 days) and file the license application through NIPR or Sircon (a $15 Bureau of Insurance fee) within 12 months of passing the exam.

Q: What happens if I fail the Virginia insurance exam?

Virginia requires only a 24-hour wait after the first and second failed attempts. After the third and any subsequent failure, the wait extends to 30 calendar days. There is no published lifetime attempt cap, but every retake requires a new $35 exam fee.

Q: How much continuing education does a Virginia Life & Health producer need?

16 CE hours every 2-year biennium for a producer holding a single license type, including at least 3 hours of ethics. Producers holding two or more license types need 24 hours (at least 8 tied to each type). No more than 75% of required credits may come from insurer- or agency-sponsored courses, and unused credits do not carry forward.

Q: What is the Virginia free look period for life, health, and long-term care policies?

10 days on a standard individual life policy and on an individual accident-and-sickness (health) policy. That window extends to 30 days for any life or annuity policy that replaces existing coverage, and for long-term care policies regardless of replacement.

Question 1

Virginia State Corporation Commission (SCC)

Accepted Answer

Virginia's insurance regulator; a constitutional body holding combined legislative, executive, and judicial power. Three Commissioners are elected by the Virginia General Assembly (not by voters or the Governor) to staggered 6-year terms.

Question 2

Commissioner of Insurance / Bureau of Insurance (BOI)

Accepted Answer

The Commissioner of Insurance heads the Bureau of Insurance (BOI), the SCC's operating arm for licensing, rate/form review, market conduct exams, and consumer services. The Commissioner is appointed by the SCC's three Commissioners, not elected or appointed by the Governor.

Question 3

Code of Virginia Title 38.2

Accepted Answer

The primary source of Virginia insurance statute ("Insurance"). Companion administrative regulations sit in Title 14 of the Virginia Administrative Code (14 VAC). Title 8 covers unrelated civil remedies and is a common exam distractor.

Question 4

Domestic, Foreign & Alien Insurer

Accepted Answer

Domestic = chartered in Virginia (primary BOI solvency oversight). Foreign = chartered in another U.S. state (needs a Certificate of Authority to operate in VA). Alien = chartered outside the U.S. Any insurer transacting Virginia business needs a Certificate of Authority or is an unauthorized insurer.

Question 5

Virginia Series 11-01 Exam Logistics

Accepted Answer

Delivered by Prometric (testing center or ProProctor remote proctoring): 150 questions (140 scored + 10 unscored pretest), 150 minutes, 70% combined passing score, $35 fee per attempt. Virginia requires NO mandatory pre-licensing education.

Question 6

Fieldprint Fingerprinting & License Application

Accepted Answer

New resident applicants must complete electronic fingerprinting through Fieldprint (about $34.95, transmitted to the Virginia State Police and FBI, valid 90 days). After passing the exam, apply electronically via NIPR or Sircon ($15 BOI application fee) within 12 months, or you must retest.

Question 7

Virginia CE Requirements

Accepted Answer

16 CE hours per 2-year biennium for a single license type (at least 3 hours must be ethics); 24 hours for two or more license types (at least 8 hours tied to each type). No more than 75% of required credits may come from insurer/agency-sponsored courses, and excess hours do not carry over.

Question 8

Twisting vs. Churning vs. Rebating vs. Coercion

Accepted Answer

Twisting: misrepresentation induces a policyholder to replace coverage with a DIFFERENT insurer. Churning: the same pattern within the SAME insurer to generate new commissions. Rebating: offering an inducement not stated in the contract. Coercion: using a threat to force a purchase. All are prohibited unfair trade practices under Title 38.2.

Question 9

Virginia Life Insurance Free Look Period

Accepted Answer

10 days for a standard individual life policy; extended to 30 days for any policy that replaces existing coverage. The clock starts at policy delivery, and a timely return gets a full, unconditional premium refund.

Question 10

Incontestability Clause (Life)

Accepted Answer

Virginia requires a maximum 2-year incontestability period running from the issue date. After 2 years in force during the insured's lifetime, the insurer can no longer contest the policy for misrepresentation — except for nonpayment of premium or impersonation/fraud.

Question 11

Suicide Clause

Accepted Answer

May not exceed 2 years from issue. If the insured dies by suicide within that window, the insurer's liability is limited to a refund of premiums paid; after 2 years, suicide is covered like any other cause of death.

Question 12

Grace Period (Life Insurance)

Accepted Answer

Virginia mandates a 31-day grace period regardless of premium mode. The policy stays fully in force, so a death claim during grace is paid — but the insurer deducts the unpaid premium from the death benefit.

Question 13

Misstatement of Age/Sex Provision

Accepted Answer

If age or sex is misstated on the application, Virginia law requires the death benefit to be ADJUSTED to what the premium paid would have purchased at the correct age — the contract is never voided for this error alone.

Question 14

Term Life Insurance

Accepted Answer

Pure death-benefit protection for a set period at level premiums; builds no cash value. The least expensive way to buy a large death benefit; coverage ends unless renewed or converted before the term expires.

Question 15

Whole Life Insurance

Accepted Answer

Permanent coverage with level premiums for life and guaranteed, steadily growing cash value. Typically endows at age 100 (or per contract); cash value can be borrowed against or surrendered.

Question 16

Universal Life Insurance

Accepted Answer

Permanent coverage with flexible premiums and an adjustable death benefit. Cash value grows at a credited interest rate (often with a guaranteed minimum); the owner can skip or vary payments as long as cash value covers the policy's cost of insurance.

Question 17

Variable Life Insurance

Accepted Answer

Permanent coverage where cash value is invested in separate-account sub-accounts chosen by the owner, so cash value (and sometimes the death benefit) fluctuates with investment performance. It is BOTH insurance and a security — selling it requires a FINRA Series 6 or 7 plus the Virginia variable life and annuity line of authority.

Question 18

Common Life Insurance Riders

Accepted Answer

Waiver of Premium: waives premiums if the insured becomes disabled. Payor Rider: waives premiums if the premium-paying adult dies or is disabled (juvenile policies). Accelerated Death Benefit: pays part of the death benefit early for a qualifying terminal illness. Guaranteed Insurability: lets the owner buy additional coverage at set future dates with no new medical exam.

Question 19

Nonforfeiture Options

Accepted Answer

Cash Surrender: take the cash value as a lump sum. Reduced Paid-Up: convert to a smaller, fully paid permanent policy. Extended Term: cash value buys term coverage at the original face amount for as long as it lasts — this is the automatic DEFAULT option if the owner makes no election.

Question 20

Life Insurance Settlement Options

Accepted Answer

Interest Only: insurer holds proceeds and pays interest. Fixed Period: equal payments over a chosen number of years. Fixed Amount: set payments continue until proceeds plus interest are exhausted. Life Income: payments continue for the beneficiary's lifetime, optionally with a period-certain or refund guarantee.

Question 21

Reinstatement Provision

Accepted Answer

A lapsed Virginia life policy may be reinstated within 3 years if the owner proves continued insurability and pays all overdue premiums plus interest. Reinstatement starts a new 2-year contestable period for statements made on the reinstatement application.

Question 22

Fixed vs. Variable Annuity

Accepted Answer

Fixed Annuity: insurer guarantees a minimum interest rate; it is an insurance product only, sold under the regular life/annuity line of authority. Variable Annuity: premiums go into sub-accounts that carry investment risk; it is ALSO a security, requiring a FINRA Series 6 or 7 plus the Virginia variable life/annuity line of authority.

Question 23

Virginia Annuity Best-Interest Standard (CDCD)

Accepted Answer

Virginia adopted the NAIC best-interest model with four producer obligations: Care (reasonable basis the recommendation fits the consumer), Disclosure (role, products offered, compensation), Conflict of Interest (identify, avoid, or manage), and Documentation (written record of the recommendation's basis).

Question 24

Annuity Consumer Profile & Producer Training

Accepted Answer

Before recommending an annuity, a producer must gather the consumer's age, income, financial situation, liquidity needs, objectives, risk tolerance, and existing holdings. Virginia also requires a one-time 4-credit annuity training course plus product-specific training from each issuing insurer before soliciting annuities.

Question 25

Virginia Replacement Rules — Producer Duties

Accepted Answer

When replacement is involved (14VAC5-30), the producer must ask about existing coverage, give the applicant a signed "Important Notice: Replacement of Life Insurance or Annuities," list the policies being replaced, and leave copies of sales materials. The replacing insurer must notify each existing insurer within 5 business days of receiving the application.

Question 26

Effect of Replacement: Free Look & Restarted Clocks

Accepted Answer

A replacement policy carries an enhanced 30-day free look (vs. the standard 10 days). It also starts a brand-new 2-year incontestability period and a new 2-year suicide exclusion — the consumer loses any already-elapsed protection on the surrendered policy.

Question 27

Life Insurance & Annuity Tax Treatment

Accepted Answer

Lump-sum life death benefits are income-tax-free to the beneficiary; only the interest portion of installment/interest-only settlement payments is taxable. Non-qualified annuity withdrawals are taxed LIFO (gains out first, ordinary income), with a 10% federal penalty before age 59½. Annuitization uses an exclusion ratio to return basis tax-free; a 1035 exchange moves funds between annuity/life contracts tax-free.

Question 28

HMO (Health Maintenance Organization)

Accepted Answer

Requires care within a defined network and a primary care physician (PCP) referral to see specialists. Lowest premiums among managed-care plans but least flexibility; out-of-network care generally isn't covered except emergencies.

Question 29

PPO (Preferred Provider Organization)

Accepted Answer

Allows in-network and out-of-network care with no PCP referral required. Higher premiums than an HMO in exchange for greater provider flexibility; out-of-network care costs more in coinsurance.

Question 30

POS and EPO Plans

Accepted Answer

POS (Point of Service): a hybrid of HMO and PPO — needs a PCP/referral like an HMO but allows out-of-network care at higher cost like a PPO. EPO (Exclusive Provider Organization): network-only care like an HMO, but typically no referral is required.

Question 31

Deductible, Coinsurance & Copay

Accepted Answer

Deductible: amount the insured pays out-of-pocket before the plan starts paying. Coinsurance: a percentage of costs shared between insured and insurer after the deductible (e.g., 80/20). Copay: a flat dollar fee due at each visit or service, regardless of the deductible.

Question 32

Out-of-Pocket Maximum

Accepted Answer

The annual cap on what an insured pays in deductibles, coinsurance, and copays for covered, in-network services. Once reached, the plan pays 100% of covered costs for the rest of the plan year.

Question 33

Virginia Health Insurance Free Look Period

Accepted Answer

10 days for an individual accident-and-sickness (health) policy — the insured may return the policy within 10 days of delivery for a full premium refund. Contrast with the 30-day free look on long-term care policies.

Question 34

ACA Essential Health Benefits

Accepted Answer

Every individual and small-group plan must cover 10 categories: ambulatory services, emergency services, hospitalization, maternity/newborn care, mental health/substance use, prescription drugs, rehabilitative services, lab services, preventive/wellness care, and pediatric services (incl. oral/vision).

Question 35

Guaranteed Issue vs. Guaranteed Renewable

Accepted Answer

Guaranteed Issue: the insurer must ACCEPT all applicants in the individual/small-group market regardless of health status — about GETTING a policy. Guaranteed Renewable: the insurer must RENEW the policy (premiums may rise by class) — about KEEPING a policy already in force.

Question 36

Uniform Claim Provisions (Health/DI)

Accepted Answer

Notice of claim: within 20 days of loss. Claim forms: insurer furnishes within 15 days of notice. Proof of loss: within 90 days of the loss. Legal action: no suit sooner than 60 days, and none after 3 years from proof of loss.

Question 37

Own-Occupation vs. Any-Occupation Disability

Accepted Answer

Own-Occupation: benefits pay if the insured cannot perform the duties of their OWN specific occupation, even if able to work elsewhere. Any-Occupation: benefits pay only if the insured cannot perform ANY occupation reasonably suited to their training and experience — a stricter, harder-to-trigger standard.

Question 38

Elimination Period & Benefit Period

Accepted Answer

Elimination Period: the waiting period between disability onset and when benefit payments begin (like a deductible measured in days). Benefit Period: the maximum length of time benefits will be paid once they start (e.g., 2 years, 5 years, or to age 65).

Question 39

DI Renewal Classifications

Accepted Answer

Noncancelable: premium and benefits locked for the policy term; insurer cannot change either or refuse renewal — strongest protection. Guaranteed Renewable: insurer must renew but may raise premiums by class (never singling out one insured). Conditionally/Optionally Renewable: renewal only on stated conditions or at the insurer's option.

Question 40

Disability Income Premium Tax Rule

Accepted Answer

If the INSURED pays DI premiums with after-tax dollars, benefits are received income-tax-free. If the EMPLOYER pays the premium and does not include it in the employee's income, benefits received are TAXABLE. 'Who paid the premium' determines the tax treatment.

Question 41

Federal COBRA vs. Virginia Mini-COBRA

Accepted Answer

Federal COBRA: applies to employers with 20+ employees; continuation coverage runs 18-36 months. Virginia Mini-COBRA: applies to small employers with 2-19 employees; continuation runs up to 12 months. Employer size determines which track applies.

Question 42

Virginia Mini-COBRA Timelines & Premium

Accepted Answer

The employer/insurer must send the mini-COBRA notice within 14 days of the qualifying event; the employee then has 31 days from that notice to elect continuation. Under COBRA continuation (federal or VA mini-COBRA), the premium charged can be up to 102% of the group cost.

Question 43

Group Life Insurance Conversion Right

Accepted Answer

When group life coverage ends (e.g., employment termination), the member has 31 days to convert the group coverage to an individual permanent policy WITHOUT evidence of insurability, though at individual rates.

Question 44

ACA Metal Tiers

Accepted Answer

Plans are categorized by actuarial value — the average share of costs the plan pays: Bronze (~60%), Silver (~70%), Gold (~80%), Platinum (~90%). Lower actuarial value means lower premiums but higher out-of-pocket cost-sharing at the point of care.

Question 45

Virginia's Insurance Marketplace & Subsidies

Accepted Answer

Virginia operates its own State-Based Marketplace at vainsurancemarketplace.gov (launched for plan year 2024) rather than using HealthCare.gov. Premium tax credits scale with income to lower monthly premiums; cost-sharing reductions are available only on Silver-tier plans.

Question 46

Medicare Parts A, B, C & D

Accepted Answer

Part A: hospital/inpatient coverage. Part B: medical/outpatient coverage. Part C (Medicare Advantage): private-plan alternative bundling A+B (often D). Part D: prescription drug coverage. Medigap supplements Original Medicare (A+B) only — it cannot be paired with Medicare Advantage.

Question 47

Medigap Open Enrollment Period (OEP)

Accepted Answer

A 6-month, ONE-TIME window beginning the first day of the month the person is both age 65+ AND enrolled in Medicare Part B. During OEP, Medigap is guaranteed issue with no health-based rate-up and no pre-existing condition exclusion, for any plan A-N offered.

Question 48

VA Medigap Birthday Rule vs. Federal GI Trigger

Accepted Answer

Virginia's Birthday Rule (effective July 1, 2025): within 60 days after the enrollee's birthday, they may switch, guaranteed issue, to a Medigap plan with EQUAL OR LESSER benefits (not an upgrade). Separately, federal guaranteed-issue rights (e.g., losing group coverage) generally give 63 days to buy a new Medigap policy.

Question 49

Virginia LTC Insurance Core Rules

Accepted Answer

LTC policies get a 30-day free look (vs. 10 days for life/health) and must be guaranteed renewable. Benefits trigger when the insured cannot perform 2 of 6 Activities of Daily Living (ADLs) or has severe cognitive impairment. Virginia's Partnership Program gives dollar-for-dollar Medicaid asset protection equal to benefits the policy pays out.

Question 50

Virginia Guaranty Association (VALIFEGA) Caps

Accepted Answer

If a member insurer becomes insolvent, VALIFEGA caps benefits at: $300,000 life death benefit, $100,000 cash value, $250,000 annuity, $500,000 health insurance benefits, and a $350,000 aggregate limit per individual life for combined life/annuity benefits. Guaranty Association coverage may NEVER be used as a sales inducement or advertising point.

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