Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance - Virginia Insurance Virginia Life, Annuities, and Health Insurance Examination Series 1101 Certification Examination Exam
Which of the following statements is true regarding an insurance agent’s license?
A.
The license fee is paid to the insurance company.
B.
It authorizes the agent to transact insurance until otherwise terminated, suspended, or revoked.
C.
It must be renewed annually.
D.
A separate license must be issued for each insurer the agent represents.
Correct Answer: B
Explanation:
In Virginia, an insurance agent’s license is governed by the State Corporation Commission’s Bureau
of Insurance under Title 38.2 of the Virginia Code. According to Virginia Code § 38.2-1819, once
issued, the license authorizes the agent to transact insurance business on behalf of appointed
insurers until it is terminated, suspended, or revoked by the Bureau. The license fee is paid to the
Bureau of Insurance, not the insurance company (Virginia Code § 38.2-1818), making option A
incorrect. Virginia Code § 38.2-1822 specifies that licenses are renewed biennially (every two years),
not annually, rendering option C false. Finally, Virginia Code § 38.2-1833 clarifies that an agent needs
only one license but must secure an appointment for each insurer they represent, not a separate
license per insurer, making option D incorrect. Option B is the only statement consistent with Virginia
law, reflecting the license’s ongoing authority unless altered by regulatory action.
Question #2 (Topic: demo questions)
Which of the following is required to hold an appointment with the insurance company it
represents?
A.
An insured
B.
An employee of the insurer
C.
A consultant
D.
An agent
Correct Answer: D
Explanation:
Virginia Code § 38.2-1833 defines an “appointment” as a formal authorization by an insurer for a
licensed agent to act on its behalf in transacting insurance. An insured (option A) is the policyholder
or beneficiary and has no role in representing the insurer. An employee of the insurer (option B) may
work internally but isn’t automatically appointed to sell insurance unless they hold an agent’s license
and an appointment, which isn’t implied here. A consultant (option C), under Virginia Code § 38.2-
1837, advises on insurance but doesn’t transact it unless also licensed and appointed as an agent,
making this a less direct fit. Only an agent (option D), licensed under Virginia Code § 38.2-1819 and
appointed per § 38.2-1833, is required to hold an appointment to represent an insurer.
Question #3 (Topic: demo questions)
The unwritten authority of an agent to perform incidental acts necessary to fulfill the purpose of the
agency agreement is:
A.
Implied authority
B.
Mandated authority
C.
Express authority
D.
Nonexistent
Correct Answer: A
Explanation:
The concept of agency authority is foundational in Virginia insurance law, derived from general
agency principles and reflected in Title 38.2, Chapter 18. Express authority is explicitly granted in the
agency agreement (e.g., soliciting and binding coverage), per Virginia Code § 38.2-1800 et seq.
Implied authority, however, is not written but assumed to be necessary for carrying out express
duties—such as scheduling client meetings or collecting initial premiums—unless restricted by the
insurer. “Mandated authority” (option B) is not a recognized term in Virginia insurance regulations or
study materials. Option C (express authority) is incorrect because it’s explicitly stated, not unwritten.
Option D (nonexistent) denies the presence of authority, which contradicts the question’s premise.
The Virginia Life, Annuities, and Health Insurance study guide likely highlights implied authority as a
key concept for agents’ day-to-day operations, making A the correct answer.
Question #4 (Topic: demo questions)
The unwritten authority of an agent to perform incidental acts necessary to fulfill the purpose of the
agency agreement is:
A.
Implied authority
B.
Mandated authority
C.
Express authority
D.
Nonexistent
Correct Answer: A
Explanation:
The concept of agency authority is foundational in Virginia insurance law, derived from general
agency principles and reflected in Title 38.2, Chapter 18. Express authority is explicitly granted in the
agency agreement (e.g., soliciting and binding coverage), per Virginia Code § 38.2-1800 et seq.
Implied authority, however, is not written but assumed to be necessary for carrying out express
duties—such as scheduling client meetings or collecting initial premiums—unless restricted by the
insurer. “Mandated authority” (option B) is not a recognized term in Virginia insurance regulations or
study materials. Option C (express authority) is incorrect because it’s explicitly stated, not unwritten.
Option D (nonexistent) denies the presence of authority, which contradicts the question’s premise.
The Virginia Life, Annuities, and Health Insurance study guide likely highlights implied authority as a
key concept for agents’ day-to-day operations, making A the correct answer.
Question #5 (Topic: demo questions)
Which is true about a joint and survivor annuity?
A.
The benefits are payable throughout the lifetimes of two or more people.
B.
The benefits cease when the surviving annuitant reaches life expectancy.
C.
It is a combination of an annuity and whole life insurance.
D.
Each annuitant must provide evidence of insurability.
A joint and survivor annuity, as outlined in Virginia Code § 38.2-3100 et seq., is an annuity contract
that pays benefits as long as at least one of the named annuitants (typically two, such as spouses) is
alive. Option A accurately reflects this, stating benefits continue throughout their lifetimes, ceasing
only upon the last survivor’s death. Option B is false because payments aren’t tied to life expectancy
but to actual survival, per standard annuity terms in the study guide. Option C is incorrect; an annuity
provides income, while whole life insurance offers a death benefit—combining them is a different
product (e.g., a universal life policy), not a joint and survivor annuity. Option D is wrong because
annuities, unlike life insurance, don’t typically require evidence of insurability, as they’re based on
longevity, not mortality risk (Virginia Code § 38.2-3113). The study guide emphasizes the lifetime
payment feature as the defining trait, confirming A.