VIRGINIA PROPERTY & CASUALTY
Insurance Licensing Exam
2025 Practice Edition
250 Multiple-Choice Questions with Answers and Rationales
Original practice assessment — not an official or reproduced ExamFX examination
Page 1 of 90
,Table of Contents
Section 1: Virginia Insurance Law, Licensing & Regulation (Questions 1–25)
........................................ 3
Section 2: Insurance Principles, Contracts & Policy Provisions (Questions 26–50)
........................................ 12
Section 3: Property Insurance Basics & Dwelling Policies (Questions 51–75)
........................................ 20
Section 4: Homeowners Policies & Coverage Forms (Questions 76–100)
........................................ 29
Section 5: Commercial Property & Businessowners Policies (Questions 101–125)
........................................ 38
Section 6: Casualty Insurance & Liability Concepts (Questions 126–150)
........................................ 47
Section 7: Auto Insurance & Virginia Vehicle Coverage (Questions 151–175)
........................................ 56
Section 8: Workers’ Compensation & Employer Liability (Questions 176–200)
........................................ 65
Section 9: Umbrella, Excess & Specialty Coverages (Questions 201–225)
........................................ 74
Section 10: Claims, Underwriting, Ethics & Consumer Protection (Questions 226–250)
........................................ 82
Page 2 of 90
,Section 1: Virginia Insurance Law, Licensing & Regulation (Questions
1–25)
Q1: Which Virginia entity administers insurance laws and regulates insurers and
producers?
A. The State Corporation Commission, through the Bureau of Insurance [CORRECT]
B. The Virginia Department of Motor Vehicles
C. The Virginia Workers’ Compensation Commission
D. The Secretary of the Commonwealth
Correct Answer: A
Rationale: The Bureau of Insurance is part of the SCC and handles insurance regulation;
DMV and VWC have separate statutory functions.
Q2: A Virginia resident wants to sell property and casualty insurance. Which credential is
generally required?
A. No license if the agent works for an insurer
B. A producer license with the appropriate property and casualty line of authority [CORRECT]
C. A real estate salesperson license
D. A surplus lines broker license only
Correct Answer: B
Rationale: Virginia requires producer licensing for selling, soliciting, or negotiating insurance;
surplus lines is a separate authority.
Q3: A newly licensed producer takes an application for an insurer that has not yet
appointed the producer. What does Virginia law generally require of the insurer?
A. Obtain appointment approval from the insured
B. File the appointment within 30 business days after the policy expires
C. File the appointment or reject the application within 30 calendar days of the first
application/policy [CORRECT]
D. Wait until the annual renewal date
Correct Answer: C
Rationale: Virginia permits this limited initial activity subject to the insurer filing or rejecting
within 30 calendar days and providing verification.
Page 3 of 90
, Q4: A producer moves from Virginia to another state but continues to use the resident
Virginia license. What is the concern?
A. The license automatically becomes a surplus lines license
B. The license remains valid indefinitely without updating
C. Only the insurer’s appointment changes
D. Resident license authority terminates when the producer moves residence from Virginia
[CORRECT]
Correct Answer: D
Rationale: Virginia law terminates resident-agent license authority when residence moves out
of the Commonwealth.
Q5: A Virginia resident producer holds only a property and casualty license. What CE
requirement generally applies each biennium?
A. 16 relevant hours, including at least 3 ethics hours [CORRECT]
B. 8 hours, all in ethics
C. 24 hours, with no ethics requirement
D. 30 hours, including 10 hours of law
Correct Answer: A
Rationale: Virginia resident producers with one license type generally complete 16 hours
every two years, including three ethics hours.
Q6: A resident producer holds P&C and another distinct license type. Which CE rule
generally applies?
A. No CE until the producer is appointed
B. 24 hours per biennium, with at least 8 hours applicable to each license type and 3 ethics
hours [CORRECT]
C. 16 hours total, all in P&C
D. Only the CE requirement for the newer license
Correct Answer: B
Rationale: Multiple license types generally require 24 hours and at least eight hours per type;
ethics is also required.
Page 4 of 90
Insurance Licensing Exam
2025 Practice Edition
250 Multiple-Choice Questions with Answers and Rationales
Original practice assessment — not an official or reproduced ExamFX examination
Page 1 of 90
,Table of Contents
Section 1: Virginia Insurance Law, Licensing & Regulation (Questions 1–25)
........................................ 3
Section 2: Insurance Principles, Contracts & Policy Provisions (Questions 26–50)
........................................ 12
Section 3: Property Insurance Basics & Dwelling Policies (Questions 51–75)
........................................ 20
Section 4: Homeowners Policies & Coverage Forms (Questions 76–100)
........................................ 29
Section 5: Commercial Property & Businessowners Policies (Questions 101–125)
........................................ 38
Section 6: Casualty Insurance & Liability Concepts (Questions 126–150)
........................................ 47
Section 7: Auto Insurance & Virginia Vehicle Coverage (Questions 151–175)
........................................ 56
Section 8: Workers’ Compensation & Employer Liability (Questions 176–200)
........................................ 65
Section 9: Umbrella, Excess & Specialty Coverages (Questions 201–225)
........................................ 74
Section 10: Claims, Underwriting, Ethics & Consumer Protection (Questions 226–250)
........................................ 82
Page 2 of 90
,Section 1: Virginia Insurance Law, Licensing & Regulation (Questions
1–25)
Q1: Which Virginia entity administers insurance laws and regulates insurers and
producers?
A. The State Corporation Commission, through the Bureau of Insurance [CORRECT]
B. The Virginia Department of Motor Vehicles
C. The Virginia Workers’ Compensation Commission
D. The Secretary of the Commonwealth
Correct Answer: A
Rationale: The Bureau of Insurance is part of the SCC and handles insurance regulation;
DMV and VWC have separate statutory functions.
Q2: A Virginia resident wants to sell property and casualty insurance. Which credential is
generally required?
A. No license if the agent works for an insurer
B. A producer license with the appropriate property and casualty line of authority [CORRECT]
C. A real estate salesperson license
D. A surplus lines broker license only
Correct Answer: B
Rationale: Virginia requires producer licensing for selling, soliciting, or negotiating insurance;
surplus lines is a separate authority.
Q3: A newly licensed producer takes an application for an insurer that has not yet
appointed the producer. What does Virginia law generally require of the insurer?
A. Obtain appointment approval from the insured
B. File the appointment within 30 business days after the policy expires
C. File the appointment or reject the application within 30 calendar days of the first
application/policy [CORRECT]
D. Wait until the annual renewal date
Correct Answer: C
Rationale: Virginia permits this limited initial activity subject to the insurer filing or rejecting
within 30 calendar days and providing verification.
Page 3 of 90
, Q4: A producer moves from Virginia to another state but continues to use the resident
Virginia license. What is the concern?
A. The license automatically becomes a surplus lines license
B. The license remains valid indefinitely without updating
C. Only the insurer’s appointment changes
D. Resident license authority terminates when the producer moves residence from Virginia
[CORRECT]
Correct Answer: D
Rationale: Virginia law terminates resident-agent license authority when residence moves out
of the Commonwealth.
Q5: A Virginia resident producer holds only a property and casualty license. What CE
requirement generally applies each biennium?
A. 16 relevant hours, including at least 3 ethics hours [CORRECT]
B. 8 hours, all in ethics
C. 24 hours, with no ethics requirement
D. 30 hours, including 10 hours of law
Correct Answer: A
Rationale: Virginia resident producers with one license type generally complete 16 hours
every two years, including three ethics hours.
Q6: A resident producer holds P&C and another distinct license type. Which CE rule
generally applies?
A. No CE until the producer is appointed
B. 24 hours per biennium, with at least 8 hours applicable to each license type and 3 ethics
hours [CORRECT]
C. 16 hours total, all in P&C
D. Only the CE requirement for the newer license
Correct Answer: B
Rationale: Multiple license types generally require 24 hours and at least eight hours per type;
ethics is also required.
Page 4 of 90
