Virginia Insurance Exam Quiz

A deductible is the amount of money that a person must pay out of pocket before their insurance company will cover the remaining expenses. It is a predetermined cost that the insured person is responsible for paying before their insurance coverage kicks in. This amount can vary depending on the insurance policy and the type of coverage.

The cost of an insurance policy is referred to as the premium. It is the amount of money that an individual or business pays to an insurance company in exchange for coverage and protection against potential risks. The premium is typically paid on a regular basis, such as monthly or annually, and is based on various factors such as the type of insurance, coverage limits, and the individual's risk profile.

Disability insurance is the correct answer because it provides coverage for individuals who are unable to work due to a disability or illness. This type of insurance typically pays a portion of the individual's income while they are unable to work, helping to replace lost wages and provide financial support during this time. Life insurance, liability insurance, and none of the above options do not specifically cover the situation of being unable to work.

Defamation refers to the act of making derogatory statements or spreading false information about someone with the intention to harm their reputation. In the context of insurance, defamation could involve making false claims or spreading rumors about an individual or an insurance company to discredit them. This can have serious consequences, as it may lead to financial and reputational damage. Therefore, defamation is the correct answer as it accurately describes the act of making derogatory sentences to defame someone in insurance.

Insurance agents are required to report any convictions within 30 days. This is likely a legal requirement imposed on insurance agents to ensure transparency and accountability in the industry. By reporting convictions promptly, insurance agents are helping to maintain the integrity of the insurance system and protect the interests of policyholders. Filing a lawsuit or helping the convicted get bail are not mentioned as responsibilities of insurance agents in relation to convictions.

Collision coverage is a type of insurance that helps cover the cost of repairing or replacing a car in the event of a collision. It is designed to protect the policyholder from financial liability for damages caused by a car accident. This coverage typically pays for repairs to the insured vehicle regardless of who is at fault for the accident. It does not cover liability for damage to other vehicles or property, which is typically covered by liability insurance. Therefore, the statement "Prevents liability of car collision" accurately describes collision coverage.

The bureau of insurance is allowed to view a person's records anytime. This means that they have unrestricted access to an individual's records and can review them at any given time. This could be for various reasons, such as conducting investigations, verifying information, or ensuring compliance with insurance regulations. It is important for individuals to be aware that their records can be accessed by the bureau of insurance without any specific limitations or restrictions.

Liability insurance is the correct answer because it provides coverage for bodily injury caused to others by the insured person. This type of insurance helps protect the policyholder from financial responsibility and legal claims if they are found liable for injuring someone. Health insurance, on the other hand, covers medical expenses for the insured person's own injuries or illnesses. Life insurance provides a death benefit to beneficiaries upon the insured person's death. Therefore, liability insurance specifically addresses bodily injury caused to others, making it the appropriate choice for this question.

An insurance agent sells insurance from one company to another. They act as a representative of the insurance company and work directly for that company. They have knowledge about the policies and products offered by their company and use that knowledge to sell insurance to individuals or businesses. An insurance agent typically has a contract with one specific insurance company and may receive a commission or salary for their sales.

A liability refers to an insurance from a lawsuit. This means that it is a form of protection or coverage that individuals or organizations obtain to safeguard themselves against legal claims or lawsuits. It helps to cover the costs and damages that may arise from legal actions, providing financial support and assistance in such situations.