1.3 License Maintenance and Continuing Education

License Term and Renewal Timing

Virginia producer licenses run on a two-year (biennial) cycle, but the deadline is personal to the licensee, not a fixed calendar date:

• The license expires on the last day of the licensee's birth month.
• The expiration year matches the parity of the birth year — born in an odd year, you renew in odd years; born in an even year, you renew in even years.
• Renewal fee is about $10 per line of authority (the initial application fee, ~$15/LOA, is higher than the renewal).

Worked example. A producer born in July 1990 holds a P&C license. Because 1990 is even, the license expires July 31 of each even year (2026, 2028, ...). All CE must be done on or before that July 31 deadline. Miss it, and the 12-month reinstatement clock starts; let it run past the following July 31 and the producer must sit the exam again from scratch.

Continuing Education Requirements

Virginia CE is tiered by how many license types you hold — a detail older guides got wrong by stating a flat 24 hours:

A producer holding both Property and Casualty authorities holds two license types, so the 24-hour requirement applies, of which 3 hours must be ethics and at least 8 hours must apply to each line.

CE rules that show up on the exam

• 75% company cap: No more than 75% of required credits may come from courses provided by insurance companies or agencies — including your own. So if 24 hours are required, at least 6 hours must come from independent providers.
• Deadline: CE must be completed on or before the license expiration date. (Some Virginia-approved schools advise finishing earlier to allow reporting time, but the legal deadline is the expiration date.)
• No repeats: The same course cannot be counted twice within a single CE period.
• Approved providers only, with both online and classroom formats accepted.

Reporting Changes

Producers must notify the Bureau of certain changes within 30 days:

• Change of business or residence address
• Change of legal name
• Administrative actions taken by another state's insurance regulator
• Criminal charges or convictions

Failing to report — especially an out-of-state disciplinary action or a criminal charge — is itself a violation, independent of the underlying event.

Appointments

A license lets you sell; an appointment authorizes you to sell for a specific insurer. P&C producers must be appointed before transacting business for a carrier.

• The insurer files the appointment with the Bureau — the producer does not file it.
• Insurers must report terminations to the Bureau.
• A for-cause termination (e.g., for fraud or misappropriation) can trigger a Bureau investigation and possible discipline.

Disciplinary Actions

The Bureau enforces Title 38.2 against licensees. Discipline scales with the severity and pattern of conduct:

Common P&C violations

• Misrepresentation of policy terms, coverage, or premium
• Failure to disclose material facts to an applicant or insurer
• Unfair claims settlement practices (e.g., unreasonable delay or denial)
• Commingling — mixing client premium funds with personal or business operating funds
• Letting CE or the license lapse while continuing to transact
• Acting without a required appointment or proper line of authority

Trap: Commingling is a violation even if no client ultimately loses money. Premium funds are held in a fiduciary capacity and must be kept separate — the act of mixing them is the offense.

License Status Types

Non-Resident Licensing

Producers licensed in another state may obtain a Virginia non-resident license:

• They must maintain a valid license in their home state; if the home-state license lapses or is revoked, the Virginia non-resident license falls with it.
• Under the NAIC reciprocity framework adopted by Virginia, no Virginia exam is required when the home state grants reciprocity.
• CE is generally satisfied by meeting the home state's CE — Virginia gives reciprocal credit — but a non-resident who moves to Virginia must convert to a resident license and follow Virginia CE and the $25,000 bond rule.

Scenario. A North Carolina-licensed agent holds a Virginia non-resident P&C license. She lets her North Carolina license lapse. Even though she paid her Virginia fees, her Virginia non-resident authority is no longer valid, because non-resident standing depends on an active home-state license.