WV LIFE INSURANCE LAWS AND RULES FINAL
PAPER 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◉ Foreign Insurance Company. Answer: An insurance company
chartered in another state, commonwealth, or territory of the United
States including Puerto Rico
◉ Alien Insurance Company. Answer: An insurance company formed
under the laws of another country
◉ Stock Insurance Company. Answer: Company is owned by
stockholders evidenced by shares of stock, and profits are distributed as
dividends to stockholders
◉ Mutual Insurance Company. Answer: Company is owned by
policyholders and policy owners share in the insurer's divisible surplus
in the form of a policy dividend
◉ Fraternal Benefit Societies. Answer: Incorporated society, order, or
supreme lodge, without capital stock, that operates solely for the benefit
of its members and under a lodge system with a ritualistic form of work
and benefit packages are only sold to members of the society
,◉ Reinsurance. Answer: The act of one insurer selling part of a policy to
another insurer where the original insurer is called the ceding company,
and the purchasing insurer is called the assuming company
◉ Insurance Agent. Answer: Person who represents the company in the
solicitation of insurance
◉ Brokers. Answer: Person who represents their clients, not the
insurance company/companies
◉ Solicitors. Answer: Person appointed and authorized by an agent to
solicit applications for insurance as a representative of that agent
◉ Defamation. Answer: When oral or written statements that are false,
maliciously critical or derogatory to the financial condition of an insurer
or intended to injure any person engaged in the insurance business are
illegal
◉ Unfair Discrimination. Answer: When two people of equal risk are
charged different rates solely because of a difference in race, religion,
national origin, or where they live
◉ Agency. Answer: Contractual relationship in which one person is
authorized to represent and act for another person or for a corporation
, ◉ Express Authority. Answer: The specific authority given in writing to
the agent in the contract of agency
◉ Implied Authority. Answer: Authority not specifically granted to the
agent in the contract of agency, but which common sense dictates the
agent has. It enables the agent to carry out routine responsiblilties
◉ Apparent Authority. Answer: Authority the agent seems to have
because of certain actions undertaken on his part
◉ Fiduciary. Answer: A person in a position of financial trust; attorneys,
accountants, insurance agents are considered this.
◉ Commingling. Answer: Act of mixing personal funds with the
insureds, or insurer's funds
◉ Estoppel. Answer: Legal impediment to denying the consequences of
ones's actions or deeds if they lead to detrimental actions by another.
◉ Waiver. Answer: The intentional and voluntary surrender of a known
right.
PAPER 2026 QUESTIONS WITH CORRECT
ANSWERS GRADED A+
◉ Foreign Insurance Company. Answer: An insurance company
chartered in another state, commonwealth, or territory of the United
States including Puerto Rico
◉ Alien Insurance Company. Answer: An insurance company formed
under the laws of another country
◉ Stock Insurance Company. Answer: Company is owned by
stockholders evidenced by shares of stock, and profits are distributed as
dividends to stockholders
◉ Mutual Insurance Company. Answer: Company is owned by
policyholders and policy owners share in the insurer's divisible surplus
in the form of a policy dividend
◉ Fraternal Benefit Societies. Answer: Incorporated society, order, or
supreme lodge, without capital stock, that operates solely for the benefit
of its members and under a lodge system with a ritualistic form of work
and benefit packages are only sold to members of the society
,◉ Reinsurance. Answer: The act of one insurer selling part of a policy to
another insurer where the original insurer is called the ceding company,
and the purchasing insurer is called the assuming company
◉ Insurance Agent. Answer: Person who represents the company in the
solicitation of insurance
◉ Brokers. Answer: Person who represents their clients, not the
insurance company/companies
◉ Solicitors. Answer: Person appointed and authorized by an agent to
solicit applications for insurance as a representative of that agent
◉ Defamation. Answer: When oral or written statements that are false,
maliciously critical or derogatory to the financial condition of an insurer
or intended to injure any person engaged in the insurance business are
illegal
◉ Unfair Discrimination. Answer: When two people of equal risk are
charged different rates solely because of a difference in race, religion,
national origin, or where they live
◉ Agency. Answer: Contractual relationship in which one person is
authorized to represent and act for another person or for a corporation
, ◉ Express Authority. Answer: The specific authority given in writing to
the agent in the contract of agency
◉ Implied Authority. Answer: Authority not specifically granted to the
agent in the contract of agency, but which common sense dictates the
agent has. It enables the agent to carry out routine responsiblilties
◉ Apparent Authority. Answer: Authority the agent seems to have
because of certain actions undertaken on his part
◉ Fiduciary. Answer: A person in a position of financial trust; attorneys,
accountants, insurance agents are considered this.
◉ Commingling. Answer: Act of mixing personal funds with the
insureds, or insurer's funds
◉ Estoppel. Answer: Legal impediment to denying the consequences of
ones's actions or deeds if they lead to detrimental actions by another.
◉ Waiver. Answer: The intentional and voluntary surrender of a known
right.
