Chapter 5. West Virginia laws, rules,
regulations common to all lines
What are producers required to do in order to renew their license? - Answer-Complete continuing
education hours and pay a renwable fee
When is controlled business legal? - Answer-When the commissons from controlled buisness do not
exceed the aggregate commissions on all the othee buisness (specific limits may vary from state to
state)
If an insurer holds a certificate of authority, it is known as what type of insurance? - Answer-Authorized
or admitted
What is the purpose of a cease and desist order? - Answer-To prevent a producer or insurer from further
violating laws for transacting insurance
Who may share in commission from the sale of a life insurance policy? - Answer-Only one producer
properly licensed for the type of insurance transaction
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available
for the payment of losses or claims. What is the company guilty of? - Answer-Misrepresentation
An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance
policy. What is the agent guilty of? - Answer-Rebating
What illegal act does a producer commit when the producer represents a policy in a more favorable light
than the policy really is? - Answer-Misrepresentation
regulations common to all lines
What are producers required to do in order to renew their license? - Answer-Complete continuing
education hours and pay a renwable fee
When is controlled business legal? - Answer-When the commissons from controlled buisness do not
exceed the aggregate commissions on all the othee buisness (specific limits may vary from state to
state)
If an insurer holds a certificate of authority, it is known as what type of insurance? - Answer-Authorized
or admitted
What is the purpose of a cease and desist order? - Answer-To prevent a producer or insurer from further
violating laws for transacting insurance
Who may share in commission from the sale of a life insurance policy? - Answer-Only one producer
properly licensed for the type of insurance transaction
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available
for the payment of losses or claims. What is the company guilty of? - Answer-Misrepresentation
An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance
policy. What is the agent guilty of? - Answer-Rebating
What illegal act does a producer commit when the producer represents a policy in a more favorable light
than the policy really is? - Answer-Misrepresentation
