State RegulationsVA specificDifficulty 2/5
A Virginia producer dies, leaving the agency's clients without someone to service their policies. Which statement about a temporary license in this situation is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-1830 allows the Commission to issue a temporary license on the death or disability of a producer, to a surviving member of the producer's business entity, for military service, or where the Commission finds it in the public interest. No examination is required for the temporary license. The design purpose is continuity: clients of a deceased or disabled producer should not be stranded while the estate or agency decides whether to sell the business or staff it with a fully licensed successor.
Why the other options are wrong
- A) Unlicensed employees may not produce insurance; even temporary production authority comes through a temporary license under Va. Code § 38.2-1830.
- C) The examination is waived for temporary licenses; that is one of the provision's central features.
- D) An insurer appointment cannot substitute for the license the state requires before anyone solicits or services Virginia insurance business.
Memory hook
Death or disability opens the temporary door — no exam, just continuity.