Virginia Insurance Producer Licensing
Examination (Property & Casualty)
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
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1. Virginia Insurance Regulation, Licensing Authority, and Producer
Requirements
A. The Virginia State Corporation Commission (SCC) has authority over
insurance regulation. Which of the following best describes its primary
function in relation to insurance producers?
A. It underwrites all insurance policies issued in Virginia
B. It enforces federal insurance tax regulations only
C. It regulates licensing, conduct, and compliance of insurance producers
D. It supervises insurer solvency, licensing, and regulatory compliance
within the state
The SCC is the state regulatory authority responsible for licensing insurance
producers, enforcing insurance laws, and ensuring insurer solvency and
market conduct compliance. It does not underwrite policies or enforce
federal tax rules.
, 2. An individual applying for a Virginia Property and Casualty insurance
producer license is MOST likely required to:
A. Pass a federal securities examination
B. Hold a college degree in finance or business
C. Have prior claims adjusting experience
D. Pass the Virginia Property and Casualty licensing examination and meet
pre-licensing requirements
Virginia requires candidates to complete approved pre-licensing education
and pass the state licensing exam. Additional requirements such as
background checks and applications may also apply, but no degree or
securities exam is required.
3. Which line of authority is INCLUDED within a Virginia Property and
Casualty license?
A. Life insurance only
B. Health insurance only
C. Annuities and retirement products
D. Personal and commercial property and casualty insurance lines
The P&C license covers property and liability risks such as homeowners,
auto, commercial property, and general liability insurance. It does not
include life or annuity products.
4. Which organization typically administers the Virginia Property and
Casualty licensing examination?
A. FINRA
B. NAIC
C. Federal Reserve
D. Prometric
Prometric is the approved testing provider for Virginia insurance licensing
examinations, delivering standardized state licensing exams under SCC
authority.
, 5. What is the PRIMARY purpose of insurance licensing laws in Virginia?
A. To increase insurance company profits
B. To standardize insurance premiums across states
C. To eliminate the need for insurance regulation
D. To ensure agents are qualified and consumers are protected
Licensing laws exist to ensure that insurance producers meet minimum
competency standards and operate in a manner that protects consumers
and maintains market integrity.
6. An insurance producer who violates Virginia insurance regulations
may be subject to:
A. Federal criminal prosecution only
B. Automatic reinstatement after 30 days
C. No penalties if first offense
D. License suspension, revocation, fines, or administrative penalties
The SCC may impose disciplinary actions including fines, suspension, or
revocation depending on the severity of the violation.
7. Which of the following BEST describes a “producer” in Virginia
insurance law?
A. A person who only adjusts claims
B. A person who only underwrites policies
C. A person who sets insurance premiums
D. A person licensed to sell, solicit, or negotiate insurance
A producer is any individual or entity authorized to sell, solicit, or negotiate
insurance contracts on behalf of insurers.
8. What is the minimum requirement for an applicant who fails the
Virginia insurance exam multiple times?
Examination (Property & Casualty)
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. Virginia Insurance Regulation, Licensing Authority, and Producer
Requirements
A. The Virginia State Corporation Commission (SCC) has authority over
insurance regulation. Which of the following best describes its primary
function in relation to insurance producers?
A. It underwrites all insurance policies issued in Virginia
B. It enforces federal insurance tax regulations only
C. It regulates licensing, conduct, and compliance of insurance producers
D. It supervises insurer solvency, licensing, and regulatory compliance
within the state
The SCC is the state regulatory authority responsible for licensing insurance
producers, enforcing insurance laws, and ensuring insurer solvency and
market conduct compliance. It does not underwrite policies or enforce
federal tax rules.
, 2. An individual applying for a Virginia Property and Casualty insurance
producer license is MOST likely required to:
A. Pass a federal securities examination
B. Hold a college degree in finance or business
C. Have prior claims adjusting experience
D. Pass the Virginia Property and Casualty licensing examination and meet
pre-licensing requirements
Virginia requires candidates to complete approved pre-licensing education
and pass the state licensing exam. Additional requirements such as
background checks and applications may also apply, but no degree or
securities exam is required.
3. Which line of authority is INCLUDED within a Virginia Property and
Casualty license?
A. Life insurance only
B. Health insurance only
C. Annuities and retirement products
D. Personal and commercial property and casualty insurance lines
The P&C license covers property and liability risks such as homeowners,
auto, commercial property, and general liability insurance. It does not
include life or annuity products.
4. Which organization typically administers the Virginia Property and
Casualty licensing examination?
A. FINRA
B. NAIC
C. Federal Reserve
D. Prometric
Prometric is the approved testing provider for Virginia insurance licensing
examinations, delivering standardized state licensing exams under SCC
authority.
, 5. What is the PRIMARY purpose of insurance licensing laws in Virginia?
A. To increase insurance company profits
B. To standardize insurance premiums across states
C. To eliminate the need for insurance regulation
D. To ensure agents are qualified and consumers are protected
Licensing laws exist to ensure that insurance producers meet minimum
competency standards and operate in a manner that protects consumers
and maintains market integrity.
6. An insurance producer who violates Virginia insurance regulations
may be subject to:
A. Federal criminal prosecution only
B. Automatic reinstatement after 30 days
C. No penalties if first offense
D. License suspension, revocation, fines, or administrative penalties
The SCC may impose disciplinary actions including fines, suspension, or
revocation depending on the severity of the violation.
7. Which of the following BEST describes a “producer” in Virginia
insurance law?
A. A person who only adjusts claims
B. A person who only underwrites policies
C. A person who sets insurance premiums
D. A person licensed to sell, solicit, or negotiate insurance
A producer is any individual or entity authorized to sell, solicit, or negotiate
insurance contracts on behalf of insurers.
8. What is the minimum requirement for an applicant who fails the
Virginia insurance exam multiple times?
