VA TITLE LICENSING EXAM QUESTIONS ANSWERED CORRECTLY GRADED A+
Agent/Producer - Answers -selling, soliciting, negotiating contracts of insurance
-sharing commission
-receiving commission
Designated Licensed Producer - Answers According to the Rules Governing Settlement Agents,
a ___________ is an individual who (i) possesses a valid license to sell, solicit, or negotiate
contracts of title insurance in the Commonwealth; (ii) is appointed; (iii) is an officer, director, or
employee of the business entity; and (iv) is responsible for the business entity's compliance
with the insurance laws, rules, and regulations of this Commonwealth.
sell - Answers to exchange a contract of
insurance by any means, for money or its equivalent, on behalf of an insurer.
solicit - Answers Per Va. Code § 38.2-1800, the definition of _____ is attempting to sell insurance
or asking or urging a person to apply for a particular class of insurance from one or more
insurers
negotiate - Answers the act of conferring directly
with or offering advice directly to a purchaser or prospective purchaser of a particular contract
of insurance concerning any of the substantive benefits, terms or conditions of the contract,
provided that the person engaged in that act either sells insurance or obtains insurance from
insurers for purchasers.
Agents - Answers 16 hours of pre-licensing education
Non residents - Answers the home state of the applicant must extend the same courtesies
to Virginia residents seeking a title license in the state of the nonresident.
Business entities - Answers a partnership, limited
partnership, limited liability company, corporation, or other legal entity other than a sole
proprietorship (law firms and professional corps do not qualify)
Exceptions - Answers An insurer (the entity that own the title insurance product)
• An officer, director or employee of an insurer or of an insurance producer, provided
that such individual does not receive any commission on policies sold AND:
,o Such individual's activities are executive, administrative, managerial, or
clerical and are only indirectly related to the sale, solicitation or negotiation of
insurance; OR
Such individual's function relates to underwriting, loss control, inspection or
the processing, adjusting, investigating or settling of a claim on a contract of
insurance; OR
o Such individual acts as a special agent or agency supervisor assisting
insurance producers where the person's activities are limited to providing
technical advice and assistance to licensed insurance producers and do not
include the sale, solicitation or negotiation of insurance
Employees of insurers who are engaged to inspect, rate or classify risks
• Employees of insurers who train title producers
• Nonresidents who sell, solicit or negotiate a contract of insurance for multi-state
commercial property (including Virginia and the nonresident's home state)
• Any person who refers a customer to a licensed agent, provided the referral does not
include a discussion of policy terms and the referral fee is a one-time nominal amount,
not contingent on whether the referral results in the purchase of title insurance.
Maintenance of license - Answers Proof of compliance of continuing education courses and
nonrefundable renewal fees must be submitted by December 31 of each even-numbered year
( every 2 years)
Continuing education - Answers Continuing education to maintain a title license must include 3
hours of ethics per reporting period
Fictitious names - Answers A business entity conducting the business of insurance under such
a name
must notify the Commission at the time of application or within 30 calendar days from the
date such name is adopted
Change of address - Answers Each licensed agent shall report within 30 calendar days to the
,Commission, and to every
insurer for which he is appointed any change in his residence.
Required reporting - Answers n addition to fictitious names and changes of address, other
matters a licensed agent must
report within 30 calendar days to the Commission include a change in name or the final
disposition of any administrative action taken against the licensee in another jurisdiction or
License suspension, revocation or denial - Answers Providing materially incorrect, misleading,
incomplete or untrue information in the
license application or any other document filed with the Commission;
2. Violating any insurance laws, or violating any regulation, subpoena or order of the
Commission or of another state's insurance regulatory authority;
3. Obtaining or attempting to obtain a license through misrepresentation or fraud;
4. Engaging in the practice of rebating;35
5. Engaging in twisting or any form thereof, where "twisting" means inducing an insured
to terminate an existing policy and purchase a new policy through misrepresentation;
6. Improperly withholding, misappropriating or converting any moneys or properties
received in the course of doing insurance business;
7. Intentionally misrepresenting the terms of an actual or proposed insurance contract
or application for insurance;
8. Having admitted or been found to have committed any insurance unfair trade
practice or fraud;
9. Having been convicted of a felony;
10. Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence,
or untrustworthiness in the conduct of business in this Commonwealth or elsewhere,
11. Having an insurance producer license, or its equivalent, denied, suspended or
revoked in any other state, province, district or territory;
, 12. Forging another's name to an application for insurance or to any document related
to an insurance transaction;
13. Improperly using notes or any other reference material to complete an examination
for an insurance license;
14. Knowingly accepting insurance business from an individual who is not licensed;
15. Failing to comply with an administrative or court order imposing a child support
obligation; or
16. Failing to pay state income tax or comply with any administrative or court order
directing payment of stat
Penalties - Answers A. Any person who knowingly or willfully violates any provision of this title
or any
regulation issued pursuant to this title shall be punished for each violation by a penalty
of not more than $5,000.
B. Any person who violates without knowledge or intent any provision of this title or any
rule, regulation, or order issued pursuant to this title may be punished for each violation
by a penalty of not more than $1,000. For the purpose of this subsection, a series of similar
violations resulting from the same act shall be limited to a penalty in the
aggregate of not more than $10,000.
C. Any violation resulting solely from a malfunction of mechanical or electronic
equipment shall not be subject to a penalty.
D.
1. The Commission may require a person to make restitution in the amount of
the direct actual financial loss:
a. For charging a rate in excess of that provided by statute or by the rates
filed with the Commission by the insurer;
b. For charging a premium that is determined by the Commission to be
Agent/Producer - Answers -selling, soliciting, negotiating contracts of insurance
-sharing commission
-receiving commission
Designated Licensed Producer - Answers According to the Rules Governing Settlement Agents,
a ___________ is an individual who (i) possesses a valid license to sell, solicit, or negotiate
contracts of title insurance in the Commonwealth; (ii) is appointed; (iii) is an officer, director, or
employee of the business entity; and (iv) is responsible for the business entity's compliance
with the insurance laws, rules, and regulations of this Commonwealth.
sell - Answers to exchange a contract of
insurance by any means, for money or its equivalent, on behalf of an insurer.
solicit - Answers Per Va. Code § 38.2-1800, the definition of _____ is attempting to sell insurance
or asking or urging a person to apply for a particular class of insurance from one or more
insurers
negotiate - Answers the act of conferring directly
with or offering advice directly to a purchaser or prospective purchaser of a particular contract
of insurance concerning any of the substantive benefits, terms or conditions of the contract,
provided that the person engaged in that act either sells insurance or obtains insurance from
insurers for purchasers.
Agents - Answers 16 hours of pre-licensing education
Non residents - Answers the home state of the applicant must extend the same courtesies
to Virginia residents seeking a title license in the state of the nonresident.
Business entities - Answers a partnership, limited
partnership, limited liability company, corporation, or other legal entity other than a sole
proprietorship (law firms and professional corps do not qualify)
Exceptions - Answers An insurer (the entity that own the title insurance product)
• An officer, director or employee of an insurer or of an insurance producer, provided
that such individual does not receive any commission on policies sold AND:
,o Such individual's activities are executive, administrative, managerial, or
clerical and are only indirectly related to the sale, solicitation or negotiation of
insurance; OR
Such individual's function relates to underwriting, loss control, inspection or
the processing, adjusting, investigating or settling of a claim on a contract of
insurance; OR
o Such individual acts as a special agent or agency supervisor assisting
insurance producers where the person's activities are limited to providing
technical advice and assistance to licensed insurance producers and do not
include the sale, solicitation or negotiation of insurance
Employees of insurers who are engaged to inspect, rate or classify risks
• Employees of insurers who train title producers
• Nonresidents who sell, solicit or negotiate a contract of insurance for multi-state
commercial property (including Virginia and the nonresident's home state)
• Any person who refers a customer to a licensed agent, provided the referral does not
include a discussion of policy terms and the referral fee is a one-time nominal amount,
not contingent on whether the referral results in the purchase of title insurance.
Maintenance of license - Answers Proof of compliance of continuing education courses and
nonrefundable renewal fees must be submitted by December 31 of each even-numbered year
( every 2 years)
Continuing education - Answers Continuing education to maintain a title license must include 3
hours of ethics per reporting period
Fictitious names - Answers A business entity conducting the business of insurance under such
a name
must notify the Commission at the time of application or within 30 calendar days from the
date such name is adopted
Change of address - Answers Each licensed agent shall report within 30 calendar days to the
,Commission, and to every
insurer for which he is appointed any change in his residence.
Required reporting - Answers n addition to fictitious names and changes of address, other
matters a licensed agent must
report within 30 calendar days to the Commission include a change in name or the final
disposition of any administrative action taken against the licensee in another jurisdiction or
License suspension, revocation or denial - Answers Providing materially incorrect, misleading,
incomplete or untrue information in the
license application or any other document filed with the Commission;
2. Violating any insurance laws, or violating any regulation, subpoena or order of the
Commission or of another state's insurance regulatory authority;
3. Obtaining or attempting to obtain a license through misrepresentation or fraud;
4. Engaging in the practice of rebating;35
5. Engaging in twisting or any form thereof, where "twisting" means inducing an insured
to terminate an existing policy and purchase a new policy through misrepresentation;
6. Improperly withholding, misappropriating or converting any moneys or properties
received in the course of doing insurance business;
7. Intentionally misrepresenting the terms of an actual or proposed insurance contract
or application for insurance;
8. Having admitted or been found to have committed any insurance unfair trade
practice or fraud;
9. Having been convicted of a felony;
10. Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence,
or untrustworthiness in the conduct of business in this Commonwealth or elsewhere,
11. Having an insurance producer license, or its equivalent, denied, suspended or
revoked in any other state, province, district or territory;
, 12. Forging another's name to an application for insurance or to any document related
to an insurance transaction;
13. Improperly using notes or any other reference material to complete an examination
for an insurance license;
14. Knowingly accepting insurance business from an individual who is not licensed;
15. Failing to comply with an administrative or court order imposing a child support
obligation; or
16. Failing to pay state income tax or comply with any administrative or court order
directing payment of stat
Penalties - Answers A. Any person who knowingly or willfully violates any provision of this title
or any
regulation issued pursuant to this title shall be punished for each violation by a penalty
of not more than $5,000.
B. Any person who violates without knowledge or intent any provision of this title or any
rule, regulation, or order issued pursuant to this title may be punished for each violation
by a penalty of not more than $1,000. For the purpose of this subsection, a series of similar
violations resulting from the same act shall be limited to a penalty in the
aggregate of not more than $10,000.
C. Any violation resulting solely from a malfunction of mechanical or electronic
equipment shall not be subject to a penalty.
D.
1. The Commission may require a person to make restitution in the amount of
the direct actual financial loss:
a. For charging a rate in excess of that provided by statute or by the rates
filed with the Commission by the insurer;
b. For charging a premium that is determined by the Commission to be
