Virginia Property & Casualty Insurance License Exam — All Questions
2 questions
Which body regulates insurance and licenses resident property and casualty producers in Virginia?
- a.The Virginia Secretary of the Commonwealth
- b.The State Corporation Commission's Bureau of Insurance✓
- c.The Virginia Department of Motor Vehicles
- d.The Virginia Department of Professional and Occupational Regulation
Insurance in Virginia is regulated by the State Corporation Commission (SCC) through its Bureau of Insurance (scc.virginia.gov). The Bureau licenses producers, reviews forms and rates, and enforces the insurance laws. On the exam, remember it is the SCC's Bureau of Insurance, not the DMV or Secretary of the Commonwealth, that licenses property and casualty producers.
A Virginia producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under Virginia's unfair trade practices law this is generally:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be disclosed but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Virginia's unfair trade practices law and can bring fines and license action by the State Corporation Commission's Bureau of Insurance.