State RegulationsVA specificDifficulty 1/5
The Virginia Bureau of Insurance is examining a producer's business practices and requests the producer's records of insurance transactions. What must the producer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Virginia's record-retention provision (Va. Code § 38.2-310) requires insurance records to be maintained and made available for examination by the Virginia Bureau of Insurance. A producer's business records are the evidence the Bureau relies on to police compliance, so the producer must preserve and produce them on request. Destroying or withholding records, or conditioning production on an insurer's consent, obstructs the examination itself.
Why the other options are wrong
- A) Destroying records to frustrate an examination is the opposite of the retention duty; records must be preserved and produced.
- C) The examination right belongs to the Bureau, and no insurer's consent is needed for the Bureau to see the producer's transaction records.
- D) An attorney's summary is not the records; the Bureau is entitled to examine the underlying transaction records themselves.
Memory hook
Keep the books and open the books — the Bureau may look.