Washington State Property & Casualty Insurance Exam 100% correct answers

Washington State Property & Casualty

Insurance Exam 100% correct answers

Authorized Insurer - correct answer An insurer that has qualified and received a

Certificate of Authority from the Department of Insurance to transact insurance in the

state.

Contact adhesion - correct answer the accepter of the contract must "adhere" to the

written contract

inducement - correct answer An action aimed at persuading

insolvent - correct answer Bankrupt; unable to pay debts.

Transacting Insurance - correct answer Conducting insurance business, such as

soliciting or negotiating to buy or sell an insurance policy.

Unauthorized Insurer - correct answer Is held personally liable. Each violation is

separate and can result in suspension, revocation of license, and a min fine of $25,000.

(Class B Felony)

When would a commissioner order a replacement policy? - correct answer When a

unauthorized insurer improperly placed a policy. Would be replaced by a policy with a

legal insurer.

Surplus Lines - correct answer Insurance that is not available or offered in the regular

marketplace from admitted insurers.

Insurance Commissioner (IOC) - correct answer State elected term of 4 years.

insurance Commissioner duties - correct answer -Protects the Public from unfair trade

practices

- Examinations/investigations

- Hearings

- Cease and Desist orders

- Public information

- Appoints Dep. Chief Commissioner

-

How often must the Insurance Commissioner examine companies? - correct answer As

often as deemed necessary, but MUST be done every 5 years

Receiving Written Notice from Commissioner - correct answer the person must respond

within 90 days. if not made the request is considered waved.

Notice of Hearing - correct answer - must state grounds of hearing (can be written

demand by aggrieved person)

- Right to request administrative law judge

Licence Suspension Hearing - correct answer Commissioner must hold a hearing within

90 days.

Insurance Producer - correct answer A person required to be licensed under the laws of

this state to sell, solicit, or negotiate insurance.

- Must be 18+

- has not had a license denied, suspended, or revoked

- completed Pre-licensing/ exams

- paid fee(s)

- Fingerprinted/ background check

FINRA (Financial Industry Regulatory Authority) - correct answer solicits licences for

variable life and variable annuity

Temporary Insurance Producers Licence - correct answer Commissioner may issue

temp. license for a max of 180 days. usually in event of producers recovery, sale of a

business, training and licencing of new personal to operate a business.

Non-Resident Producer - correct answer a producer who lives (domicile) and conducts

business from another state other than Washington. Will receive a non resident

producers license.

When is a insurance license exempt? - correct answer When they work at a company or

themself but do not conduct the solicitation, sale, negotiation of insurance.

Appointing a insurance producer - correct answer - notice of appointment within 15 days

- Commissioner will verify within 15 days

- if deemed ineligible commissioner will notify within 10 days

If approved it must e renewed every 2 years, and will receive notice within 60 days of

the renewal date.

Business Entity Affiliates - correct answer A business must have AT LEAST 1 affiliated

individual licence to transact insurance

If business Entity Affiliate is terminated - correct answer The commissioner must receive

notice within 30 days of termination.

Renewal - correct answer The initial licenses are valid from the date that they are

issued until the last day of the licensee's birth month.

Renewal Fees for Licences - correct answer (Every 2 years)

Producer- $55

Limited insurance- $20

Surplus lines broker- $20

Ajuster- $50

Late Fees:

30 days: 50% of renewal

31-60 days: 100%

61-12 months 200% (12+ months must restart licensing process)

Continuing Education (CE) - correct answer Every 2 years. 24 hours total, 3 hours in

ethics.

must hold on to certificate for 3 years

Change of Address - correct answer Must contact commissioner within 30 days. this

includes a change of residence, mailing, business, or email

Reporting of Actions - correct answer You must report to the commissioner within 30

days of any administrative action taken on them by another jurisdiction or governmental

agency

Convicted of a felony - correct answer Commissioner may revoke or refuse insurers

licenses immediately. Within 15 days may revoke a ordered licence or by ordering a

hearing within 10 days.

Suspended license period - correct answer up to 12 months

Guilty of violations - correct answer each fine of up to $1,000, must be paid within 15-30

days

Place of Business Requirements - correct answer Must be accessible to the public.

Does not apply to life and disability insurance.

Record Retention - correct answer Requires insurer to maintain records for 5 years.

(DRPL) Designated Responsible Licensed Person - correct answer Responsible for

insurers compliance with insurance laws/ rules

Misrepresentation - correct answer Materials that are false, misleading, or deceptive of

policy benefits, terms, payment of dividends. Also includes oral statements.

Knowingly committing this is considered a gross misdemeanor, and licences can be

revoked

False Advertising - correct answer Advertising that is misleading, deceptive, and untrue.