Virginia Laws And Rules

Question 1

General powers and duties of commissioner

Answer 1

He is appointed a 4year term by the state corporation commission, administers all laws pertaining to insurance.

Question 2

Examination of records

Answer 2

Commissioner must conduct a financial examination to every insurance company licensed In VA every 5 years. All examination fees and expenses are the responsibility of the company being examined

Question 3

Licensing requirements for Agents

Answer 3

An agent is a person required to be licensed pursuant to the laws of their state to sell, solicit, or negotiate insurance. Licenses for agents are issued for 2 years.

Question 4

An insurance broker is a representative of the insured, and an insurance agent is a representative of the insurance company

Answer 4

Yup

Question 5

No residents acting in different states must meet these requirements..

Answer 5

Currently licensed and is in good standing in their home state, has submitted proper request for licensure and has paid fees prescribed by commissioner, submitted to the commissioner the application for licensure, the states reciprocate.

Question 6

Insurance consultant

Answer 6

Is licensed solely to advise insureds about their policies for s free compensation. Both consultant and client must sign an agreement prepared for outlining the nature of activity to be preformed and fees to be paid.. consultants license must be renewed annually, submit application by June 1st

Question 7

Temporary license is valid for 180 days

Answer 7

Yup

Question 8

Change of address

Answer 8

Must notify bureau of insurance within 30days of any changes to address

Question 9

An agent whose license is denied or revoked must wait 5years before reapplying

Answer 9

The commissioner may not suspend, revoke, or deny a license app due to filing bankruptcy or receiving a misdemeanor

Question 10

Rebating

Answer 10

Any inducement offered to the insured in the sale of insurance products that is not specified I. The policy

Question 11

Twisting

Answer 11

Unfair trade practice of replacing an insurance policy from one insurer to another based on misrepresentation

Question 12

Certificate of authority

Answer 12

Acknowledges that the requirements of the insurance laws have been met and authorizes the company to transact insurance.

Question 13

Fiduciary responsibilities

Answer 13

Your in charge of funds given to you by a client sense you are an agent

Question 14

Insurance transaction records

Answer 14

All the paper trail of all transactions between brokers, insureds and agents for all money going between them and the company. Company must keep records for 3 years

Question 15

Commissions and compensations

Answer 15

A company can only pay a licensed agent for selling insurance, no other person
You can share commission as long as all agents involved are licensed in the same line of insurance for whatever was written

Question 16

All fees must be stated in the premiums…

Answer 16

Must notify client of all fees

Question 17

Eligible groups for purchasing group insurance

Answer 17

Employee groups, debtor, labor union, association, credit unions, multiple employer welfare arrangements

Question 18

Insurance information and privacy protection act

Answer 18

Requires that an applicant for an individual insurance policy be notified of an investigation into his personal character, general reputation, and mode of living

Question 19

Under the insurance information and privacy protection act…

Answer 19

Insurers must give customers a privacy protection notice at the time of application

Question 20

Also an insurance company must clearly specify questions designed to obtain information solely for marketing research In Any insurance transaction

Answer 20

When access to recorded personal info is requested, the insurer must make the info available within 30 business days

Question 21

Any reported violations of this act require the commissioner of insurance to issue and serve a statement of charges an notice of hearing. The date of hearing shall be at least 10 days after service of charges

Answer 21

Yup

Question 22

The purpose of the guaranty fund is to ensure that claims filed against insolvent insurance companies will be paid

Answer 22

Yup

Question 23

Replacement

Answer 23

Is strictly regulated and requires full disclosure by both the agent and the replacing insurance company

Question 24

Duties of the replacing agent

Answer 24

Present to the applicant a notice regarding replacement that is signed by both the applicant and the agent, a copy must be left with the applicant

Question 25

Also leave the applicant with the original copy

Answer 25

Submit to the replacing insurance company a copy of the replacement notice with the application

Question 26

Associations, A policy issued to an association for the benifit of its members shall

Answer 26

Have a minimum of 100 persons, have been in existence for 5 years… to be eligible for group life policy, group must be formed for a purpose other than obtaining insurance

Question 27

Conversion, conversion period of 31 days

Answer 27

There are no restrictions regarding the assignment of coverage under a group life insurance policy, in group life insurance policies, assignment of benefits is not permitted to the insureds employer

Question 28

A health disability policy is incontestable after it has been in force for a period of 2 years.

Answer 28

Grace period, no less than 7dyas for weekly premium policies, 10 days for monthly policies, and 31 days for all others.

Question 29

Reinstatement, waiting period of 10 days before claiming sickness and being coveredZ

Answer 29

Notice of claim, written notice of claim must be giver within 20days after a covered loss starts

Question 30

Individual health insurance..

Answer 30

Recommended or received 12 months prior to effective date of enrollment

Question 31

Group health insurance, 6 months prior to effective date of enrollment

Answer 31

And 18 months on late enrolled

Question 32

When replacing an individual health policy in VA, the required replacement notice to the applicant must include notice that pre-existing conditions may not be covered

Answer 32

An individuals waiting period is reduced when they have credible coverage, creditable coverage is previous coverage under another group or individual health plan when there has not been a break in coverage of 63 days.. this period begins when the individuals previous coverage is ended.

Question 33

Defined groups. A

Answer 33

A group plan may be issued to any labor union with at least 25 members.

Question 34

An association may be the policy holder of a group policy that covers its members. Providing this has a minimum of 100 members. Organized in good faith for purposes other than obtaining insurance, been in existence for at least 5 years

Answer 34

When replacing, must be signed by the client and the agent

Question 35

Right to examine (free look)

Answer 35

Free look period of 10 days upon policy delivery. If they decided not to keep it, then a full refund will happen within 10 days

Question 36

Rate adjustments, they must adjust the rates every 6 months after second year

Answer 36

Yup

Question 37

Newborn child coverage

Answer 37

All health plans that provide coverage to family members of the insured must provide coverage for the insureds newborn child from the moment of birth and for a period of 31 days

Question 38

Definition of small employee, 2-50 employees

Answer 38

HIPAA provides certain benefits to those who terminate employment and wish to continue individual coverage in lieu of coverage with a new employer or during a period of unemployment

Question 39

Agents under Virginia long term care insurance partnership must undergo ongoing training every 24 months

Answer 39

Yup

Question 40

Hmo

Answer 40

Public or private organization that provides or makes available health services that are restricted to a specific service area on a prepaid basis