Free Virginia Personal Lines Practice Exam Online

Correct answer: A. Authority to sell insurance primarily for personal, family, or household needs rather than for business or professional needs

This is the correct definition of a personal lines agent under Virginia Code § 38.2-1800, which specifically limits the license to personal, family, and household insurance needs.

• B: Personal lines agents cannot sell commercial insurance lines like CGL or workers compensation; those require a property and casualty producer license, which is a separate, broader license category.
• C: A license itself creates no authority to bind coverage; binding authority must be established through a separate written appointment with an insurer under § 38.2-1833.
• D: Reinsurance negotiation is outside the scope of any personal lines agent license and requires specialized licensing that Virginia does not include in the personal lines category.

Correct answer: B. Pass an examination in the form and manner prescribed by the State Corporation Commission

Under § 38.2-1814, no individual who is a resident of Virginia shall obtain a personal lines agent license unless they have passed an examination prescribed by the Commission; this is the mandatory prerequisite.

• A: Fingerprints and fees are part of the application process under § 38.2-1819, but they are processed concurrently with the examination requirement, not instead of it.
• C: Continuing education of 16 hours biennial is required after licensing, but it is not a prerequisite to obtaining the initial license.
• D: Written appointment from an insurer is necessary to conduct business, but it comes after licensing is obtained, not before.

Correct answer: C. A 30-day waiting period is mandatory before a third examination attempt

Virginia Code § 38.2-1817 establishes a mandatory 30-day waiting period after three failed examination attempts before the applicant may sit for the examination again.

• A: A new application fee is not required for subsequent examination attempts; the examination fee is separate and must be paid with each attempt.
• B: There is no provision in Virginia law requiring unlicensed work or apprenticeship as a prerequisite to retaking the examination.
• D: Continuing education is required after licensing is obtained, not as a remediation requirement for failed examination attempts.

Correct answer: D. 3 more hours total, with at least 1 additional hour in insurance ethics

Virginia Code § 38.2-1866 requires 16 hours biennial with 3 hours specifically in insurance ethics; the agent has 13 hours (needing 3 more) and only 2 ethics hours (needing 1 more in ethics).

• A: Once 2 ethics hours are completed, additional ethics hours are still required to reach the mandated 3-hour minimum, so this answer incorrectly assumes the ethics requirement is satisfied.
• B: The total requirement is 16 hours, not 19, and ethics hours are required to total 3, not 6; this answer overstates both requirements.
• C: While ethics is important, the remaining 3 hours do not all have to be in ethics; only 1 additional ethics hour is required, and the remaining 2 hours can be in any relevant insurance topic.

Correct answer: A. No more than 75 percent of the required 16 hours may be from courses provided by insurance companies or agencies

Virginia Code § 38.2-1866 explicitly limits insurance company-provided courses to no more than 75 percent of the required credits, meaning at least 25 percent must come from other sources.

• B: While 50 percent might seem like a conservative requirement, the statute allows up to 75 percent from company sources, so this answer understates the permitted percentage.
• C: Sixty percent does not match the statutory language, which specifies 75 percent as the maximum allowable percentage from insurance company or agency courses.
• D: Insurance company courses are permitted; they simply cannot exceed 75 percent of the total requirement, so this answer incorrectly eliminates an acceptable source.