Virginia Ethics, Marketing & Unfair Trade Practices
The final state topic covers how a Virginia producer must behave in the market: the prohibited unfair trade practices, the duty to handle client money properly, and the advertising and disclosure standards that keep sales honest. Most of these rules come from Virginia's Unfair Trade Practices Act and related regulations.
Unfair Trade Practices and Prohibited Conduct
Virginia's Unfair Trade Practices Act (based on the NAIC model) prohibits misrepresentation of policy terms, false or misleading advertising, unfair discrimination between similar risks, and deceptive claim practices. Rebating — offering part of the premium or commission, or other valuable consideration, as an inducement to buy — is also prohibited. Violations can lead to fines and license suspension or revocation by the Bureau of Insurance.
Twisting, Churning, and Honest Comparisons
Twisting is using misrepresentation or incomplete comparisons to induce a policyholder to drop an existing policy and buy a new one; churning is a similar replacement abuse using the same insurer's policies. Both are prohibited in Virginia. When a producer compares or replaces coverage, the comparison must be complete and fair, and benefits, dividends, and an insurer's financial condition must never be misrepresented.
Fiduciary Duty and Handling Client Funds
Premiums a producer collects belong to the insurer or the client, not the producer. Virginia treats this as a fiduciary responsibility: funds must be remitted properly and must not be commingled with personal funds or converted for personal use. Failing to account for premiums, or misappropriating client money, is grounds for discipline and can also be a crime.
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State-specific details
State exam facts
- State regulator
- Virginia State Corporation Commission, Bureau of Insurance
- Exam vendor
- Prometric
- Prelicensing education
- None
- Passing score
- 70%
Who regulates life & health insurance licensing in Virginia?
The Virginia State Corporation Commission's Bureau of Insurance licenses life, annuities & health agents. Virginia contracts with Prometric — not Pearson VUE or PSI — to administer its licensing examinations.
Does Virginia require prelicensing education for the life & health exam?
No. Virginia is one of the few states that does not require prelicensing education before you sit for the exam; you may schedule directly with Prometric.
How long is my Virginia passing score valid?
A passing score (70%) is valid for 183 calendar days, within which you must submit your complete license application to the Bureau of Insurance.
Sources: https://www.scc.virginia.gov/regulated-industries/bureau-of-insurance/licensed-agent, https://www.prometric.com/exams/insurance-va/
In the Virginia Life & Health Insurance Producer Exam guide: A KEY CONCEPT box, a Common Traps list and a Check Yourself set closing each of the 9 national chapters. Practice here stays free.