VA P&C Exam Flashcards

Q: What is the current Virginia P&C exam structure?

Prometric's Virginia Series 11-03 outline lists 135 scored questions plus 10 pretest questions, for 145 total questions, with a 2.5-hour time limit. The passing score is 70%.

Q: What Virginia auto minimums should I know for 2026?

Virginia's current minimum motor vehicle liability limits are 50/100/25: $50,000 for injury or death of one person, $100,000 for two or more people, and $25,000 for property damage.

Q: Is the old Virginia $500 uninsured motor vehicle fee still current?

No. Virginia DMV announced that effective July 1, 2024, the option to pay a fee instead of maintaining insurance was eliminated. Current exam prep should not rely on the old $500 UMV-fee option as an active alternative to insurance.

Q: Which Virginia-specific topics are highest yield?

Prioritize SCC Bureau of Insurance authority, Prometric exam logistics, current auto financial responsibility rules, UM/UIM basics, VPIA residual property coverage, workers' compensation coverage triggers, CE ethics rules, unfair claims practices, surplus lines, and VPCIGA limits.

Question 1

Who regulates Virginia P&C insurance?

Accepted Answer

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

Question 2

Who administers the Virginia P&C producer exam?

Accepted Answer

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

Question 3

What is the current VA P&C exam size?

Accepted Answer

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

Question 4

How much time is allowed for Series 11-03?

Accepted Answer

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.

Question 5

What score passes the Virginia P&C exam?

Accepted Answer

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.

Question 6

What fingerprint rule applies to new resident applicants?

Accepted Answer

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.

Question 7

What is the Virginia CE ethics requirement?

Accepted Answer

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.

Question 8

What is the producer's basic licensing boundary?

Accepted Answer

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.

Question 9

What are Virginia's current auto liability minimums?

Accepted Answer

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.

Question 10

What happened to Virginia's old UMV fee option?

Accepted Answer

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.

Question 11

What does bodily injury liability pay?

Accepted Answer

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.

Question 12

What does property damage liability pay?

Accepted Answer

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.

Question 13

What does uninsured motorist coverage address?

Accepted Answer

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.

Question 14

What does underinsured motorist coverage address?

Accepted Answer

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.

Question 15

How should you classify Virginia auto insurance legally?

Accepted Answer

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

Question 16

What is medical expense benefits coverage?

Accepted Answer

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.

Question 17

What is insurable interest in property insurance?

Accepted Answer

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.

Question 18

What is actual cash value?

Accepted Answer

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.

Question 19

What is replacement cost?

Accepted Answer

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.

Question 20

What does a deductible do?

Accepted Answer

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.

Question 21

What is coinsurance in property insurance?

Accepted Answer

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.

Question 22

What is subrogation?

Accepted Answer

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.

Question 23

What is a vacancy condition?

Accepted Answer

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.

Question 24

What is negligence?

Accepted Answer

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

Question 25

What is proximate cause?

Accepted Answer

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.

Question 26

What is comparative versus contributory negligence?

Accepted Answer

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.

Question 27

What does occurrence mean in liability insurance?

Accepted Answer

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.

Question 28

What does personal injury mean in liability policies?

Accepted Answer

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.

Question 29

What is the purpose of an aggregate limit?

Accepted Answer

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.

Question 30

What does HO-3 usually cover differently from contents?

Accepted Answer

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.

Question 31

What is Coverage A in a homeowners policy?

Accepted Answer

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.

Question 32

What is Coverage B in a homeowners policy?

Accepted Answer

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.

Question 33

What is Coverage C in a homeowners policy?

Accepted Answer

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.

Question 34

What is additional living expense?

Accepted Answer

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.

Question 35

What is the Virginia Property Insurance Association?

Accepted Answer

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.

Question 36

What does a Businessowners Policy combine?

Accepted Answer

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.

Question 37

What is business income coverage?

Accepted Answer

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.

Question 38

What does inland marine insurance cover?

Accepted Answer

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

Question 39

What is garagekeepers coverage?

Accepted Answer

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

Question 40

What is hired and non-owned auto exposure?

Accepted Answer

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.

Question 41

When is Virginia workers' compensation generally required?

Accepted Answer

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.

Question 42

What is the workers' compensation tradeoff?

Accepted Answer

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

Question 43

What are Virginia workers' compensation insurance options?

Accepted Answer

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.

Question 44

Why does Virginia 3A matter on workers' comp policies?

Accepted Answer

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.

Question 45

What is misrepresentation in insurance sales?

Accepted Answer

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

Question 46

What is rebating?

Accepted Answer

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.

Question 47

What is an unfair claims practice?

Accepted Answer

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.

Question 48

How should premiums held by a producer be treated?

Accepted Answer

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.

Question 49

What does VPCIGA protect?

Accepted Answer

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.

Question 50

What is the surplus lines coverage warning?

Accepted Answer

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.

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