VIRGINIA PERSONAL LINES
(INSURANCE REGULATION)
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ When can the commission examine any licensed person or business?.
Answer: At any time - no advance notice
◍ Extended Non-Owner Liability Endorsements.
Answer: Broader coverage for driving non owned vehicles.
◍ Out of State Liability.
Answer: If you meet the minimums for your state, your coverage will either
match the minimums of the state you're driving in or use your limits,
whichever is the greater of the two.
◍ Social organizations that engage in charitable activities and provide
insurance to its members are known as.
Answer: Fraternal insurers
◍ Which statement regarding coverages provided by the National Flood
Insurance Program (NFIP) is incorrect?.
Answer: The Dwelling Form provides coverage for direct and indirect losses
to covered property resulting from flooding
◍ Grounds for Termination of a Dwelling Policy.
Answer: Failure to pay premium when do, conviction of a crime that
increases the chances of peril, fraud, willful or reckless acts or omissions,
and physical changes to property that make it uninsurable.
,◍ Underinsured Motorist Coverage (UIM).
Answer: A motor vehicle is underinsured when the total amount of bodily
injury and property damage liability insurance, bonds, and deposits of
money or securities that apply to the loss is less than the total amount of
uninsured motors coverage in place on any injured person. If an injured
person is entitled to Underinsured Motorists coverage (UIM) under more
than one policy, the following order of priority applies:--The policy insuring
the motor vehicle occupied by the injured person--The policy of the injured
person, if they are a named insured on a policy insuring a vehicle that was
not involved in the accidentIf the injured person is not a named insured on
any policy, the policy covering the injured person as an insured (for
example, the policy of a family member)If more than one insurer provides
UM coverage under multiple policies, each insurer's liability will be
proportioned based on its respective UIM coverages.
◍ Every _______ issuing a new or renewal policy of motor vehicle insurance,
which provides comprehensive or collision coverage, must offer in writing
to the named insured the option of purchasing rental reimbursement
coverage..
Answer: Insurer
◍ Refusal of examination penalty.
Answer: License will be revoked.
◍ If a bird hits a windshield and breaks it, which Personal Auto policy
coverage would pay the loss?.
Answer: other than collision coverage
◍ Insurance examination cost.
Answer: The cost must be paid by the company being examined.
◍ Fiduciary Responsibility.
Answer: Personal money cannot be mixed with insurance money.
◍ What is it called when a primary insurer transfers their risk to another
insurer?.
, Answer: Reinsurance
◍ A business entity acting as an insurance agency must?.
Answer: Is required to obtain an insurance producer license using the
uniform business entity application.
◍ Perils.
Answer: are the causes of loss insured against in an insurance policy.
◍ Unauthorized Insurer.
Answer: Means a person or insurer engaged in the transaction of insurance
without a license in force pursuant to the laws of this state.
◍ Policy owner.
Answer: the person entitled to exercise the rights and privileges in the policy
◍ All of the following are eligible for coverage under the Dwelling Program,
except.
Answer: A beauty shop with a small bedroom attachedA dwelling used
primarily for business is not eligible.
◍ Loss Payable Clause.
Answer: if a policy has a Loss Payable Clause as an endorsement, a third
party will receive the loss payment instead of the named insured or
beneficiary. The third party is also referred to as the payee or loss payee.In
the event a named insured commits a fraudulent act or omission, the loss
payee's interest must not become invalid, unless the loss results from the
insured's conversion, secretion, or embezzlement of the covered auto. The
insurer holds the right to cancel the policy as permitted by policy terms. The
insurer will give the same advance notice of cancellation to the loss payee as
the named insured. When the insurer pays the loss payee they must, to the
extent of the payment, be subrogated to the loss payee's right of recovery.
◍ What is forcing a customer to purchase a policy through intimidating threats
called?.
Answer: Coercion
(INSURANCE REGULATION)
CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS
GRADED A+
◍ When can the commission examine any licensed person or business?.
Answer: At any time - no advance notice
◍ Extended Non-Owner Liability Endorsements.
Answer: Broader coverage for driving non owned vehicles.
◍ Out of State Liability.
Answer: If you meet the minimums for your state, your coverage will either
match the minimums of the state you're driving in or use your limits,
whichever is the greater of the two.
◍ Social organizations that engage in charitable activities and provide
insurance to its members are known as.
Answer: Fraternal insurers
◍ Which statement regarding coverages provided by the National Flood
Insurance Program (NFIP) is incorrect?.
Answer: The Dwelling Form provides coverage for direct and indirect losses
to covered property resulting from flooding
◍ Grounds for Termination of a Dwelling Policy.
Answer: Failure to pay premium when do, conviction of a crime that
increases the chances of peril, fraud, willful or reckless acts or omissions,
and physical changes to property that make it uninsurable.
,◍ Underinsured Motorist Coverage (UIM).
Answer: A motor vehicle is underinsured when the total amount of bodily
injury and property damage liability insurance, bonds, and deposits of
money or securities that apply to the loss is less than the total amount of
uninsured motors coverage in place on any injured person. If an injured
person is entitled to Underinsured Motorists coverage (UIM) under more
than one policy, the following order of priority applies:--The policy insuring
the motor vehicle occupied by the injured person--The policy of the injured
person, if they are a named insured on a policy insuring a vehicle that was
not involved in the accidentIf the injured person is not a named insured on
any policy, the policy covering the injured person as an insured (for
example, the policy of a family member)If more than one insurer provides
UM coverage under multiple policies, each insurer's liability will be
proportioned based on its respective UIM coverages.
◍ Every _______ issuing a new or renewal policy of motor vehicle insurance,
which provides comprehensive or collision coverage, must offer in writing
to the named insured the option of purchasing rental reimbursement
coverage..
Answer: Insurer
◍ Refusal of examination penalty.
Answer: License will be revoked.
◍ If a bird hits a windshield and breaks it, which Personal Auto policy
coverage would pay the loss?.
Answer: other than collision coverage
◍ Insurance examination cost.
Answer: The cost must be paid by the company being examined.
◍ Fiduciary Responsibility.
Answer: Personal money cannot be mixed with insurance money.
◍ What is it called when a primary insurer transfers their risk to another
insurer?.
, Answer: Reinsurance
◍ A business entity acting as an insurance agency must?.
Answer: Is required to obtain an insurance producer license using the
uniform business entity application.
◍ Perils.
Answer: are the causes of loss insured against in an insurance policy.
◍ Unauthorized Insurer.
Answer: Means a person or insurer engaged in the transaction of insurance
without a license in force pursuant to the laws of this state.
◍ Policy owner.
Answer: the person entitled to exercise the rights and privileges in the policy
◍ All of the following are eligible for coverage under the Dwelling Program,
except.
Answer: A beauty shop with a small bedroom attachedA dwelling used
primarily for business is not eligible.
◍ Loss Payable Clause.
Answer: if a policy has a Loss Payable Clause as an endorsement, a third
party will receive the loss payment instead of the named insured or
beneficiary. The third party is also referred to as the payee or loss payee.In
the event a named insured commits a fraudulent act or omission, the loss
payee's interest must not become invalid, unless the loss results from the
insured's conversion, secretion, or embezzlement of the covered auto. The
insurer holds the right to cancel the policy as permitted by policy terms. The
insurer will give the same advance notice of cancellation to the loss payee as
the named insured. When the insurer pays the loss payee they must, to the
extent of the payment, be subrogated to the loss payee's right of recovery.
◍ What is forcing a customer to purchase a policy through intimidating threats
called?.
Answer: Coercion
