West Virginia Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in West Virginia?
- a.The West Virginia Offices of the Insurance Commissioner✓
- b.The West Virginia Division of Motor Vehicles
- c.The West Virginia State Tax Department
- d.The West Virginia Secretary of State
West Virginia regulates insurance and licenses producers through the Offices of the Insurance Commissioner, led by the Insurance Commissioner. The Division of Motor Vehicles enforces vehicle registration and proof of insurance but does not license producers.
A West Virginia producer offers to rebate part of his commission to a client as an inducement to buy an auto policy. This is:
- a.Permitted if disclosed to the insurer
- b.Permitted for new customers only
- c.Prohibited rebating under West Virginia's unfair trade practices law✓
- d.Required to be reported but otherwise lawful
Rebating, giving any part of the premium or commission or other valuable consideration as an inducement to buy, is a prohibited unfair trade practice in West Virginia and can bring fines and license action by the Offices of the Insurance Commissioner.
After a West Virginia personal auto or homeowners policy is in force beyond its initial underwriting period, mid-term cancellation by the insurer is generally allowed only:
- a.For specific statutory reasons such as nonpayment of premium, fraud or material misrepresentation, or a substantial increase in the hazard, with required advance written notice✓
- b.For any reason, with no notice to the insured
- c.Only during the first month after issuance
- d.Never under any circumstances
West Virginia limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud or material misrepresentation, or a substantial increase in the hazard, and requires advance written notice. The exact notice day-counts are set by statute; verify current figures with the Offices of the Insurance Commissioner.