State RegulationsVA specificDifficulty 1/5
Under Virginia law, the terms 'agent,' 'producer,' and 'insurance producer' all describe which of the following?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Va. Code § 38.2-1800 defines an agent, producer, or insurance producer as an individual or business entity that sells, solicits, or negotiates contracts of insurance or annuity in the Commonwealth. The definition turns on market-facing activity, not job title, and it covers both individuals and business entities. Nearly every licensing duty administered by the Virginia Bureau of Insurance under the Commission in Chapter 18 of the Virginia insurance code hangs on whether a person fits this definition.
Why the other options are wrong
- A) Claims processing and underwriting are internal insurer functions; the producer definition attaches to selling, soliciting, or negotiating, not administrative work.
- C) Purchasing insurance never makes a consumer a producer; licensure attaches to the selling side of the transaction.
- D) Managing investments is an internal corporate function; no selling, soliciting, or negotiating of insurance is involved.
Memory hook
Sell, solicit, or negotiate — if you do that in Virginia, you are a producer.