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
