Insurance Regulations

Penalty per day for a late appointment, renewal fees

$50

Notice of hearing for a cease, and desist order must be given at least

10 days in advance

Any person who violates the insurance code without knowledge or is it may be subject to penalty of not more than

1000 for each violation

Any person who violates the insurance go without knowledge or intent, may not exceed and aggregate amount of

10000

Agent P has a life's license. How many hours of CE must be completed to complete Agent P requirements

16

Any agent who holds one type of license must complete

16 hours of continuing education

What is the minimum age for obtaining an agent license in this state?

18

Obtain a license within

183 calendar days

Any agent who holds more than one type of license must complete

24 hours of continuing education

Every agent license original must report a change of name, residential or business address or email address in writing to the commission within

30 calendar days

The sound, or a fictitious name must be notified to the bureau of insurance within

30 calendar days

Appointing insurance filed a notice of appointment within

30 calendar days from the first insurance, application or policy was submitted

Insure will provide to agent a notice that the appointment has been fell within the same

30 day period

Every license agent convicted of a felony, or who has any administrative action taken against him or her in another jurisdiction, or buy another government agency in this Commonwealth must report all the facts and circumstances to the commission within

30 days

If the commission determines the appointment is invalid, the appointment sure will be notified within

5 business days

Request for waiver, must be submitted no later than

90 calendar days

What are the most common penalties for violations of insurance statutes

A cease and desist order, a fine, and license suspension or revocation

All of the following must be included in the report of the commissioner after administrative action is taken against a license insurance agent, except

A copy of agent license

Who is an insurance agent?

A person authorized to sell, solicit and negotiate insurance contracts

Which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits insurance

All of the following would be considered rebating except

An agent misrepresents policy benefits to convince a policyowner to replace policies.

Who is considered a non-resident agent

An agent who resides and is licensed in another state, but who is authorized to transact insurance in this state

A business entity acting as an agent must be license as

An insurance producer

Rebating

Any inducements offer it to the insurer in the sale of insurance products that is not specify in the policy

Person M and Person N worked on writing an insurance policy for a client. Which of the following statements regarding their possible share of commission is correct?

As long as M and N are both licensed for the line of insurance written, they may share the commission

The commission may examine every insurer authorized to transact business in Virginia as often as deemed necessary, but

At least once every five years

Every insurer must remain a renewal appointment fee for each active appointment annually before

August 10

If an insurer holds a Certificate of Authority, it is known as what type of insurer?

Authorized or admitted

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered what type of insurer?

Authorized or admitted

In order to qualify for an agent license in Virginia each applicant must meet the following requirements

Be at least 18 years old Be a resident of Virginia Be a good character, and have a reputation for honesty

It is illegal to be involved in any activity of

Boycott, corrosion, or intimidation

If the Commissioner/Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice, what order will be issued?

Cease and desist order

A state-issued document empowering an insurance company to become an admitted insurer is called what?

Certificate Authority

What document is required for an insurance company to transact insurance?

Certificate Authority

I License, granting the authority to transact the business of insurance in Virginia, must be issued by

Commission

The insurer must notify the agent of the invalid appointment within five business days of receiving notification from

Commission

What are producers required to do in order to renew their license ?

Complete continuing education hours and pay a renewal fee

Within 15 calendar days after notifying the commission of an agents appointment termination, the insurer must mail

Copy of the notification to the agent at his last known address

Two individuals who are the same race in age class are charge different rates for their insurance policies do to insignificant factor what is this called?

Discrimination

cease and desist order

Does not mean an agent must stop selling insurance bus stop committing the act that violates the law

Insurance are classified according to their domicile. What are the three types of insurance?

Domestic foreign and alien

Consultant license must be renewed

Every two years

Which of the following is not a duty of the commission of insurance ?

Examining each domestic insurer at least once a year (they are required to examine every licensed insurer at least once in every 5 years)

The requirement that agents must account for and promptly remit all insurance funds collected is known as what type of agent responsibility?

Fiduciary

Upon the termination of the appointment of an agent by an insurer, the insurer must notify the agent within

Five calendar days and the commission within 30 calendar days

Waiting period To reapply for a new license after licensed denial or revocation

Five years

Misrepresentation

Fossil is leading or deceptive as to policy benefits, or terms, or the payment of dividends

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstances

Discrimination

Individual marital status, race, national origin, gender identity, sexual orientation, creator, and history, unless the distinction is made for a business purpose or required by law

Type of license

Individual resident and nonresident consultant, business entity, vatical settlement, Broker or provider

In general who can be excluded from producers licensing and examination requirements

Insurance company officer, Director, or any other employee who do not transact insurance in who do not receive commission for their service

Surplus lines

Insurance not available from authorized insurers placed with nonadmitted insurers who specialize in offering insurance to the high risk market

What is controlled business?

Insurance on the producer's own life or property, or the lives or property of the producer's family or business associates

Defamation

Maliciously critical of the financial condition of any person or a company

The NAIC is funded by

Member states by charging members and annual assessment in the amount determined

On its advertisement, a company claims that it has funds in its possessions that are in fact, not available for the payment of losses or claims what is the company guilty of

Misrepresentation

What illegal act as a producer commit when the producer represents a policy any more favorable light in the policy really is

Misrepresentation

Rebating

Occurs when an insured is offered something of value in order to induce the sale of an insurance product.

An insurance producer license is not require of any

Officer, Director or employee of an insurer or organization, employed by insurers

Who may share in the commission from the sale of an insurance policy?

Only produces properly license for the type of insurance transaction

Any person who violates a cease and desist order, may be subject to

Penalty or license, suspension or revocation

Insurance guaranty association

Protects policy owners against insolvent insurers clearly details

false advertising

Publishing an ad in a newspaper or magazine to broadcast a commercial on television or the Internet advertising, untrue, deceptive, or misleading statements that apply to the business of insurance or anyone who conducts it

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?

Rebating

Any inducement offer to the insurer in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

Who owns stock companies

Stockholders

Candidate for a license must do the following

Submit a reading application, take and pass the state insurance exam Apply for and obtain a license within six months (183 calendar days)

The commission is responsible for

Supervise insurance business Licensing Approve policies and forms Enforce insurance laws and impose penalties for violation Conduct examinations, investigations, hearings

Commission

Supervise operation of the department of insurance Enforce insurance code Examines all authorized insurers

Who must be notified of a producer's change of address?

The Department of Insurance (Commissioner/Director/Superintendent)

Fiduciary responsibility

The agent is in a position of a financial trust

According to the state regulation, a notice of informed practice that insurers provide to applicants and policy owners must include all of the following, except

The information gathered in the course of the investigation

Who is responsible for the costs associated with the examination of insurers?

The insurer who is being examined

Twisting

Their detriment to cancel labs, switch, policies, or take L a policy with another insurer

Continuing education hours for ethics is

Three

Every licensee must retain all record pertaining to insurance transaction for the previous

Three calendar years

How many times do you get to take the state insurance exam before a wait period ? And how long is the wait period?

Three times in 30 days before retaking

To whom may a certificate of authority be issued?

To an insurer authorized to transact business in this state

What is the purpose of a cease and desist order ?

To prevent a producer or insurer from further violating laws for transacting insurance

Which type of misrepresentation persuades insured to their detriment to cancel lapse or switch policies from one to another

Twisting

Any person who, knowingly or willfully finalize the insurance code, will be subject to a penalty

Up to 5000 for each violation

False material statements, may be fine

Up to Ten years

In which instance may 3 licensees share commission

When all three are license for the same line of insurance from which the commission comes

When would a misrepresentation on an insurance application be considered fraud?

When it is intentional and material

When is controlled business legal?

When the commissions from controlled business do not exceed the aggregate commissions on all the other business (specific limits may vary from state to state)

Where can the commissioner or Director examine insurers?

Whenever deem necessary, but at least once every five years

Within 30 calendar days after the agent has received notification that the agent may file

Written comments with the commission

What type of licensee represents the insurance company?

agent

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of

coercion

What authority issues, a cease and desist order

commision

If a producer makes maliciously critical statements about another insurer what is this legal practice called?

defamation

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of ?

false advertising

What type of insurer is formed under the law of another state?

foreign

Authorized insurer

insurer who has received a Certificate of Authority from the department of insurance to transact insurance in this state