Virginia Personal Lines Insurance License Exam — All Questions

Effective January 1, 2025, what minimum auto liability limits must a Virginia personal auto policy carry?

• a.$25,000 per person / $50,000 per accident bodily injury and $20,000 property damage
• b.$30,000 per person / $60,000 per accident bodily injury and $20,000 property damage
• c.$50,000 bodily injury per person, $100,000 bodily injury per accident, and $25,000 property damage✓
• d.$100,000 per person / $300,000 per accident bodily injury and $50,000 property damage

Effective January 1, 2025, Virginia raised its minimum motor-vehicle liability limits to 50/100/25 - $50,000 bodily injury per person, $100,000 bodily injury per accident, and $25,000 property damage (up from the prior 30/60/20). Source: Va. Code section 46.2-472; verify current figures with the Virginia Bureau of Insurance.

Before January 1, 2025, Virginia's minimum auto liability limits were:

• a.25/50/20
• b.30/60/20✓
• c.50/100/25
• d.15/30/10

Virginia's minimum limits were 30/60/20 ($30,000 per person / $60,000 per accident bodily injury and $20,000 property damage) before the January 1, 2025 increase to 50/100/25. Source: Va. Code section 46.2-472.

How does Virginia generally handle liability for auto accidents?

• a.It is an at-fault (tort) state - the driver who causes the crash is liable for the other party's injuries and damage✓
• b.It is a no-fault state where each driver's own PIP pays first regardless of fault
• c.Fault is never considered; claims are split evenly
• d.Only a state fund pays auto claims

Virginia is a traditional at-fault (tort) state, not a no-fault state: the driver who causes a crash is responsible for the other party's bodily injury and property damage, so liability limits and uninsured/underinsured motorist coverage matter. Source: Virginia State Corporation Commission (https://scc.virginia.gov/pages/Insurance).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Virginia?

• a.Insurers may cancel any policy at any time without notice
• b.Policies can never be cancelled once issued
• c.Only the insured may cancel; the insurer never can
• d.State law limits the permissible reasons and requires advance written notice of cancellation or nonrenewal✓

Virginia law limits the reasons an insurer may cancel a personal auto or homeowners policy mid-term and requires advance written notice of cancellation or nonrenewal. The exact number of days depends on the reason and line - verify current Virginia notice periods with the Virginia Bureau of Insurance (https://scc.virginia.gov/pages/Insurance).

Which best describes the body that writes and enforces Virginia's insurance regulations affecting personal lines policies?

• a.The Bureau of Insurance within the State Corporation Commission✓
• b.A private trade association of insurers
• c.The U.S. Department of the Treasury
• d.County insurance boards

The Bureau of Insurance, part of the Virginia State Corporation Commission, adopts and enforces the administrative rules and market-conduct standards that apply to personal lines insurers and producers in Virginia. Source: Virginia State Corporation Commission (https://scc.virginia.gov/pages/Insurance).