CH 10 VA State Health and Insurance Exam Questions with accurate answers. 100% Accurate.

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CH 10 VA State Health and Insurance Exam Questions with accurate answers. 100% Accurate. What governing body issues rules and regulations for the administration of the Insurance Code? A) The S ... tate Corporation Commission B) The Virginia Department of Insurance C) The Life and Health Guarantee Association D) The Joint Legislative Audit and Review Commission - ✔✔A) The State Corporation Commission The State Corporation Commission, referred to as "the Commission," issues the rules and regulations for the administration for the Insurance Code. Notice of a hearing for cease and desist order must be given at least how many days in advance? A) 7 B) 10 C) 30 D) 90 - ✔✔B) 10 Notice of a hearing for a cease and desist order must be given at least 10 days in advance of the hearing and include the time and place of hearing What is the minimum age for obtaining an agent license in this state? A) 18 B) 19 C) 21 D) 25 - ✔✔A) 18 What authority issues a Cease and Desist Order? A) Commission B) Law Enforcement Officials C) NAIC D) Federal Board of Insurance Fraud. - ✔✔A) Commission Whenever it appears that any person is violating an insurance law of Virginia or any rule or regulation made by the Commission, the Commission may issue a cease and desist order. The State Corporate Commission (SCC) has the authority to do all of the following EXCEPT A) Issue cease and desist orders B) Issue licenses and certificated of authority. C) Impose fines or other penalties for violations of insurance laws. D) Have interest in insurance companies regulated by the Commission. - ✔✔D) Have interest in insurance companies regulated by the Commission. The Commission may not have ownership of, interest in, or any transaction in any capacity with any financial institution or insurance company licensed or regulated by the SEC. Which of the following represents an insurer? A) Agent B) Insured C) Commissioner D) Non-resident - ✔✔A) Agent How often will the Commission examine an insurer's books and records? A) Every 3 years B) Annually C) Only upon a request from the insurer or a complaint from a customer D) At least once every 5 years - ✔✔D) At least once every 5 years The Commission may examine books or records of each insurer as seen fit, but at least once every 5 years. An agent willfully violates an insurance law. What is the maximum fine for reach offence? A) $1,500 B) $2,000 C) $5,000 D) $7,500 - ✔✔C) $5,000 The Commissioner may fine a person committing a willful violation of any Virginia insurance code up to $5,000 for each offense. Which of the following is NOT a duty of the Commission of Insurance? A) Enforcing the Insurance Code B) Suspending or revoking licenses of Insurance Code violators C) Examining each domestic insurer at least once a year D) Appointing the Commissioner of Insurance - ✔✔C) Examining each domestic insurer at least once a year The Commission is required to examine every insurer license in Virginia at least once in every 5 years. What is the maximum penalty that could be imposed on agent for an unintentional violation of Virginia insurance law? A) $500 B) $1,000 C) $2,000 D) $5,000 - ✔✔B) $1,000 Any person who violates without knowledge or intent the insurance code of Virginia may be punished for each violation by a penalty of not more than $1,000. Willful violations may result in a fine up to $5,000. Which of the following is licensed solely to advise insureds about their policies? A) Consultant B) Agent C) Broker D) Actuary - ✔✔A) Consultant Insurance consultants offer advice and counseling regarding any contract of insurance issued in Virginia. Records of consultations must be kept for at least 3 years. A licensed agent or broker can serve as a consultant without a separate license. An applicant for an insurance license passed his prelicensing examination with the score of 90% 7 months ago. He applied for his license yesterday. Which of the following is true? A) The exam score is still valid; the applicant only has to pay license processing fees. B) The applicant must retake the examination and submit new application and processing fees. C) The prelicensing exam scores and fees are good for 1 year; the applicant just needs to wait for his license. D) The fees remain valid, but the test results will be forfeited. - ✔✔B) The applicant must retake the examination and submit new application and processing fees. Applicants must apply for and obtain a license within 183 calendar days of passing the Virginia prelicensing exam or must retake the exam. All fees will be forfeited, and the exam results will become invalid. Before service is rendered, a written agreement must be prepared for outlining the nature of activity to be performed and fees to be paid. Both the consultant and which of the following must sign the agreement? A) Commissioner of Insurance B) Client C) Client's attorney D) A licensed agent - ✔✔B) Client Who is a person, other than a viator, that enters into a viatical settlement contract? A) Broker B) Provider C) Purchaser D) Effectuator - ✔✔B) Provider "Viatical settlement provider" means a person, other than a viator; that enters into or effectuates (makes effective) a viatical settlement contract. A business entity conducting the business of insurance under an assumed name must notify the Bureau of Insurance within a specified number of days of their licensure. How many days? A) 30 B) 7 C) 60 D) 14 - ✔✔A) 30 Anyone (individual or a business entity) using an assumed or fictitious name must notify the Bureau of Insurance within 30 days of their licensure. How often must insurance consultants renew their license? A) Every year B) Every 2 years C) Every 5 years D) Never; licenses are perpetual unless revoked. - ✔✔A) Every year Consultants' licenses must be renewed annually, by submitting a renewal application and a nonrefundable renewal fee by June 1. Which of the following persons is require to hold a producer license? A) A person who creates insurance advertisements B) A person who takes messages related to claims C) A person who administers employee benefits D) A person who negotiates insurance contracts - ✔✔D) A person who negotiates insurance contracts Persons who perform clerical tasks that are not related to soliciting or negotiating insurance contracts are not required to be licensed. Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract? A) Viatical settlement provider B) Viatical settlement purchaser C) Viatical settlement broker D) Viatical settlement effectuator - ✔✔A) Viatical settlement provider Which of the following authorities determines whether an insurer's appointment of an agent is valid? A) Guaranty Association B) Federal Association of Insurers C) NAIC D) Commission - ✔✔D) Commission If the Commission determines the appointment is invalid, it will notify the insurer within 5 business days of receipt of notice. If the appointment is valid, the Commission will issue an acknowledgement of appointment to the agent and insurer within 5 business days. Once the agent's appointment with the insurer has been terminated, how soon must the insurer mail a notice of termination to the agent? A) 5 business days B) 10 days C) 15 calendar days D) 30 days - ✔✔C) 15 calendar days Within 15 calendar days after notifying the Commission of an agent's appointment termination, the insurer must mail a copy of the notification to the agent at his last known address. Which of the following authorities must present notice of appointment to an agent? A) Insurer B) Commission C) Federal Board of Insurers D) A & B - ✔✔D) A & B The licensed agent must receive notice of appointment from the insurer, as well as from the Commission. Which of the following would be required to be licensed as an insurance producer? A) A salaried employee who advertises and solicits insurance B) A person whose activities are limited to producing insurance advertisements C) A salaried full-time employee who furnishes information for group insurance D) An insurance company director who performs executive, administrative and managerial duties - ✔✔A) A salaried employee who advertises and solicits insurance A person does not require an insurance produce license if he or she only advertises without intent to solicit insurance. However, once there is solicitation, a license is required. How many hours of continuing education must be completed on the subject of ethics biennially A) 3 B) 5 C) 10 D) 12 - ✔✔A) 3 Of the total required CE hours, 3 credit hours must be in ethics, which may include insurance law and regulations applicable in Virginia How often must continuing education requirement be met? A) Every year B) Every 2 years C) Every 3 years D) Every year for the first 5 years, then every 3 years - ✔✔B) Every 2 years Continuing education is required biennially (every 2 years) of resident and nonresident agents. Margaret applies for an insurance license, but the Commission decides not to issue the license because her tarnished reputation. She notifies the Commission that she wants to dispute this judgement in a hearing. The Commission must give her at least how many days' notice of the date of the hearing? A) 0 B) 10 C) 30 D) 60 - ✔✔B) 10 The Commission will notify the applicant at least 10 calendar days' notice in writing, of the time and place of the hearing A new set of continuing education hours must be completed every A) 1 year B) 2 years C) 3 years D) 5 years - ✔✔B) 2 years An agent has moved from Virginia to another state. When will his license authority be terminated? A) Immediately B) 30 days after the Commission receive the notification C) 30 days after the change of residence D) Within 10 business days - ✔✔A) Immediately If an agent has moved the place of residence from this Commonwealth, the license authority terminated immediately, whether or not the Commission has been notified. Agent P has a life license. How many hours of CE must be completed to complete Agent P's requirement? A) 8 B) 10 C) 12 D) 16 - ✔✔D) 16 Any agent who holds one type of license must complete 16 hours of continuing education. Any agent who holds more than one type must complete 24 hours of continuing education. In order to maintain funds in a fiduciary capacity, all of the following actions are required EXCEPT: A) Funds must be held in a separate account B) The agent must keep detailed records of the funds held. C) The agent must act in a reasonable; prudent and competent manner. D) The agent must photocopy all funds received prior to deposit. - ✔✔D) The agent must photocopy all funds received prior to deposit. [Show More]

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