Virginia Insurance Virginia-Life-Annuities-and-Health-Insurance Based on Real Exam Environment

Premiums for Medicare supplement plans are typically determined using the attained age rating, community rating, or issue age rating methods. Attained age rating adjusts premiums based on the insured's current age, community rating charges all policyholders the same premium, regardless of age, and issue age rating bases premiums on the age at which the policyholder first purchases the policy. Experience rating, however, is not used for Medicare supplement plans, as it is more commonly applied to group insurance policies based on the claims history of a group.

Detailed Answer in Step-by-Step Solution:

The policyowner (A) has the right to designate the beneficiary, as they control the policy’s terms and ownership rights.

The insurer (B) issues the policy, the beneficiary (C) receives proceeds, and the agent (D) facilitates but doesn’t decide.

The Virginia study guide confirms that the policyowner selects the beneficiary, exercising a fundamental ownership right, unless assigned otherwise. Reference: Virginia Life, Annuities, and Health Insurance study guide, section on "Beneficiary Designations."

Single premium whole life insurance is funded with one lump-sum premium that immediately creates both cash value and nonforfeiture value. Because the entire premium is paid upfront, a significant portion is allocated to the policy reserve, making options A, B, and C correct.

Whole life insurance has fixed premiums by definition. Once the single premium is paid, no additional premiums are required, regardless of inflation or economic conditions. Therefore, option D is incorrect and is the correct “EXCEPT” answer.

Virginia exam materials emphasize that whole life policies provide guaranteed premiums, guaranteed death benefits, and guaranteed cash value growth, which distinguishes them from flexible or adjustable policies.

Straight whole life insurance provides permanent protection until death or policy maturity (typically age 100 or 120). It does not end at age 65.

Exact Extract (Virginia Life Insurance Study Guide): “Straight whole life insurance—permanent protection, level premiums payable for life, with guaranteed cash values, nonforfeiture options, and face amount payable at maturity.”

References (Virginia Documents / Study Guide):

— Virginia Life & Annuities Insurance Examination Outline, Whole Life Insurance