West Virginia Insurance Law
Insurance Commissioner: (Appointment & Duties) - ANSWER * Appointed by
Governor for a 6-year term
* Enforces Insurance Code
Insurance Commissioner: (Powers) - ANSWER * Examine / investigate insurers and
producers
* Hold hearing - take depositions - compel witness to testify
Insurance Commissioner must inspect each insurer every ____ years. - ANSWER
Every 5 years
Insurance Commissioner must hold a hearing within ____ days of a written demand,
unless delayed by mutual agreement. - ANSWER 45 days
The Commissioner must give at least ____ days notice of the time, place and scope
of matters of the hearing to all directly affected persons. - ANSWER 15 days
The Commissioner must enter an order pertaining to a hearing within ____ days
after its completion unless extended by mutual consent. - ANSWER 45 days
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. - ANSWER cease and desist order
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 $________. -
ANSWER 20 days / $10,000
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. -
ANSWER $10,000 / $250,000
After notice and a hearing, the Commissioner may place on probation, suspend,
revoke, or refuse to renew the license of any insurer for: - 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.
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. - ANSWER $1,000 / $10,000
$5,000 / $100,000
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 $____. - ANSWER $20,000
Any person or insurer may seek appeal of any action by the Commission in ______.
Likewise, the Commissioner may seek a ________ to enforce an order. - ANSWER
state court / court order
An insurer formed under the laws of West Virginia. - ANSWER Domestic Insurer
An insurer formed under the laws of the United States or of another state of the
United States. - ANSWER foreign insurer
An insurer formed under the laws of a country other than the United States. -
ANSWER alien insurer
___________ means a person or insurer engaged in the transaction of insurance
without a license in force pursuant to the laws of this state unless exempted by the
insurance laws of this state, or any person assisting an unauthorized insurer. -
ANSWER Unauthorized insurer
Transact insurance means to _____, _____ or _____ insurance. - ANSWER
negotiate, sell, or solicit insurance.
______ means conferring or offering advice directly to an applicant or prospective
applicant of an insurance contract or the benefits, terms or conditions of the contract,
in order to sell or obtain insurance from insurers for purchasers. - ANSWER
"Negotiate"
______ means to exchange a contract of insurance by any means, for money or its
equivalent, on behalf of an insurance company. - ANSWER "Sell"
_______ means attempting to sell insurance or asking or urging a person to apply for
a particular kind of insurance from a particular company. - ANSWER "Solicit"
Insurance Commissioner: (Appointment & Duties) - ANSWER * Appointed by
Governor for a 6-year term
* Enforces Insurance Code
Insurance Commissioner: (Powers) - ANSWER * Examine / investigate insurers and
producers
* Hold hearing - take depositions - compel witness to testify
Insurance Commissioner must inspect each insurer every ____ years. - ANSWER
Every 5 years
Insurance Commissioner must hold a hearing within ____ days of a written demand,
unless delayed by mutual agreement. - ANSWER 45 days
The Commissioner must give at least ____ days notice of the time, place and scope
of matters of the hearing to all directly affected persons. - ANSWER 15 days
The Commissioner must enter an order pertaining to a hearing within ____ days
after its completion unless extended by mutual consent. - ANSWER 45 days
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. - ANSWER cease and desist order
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 $________. -
ANSWER 20 days / $10,000
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. -
ANSWER $10,000 / $250,000
After notice and a hearing, the Commissioner may place on probation, suspend,
revoke, or refuse to renew the license of any insurer for: - 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.
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. - ANSWER $1,000 / $10,000
$5,000 / $100,000
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 $____. - ANSWER $20,000
Any person or insurer may seek appeal of any action by the Commission in ______.
Likewise, the Commissioner may seek a ________ to enforce an order. - ANSWER
state court / court order
An insurer formed under the laws of West Virginia. - ANSWER Domestic Insurer
An insurer formed under the laws of the United States or of another state of the
United States. - ANSWER foreign insurer
An insurer formed under the laws of a country other than the United States. -
ANSWER alien insurer
___________ means a person or insurer engaged in the transaction of insurance
without a license in force pursuant to the laws of this state unless exempted by the
insurance laws of this state, or any person assisting an unauthorized insurer. -
ANSWER Unauthorized insurer
Transact insurance means to _____, _____ or _____ insurance. - ANSWER
negotiate, sell, or solicit insurance.
______ means conferring or offering advice directly to an applicant or prospective
applicant of an insurance contract or the benefits, terms or conditions of the contract,
in order to sell or obtain insurance from insurers for purchasers. - ANSWER
"Negotiate"
______ means to exchange a contract of insurance by any means, for money or its
equivalent, on behalf of an insurance company. - ANSWER "Sell"
_______ means attempting to sell insurance or asking or urging a person to apply for
a particular kind of insurance from a particular company. - ANSWER "Solicit"
