WASHINGTON STATE PROPERTY AND CASUALTY
INSURANCE EXAM 2025| PRACTICE EXAM
QUESTIONS WITH 100% CORRECT SOLUTIONS|
LATEST UPDATE|STUDY GUIDE QUESTIONS
An insured has a personal auto policy with both comprehensive (other-than-
collision) and collision coverage. His car is stolen and recovered five days later. If
the insured claims transportation expenses of $20 per day, how much will his
policy pay?
a)$45
b)$60
c)$75
d)$100
The policy will pay $20 per day after 48 hours, not to exceed 30 days in total. -
ANSWER-b)$60.
The policy will pay $20 per day after 48 hours, not to exceed 30 days in total.
,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.
INSURANCE EXAM 2025| PRACTICE EXAM
QUESTIONS WITH 100% CORRECT SOLUTIONS|
LATEST UPDATE|STUDY GUIDE QUESTIONS
An insured has a personal auto policy with both comprehensive (other-than-
collision) and collision coverage. His car is stolen and recovered five days later. If
the insured claims transportation expenses of $20 per day, how much will his
policy pay?
a)$45
b)$60
c)$75
d)$100
The policy will pay $20 per day after 48 hours, not to exceed 30 days in total. -
ANSWER-b)$60.
The policy will pay $20 per day after 48 hours, not to exceed 30 days in total.
,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.
