Free Virginia Property and Casualty Practice Exam Online

Correct answer: A. Furnish the Department of Motor Vehicles a certificate that the vehicle is covered by an insured motor vehicle liability policy, because the prior option to register an uninsured vehicle by paying a fee in lieu of insurance has been eliminated

This is correct because 2023 legislation (effective July 1, 2024) removed the uninsured motor vehicle fee option from Sec. 46.2-706 and now requires every registrant to certify insured status, verified electronically against insurer-reported data.

• B: This describes Virginia's PRIOR law, which allowed a registrant to pay a fee instead of carrying insurance; that fee option no longer exists under the amended statute.
• C: Virginia's financial responsibility scheme is built around a liability insurance or self-insurance certification requirement, not a flat surety bond posted in place of coverage.
• D: Virginia's compulsory insurance requirement applies to vehicles registered and principally garaged in the Commonwealth regardless of where they are occasionally driven, so this option misstates the trigger for the requirement.

Correct answer: B. $50,000 bodily injury per person / $100,000 per accident / $25,000 property damage

This is correct because Sec. 46.2-472 was amended to raise Virginia's statutory minimums to 50/100/25 effective for policies taking effect on or after January 1, 2025.

• A: This was the correct minimum limit structure (30/60/20) for policies effective between January 1, 2022, and January 1, 2025, but it was superseded and is no longer current.
• C: This lower limit structure does not match any minimum ever set by Sec. 46.2-472 and understates both the current and the prior statutory minimums.
• D: This limit structure is far higher than Virginia's statutory minimum and is not the figure set by Sec. 46.2-472, though a carrier could certainly offer higher limits voluntarily.

Correct answer: C. UM coverage must automatically be included in every liability policy issued in the Commonwealth, in an amount equal to the policy's liability limits, unless the named insured affirmatively rejects it in writing

This is correct because the statute requires every liability policy issued or delivered in Virginia to include UM coverage matching the policy's liability limits, with rejection available only through the affirmative written process the named insured must initiate.

• A: This is incorrect because Sec. 38.2-2206 makes UM coverage a mandatory built-in feature of every Virginia liability policy rather than an opt-in purchase.
• B: This is incorrect because the statute ties UM limits to the liability limits actually purchased, not to the statutory floor, so a policy with higher liability limits carries correspondingly higher UM coverage.
• D: This is incorrect because the mandatory-UM rule applies to liability policies generally in the voluntary market, not merely to policies placed through the assigned-risk plan.

Correct answer: D. A residual market mechanism, created in 1945, that assigns drivers unable to obtain coverage in the voluntary market to licensed insurers so they can obtain a policy

This is correct because the VAIP was established in 1945 as Virginia's market-of-last-resort, giving any driver unable to secure a voluntary-market policy the right to be assigned to a carrier licensed to write auto liability insurance in the Commonwealth.

• A: This is incorrect because the VAIP is a coverage-placement mechanism for otherwise-uninsurable drivers, not a premium-reimbursement fund for insurers.
• B: This is incorrect because the VAIP is an assigned-risk mechanism that places applicants with existing licensed carriers rather than being a state-operated insurance company itself.
• C: This is incorrect because the VAIP exists to serve drivers who cannot find coverage in the voluntary market, not to offer discounts to preferred risks.

Correct answer: A. At least 45 days after the notice is mailed or delivered to the insured

This is correct because Sec. 38.2-2212 sets the general effective date for cancellation or nonrenewal of an auto policy at not less than 45 days after the notice is mailed or delivered.

• B: This understates the general rule; a shortened window applies only to specific statutory exceptions, not as the universal standard.
• C: This overstates the general auto notice period, and it also does not match Virginia's separate owner-occupied dwelling notice rule, which is shorter.
• D: Virginia law imposes an affirmative advance-notice requirement on insurers before an auto policy can be cancelled or nonrenewed, so this option is incorrect.