Free Virginia Accident & Health practice questions

Answer: C. It is prohibited use of the Association's existence to induce a sale

Virginia forbids any person, expressly including agents of member insurers, from relying on the existence of the guaranty Association in any advertisement or statement made to sell, solicit, or induce the purchase of covered insurance. The prohibition reaches oral statements as well as written ones, and it contains no exception for an accurate description. Delivering the Association's summary document is a separate duty under subsection (B) and does not create an exception to the advertising ban.

Answer: B. Ninety business days

Virginia gives the applicant ninety business days, counted from the mailing of the adverse underwriting decision notice, to submit a written request. Twenty-one business days is a different period in the same subsection: it is how long the insurer has to furnish the information after it receives the request, not the applicant's window to ask. Neither thirty business days nor sixty calendar days is the request period this subsection sets.

Answer: B. It is a ground on which the Commission may suspend, revoke or refuse to renew

Virginia lists, as one ground for license action, disobeying a regulation, subpoena or order issued by the Commission or by an insurance regulator in another state. Disregarding an out-of-state regulator's subpoena fits that ground directly, so the view that only a Virginia subpoena counts is wrong. The section says the Commission may place on probation, suspend, revoke or refuse to issue or renew a license, which is discretionary rather than automatic. A felony conviction is a separate ground on the same list and is not a precondition for this one.

Answer: A. The nature and basis of the emergency that prompted the relief

Under Sec. 38.2-200(C), when the Commission suspends, extends or waives licensing or renewal requirements during an emergency, it must issue an order, and the first item that order must specify is the nature and basis of the emergency. The statute's list of required contents does not include the names of individual licensees or the insurers that asked for relief. The duration is capped rather than set at a minimum: the order may not exceed 120 days unless the Commission renews it.

Answer: C. The agent or producer of record on the policy the claim or suit concerns

Sec. 38.2-1801(A) treats the agent or producer of record as the insurer's agent when it comes to notice of a claim or suit. The rule is tied to the agent of record, so neither an appointed agent who is not of record nor whichever agent a claimant happens to reach fills that role under this sentence, and the subsection does not assign it to the clerk of the Commission. A health producer should also know the next sentence of the same subsection: for life insurance, accident and sickness insurance, annuity and variable annuity policies, the notice goes to the insurer at the home office the policy shows.

Answer: D. Suspension or revocation of any license the Commission has issued to him

Sec. 38.2-219(C) provides that a person who violates an order issued under subsection B may, upon conviction, face punishment under Sec. 38.2-218, suspension or revocation of any license issued by the Commission, or both. The subsection does not leave license action to the appointing insurer, does not limit the Commission to repeating its order, and does not prescribe a refund of all premiums collected.

Answer: A. Either the application filed with the home state or a completed Uniform Application

For a nonresident license, Virginia requires the applicant to submit the application the person filed with the home state, or a completed Uniform Application 'in lieu of the same.' That phrase makes the two alternatives, so sending both is not required, and the statute does not demand a separate Virginia-only form in place of them. Proof of current resident licensing in good standing at home is a separate requirement in the same subsection, not a substitute for the application.

Answer: D. It is met if the home state licenses Virginians on the same basis or lets them consult unlicensed

One condition for a Virginia nonresident insurance consultant license is that the applicant's home state either issue nonresident consultant licenses to Virginia residents on the same basis or allow a Virginia resident to act as a consultant there without a license. Because either alternative is enough, a reading limited to reciprocal licensing alone is too narrow. The section separately lets the Commission enter a reciprocal agreement with an appropriate official of another state where one is needed; it does not call for a Governor's signature. The home state's continuing education hours are not part of this condition.

Answer: C. She must satisfy every prelicensing requirement again, the examination included

Sec. 38.2-1819(C) bars the Commission from issuing a resident license that requires an examination more than 183 calendar days after the applicant satisfies the prelicensing examination requirements. March 1 to October 15 is 228 days, well beyond that window. An applicant who misses it must satisfy all prelicensing requirements again, including the examination, before applying, so retaking only the exam is not enough. The window is 183 calendar days rather than a year, and the subsection is written about resident licenses, so treating it as a nonresident rule reverses it.

Answer: B. No, because a submitter must hold a valid license for the class of insurance involved

Sec. 38.2-1822(A) provides that no person may submit business to any joint underwriting association, or to any plan established under Title 38.2 for the equitable distribution of risks among insurers, unless that person is validly licensed for the class of insurance involved. Omar is licensed for life and annuities, not for accident and sickness insurance, so he lacks the required license. Holding some Virginia license is not enough, the association's willingness to accept the business does not replace the license, and the rule speaks directly to submissions to such an association whether or not the association is itself an insurer.