WA Common Insurance Laws Accurate 100%(GRADED A+

For an insurance company to write insurance in our state, it must _______ - ANSWER File for a Certificate of Authority. Insurance Companies' licenses are Certificates of Authority. Insurance Producers licenses are Producer Licenses. Producer Clancy Wiggum, whose birthday is January 10th, does not send in his renewal application to the State to renew his producer license. The last day in which he can sell insurance is __________. - ANSWER January 31st Licenses expire every two years at midnight on the last day of the birth month of the licensee. The licensee must apply for the renewal of his license, along with completing the continuing education requirement and paying the renewal fee. Previously, they would expire on the producer's birthday. If a question the state exam does not say birth month but does say birthday, it may not have been updated and that will be the correct answer in that case. What license is required for an insurance company to do insurance business in Washington? - ANSWER Certificate of Authority An insurance company may not transact insurance in Washington unless the Commissioner grants it a certificate of authority. A certificate of authority is issued by the Commissioner and authorizes a company to sell insurance in our state. A Property and Casualty producer could lose his license for all of the following, EXCEPT - ANSWER Sharing commissions with a Multi-Lines (licensed to sell life, disability, property, and casualty insurance) producer. It is a correct statement because a Property and Casualty producer MAY share commissions with another Property and Casualty producer. The other answers deal with illegal rebating, illegal dealings in premiums and illegal dealings in commissions. An insurance producer is required to be bonded when he/she represents __________. - ANSWER the consumer (insured) A producer acting as a broker needs a bond in the amount of $2500, a producer acting as an agent needs to be appointed by a carrier or affiliated with an agency The Commissioner can fine up to $1,000, per offense, for a violation of the insurance code. Which of the following statements is INCORRECT regarding this fine? - ANSWER Fines are paid to the Insurance Commissioner for deposit in the insurance fund. The fines paid are given to the State Treasurer for deposit in the general fund. Should a producer secure a second office location, the producer must - ANSWER get a duplicate license for the second location. A