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West Virginia Laws and Rules Pertinent to Insurance Exam Study Questions and Answers Graded A
Question 1: The West Virginia Insurance Commissioner attains
office in which of the following ways?
CORRECT ANSWER : Gubernatorial appointment (Governor of
WV)
Question 2: An offer of life insurance by an insurance company
in West Virginia to individuals who are personally invited to apply on the basis of the offer is known as what type of solicitation?
CORRECT ANSWER : Direct response
Question 3: When a producer is soliciting a client to effect a
contract of insurance, the producer is engaged in
CORRECT ANSWER : transacting insurance
Question 4: Courses are approved for continuing education
credit by the
CORRECT ANSWER : Insurance Commissioner and the Board
of Insurance Agent Education
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Question 5: If a producer tells an applicant that an insurance
policy is like a share of stock, the producer may be guilty of
CORRECT ANSWER : misrepresentation
Question 6: The West Virginia Insurance Commissioner may
refuse to renew a producer's license for all of the following reasons EXCEPT
CORRECT ANSWER : filing for bankruptcy
Question 7: If a producer has been engaged in an administrative
action by any government agency, within how many days following the final disposition must the producer report the action to the Insurance Commissioner?
CORRECT ANSWER : 30
Question 8: Which of the following terms defines the authority
given to a producer to transact business on behalf of the insurer?
CORRECT ANSWER : appointment
Question 9: An insurance company must do which of the
following to terminate an producer's appointment?
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CORRECT ANSWER : Send notice of termination to the
Commissioner
Question 10: A certificate of authority does which of the
following?
CORRECT ANSWER : Permits an insurance company to
transact business in West Virginia
Question 11: Which of the following statements is CORRECT
about the replacement of one insurance policy with another?
CORRECT ANSWER : It is strictly regulated and requires full
disclosure by both the producer and the replacing insurance company
Question 12: If the Insurance Department discovers that
applicants for an insurance license intend to produce insurance principally on themselves, their family, and their property, which of the following will happen?
CORRECT ANSWER : The applicants will not be issued a
license
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Question 13: Which of the following parties must provide an
insured with proper disclosure concerning the replacement of an insurance company?
CORRECT ANSWER : The producer who sells the new
insurance policy
Question 14: The West Virginia Life and Health Guaranty
Association guarantees life insurance death benefits up to
CORRECT ANSWER : $300,000
Question 15: In West Virginia, the Insurance Commissioner has
the power to penalize a producer for a violation in which of the following ways?
CORRECT ANSWER : A fine, only after a hearing
Question 16: Which activity may result in suspension or
revocation of a producer's license?
CORRECT ANSWER : Writing primarily controlled business
Question 17: The conversion period for a terminated employee
to convert group life coverage to an individual plan is