Virginia Personal Lines Exam (Virginia
Insurance Laws & Regulations) UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Hierarchy - CORRECT ANSWER - State Corporation Commission.
Bureau of Insurance.
Commissioner.
Examination by the Commission - CORRECT ANSWER - The commission must examine
every insurer licensed in Virginia at least once every 5 years.
Investigation Powers of the Commission - CORRECT ANSWER - The commission has
power to examine and investigate the business affairs of any person engaged or alleged to be
engaged in the business of insurance in the Commonwealth. Essentially they have the right to
investigate anyone tied to offering insurance.
Record Retention - CORRECT ANSWER - Every licensed insurance company shall retain
all records relative to insurance transactions for a period of three years.
Penalties and Restitution Payments - CORRECT ANSWER - Any person who knowingly
violates a provision shall be punished for each violation no more than $5000 per incident.
Any person who violates a provision unknowingly may be punished for each violation no more
than $1000 per incident and no more than $10,000 total.
Reasons for Penalties - CORRECT ANSWER - Charging a rate in excess of what is filed,
charging a unfair and discriminatory premium, failing to pay undisputed amounts required for a
claim and improperly handling money or property received in the course of doing business.
, Transacting Insurance without a License - CORRECT ANSWER - While the person is not
a holder of a valid agent's license, they will be penalized the sum of money of their first year's
commission.
Grounds for Probation, Refusal to Issue/Renew, Revocation, or Suspension of License -
CORRECT ANSWER - Providing false information in your license application, violating
insurance laws, obtaining a license through fraud, rebating twisting improperly handling money.
intentionally misrepresenting the terms of a contract and unfair trade practices.
More Grounds for Probation, Refusal to Issue/Renew, Revocation, or Suspension of License -
CORRECT ANSWER - Convicted of a felony, dishonest practices, denied a license in
another state/suspended or revoked, forging another's name, improperly using notes, knowingly
excepting insurance from an unlicensed person, owing child support, owing state income tax.
Proof of Residency - CORRECT ANSWER - You must live in the state that you are
initially licensed in. Tax purposes factor into this also.
Assumed or Fictitious Names - CORRECT ANSWER - Any individual or business
conducting the business of insurance in this Commonwealth under an assumed or fictitious name
shall notify the bureau of insurance at the time the application is filed within 30 calendar days
from the date the name is adopted.
Insurance Consultant - CORRECT ANSWER - A person or business who acts as an
independent contractor. They work on the behalf of the customer.
Does not include an attorney acting in his professional capacity, the trust officer of the bank, any
actuary and any person employed as a risk manager.
Renewing Consultant License - CORRECT ANSWER - And insurance consultant must
have their license renewed every year by June 30.
Temporary License - CORRECT ANSWER - Valid for 180 days.
Insurance Laws & Regulations) UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Hierarchy - CORRECT ANSWER - State Corporation Commission.
Bureau of Insurance.
Commissioner.
Examination by the Commission - CORRECT ANSWER - The commission must examine
every insurer licensed in Virginia at least once every 5 years.
Investigation Powers of the Commission - CORRECT ANSWER - The commission has
power to examine and investigate the business affairs of any person engaged or alleged to be
engaged in the business of insurance in the Commonwealth. Essentially they have the right to
investigate anyone tied to offering insurance.
Record Retention - CORRECT ANSWER - Every licensed insurance company shall retain
all records relative to insurance transactions for a period of three years.
Penalties and Restitution Payments - CORRECT ANSWER - Any person who knowingly
violates a provision shall be punished for each violation no more than $5000 per incident.
Any person who violates a provision unknowingly may be punished for each violation no more
than $1000 per incident and no more than $10,000 total.
Reasons for Penalties - CORRECT ANSWER - Charging a rate in excess of what is filed,
charging a unfair and discriminatory premium, failing to pay undisputed amounts required for a
claim and improperly handling money or property received in the course of doing business.
, Transacting Insurance without a License - CORRECT ANSWER - While the person is not
a holder of a valid agent's license, they will be penalized the sum of money of their first year's
commission.
Grounds for Probation, Refusal to Issue/Renew, Revocation, or Suspension of License -
CORRECT ANSWER - Providing false information in your license application, violating
insurance laws, obtaining a license through fraud, rebating twisting improperly handling money.
intentionally misrepresenting the terms of a contract and unfair trade practices.
More Grounds for Probation, Refusal to Issue/Renew, Revocation, or Suspension of License -
CORRECT ANSWER - Convicted of a felony, dishonest practices, denied a license in
another state/suspended or revoked, forging another's name, improperly using notes, knowingly
excepting insurance from an unlicensed person, owing child support, owing state income tax.
Proof of Residency - CORRECT ANSWER - You must live in the state that you are
initially licensed in. Tax purposes factor into this also.
Assumed or Fictitious Names - CORRECT ANSWER - Any individual or business
conducting the business of insurance in this Commonwealth under an assumed or fictitious name
shall notify the bureau of insurance at the time the application is filed within 30 calendar days
from the date the name is adopted.
Insurance Consultant - CORRECT ANSWER - A person or business who acts as an
independent contractor. They work on the behalf of the customer.
Does not include an attorney acting in his professional capacity, the trust officer of the bank, any
actuary and any person employed as a risk manager.
Renewing Consultant License - CORRECT ANSWER - And insurance consultant must
have their license renewed every year by June 30.
Temporary License - CORRECT ANSWER - Valid for 180 days.
