West Virginia Property and Casualty Licensing Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the West Virginia Property and Casualty Licensing Exam. Enhance your knowledge with flashcards and multiple choice questions. Each question is accompanied by hints and explanations to boost your confidence. Prepare effectively for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Within how many days must a surplus lines licensee collect tax on insurance premiums?

7 days
14 days
30 days
45 days

The correct answer is: 30 days

A surplus lines licensee is required to collect taxes on insurance premiums within 30 days of the effective date of the policy. This timeframe ensures timely compliance with state regulations regarding the taxation of surplus lines insurance, which is typically non-admitted in the standard market. Collecting the tax within this period helps maintain the integrity of surplus lines insurance and the funding of state insurance programs. Delaying the collection could result in regulatory penalties and complications for both the licensee and the insured party. Understanding this timeline is crucial for all surplus lines licensees to ensure they adhere to legal requirements and promote proper fiscal management within their insurance practices.