A West Virginia property and casualty producer reviewing a client's theft claim forms a reasonable belief that the client fabricated the loss. What does the West Virginia Insurance Fraud Prevention Act require of the producer?

Providing the commissioner the information the commissioner requires, in the manner prescribed

The West Virginia Insurance Commissioner must give a licensed producer notice under the insurance chapter and chooses to use the mail. To which address must the notice be sent for mailed service to be proper and effective?

The producer's main business or home address last on the Commissioner's records

The West Virginia Insurance Commissioner finds that a producer intentionally misrepresented the terms of a proposed policy to a client. Which response is within the Insurance Commissioner's authority under the statute listing causes for discipline?

Suspending the license and levying a civil penalty in the same action

An applicant for a resident West Virginia property and casualty producer license has satisfied the examination and application requirements of Secs. 33-12-5 and 33-12-6, and the commissioner has found no ground to deny licensure under Sec. 33-12-24. What does West Virginia law say happens next?

The applicant is to be issued a producer license, because the statute makes issuance mandatory

A West Virginia insurer pays a windstorm claim by mailing the insured a check alone, and it handles all of its claim payments the same way. Under the state's unfair claim settlement practices provision, what should accompany each payment?

A statement of the coverage under which the payment is made

For purposes of West Virginia's form filing section, an association offering a mass-marketed life or health policy to its members must satisfy several statutory conditions. Which of the following is one of those conditions?

It has been in active existence for at least two years

Under West Virginia's insurer licensing article, an insurer violates a provision of the insurance chapter for which license action is discretionary rather than mandatory. What may the Insurance Commissioner do on that ground?

After notice and hearing, it may refuse to renew, suspend or revoke the license

After notice and hearing, the West Virginia Insurance Commissioner orders a licensee to stop transacting insurance in an improper manner. At what point may the Commissioner revoke a license it issued to that licensee for disobeying the order?

When the licensee fails to obey within 20 days after notice of the order

A West Virginia producer learns that a policy form the Commissioner approved last year contains one provision that fails to comply with the state insurance chapter. What does the grounds-for-disapproval section direct the Commissioner to do?

Withdraw the earlier approval, since one noncompliance is enough

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1.A West Virginia property and casualty producer reviewing a client's theft claim forms a reasonable belief that the client fabricated the loss. What does the West Virginia Insurance Fraud Prevention Act require of the producer?
Answer: C. Providing the commissioner the information the commissioner requires, in the manner prescribed
Sec. 33-41-5(a) requires a person engaged in the business of insurance who knows of, or reasonably believes there is, a fraudulent insurance act or other insurance-related crime to give the commissioner the information the commissioner requires, in the manner the commissioner prescribes. A reasonable belief is enough to trigger the duty, and the act may be one that is under way, planned or already completed, so no charge or conviction is needed. The statute directs the information to the commissioner rather than leaving the decision to the insurer, and the voluntary reporting in subsection (b) applies to other persons outside that group.
Source
W. Va. Code Ann. Sec. 33-41-5(a) (Mandatory reporting of insurance fraud or criminal offenses otherwise related to the business of insurance)
Choose an answer to see the explanation.
2.The West Virginia Insurance Commissioner must give a licensed producer notice under the insurance chapter and chooses to use the mail. To which address must the notice be sent for mailed service to be proper and effective?
Answer: D. The producer's main business or home address last on the Commissioner's records
W. Va. Code Ann. Sec. 33-2-12 treats notice to a licensee as proper and effective once it is placed in the United States mail, postage prepaid, addressed to the licensee's principal place of business or residence as last recorded in the Commissioner's office. The address that counts is the one on the Commissioner's own records, so an address on a policy application or in an appointing insurer's files does not satisfy the mailing rule. Delivery to a courthouse clerk is not a method the section names; its alternative is service in the manner used for civil process, which the section also accepts for a licensee. The verified return of whoever mailed the notice is proof of service.
Source
W. Va. Code Ann. Sec. 33-2-12 (Notice)
Choose an answer to see the explanation.
3.The West Virginia Insurance Commissioner finds that a producer intentionally misrepresented the terms of a proposed policy to a client. Which response is within the Insurance Commissioner's authority under the statute listing causes for discipline?
Answer: C. Suspending the license and levying a civil penalty in the same action
For any listed cause, including intentionally misrepresenting the terms of an actual or proposed insurance contract, the Insurance Commissioner may place a producer's license on probation, suspend it, revoke it, refuse to issue or renew it, or levy a civil penalty, and may use any combination of those actions. Suspension together with a civil penalty in one action is therefore permitted. The statute does not bar pairing revocation with a penalty, does not require probation to be tried first, and does not make probation depend on the producer's consent.
Source
W. Va. Code Ann. Sec. 33-12-24(b) (Revocation, suspension or refusal to renew license; penalty)
Choose an answer to see the explanation.
4.An applicant for a resident West Virginia property and casualty producer license has satisfied the examination and application requirements of Secs. 33-12-5 and 33-12-6, and the commissioner has found no ground to deny licensure under Sec. 33-12-24. What does West Virginia law say happens next?
Answer: B. The applicant is to be issued a producer license, because the statute makes issuance mandatory
Sec. 33-12-9(a) provides that, unless licensure is denied under Sec. 33-12-24, individuals who have met the requirements of Secs. 33-12-5 and 33-12-6 'shall be issued' an insurance producer license. The word 'shall' makes issuance mandatory once those conditions are met, so a discretionary refusal is not what the section describes. Sec. 33-12-9(a) attaches no appointment condition to issuance; appointment is addressed separately in Sec. 33-12-18, which governs when a producer may act as an insurer's agent. Holding a license in another state is a condition of nonresident licensing under Sec. 33-12-12(a), and it does not appear among the resident applicant findings listed in Sec. 33-12-6(a).
Source
W. Va. Code Ann. Sec. 33-12-9(a) (Issuance of license)
Choose an answer to see the explanation.
5.A West Virginia insurer pays a windstorm claim by mailing the insured a check alone, and it handles all of its claim payments the same way. Under the state's unfair claim settlement practices provision, what should accompany each payment?
Answer: D. A statement of the coverage under which the payment is made
Sec. 33-11-4(9)(j) treats as unfair, when done often enough to indicate a general business practice, making claim payments to insureds or beneficiaries without a statement identifying the coverage under which the payment is made. The provision requires that coverage statement. It does not call for a copy of the adjuster's file, a release signed by a producer, or a copy of any filing with the commissioner.
Source
W. Va. Code Ann. Sec. 33-11-4(9)(j) (Unfair claim settlement practices)
Choose an answer to see the explanation.
6.For purposes of West Virginia's form filing section, an association offering a mass-marketed life or health policy to its members must satisfy several statutory conditions. Which of the following is one of those conditions?
Answer: C. It has been in active existence for at least two years
Under the form filing section, an association offering a mass-marketed life or health policy must have at least sixty-one members when the policy is first issued, must have been formed and kept up in good faith for some purpose other than getting or providing insurance, and must have been in active existence for at least two years. Five years overstates the existence requirement, an association formed mainly to obtain insurance fails the purpose test, and twenty-five members falls short of the sixty-one-member minimum.
Source
W. Va. Code Ann. Sec. 33-6-8(e)(1) (Filing of forms)
Choose an answer to see the explanation.
7.What minimum age must the Insurance Commissioner find that an individual has reached before approving an application for a resident insurance producer license in West Virginia?
Answer: D. 18 years of age
Before approving a resident producer application, the Insurance Commissioner must find, among other things, that the applicant has reached 18 years of age. An applicant younger than that falls short of the minimum, and the other ages offered are not the minimum West Virginia sets.
Source
W. Va. Code Ann. Sec. 33-12-6(a)(1) (Application for license)
Choose an answer to see the explanation.
8.Under West Virginia's insurer licensing article, an insurer violates a provision of the insurance chapter for which license action is discretionary rather than mandatory. What may the Insurance Commissioner do on that ground?
Answer: A. After notice and hearing, it may refuse to renew, suspend or revoke the license
W. Va. Code Ann. Sec. 33-3-11(a) lists grounds on which the Commissioner may, after notice and hearing, refuse to renew, revoke or suspend an insurer's license, in addition to other grounds in the chapter. The first ground, in subdivision (a)(1), is a violation of any provision of the chapter other than those for which refusal, suspension or revocation is mandatory. The action follows notice and hearing, so revoking on the spot without a hearing is wrong. A non-mandatory violation is itself a listed ground, so the license can be affected, and the section places the decision with the Commissioner rather than requiring a court.
Source
W. Va. Code Ann. Sec. 33-3-11(a)(1) (Discretionary refusal, revocation or suspension; penalty in lieu thereof; reissuance)
Choose an answer to see the explanation.
9.After notice and hearing, the West Virginia Insurance Commissioner orders a licensee to stop transacting insurance in an improper manner. At what point may the Commissioner revoke a license it issued to that licensee for disobeying the order?
Answer: B. When the licensee fails to obey within 20 days after notice of the order
Under W. Va. Code Ann. Sec. 33-2-11, the Commissioner may, after notice and hearing, order a person found to be transacting insurance improperly to stop. The person then has 20 days after notice to comply. If the person fails or refuses to obey within that window, the Commissioner may revoke any license the Commissioner issued to that person. Revocation is therefore not available the moment the order issues, and the section sets no 90-day waiting period. Applying to the circuit court for an injunction or a receiver is an additional remedy the section gives the Commissioner, not a step that must come before revocation.
Source
W. Va. Code Ann. Sec. 33-2-11 (Enforcement of orders; revocation of licenses; court action)
Choose an answer to see the explanation.
10.A West Virginia producer learns that a policy form the Commissioner approved last year contains one provision that fails to comply with the state insurance chapter. What does the grounds-for-disapproval section direct the Commissioner to do?
Answer: B. Withdraw the earlier approval, since one noncompliance is enough
The section directs that the Commissioner shall disapprove a form, or withdraw any approval already given, if the form violates or fails to comply with the insurance chapter "in any respect." A prior approval therefore gives the form no protection, and a single noncompliant provision is enough. Benefits that are unreasonable for the premium are a separate ground of their own, not a precondition for acting on noncompliance, and the section says nothing about sending the form to the Attorney General.
Source
W. Va. Code Ann. Sec. 33-6-9(a) (Grounds for disapproval of forms)
Choose an answer to see the explanation.

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The scored exam is free, 20 questions in 30 minutes, and needs an account. These 10 do not.

1.A West Virginia property and casualty producer reviewing a client's theft claim forms a reasonable belief that the client fabricated the loss. What does the West Virginia Insurance Fraud Prevention Act require of the producer?

2.The West Virginia Insurance Commissioner must give a licensed producer notice under the insurance chapter and chooses to use the mail. To which address must the notice be sent for mailed service to be proper and effective?

3.The West Virginia Insurance Commissioner finds that a producer intentionally misrepresented the terms of a proposed policy to a client. Which response is within the Insurance Commissioner's authority under the statute listing causes for discipline?

4.An applicant for a resident West Virginia property and casualty producer license has satisfied the examination and application requirements of Secs. 33-12-5 and 33-12-6, and the commissioner has found no ground to deny licensure under Sec. 33-12-24. What does West Virginia law say happens next?

5.A West Virginia insurer pays a windstorm claim by mailing the insured a check alone, and it handles all of its claim payments the same way. Under the state's unfair claim settlement practices provision, what should accompany each payment?

6.For purposes of West Virginia's form filing section, an association offering a mass-marketed life or health policy to its members must satisfy several statutory conditions. Which of the following is one of those conditions?

7.What minimum age must the Insurance Commissioner find that an individual has reached before approving an application for a resident insurance producer license in West Virginia?

8.Under West Virginia's insurer licensing article, an insurer violates a provision of the insurance chapter for which license action is discretionary rather than mandatory. What may the Insurance Commissioner do on that ground?

9.After notice and hearing, the West Virginia Insurance Commissioner orders a licensee to stop transacting insurance in an improper manner. At what point may the Commissioner revoke a license it issued to that licensee for disobeying the order?

10.A West Virginia producer learns that a policy form the Commissioner approved last year contains one provision that fails to comply with the state insurance chapter. What does the grounds-for-disapproval section direct the Commissioner to do?

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