Virginia Personal Lines Exam (Insurance
Regulation) UPDATED ACTUAL Exam
Questions and CORRECT Answers
McCarren-Ferguson Act - CORRECT ANSWER - Created in 1945, this allows state and
federal governments to regulate insurance.
Commissioner of Insurance Responsibilities - CORRECT ANSWER - Monitoring
financial solvency
Monitoring conduct of agents
Reviewing and approving rates
assure in the public of insurance availability
What is not the responsibility of the commissioner of insurance? - CORRECT ANSWER -
Setting rates
An Admitted Company - CORRECT ANSWER - A company approved to do business in a
given state.
Surplus Lines Company - CORRECT ANSWER - A company that operates in the state but
is not considered to be in an admitted company.
Domestic Insurer - CORRECT ANSWER - An insurance company formed and housed
under the laws of a particular state
Foreign Insurer - CORRECT ANSWER - Aninsurance company formed and housed under
the laws of the United States. This is an insurance company from another state.
Alien Insurer - CORRECT ANSWER - This is an insurance company formed under the
laws of the country other than the United States.
Regulation) UPDATED ACTUAL Exam
Questions and CORRECT Answers
McCarren-Ferguson Act - CORRECT ANSWER - Created in 1945, this allows state and
federal governments to regulate insurance.
Commissioner of Insurance Responsibilities - CORRECT ANSWER - Monitoring
financial solvency
Monitoring conduct of agents
Reviewing and approving rates
assure in the public of insurance availability
What is not the responsibility of the commissioner of insurance? - CORRECT ANSWER -
Setting rates
An Admitted Company - CORRECT ANSWER - A company approved to do business in a
given state.
Surplus Lines Company - CORRECT ANSWER - A company that operates in the state but
is not considered to be in an admitted company.
Domestic Insurer - CORRECT ANSWER - An insurance company formed and housed
under the laws of a particular state
Foreign Insurer - CORRECT ANSWER - Aninsurance company formed and housed under
the laws of the United States. This is an insurance company from another state.
Alien Insurer - CORRECT ANSWER - This is an insurance company formed under the
laws of the country other than the United States.
