VIRGINIA PERSONAL LINES
(INSURANCE REGULATION) FINAL
TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ Part B - Medical Payments Coverage of a Personal Auto policy would cover
medical expenses sutained by any insured while they occupy.
Answer: A car used to carpool with colleagues
◍ Apparent authority.
Answer: The appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the
principal created.
◍ Notice and Review (Dwelling).
Answer: A written notice of cancellation or refusal to renew a policy written
to cover owner-occupied dwellings must state the proposed termination date
of the policy or contract, which must be a minimum of 30 days after the
mailing or delivery of the notice of cancellation or refusal to renew. When
the policy is being terminated for nonpayment of premium, the proposed
termination date must be at least 10 days from the date of mailing or
delivery of the notice. The notice must state the specific reason(s) for
nonrenewal or cancellation, and inform the insured of possible eligibility for
coverage through the Virginia Property Insurance Association (FAIR Plan).
The Mortgagee Clause requires insurers to notify the mortgagee at least 10
days before the effective date for cancellation and at least 30 days before the
effective date for nonrenewal.The insured must be advised of the right to
submit, within 10 days of receiving notice, a written request to the
Commissioner for a review of the insurer’s compliance with law that
, pertains to the mailing of the notice.If the insured requests a review as
specified, the policy will continue in force during the Commissioner’s
review, unless the reason for cancellation is nonpayment. If the
Commissioner finds the insurer did not comply with law when sending
notice of nonrenewal or cancellation, they must notify all parties to whom
notice was required to be sent that the nonrenewal or cancellation is not
effective.
◍ preexisting conditions.
Answer: Insurers cannot exclude claims based on pre-existing conditions for
more than six months after a policy's effective date
◍ A group life insurance policy can be converted to an individual whole life
policy under which circumstance.
Answer: Employment termination
◍ Requirement to Report to Commission.
Answer: If you change your name, are convicted of a felony, or have the
results of the final disposition you must report it within 30 days. If you
move out of the Commonwealth, your license is terminated.
◍ J is an insurance agent who maintains premiums in a fiduciary account.
Which of the following expenses may NOT be paid using funds withdrawn
from this accountA) Return on premiums due to insuredsB) Personal
medical expensesC) Commissions due to other licenseesD) Premiums due to
insurers.
Answer: B) Personal medical expenses
◍ What do Cease and Desist Orders state?.
Answer: The violation committed
◍ rebating.
Answer: is the act of offering some advantage or making an agreement to
pay something that is not a part of the insurance contract
◍ to act as an agent means to.
Answer: sell, solicit, or negotiate insurance contracts on behalf of a licensed
, Virginia insurerReceive or share any commission or other valuable
consideration in connection with the sale, solicitation, or negotiation of any
insurance contract
◍ How many hours of continuing education on ethics must an insurance agent
complete every reporting period in Virginia?.
Answer: 3 hours.
◍ Exceptions to Licensing.
Answer: Officers, directors, or employees of an insurer or insurance
producer employed in executive, administrative, managerial, and/or clerical
capacities--Employment related to underwriting, loss control, or claims
functions--Employees who act as special agents or agency supervisors
whose activities are limited to providing technical advice and assistance that
does not include the sales, solicitation, or negotiation of insurance--Any
person who secures and furnishes information for group insurance for the
purpose of enrolling individuals in plans, issuing plan certificates, or
assisting with the administration of plans--Any person who performs
administrative services in connection with mass marketed property and
casualty insurance--An employer or association engaged in the
administration of its own employee benefits plan so long as no person
connected to the employer or association is compensated by the insurer--A
nonresident who sells, solicits, or negotiates commercial lines insurance to
an insured with risks located in multiple states, so long as that nonresident is
licensed to sell, solicit, or negotiate insurance in the state where its principal
place of business is located
◍ An agent has returned part of his commission to the insured as an
inducement to purchase the insurance. This illegal action is called.
Answer: Rebating
◍ Insurance Consultant.
Answer: An insurance consultant is an individual or business entity licensed
to act as an independent contractor for the client in exchange for a fee or
other compensation. The fee is not paid by an insurer, an agent, or a surplus
(INSURANCE REGULATION) FINAL
TEST 2026 QUESTIONS WITH
CORRECT ANSWERS GRADED A+
◍ Part B - Medical Payments Coverage of a Personal Auto policy would cover
medical expenses sutained by any insured while they occupy.
Answer: A car used to carpool with colleagues
◍ Apparent authority.
Answer: The appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the
principal created.
◍ Notice and Review (Dwelling).
Answer: A written notice of cancellation or refusal to renew a policy written
to cover owner-occupied dwellings must state the proposed termination date
of the policy or contract, which must be a minimum of 30 days after the
mailing or delivery of the notice of cancellation or refusal to renew. When
the policy is being terminated for nonpayment of premium, the proposed
termination date must be at least 10 days from the date of mailing or
delivery of the notice. The notice must state the specific reason(s) for
nonrenewal or cancellation, and inform the insured of possible eligibility for
coverage through the Virginia Property Insurance Association (FAIR Plan).
The Mortgagee Clause requires insurers to notify the mortgagee at least 10
days before the effective date for cancellation and at least 30 days before the
effective date for nonrenewal.The insured must be advised of the right to
submit, within 10 days of receiving notice, a written request to the
Commissioner for a review of the insurer’s compliance with law that
, pertains to the mailing of the notice.If the insured requests a review as
specified, the policy will continue in force during the Commissioner’s
review, unless the reason for cancellation is nonpayment. If the
Commissioner finds the insurer did not comply with law when sending
notice of nonrenewal or cancellation, they must notify all parties to whom
notice was required to be sent that the nonrenewal or cancellation is not
effective.
◍ preexisting conditions.
Answer: Insurers cannot exclude claims based on pre-existing conditions for
more than six months after a policy's effective date
◍ A group life insurance policy can be converted to an individual whole life
policy under which circumstance.
Answer: Employment termination
◍ Requirement to Report to Commission.
Answer: If you change your name, are convicted of a felony, or have the
results of the final disposition you must report it within 30 days. If you
move out of the Commonwealth, your license is terminated.
◍ J is an insurance agent who maintains premiums in a fiduciary account.
Which of the following expenses may NOT be paid using funds withdrawn
from this accountA) Return on premiums due to insuredsB) Personal
medical expensesC) Commissions due to other licenseesD) Premiums due to
insurers.
Answer: B) Personal medical expenses
◍ What do Cease and Desist Orders state?.
Answer: The violation committed
◍ rebating.
Answer: is the act of offering some advantage or making an agreement to
pay something that is not a part of the insurance contract
◍ to act as an agent means to.
Answer: sell, solicit, or negotiate insurance contracts on behalf of a licensed
, Virginia insurerReceive or share any commission or other valuable
consideration in connection with the sale, solicitation, or negotiation of any
insurance contract
◍ How many hours of continuing education on ethics must an insurance agent
complete every reporting period in Virginia?.
Answer: 3 hours.
◍ Exceptions to Licensing.
Answer: Officers, directors, or employees of an insurer or insurance
producer employed in executive, administrative, managerial, and/or clerical
capacities--Employment related to underwriting, loss control, or claims
functions--Employees who act as special agents or agency supervisors
whose activities are limited to providing technical advice and assistance that
does not include the sales, solicitation, or negotiation of insurance--Any
person who secures and furnishes information for group insurance for the
purpose of enrolling individuals in plans, issuing plan certificates, or
assisting with the administration of plans--Any person who performs
administrative services in connection with mass marketed property and
casualty insurance--An employer or association engaged in the
administration of its own employee benefits plan so long as no person
connected to the employer or association is compensated by the insurer--A
nonresident who sells, solicits, or negotiates commercial lines insurance to
an insured with risks located in multiple states, so long as that nonresident is
licensed to sell, solicit, or negotiate insurance in the state where its principal
place of business is located
◍ An agent has returned part of his commission to the insured as an
inducement to purchase the insurance. This illegal action is called.
Answer: Rebating
◍ Insurance Consultant.
Answer: An insurance consultant is an individual or business entity licensed
to act as an independent contractor for the client in exchange for a fee or
other compensation. The fee is not paid by an insurer, an agent, or a surplus
