Licensing, State, and Federal Regulations

Question 1

Agent/Producer

Answer 1

individual/business entity that sells, solicits, or negotiates contracts of insurance or annuity in VA

Question 2

Designated Licensed Producer - individual requirements

Answer 2

16 hours education + exam
18 years old +
good character and good reputation for honesty (criminal background check)

Question 3

Designated Licensed Producer - entity requirements

Answer 3

designate licensed producer to be responsible for entity’s compliance with all insurance laws (employee, officer, director, manager, or partner
partnership, limited partnership, limited liability company, corporation, or other legal entity other than sole proprietorship or law firm
residents - move prove it exists
non residents - reciprocity

Question 4

When is a license required?

Answer 4

If you want to solicit customers to buy title insurance, negotiate with those customers the details of those insurance policies, and if you want to sell title insurance

Question 5

Sell

Answer 5

to exchange a contract of insurance by means, for money or its equivalent, on behalf of an insurer

Question 6

Solicit

Answer 6

attempting to sell insurance or asking/urging a person for a particular class of insurance from one or more insurers

Question 7

Negotiate

Answer 7

act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers

Question 8

Non-resident Licenses

Answer 8

if non-resident already has license in another state, they can get VA license by reciprocity
if not applicable, treat them like a VA resident

Question 9

Licensing Exceptions

Answer 9

-insurer (entity that owns title insurance product)
-officer, director or employee of insurance provider, provided that they don’t receive any commission on policies sold AND activities are executive, administrative managerial, or clerical; or function relates to underwriter, loss control, inspection or processing, adjusting, investigating or settling of a claim on contract of insurance; or special agent or agency supervisor assisting insurance producers where activities are limited to providing technical advice and assistance to licensed insurance producers and don’t include sale, solicitation, or negotiation of insurance
-employees of insurers who are engaged to inspect, rate or classify risks
-employees of insurers who train title producers
-non-residents who sell, solicit, or negotiate a contract of insurance for multi-state commercial property (including VA and non-resident home state)
-any person who refers a customer to a licensed agent, provided referral doesn’t include discussion of policy terms and referral fee is one-time nominal amount, not contingent on whether the referral results in the purchase of title insurance

Question 10

Continuing Education Requirement

Answer 10

-every two years, must complete 16 hourse of continuing education credits (3 hours of insurance ethics; no more than 75% from insurance companies or agencies)
-proof of compliance of courses and non-refundable renewal fees must be submitted by agent’s birth month in year according to birth date (even-number birth year: even-number year; odd-number birth year: odd-number year)

Question 11

Continuing Education Requirement - failure to renew

Answer 11

within 12 months of renewal date, you can reinstate without having to re-take exam by:
-submitting renewal application
-submitting a nonrefundable processing fee equivalent to double the nonrefundable renewal application processing fee
-satisfy relevant CE requirements

Question 12

Continuing Education Requirement - exemptions

Answer 12

-people who obtain their license during last 13 months of a biennium
-nonresidents who satisfy the CE requirement of their home state (if there is reciprocity)

Question 13

Fictitious Name / DBAs (Doing Business As) - reporting requirement

Answer 13

any business entity using a fictitious name has to report it to the Commission within 30 days of its use or cessation of use

Question 14

Change of Address - reporting and termination

Answer 14

Change in residence - report to Commission and every insurer for which he is appointed within 30 days
Terminated immediately when an agent moves out of VA

Question 15

Change in Name - reporting requirement

Answer 15

within 30 days

Question 16

Final disposition of any administrative action taken in another jurisdiction or by another governmental agency in VA - reporting requirement

Answer 16

within 30 days

Question 17

Change in designation licensed producer - reporting requirement

Answer 17

within 30 days

Question 18

Ground for probation, refusal to issue or renew, revocation, or suspension of license (38.2-1831)

Answer 18

-providing material incorrect, misleading, incomplete, or untrue information in the license application or any other document filed with the Commission
-violating any insurance laws, or violating any regulation, subpoena, or order of the Commission
-obtaining or attempting to obtain a license through misrepresentation or fraud
-engaging in the practice of rebating
-engaging in twisting (inducing insured to terminate an existing policy and purchase new policy through misrepresentation)
-improperly withholding, misappropriating terms or actual or proposed insurance contract or application for insurance
-having admitted or been found to have committed any insurance unfair trade practice or fraud
-having been convicted of a felony
-using fraudulent, coercive, or dishonest practices or demonstrating incompetence, or untrustworthiness in the conduct of business in VA or elsewhere, or demonstrating financial irresponsibility in the handling of applicant, policyholder, agency or insurance company funds
-having a license denied, suspended or revoke in another place
-forging another’s name to an application or any document related to an insurance transaction
-improperly using notes or any other reference material on the exam
-knowingly accepting insurance business from an individual who isn’t licensed
-failing to comply with an administrative or court order imposing a child support obligation
-failing to pay state income tax or comply with any administrative or court order directing payment of state income tax

Question 19

Twisting

Answer 19

inducing an insured to terminate an existing policy and purchase a new policy through misrepresentation

Question 20

Notice of Disciplinary Hearing

Answer 20

if hearing is requested, Commission will give applicant/licensee at least 10 calendar days’ notice in writing of time and place (evidence and witnesses may be presented by either side)

Question 21

Designated license producer

Answer 21

Responsible for entity’s compliance with insurance laws, rules, and regulations
Must be employee, officer, director, manager, member of partner of entity