WV LAWS AND RULES PERTINENT TO INSURANCE EXAM
QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS GRADED A++
If a producer has been engaged in an administrative action by any governmental agency, within how
many days following the final deposition must the producer report the action to the Insurance
Commissioner?
30
Which of the following statements is CORRECT about the replacement of one insurance policy with
another?
It is strictly regulated and requires full disclosure by both the producer and the replacing insurance
company
Which of the following actions by an insurance company or a producer is considered rebating?
Offering a prospect something of value that is not specified in a contract to induce the purchase of that
contract
Failure of an insurance company to accept a valid Proof of Loss statement is considered
an unfair claims practice
All of the following activities may result in the revocation or suspension of a producer's license EXCEPT
Representing a foreign insurance company
, If a producer tells an applicant that an insurance policy is like a share of stock, the producer may be
guilty of
misrepresentation
Continuing education is required of individuals licensed to sell which of the following types of
insurance?
Life insurance
The West Virginia Insurance Commissioner may refuse to renew a producer's license for all of the
following reasons EXCEPT
filing for bankruptcy
All of the following actions are considered rebating EXCEPT
sharing commissions with other licensed and appointed agents
A stock insurance company is BEST defined as an incorporated company that has its capital divided
into shares and
is owned exclusively by its shareholders
Which of the following statements is CORRECT about the West Virginia Life and Health Insurance
Guaranty Association?
It is funded by insurance companies through assessments
If a producer knowingly violates the Unfair Trade Practices laws of West Virginia, the Office of the
Insurance Commissioner may fine the producer a MAXIMUM of which of the following amounts per
violation?
QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS GRADED A++
If a producer has been engaged in an administrative action by any governmental agency, within how
many days following the final deposition must the producer report the action to the Insurance
Commissioner?
30
Which of the following statements is CORRECT about the replacement of one insurance policy with
another?
It is strictly regulated and requires full disclosure by both the producer and the replacing insurance
company
Which of the following actions by an insurance company or a producer is considered rebating?
Offering a prospect something of value that is not specified in a contract to induce the purchase of that
contract
Failure of an insurance company to accept a valid Proof of Loss statement is considered
an unfair claims practice
All of the following activities may result in the revocation or suspension of a producer's license EXCEPT
Representing a foreign insurance company
, If a producer tells an applicant that an insurance policy is like a share of stock, the producer may be
guilty of
misrepresentation
Continuing education is required of individuals licensed to sell which of the following types of
insurance?
Life insurance
The West Virginia Insurance Commissioner may refuse to renew a producer's license for all of the
following reasons EXCEPT
filing for bankruptcy
All of the following actions are considered rebating EXCEPT
sharing commissions with other licensed and appointed agents
A stock insurance company is BEST defined as an incorporated company that has its capital divided
into shares and
is owned exclusively by its shareholders
Which of the following statements is CORRECT about the West Virginia Life and Health Insurance
Guaranty Association?
It is funded by insurance companies through assessments
If a producer knowingly violates the Unfair Trade Practices laws of West Virginia, the Office of the
Insurance Commissioner may fine the producer a MAXIMUM of which of the following amounts per
violation?
