State RegulationsVA specificDifficulty 1/5
Which statement about Virginia producer licensing requirements is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-1821.1 provides that nothing in the licensing article requires an insurer to obtain an insurance producer license, and it expressly narrows the term: 'insurer' does not include the insurer's officers, directors, employees, subsidiaries, or affiliates. Those individuals and affiliates must qualify for an exemption of their own or be licensed. The corporate exemption does not swallow the individual licensing duties that the Commission and the Virginia Bureau of Insurance administer.
Why the other options are wrong
- A) The exemption is too narrow: individuals connected to the insurer must fit a specific exception or be licensed.
- C) The statute says the opposite — an insurer is not required to obtain a producer license.
- D) The exemption rests on insurer status, not on whether the insurer is domiciled in Virginia.
Memory hook
The company needs no license; its people are not the company.