Free Virginia Property & Casualty Practice Exam 2026

Virginia property and casualty insurance exam sample questions and answers

6 of the 135 practice questions, one from each topic, with the answer explained.

1. 1. Under Virginia law, the owner of a registered vehicle that is no longer insured must:

   • A.Buy coverage within 60 days
   • B.Surrender its license plates
   • C.Notify the insurer's agent
   • D.Pay an uninsured vehicle fee

   Answer: B. Va. Code § 46.2-707 requires the owner of an uninsured registered vehicle to surrender its plates immediately unless the registration has been deactivated, and operating it is a Class 3 misdemeanor. Virginia repealed the uninsured motor vehicle fee option effective July 1, 2024, so paying a fee is no longer an alternative to insurance.

2. 2. A commercial crime policy written on a discovery form covers losses that are:

   • A.Sustained during the policy period and reported within 24 hours
   • B.Caused only by outsiders
   • C.Reported to police within one business day
   • D.Discovered during the policy period

   Answer: D. The discovery form responds to losses discovered during the policy period or the extended discovery period, regardless of when they occurred, even if they began years earlier. The loss sustained form requires the loss to occur during the policy period.

3. 3. A policyholder asks her insurer in writing to make a different appointed agent her agent of record. The change takes effect:

   • A.At the next policy renewal
   • B.After 30 days' notice
   • C.When the old agent agrees
   • D.Immediately on request

   Answer: A. Va. Code § 38.2-1812(G) requires insurers to honor a written request to change the agent of record, effective on the next renewal date, and the new agent of record is paid the commissions from then on. The current agent must be notified in writing before the change.

4. 4. A Virginia homeowner with replacement cost coverage takes the actual cash value payment first. She may still claim the replacement cost difference within:

   • A.30 days of the ACV payment
   • B.One year of the loss date
   • C.Six months of the ACV payment
   • D.Two years of the loss date

   Answer: C. Va. Code § 38.2-2119(B) lets the insured claim actual cash value first without losing the right to the difference, if that claim is made within six months of the last ACV payment or of a final court order on the replacement cost right, whichever is later.

5. 5. An insurer plans to raise a Virginia business's liability renewal premium by 30 percent. It must give written notice no later than:

   • A.30 days before it applies
   • B.60 days before it applies
   • C.45 days before it applies
   • D.15 days before it applies

   Answer: C. Va. Code § 38.2-231(C) requires at least 45 days' written notice of an insurer-initiated increase over 25 percent, or a reduction in coverage, on business liability and commercial auto policies. The same section requires 45 days' notice of cancellation or nonrenewal, or 15 days for nonpayment.

6. 6. To be licensed as a resident Virginia surplus lines broker, an individual must first hold an active:

   • A.Property and casualty license
   • B.Consultant license
   • C.Title agent license
   • D.Personal lines license

   Answer: A. Va. Code § 38.2-1857.1 issues surplus lines broker licenses only to persons actively licensed as property and casualty agents, and § 38.2-1825(C) ends a resident broker license immediately if that agent license terminates.