Virginia Life, Annuities, and Health Insurance Examination Series 11-01 Questions and Answers
Question 129
Which is true upon the death of an annuitant under a joint life annuity?
Options:
A.
A surviving annuitant would continue receiving the same benefits
B.
The benefits to a surviving annuitant would cease entirely
C.
A designated beneficiary would start receiving benefit payments for life
D.
The benefits to a surviving annuitant would be reduced by half
Answer:
B
Explanation:
A joint life annuity pays benefits to two annuitants during their lifetimes, but terminates entirely upon the first death. Exact extract: “Joint life annuities provide income until the death of the first annuitant; no further payments are made thereafter.”
[References: Virginia Life, Annuities, and Health Study Guide—Annuity Options., ===========, , ]
Question 130
The PRIMARY purpose of credit life insurance is to:
Options:
A.
Pay off debt if an individual passes away.
B.
Cover loan payments should an individual become ill.
C.
Act as a short-term savings vehicle for an individual.
D.
Increase an individual's ability to obtain financing.
Answer:
A
Explanation:
The primary purpose of credit life insurance is to pay off the outstanding debt of a borrower in the event of their death. This ensures that the borrower’s family or estate is not burdened with the debt after their passing. It does not cover illness, act as a savings vehicle, or directly increase financing ability.
[Reference: Virginia Life, Annuities, and Health Insurance Code, Section 38.2-3430 (Credit Life Insurance Coverage), , , ]
Question 131
All of the following are advantages of whole life insurance EXCEPT:
Options:
A.
Policy loans may be available
B.
Long-term protection is provided
C.
The initial cost of coverage is lower than for an equivalent amount of term insurance
D.
There is a cash value if the policy is terminated after a sufficient period of time
Answer:
C
Explanation:
Whole life insurance provides permanent coverage, builds guaranteed cash value, and allows for policy loans. However, it has a higher initial premium cost compared to term life insurance. Therefore, the statement that whole life has lower initial costs is incorrect.
Exact Extract (Virginia Life Insurance Study Guide): “Whole life insurance provides long-term protection, guaranteed cash values, and policy loans. Premiums are higher than term insurance for equivalent coverage.”
References (Virginia Documents / Study Guide):
— Virginia Life & Annuities Insurance Examination Outline, Whole Life Characteristics
