STATE FARM PROPERTY ACTUAL TEST
PAPER QUESTIONS AND SOLUTIONS
GRADED A+
●● Contact adhesion
Answer: the accepter of the contract must "adhere" to the written
contract
●● inducement
Answer: An action aimed at persuading
●● insolvent
Answer: Bankrupt; unable to pay debts.
●● Transacting Insurance
Answer: Conducting insurance business, such as soliciting or negotiating
to buy or sell an insurance policy.
●● Unauthorized Insurer
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?
Answer: When a unauthorized insurer improperly placed a policy.
Would be replaced by a policy with a legal insurer.
●● Surplus Lines
Answer: Insurance that is not available or offered in the regular
marketplace from admitted insurers.
●● Insurance Commissioner (IOC)
Answer: State elected term of 4 years.
●● insurance Commissioner duties
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?
Answer: As often as deemed necessary, but MUST be done every 5
years
,●● Receiving Written Notice from Commissioner
Answer: the person must respond within 90 days. if not made the request
is considered waved.
●● Notice of Hearing
Answer: - must state grounds of hearing (can be written demand by
aggrieved person)
- Right to request administrative law judge
●● Licence Suspension Hearing
Answer: Commissioner must hold a hearing within 90 days.
●● Insurance Producer
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)
, Answer: solicits licences for variable life and variable annuity
●● Temporary Insurance Producers Licence
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
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?
Answer: When they work at a company or themself but do not conduct
the solicitation, sale, negotiation of insurance.
●● Appointing a insurance producer
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.
PAPER QUESTIONS AND SOLUTIONS
GRADED A+
●● Contact adhesion
Answer: the accepter of the contract must "adhere" to the written
contract
●● inducement
Answer: An action aimed at persuading
●● insolvent
Answer: Bankrupt; unable to pay debts.
●● Transacting Insurance
Answer: Conducting insurance business, such as soliciting or negotiating
to buy or sell an insurance policy.
●● Unauthorized Insurer
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?
Answer: When a unauthorized insurer improperly placed a policy.
Would be replaced by a policy with a legal insurer.
●● Surplus Lines
Answer: Insurance that is not available or offered in the regular
marketplace from admitted insurers.
●● Insurance Commissioner (IOC)
Answer: State elected term of 4 years.
●● insurance Commissioner duties
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?
Answer: As often as deemed necessary, but MUST be done every 5
years
,●● Receiving Written Notice from Commissioner
Answer: the person must respond within 90 days. if not made the request
is considered waved.
●● Notice of Hearing
Answer: - must state grounds of hearing (can be written demand by
aggrieved person)
- Right to request administrative law judge
●● Licence Suspension Hearing
Answer: Commissioner must hold a hearing within 90 days.
●● Insurance Producer
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)
, Answer: solicits licences for variable life and variable annuity
●● Temporary Insurance Producers Licence
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
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?
Answer: When they work at a company or themself but do not conduct
the solicitation, sale, negotiation of insurance.
●● Appointing a insurance producer
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.
