West Virginia Laws and Rules Pertinent to Insurance Questions and Answers.

West Virginia Laws and Rules Pertinent to
Insurance Questions and Answers
Question 1
The West Virginia Insurance Commissioner attains office in which of the following
ways?
Correct Answer
Gubernatorial appointment (Governor of WV)



Question 2
An offer of life insurance by an insurance company in West Virginia to individuals who
are personally invited to apply on the basis of the offer is known as what type of
solicitation?
Correct Answer
Direct response



Question 3
When a producer is soliciting a client to effect a contract of insurance, the producer is
engaged in
Correct Answer
transacting insurance



Question 4
Courses are approvedfor continuing education credit by the
Correct Answer
Insurance Commissioner and the Board of Insurance Agent Education




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,Question 5
If a producer tells an applicant that an insurance policy is like a share of stock, the
producer may be guilty of
Correct Answer
misrepresentation



Question 6
The West Virginia Insurance Commissioner may refuse to renew a producer's license
for all of the following reasons EXCEPT
- violation of an insurance law
- incompetence
- filing for bankruptcy
- untrustworthiness
Correct Answer
filing for bankruptcy



Question 7
If a producer has been engaged in an administrative action by any government
agency, within how many days following the final disposition must the producer
report the action to the Insurance Commissioner?
Correct Answer
30



Question 8
Which of the following terms defines the authority given to a producer to transact
business on behalf of the insurer?
Correct Answer
appointment




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, Question 9
An insurance company must do which of the following to terminate an producer's
appointment?
Correct Answer
Send notice of termination to the Commissioner



Question 10
A certificate of authority does which of the following?
Correct Answer
Permits an insurance company to transact business in West Virginia



Question 11
Which of the following statements is CORRECT about the replacement of one
insurance policy with another?
Correct Answer
It is strictly regulated and requires full disclosure by both the producer and the
replacing insurance company



Question 12
If the Insurance Department discovers that applicants for an insurance license intend
to produce insurance principally on themselves, their family, and their property, which
of the following will happen?
Correct Answer
The applicants will not be issued a license



Question 13
Which of the following parties must provide an insured with proper disclosure
concerning the replacement of an insurance company?

Correct Answer
The producer who sells the new insurance policy




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