West Virginia Insurance Law Final Exam
Questions And All Correct Answers.
Insurance Commissioner: (Appointment & Duties) - Answer * Appointed by Governor for a 6-year term
* Enforces Insurance Code
Insurance Commissioner: (Powers) - Answer * Examine / investigate insurers and producers
* Hold hearing - take depositions - compel witness to testify
Insurance Commissioner must inspect each insurer every ____ years. - Answer Every 5 years
Insurance Commissioner must hold a hearing within ____ days of a written demand, unless delayed by
mutual agreement. - Answer 45 days
The Commissioner must give at least ____ days notice of the time, place and scope of matters of the
hearing to all directly affected persons. - Answer 15 days
The Commissioner must enter an order pertaining to a hearing within ____ days after its completion
unless extended by mutual consent. - Answer 45 days
If after notice and a hearing, the Commissioner determines a person or insurer has violated any
insurance law, regulation, rule, or order, he may issue a ___________ to that person to discontinue the
violation. - Answer cease and desist order
If the person or insurer does not comply with the order within _____ days, the Commissioner may
revoke the license and assess a penalty of up to $________. - Answer 20 days / $10,000
The Commissioner may also require insurers to pay a penalty up $____ per violation. If an insurer
commits unfair claim settlement practices, the Commissioner may assess a penalty of up to $_____, as
well as restitution to the claimant. - Answer $10,000 / $250,000
, After notice and a hearing, the Commissioner may place on probation, suspend, revoke, or refuse to
renew the license of any insurer for: - Answer * Violation of any insurance law, regulation, rule, or
order of the Commissioner;
* Providing incorrect, misleading, or untrue information in the license application or obtaining a license
through misrepresentation or fraud;
Improperly withholding or misappropriating money or property received in the course of doing
insurance business;
* Intentionally misrepresenting the terms of an insurance contract or application;
* Conviction or pleading no contest to any felony or a misdemeanor in connection with insurance
transactions;
* Committing any unfair trade practice or insurance fraud;
* Fraudulent, coercive, or dishonest practices demonstrating incompetence, untrustworthiness or
financial irresponsibility;
* Denial, suspense, or revocation of license in any other state;
* Forging any document related to an insurance transaction;
* Cheating on the license examination;
* Knowingly accepting business from an unlicensed individual;
* Failure to pay child support obligation;
* Failure to pay any West Virginia taxes, fees, charges or penalties.
The Commissioner may also require payment of a penalty up to $____ per violation, up to $____ total,
unless the person knew or had reason to know he was in violation, then up to $____ per violation,
$____total. - Answer $1,000 / $10,000
$5,000 / $100,000
Any person required to have a license, who is found acting without a license, constitutes an
unauthorized transaction of insurance and may be fined by the Commissioner a penalty not to exceed
$____. - Answer $20,000
Any person or insurer may seek appeal of any action by the Commission in ______. Likewise, the
Commissioner may seek a ________ to enforce an order. - Answer state court / court order
