Free VA P&C Exam Flashcards

The Virginia State Corporation Commission Bureau of Insurance regulates insurers, agencies, producers, licensing, market conduct, consumer complaints, and insurance enforcement in Virginia.

Prometric administers Virginia insurance licensing exams for the Bureau of Insurance. The combined Property & Casualty exam is Series 11-03.

Series 11-03 has 135 scored questions plus 10 pretest questions, for 145 total questions. Pretest questions are not identified during the exam.

The Virginia Property & Casualty exam has a 2.5-hour time limit. That means pacing matters because national and Virginia state-law content appear in one sitting.

Virginia uses a 70% passing score. Build practice-test scores above that level so timing errors and state-law misses do not push the real exam below passing.

Virginia resident applicants for a new insurance license must be fingerprinted through Fieldprint. The Bureau uses the results in the background review; fingerprints must be recent enough for the application.

Resident agents must complete at least 3 credit hours of Ethics each biennium. Total CE depends on license holdings: one license type is different from holding two or more license types.

A producer may sell, solicit, or negotiate only within the lines of authority held and only after the license is issued. Passing the exam alone is not the same as being licensed.

For covered registered vehicles, Virginia's current minimum liability limits are 50/100/25: $50,000 per injured person, $100,000 per accident for two or more people, and $25,000 property damage.

The option to pay an uninsured motor vehicle fee instead of carrying insurance was eliminated effective July 1, 2024. Do not treat the old $500 fee as a current substitute for insurance.

It pays covered damages an insured is legally responsible for because another person is injured or killed in an auto accident. It protects the insured against third-party claims, not the insured's own injuries.

It pays covered damage the insured legally causes to another person's property, such as vehicles, fences, buildings, or other tangible property. It is third-party liability coverage.

UM coverage protects an insured when the at-fault driver has no collectible liability insurance or is a qualifying hit-and-run driver, subject to policy terms and Virginia law.

UIM coverage applies when the at-fault driver's liability limits are too low compared with the injured insured's damages and available UM/UIM protection.

Virginia is a tort-based auto state. The at-fault party's liability coverage is central, and negligence concepts matter for casualty questions.

Medical expense benefits pay reasonable and necessary medical or funeral expenses for covered people after an auto accident, regardless of who was at fault, subject to the policy limit.

The insured must face a real financial loss if the property is damaged or destroyed. Without insurable interest, property insurance becomes a wager instead of indemnity.

Actual cash value generally means replacement cost minus depreciation. It is used when the policy or loss settlement provision does not provide replacement cost settlement.

Replacement cost pays the cost to repair or replace damaged property with like kind and quality without deducting depreciation, subject to policy conditions and limits.

A deductible is the part of a covered property loss the insured pays before the insurer pays. Higher deductibles usually lower premium but increase out-of-pocket risk.

Coinsurance requires the insured to carry insurance close to a stated percentage of the property's value. If the insured carries too little, a partial loss may be paid only proportionally.

After paying a covered loss, the insurer may pursue recovery from a responsible third party. The insured cannot impair the insurer's recovery rights after a loss.

A vacancy condition limits or excludes certain property coverage when a building has been vacant beyond the policy's stated period. Vacancy increases loss frequency and severity.

Negligence is failure to use reasonable care, causing harm to another. A casualty claim generally requires duty, breach, causation, and damages.

Proximate cause is the legally effective cause that sets a loss in motion. It connects the insured's act or a covered peril to the resulting damage.

Comparative negligence reduces recovery based on fault share. Contributory negligence can bar recovery if the claimant's own negligence contributed, subject to the jurisdiction's law.

An occurrence is an accident, including continuous or repeated exposure to substantially the same harmful conditions, that results in covered bodily injury or property damage.

In many liability forms, personal injury means offenses such as libel, slander, false arrest, or invasion of privacy. It is not the same as bodily injury.

An aggregate is the most the policy will pay for all covered claims in a stated period. Once exhausted, later claims may have no remaining coverage.

A standard HO-3 provides open-perils coverage on the dwelling and other structures, but personal property is typically covered on a named-perils basis unless endorsed otherwise.

Coverage A is the dwelling coverage. It insures the residence premises structure and attached structures, subject to the policy's covered causes of loss and limits.

Coverage B covers other structures on the residence premises, such as a detached garage or shed. It does not cover structures used for excluded business purposes.

Coverage C covers personal property owned or used by an insured. Certain classes of property have special sublimits, and off-premises coverage may be limited.

Additional living expense pays necessary increased living costs when a covered property loss makes the home unfit to live in. It covers the extra cost, not ordinary living expenses.

VPIA is Virginia's residual market for eligible property owners who cannot obtain basic property insurance in the private market. It is a limited backstop, not a guarantee of broad homeowners coverage.

A BOP combines property and liability coverage for eligible small or midsize businesses. It packages common coverages but still has underwriting limits, exclusions, and optional endorsements.

Business income coverage pays lost income and continuing expenses when covered property damage suspends operations. The shutdown must result from a covered cause of loss.

Inland marine covers mobile property, property in transit, bailee exposures, or specialized property that does not fit standard fixed-location property coverage well.

Garagekeepers coverage protects a garage business for damage to customers' autos left in its care, custody, or control, subject to the selected coverage option.

It is liability exposure from autos a business rents, borrows, or has employees use for business when the autos are not owned by the business.

Virginia generally requires coverage when an employer regularly employs more than two part-time or full-time employees. Certain subcontractor employees count when determining the total.

The employee receives statutory benefits for work injury without proving employer negligence, and the employer receives exclusive-remedy protection from many civil suits.

Required employers can obtain commercial coverage, qualify for self-insurance, join a group self-insurance arrangement, or use a registered professional employer organization arrangement when allowed.

For work performed in Virginia, Virginia must be properly covered on the workers' compensation policy. A Virginia listing only as an other-states exposure may not satisfy the requirement.

Misrepresentation is giving false or misleading information about policy terms, benefits, exclusions, insurer status, or another product to influence an insurance decision.

Rebating is giving an inducement not specified in the policy, such as returning part of commission or premium to make the sale. It is generally prohibited unless a lawful exception applies.

An unfair claims practice includes unreasonable claim delays, poor communication, denial without reasonable investigation, misrepresenting coverage, or not attempting good-faith settlement when liability is clear.

Premiums collected on behalf of an insurer or insured must be handled as fiduciary funds. They should not be converted for personal use or mixed improperly with personal funds.

The Virginia Property and Casualty Insurance Guaranty Association is a safety net for covered claims when a licensed P&C insurer becomes insolvent, subject to statutory eligibility and limits.

Surplus lines coverage is placed with eligible non-admitted insurers for hard-to-place risks. It is not protected the same way as admitted coverage, including guaranty association protection.