West Virginia Property and Casualty Licensing Practice Exam

What must be filed and approved before an insurance company can legally sell policies in West Virginia?

1. Annual reports

2. Broker agreements

3. Insurance policies and forms

4. Insurance rates

The correct answer is: Insurance policies and forms

Before an insurance company can legally sell policies in West Virginia, it is essential for them to file and gain approval for their insurance policies and forms. This requirement is in place to ensure that the terms and conditions of the policies are transparent, fair, and compliant with state regulations. The approval process protects consumers by verifying that the policies meet necessary standards regarding coverage, exclusions, and legal obligations. Insurers must submit their forms to the West Virginia Insurance Commissioner, who reviews them to ensure they do not contain unfair or misleading language and adequately inform policyholders of their rights and responsibilities. Policies and forms include not only the insurance contracts themselves but also any endorsements or amendments that affect the coverage offered. While annual reports and broker agreements play essential roles in an insurance company's operations, they do not hold the same regulatory requirement as the approval of policies and forms for the sale of insurance. Additionally, while insurance rates are also subject to regulation, the specifics of the insurance policies and forms take precedence in establishing what can be sold to consumers.