State RegulationsVA specificDifficulty 3/5
Which of the following is a power that Virginia law grants to the State Corporation Commission in administering the insurance laws?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-200 vests the State Corporation Commission with the general powers needed to administer and enforce Virginia's insurance laws: conducting hearings, entering orders, examining the books and records of insurers and licensees, and adopting rules to carry the statutes into effect. These are governmental enforcement and supervisory powers. The distractors describe private functions — underwriting, pricing commissions, advocacy — that belong to insurers and producers, not to the regulator.
Why the other options are wrong
- A) Underwriting is the insurer's risk-selection function; the Commission regulates the market but never underwrites policies.
- C) Commission splits are negotiated between insurers and their producers; the Commission supervises the market rather than setting private contract terms.
- D) The Commission adjudicates disciplinary hearings; it does not act as an advocate for the licensees who appear before it.
Memory hook
Hear, order, examine — the Commission's toolbox, not the industry's.