VIRGINIA LAWS AND RULES PERTINENT EXAM QUESTIONS WITH
ANSWERS GRADED A+ 2025/2026
The West Virginia Insurance Commissioner attains office in which of the following
ways? - Gubernatorial appointment (Governor of WV)
Direct response solicitation - Any offer by an insurance company to persons in this state
(either directly or through a third party) to effect life or health insurance coverage which
enables the individual to apply for insurance on the basis of the offer
Fingerprinting - The Commissioner requires fingerprinting and a criminal history
background check on all applicants as a condition of licensing
What must the Commissioner do before holding a hearing that may lead to the
suspension or revocation of the producer's license? - Give written notice
Producers must report a change in address or name to the Insurance Commissioner
within ___ days of the change - 30
Producers must report any bankruptcy, felony conviction, or any other administrative
action that occurs in West Virginia or another jurisdiction to the Insurance Department
when? - within 30 days after the final dispostition
What must be included when a producer reports a final disposition of an administrative
action against the producer to the Insurance Commissioner? - - the initial complaint
- a copy of the order
- other relevant legal documents
Insurers are responsible for submitting an appointment notice to the Commissioner
when? - within 15 days of an agent's appointment or submission of first insurance
application
An insurer that terminates an agent appointment must notify the Commissioner when? -
within 30 days of the date of termination
Within 15 days of notifying the Commissioner of a termination: - The insurer must mail a
copy of the notice to the terminated agent, after which the agent will have 30 days to
submit written comments to the Commissioner
Commissions rule - No person shall pay or accept commissions to/from an unlicensed
individual for the purpose of selling or negotiating insurance business
If an insurance producer charges a fee for placing an insurance policy: - the producer
must report the placement to his primary insurance company
What signed document starts the free look period? - delivery receipt
, Controlled Business - policies written on people that the licensed producer has direct
influence over (family, employers, a company where producer has stock control)
Obtaining a license for the primary purpose of writing controlled business is: - prohibited
Commingling - A producer who had combined premiums collected with personal funds.
PROHIBITED
Domestic insurance company - A company that resides and is incorporated under the
laws of the state in which the home office is located.
Ex: A company domiciled in West Virginia would be a domestic company in West
Virginia
Foreign insurance company - A company whose home office is located in another state.
Ex: A company domiciled in Pennsylvania would be a foreign company in West Virginia
Alien insurance company - A company that is chartered and organized in any country
other than the United States.
Ex: A company chartered in Canada would be an alien company in West Virginia
Authorized insurer / admitted insurance company - An insurance company that has
qualified and received a Certificate of Authority from Insurance Department to sell
insurance in this state
Unauthorized user / non-admitted company - An insurance company that has been
denied or not yet applied for a Certificate of Authority and may not sell insurance in this
state
An producer that sells an insurance policy for an unauthorized insurer: - runs the risk of
being responsible for unpaid claims
Stock Insurance Company - - owned and controlled by stockholders
- nonparticipating
- objective is to produce profit for its owners, the stockholders
Mutual Life Insurance Companies - - owned and controlled by its policyowners
- policyholders elect a board of trustees or governing body to manage the firm
- profits are returned to policyholders in the form of dividends or retained as surplus to
meet future obligations
- participating
- objective is to provide insurance to its owners, the policyowners, at the lowest net cost
Types of Unfair Trade Practices - - misrepresentation
- false advertising
- defamation
- boycott, coercion, and intimidation
ANSWERS GRADED A+ 2025/2026
The West Virginia Insurance Commissioner attains office in which of the following
ways? - Gubernatorial appointment (Governor of WV)
Direct response solicitation - Any offer by an insurance company to persons in this state
(either directly or through a third party) to effect life or health insurance coverage which
enables the individual to apply for insurance on the basis of the offer
Fingerprinting - The Commissioner requires fingerprinting and a criminal history
background check on all applicants as a condition of licensing
What must the Commissioner do before holding a hearing that may lead to the
suspension or revocation of the producer's license? - Give written notice
Producers must report a change in address or name to the Insurance Commissioner
within ___ days of the change - 30
Producers must report any bankruptcy, felony conviction, or any other administrative
action that occurs in West Virginia or another jurisdiction to the Insurance Department
when? - within 30 days after the final dispostition
What must be included when a producer reports a final disposition of an administrative
action against the producer to the Insurance Commissioner? - - the initial complaint
- a copy of the order
- other relevant legal documents
Insurers are responsible for submitting an appointment notice to the Commissioner
when? - within 15 days of an agent's appointment or submission of first insurance
application
An insurer that terminates an agent appointment must notify the Commissioner when? -
within 30 days of the date of termination
Within 15 days of notifying the Commissioner of a termination: - The insurer must mail a
copy of the notice to the terminated agent, after which the agent will have 30 days to
submit written comments to the Commissioner
Commissions rule - No person shall pay or accept commissions to/from an unlicensed
individual for the purpose of selling or negotiating insurance business
If an insurance producer charges a fee for placing an insurance policy: - the producer
must report the placement to his primary insurance company
What signed document starts the free look period? - delivery receipt
, Controlled Business - policies written on people that the licensed producer has direct
influence over (family, employers, a company where producer has stock control)
Obtaining a license for the primary purpose of writing controlled business is: - prohibited
Commingling - A producer who had combined premiums collected with personal funds.
PROHIBITED
Domestic insurance company - A company that resides and is incorporated under the
laws of the state in which the home office is located.
Ex: A company domiciled in West Virginia would be a domestic company in West
Virginia
Foreign insurance company - A company whose home office is located in another state.
Ex: A company domiciled in Pennsylvania would be a foreign company in West Virginia
Alien insurance company - A company that is chartered and organized in any country
other than the United States.
Ex: A company chartered in Canada would be an alien company in West Virginia
Authorized insurer / admitted insurance company - An insurance company that has
qualified and received a Certificate of Authority from Insurance Department to sell
insurance in this state
Unauthorized user / non-admitted company - An insurance company that has been
denied or not yet applied for a Certificate of Authority and may not sell insurance in this
state
An producer that sells an insurance policy for an unauthorized insurer: - runs the risk of
being responsible for unpaid claims
Stock Insurance Company - - owned and controlled by stockholders
- nonparticipating
- objective is to produce profit for its owners, the stockholders
Mutual Life Insurance Companies - - owned and controlled by its policyowners
- policyholders elect a board of trustees or governing body to manage the firm
- profits are returned to policyholders in the form of dividends or retained as surplus to
meet future obligations
- participating
- objective is to provide insurance to its owners, the policyowners, at the lowest net cost
Types of Unfair Trade Practices - - misrepresentation
- false advertising
- defamation
- boycott, coercion, and intimidation
