West Virginia Laws and Rules Pertinent to Insurance Latest Update - 150 Questions and 100% Verified Correct Answers
A certificate of authority does which of the following? - CORRECT ANSWER: Permits an insurance company to transact business in West Virginia
A licensee may not transact insurance business in West Virginia until: - CORRECT
ANSWER: the licensee is appointed by an insurer
A producer is suggesting replacement if a prospective insured is given all of the
following advice EXCEPT:
- "Discontinue premiums and put them into a new policy"
- "Take Reduced Paid-Up insurance and use present premiums for a new policy"
- "Borrow all of your cash value from your current policy to purchase a new policy"
- "Convert your Term insurance to Whole Life" - CORRECT ANSWER: "Convert your
Term insurance to Whole Life"
A producer who allows his or her license to lapse: - CORRECT ANSWER: may within 12 months from the renewal date reinstate the license without retaking the state licensing exam. However, a penalty of double the unpaid renewal fee will be required
A producer who holds a resident license in a different state may apply for a nonresident license in West Virginia as long as: - CORRECT ANSWER: both states have a reciprocal agreement
Alien insurance company - CORRECT ANSWER: A company that is chartered and
organized in any country other than the United States.
Ex: A company chartered in Canada would be an alien company in West Virginia
An applicant for a resident producer license in West Virginia must: - CORRECT
ANSWER: -Be at least 18 years of age
- Not have committed any act that is grounds for denial, suspension, or revocation
- Completed a prelicensing course
- Have passed the state exam for the lines of authority in which licensure is sought
- Submit application with fees
- Not intend to use the license primarily to write controlled business
- Be deemed trustworthy and competent
An insurance company must do which of the following to terminate an producer's
appointment? - CORRECT ANSWER: Send notice of termination to the Commissioner
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An insured or insurer must ask for a rehearing based on a decision by the Insurance
Commissioner within ___ days - CORRECT ANSWER: 30
An insured who is covered under an employer's Group Life policy for $15,000 has resigned. All of the following statements about conversion privileges are true EXCEPT:
- the insured must apply for conversion within 31 days after the date of resignation
- conversion is guaranteed by the insurance company if applied for
- the insured can convert to a $15,000, 15-Year Level term policy
- the premiums will depend on the insured's age and the type of policy - CORRECT
ANSWER: the insured can convert to a $15,000, 15-Year Level term policy
An insurer that terminates an agent appointment must notify the Commissioner when? -
CORRECT ANSWER: within 30 days of the date of termination
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
An producer that sells an insurance policy for an unauthorized insurer: - CORRECT
ANSWER: runs the risk of being responsible for unpaid claims
At the very least, a company shall be examined once every ___ years by the
Commissioner - CORRECT ANSWER: 5
Authorized insurer / admitted insurance company - CORRECT ANSWER: An insurance
company that has qualified and received a Certificate of Authority from Insurance Department to sell insurance in this state
Boycott, coersian, and intimidation - CORRECT ANSWER: It is an illegal practice to commit or coordinatie any act or boycott, coercion, or intimidation in order it restrain or monopolize the business of insurance
Commingling - CORRECT ANSWER: A producer who had combined premiums
collected with personal funds. PROHIBITED
Commissions rule - CORRECT ANSWER: No person shall pay or accept commissions
to/from an unlicensed individual for the purpose of selling or negotiating insurance business
Controlled Business - CORRECT ANSWER: policies written on people that the licensed producer has direct influence over (family, employers, a company where producer has stock control)
Conversion period from group life to individual - CORRECT ANSWER: 31 days
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