West Virginia Insurance Law Test Questions
and Answers
Question 1
Insurance Commissioner: (Appointment & Duties)
Correct Answer
* Appointed by Governor for a 6-year term
* Enforces Insurance Code
Question 2
Insurance Commissioner: (Powers)
Correct Answer
* Examine / investigate insurers and producers
* Hold hearing - take depositions - compel witness to testify
Question 3
Insurance Commissioner must inspect each insurer every ____ years.
Correct Answer
Every 5 years
Question 4
Insurance Commissioner must hold a hearing within ____ days of a written demand,
unless delayed by mutual agreement.
Correct Answer
45 days
Page 1 of 19
,Question 5
The Commissioner must give at least ____ days notice of the time, place and scope of
matters of the hearing to all directly affected persons.
Correct Answer
15 days
Question 6
The Commissioner must enter an order pertaining to a hearing within ____ days after
its completion unless extended by mutual consent.
Correct Answer
45 days
Question 7
If after notice and a hearing, the Commissioner determines a person or insurer has
violated any insurance law, regulation, rule, or order, he may issue a ___________ to that
person to discontinue the violation.
Correct Answer
cease and desist order
Question 8
If the person or insurer does not comply with the order within _____ days, the
Commissioner may revoke the license and assess a penalty of up to $________.
Correct Answer
20 days / $10,000
Question 9
The Commissioner may also require insurers to pay a penalty up $____ per violation. If
an insurer commits unfair claim settlement practices, the Commissioner may assess a
penalty of up to $_____, as well as restitution to the claimant.
Correct Answer
$10,000 / $250,000
Page 2 of 19
, Question 10
After notice and a hearing, the Commissioner may place on probation, suspend,
revoke, or refuse to renew the license of any insurer for:
Correct Answer
* Violation of any insurance law, regulation, rule, or order of the Commissioner;
* Providing incorrect, misleading, or untrue information in the license application or
obtaining a license through misrepresentation or fraud;
Improperly withholding or misappropriating money or property received in the
course of doing insurance business;
* Intentionally misrepresenting the terms of an insurance contract or application;
* Conviction or pleading no contest to any felony or a misdemeanor in connection
with insurance transactions;
* Committing any unfair trade practice or insurance fraud;
* Fraudulent, coercive, or dishonest practices demonstrating incompetence,
untrustworthiness or financial irresponsibility;
* Denial, suspense, or revocation of license in any other state;
* Forging any document related to an insurance transaction;
* Cheating on the license examination;
* Knowingly accepting business from an unlicensed individual;
* Failure to pay child support obligation;
* Failure to pay any West Virginia taxes, fees, charges or penalties.
Question 11
The Commissioner may also require payment of a penalty up to $____ per violation, up
to $____ total, unless the person knew or had reason to know he was in violation, then
up to $____ per violation, $____total.
Correct Answer
$1,000 / $10,000
$5,000 / $100,000
Question 12
Any person required to have a license, who is found acting without a license,
constitutes an unauthorized transaction of insurance and may be fined by the
Commissioner a penalty not to exceed $____.
Correct Answer
$20,000
Page 3 of 19
and Answers
Question 1
Insurance Commissioner: (Appointment & Duties)
Correct Answer
* Appointed by Governor for a 6-year term
* Enforces Insurance Code
Question 2
Insurance Commissioner: (Powers)
Correct Answer
* Examine / investigate insurers and producers
* Hold hearing - take depositions - compel witness to testify
Question 3
Insurance Commissioner must inspect each insurer every ____ years.
Correct Answer
Every 5 years
Question 4
Insurance Commissioner must hold a hearing within ____ days of a written demand,
unless delayed by mutual agreement.
Correct Answer
45 days
Page 1 of 19
,Question 5
The Commissioner must give at least ____ days notice of the time, place and scope of
matters of the hearing to all directly affected persons.
Correct Answer
15 days
Question 6
The Commissioner must enter an order pertaining to a hearing within ____ days after
its completion unless extended by mutual consent.
Correct Answer
45 days
Question 7
If after notice and a hearing, the Commissioner determines a person or insurer has
violated any insurance law, regulation, rule, or order, he may issue a ___________ to that
person to discontinue the violation.
Correct Answer
cease and desist order
Question 8
If the person or insurer does not comply with the order within _____ days, the
Commissioner may revoke the license and assess a penalty of up to $________.
Correct Answer
20 days / $10,000
Question 9
The Commissioner may also require insurers to pay a penalty up $____ per violation. If
an insurer commits unfair claim settlement practices, the Commissioner may assess a
penalty of up to $_____, as well as restitution to the claimant.
Correct Answer
$10,000 / $250,000
Page 2 of 19
, Question 10
After notice and a hearing, the Commissioner may place on probation, suspend,
revoke, or refuse to renew the license of any insurer for:
Correct Answer
* Violation of any insurance law, regulation, rule, or order of the Commissioner;
* Providing incorrect, misleading, or untrue information in the license application or
obtaining a license through misrepresentation or fraud;
Improperly withholding or misappropriating money or property received in the
course of doing insurance business;
* Intentionally misrepresenting the terms of an insurance contract or application;
* Conviction or pleading no contest to any felony or a misdemeanor in connection
with insurance transactions;
* Committing any unfair trade practice or insurance fraud;
* Fraudulent, coercive, or dishonest practices demonstrating incompetence,
untrustworthiness or financial irresponsibility;
* Denial, suspense, or revocation of license in any other state;
* Forging any document related to an insurance transaction;
* Cheating on the license examination;
* Knowingly accepting business from an unlicensed individual;
* Failure to pay child support obligation;
* Failure to pay any West Virginia taxes, fees, charges or penalties.
Question 11
The Commissioner may also require payment of a penalty up to $____ per violation, up
to $____ total, unless the person knew or had reason to know he was in violation, then
up to $____ per violation, $____total.
Correct Answer
$1,000 / $10,000
$5,000 / $100,000
Question 12
Any person required to have a license, who is found acting without a license,
constitutes an unauthorized transaction of insurance and may be fined by the
Commissioner a penalty not to exceed $____.
Correct Answer
$20,000
Page 3 of 19
