Washington State Law Manual Study Questions
and Complete Answers| Verified 100% Correct|
Newest 2025
A Bonded Producer must post a bond in the amount of:
a. $1,000
b. $2,500
c. $5,000
d. $20,000 - ✔✔b. $2,500
Under Washington laws, the required chemical dependency coverage applies to:
a. Psychological dependency issues only
b. Neither because drug and alcohol issues are specifically excluded
c. Both physiological and psychological dependency issues
d. Physiological dependency issues only - ✔✔c. Both physiological and psychological
dependency issues
A foreign insurer is:
a. Formed in another country.
b. Permitted to sell insurance only in other countries.
c. Is formed in another state within the U.S.
d. Sells insurance in more than one country. - ✔✔c. Is formed in another state within
the U.S.
For each long-time Producer, a Washington Insurer must pay an appointment fee to the
Commissioner and provide notice of the Producer's appointment at which time?
,a. December 31 of each year
b. A time specified by the Producer
c. January 1 of each year
d. At the producer's renewal date every two years - ✔✔d. At the producer's renewal
date every two years
*The Insurer must pay a fee to "update" its Producer appointment. The appointment
fee must be paid every 2 years at the time the Producer's license is renewed.
A Producer must keep transaction records for:
a.1 year.
b.3 years.
c.4 years.
d.5 years. - ✔✔d.5 years.
Except for loans to make policy premium payments, a life insurer may defer an Insured's
request for a loan for a maximum of:
a.1 month
b.6 months
c.9 months
d.12 months - ✔✔b.6 months
*Under Washington law, a life Insurer may delay when responding to an Insured's
request for a policy loan. This gives the Insurer time to come up with the money. Except
for loans to make policy premium payments, the life Insurer may defer policy loans for
up to 6 months.
,If a Producer receives an excess fee paid by the Insured, the Producer must disclose
each of the following to the Insured EXCEPT:
a. Whether the Producer may receive any additional commission from the Insurer in the
future.
b. The date the Producer first had contact with the Insured.
c. The full amount of the fee paid by the Insured.
d. The full amount of any commission paid to the Producer by the Insurer. - ✔✔b.
The date the Producer first had contact with the Insured.
*if the Producer collects a surcharge from the client, the Producer must disclose the
amount of commission to be received from the Insurer, including any future bonus
payment for meeting company quotas, etc.
Molly has a $1 million life policy and a $500,000 Accidental Death and Dismemberment
policy. She is injured in a serious motorcycle accident on January 1 and dies 7 months
later from the injuries. Her Insurer will pay a total of:
a.$0
b.$500,000
c.$1,000,000
d.$1,500,000 - ✔✔c.$1,000,000
A Washington whole life policy must provide for policy loans at an interest rate no
greater than?
a.7%
b.8%
c.10%
d.11% - ✔✔b.8%
, Regardless of when the claim form is filed, an Insurer must pay what rate of interest on
an individual life policy from the moment of death?
a.3%
b.8%
c.10%
d.12% - ✔✔b.8%
Jabin is an independent Producer representing a number of Insurers, including the Mean
Insurance Company. For no reason at all, Mean decides to terminate Jabin's
appointment. Mean is required to offer to renew any of the policies in Jabin's book of
business for 1 year. What does Washington law say about commissions on those
renewed policies?
a. Jabin is entitled to a commission for as long as the policies continue to be renewed.
b. Jabin is not entitled to any commission because his appointment has been
terminated.
c. Jabin is entitled to a commission on the renewed policies for 1 year.
d. Washington law is silent on the issue - Jabin and the Insurer must negotiate the
commission split. - ✔✔c. Jabin is entitled to a commission on the renewed policies
for 1 year.
An Insurer permitted to appoint Producers to do business in Washington is referred to
as:
a. a designated Insurer.
b. an approved Insurer.
c. a permitted Insurer.
d. an authorized Insurer. - ✔✔d. an authorized Insurer.
Producer license is needed to:
and Complete Answers| Verified 100% Correct|
Newest 2025
A Bonded Producer must post a bond in the amount of:
a. $1,000
b. $2,500
c. $5,000
d. $20,000 - ✔✔b. $2,500
Under Washington laws, the required chemical dependency coverage applies to:
a. Psychological dependency issues only
b. Neither because drug and alcohol issues are specifically excluded
c. Both physiological and psychological dependency issues
d. Physiological dependency issues only - ✔✔c. Both physiological and psychological
dependency issues
A foreign insurer is:
a. Formed in another country.
b. Permitted to sell insurance only in other countries.
c. Is formed in another state within the U.S.
d. Sells insurance in more than one country. - ✔✔c. Is formed in another state within
the U.S.
For each long-time Producer, a Washington Insurer must pay an appointment fee to the
Commissioner and provide notice of the Producer's appointment at which time?
,a. December 31 of each year
b. A time specified by the Producer
c. January 1 of each year
d. At the producer's renewal date every two years - ✔✔d. At the producer's renewal
date every two years
*The Insurer must pay a fee to "update" its Producer appointment. The appointment
fee must be paid every 2 years at the time the Producer's license is renewed.
A Producer must keep transaction records for:
a.1 year.
b.3 years.
c.4 years.
d.5 years. - ✔✔d.5 years.
Except for loans to make policy premium payments, a life insurer may defer an Insured's
request for a loan for a maximum of:
a.1 month
b.6 months
c.9 months
d.12 months - ✔✔b.6 months
*Under Washington law, a life Insurer may delay when responding to an Insured's
request for a policy loan. This gives the Insurer time to come up with the money. Except
for loans to make policy premium payments, the life Insurer may defer policy loans for
up to 6 months.
,If a Producer receives an excess fee paid by the Insured, the Producer must disclose
each of the following to the Insured EXCEPT:
a. Whether the Producer may receive any additional commission from the Insurer in the
future.
b. The date the Producer first had contact with the Insured.
c. The full amount of the fee paid by the Insured.
d. The full amount of any commission paid to the Producer by the Insurer. - ✔✔b.
The date the Producer first had contact with the Insured.
*if the Producer collects a surcharge from the client, the Producer must disclose the
amount of commission to be received from the Insurer, including any future bonus
payment for meeting company quotas, etc.
Molly has a $1 million life policy and a $500,000 Accidental Death and Dismemberment
policy. She is injured in a serious motorcycle accident on January 1 and dies 7 months
later from the injuries. Her Insurer will pay a total of:
a.$0
b.$500,000
c.$1,000,000
d.$1,500,000 - ✔✔c.$1,000,000
A Washington whole life policy must provide for policy loans at an interest rate no
greater than?
a.7%
b.8%
c.10%
d.11% - ✔✔b.8%
, Regardless of when the claim form is filed, an Insurer must pay what rate of interest on
an individual life policy from the moment of death?
a.3%
b.8%
c.10%
d.12% - ✔✔b.8%
Jabin is an independent Producer representing a number of Insurers, including the Mean
Insurance Company. For no reason at all, Mean decides to terminate Jabin's
appointment. Mean is required to offer to renew any of the policies in Jabin's book of
business for 1 year. What does Washington law say about commissions on those
renewed policies?
a. Jabin is entitled to a commission for as long as the policies continue to be renewed.
b. Jabin is not entitled to any commission because his appointment has been
terminated.
c. Jabin is entitled to a commission on the renewed policies for 1 year.
d. Washington law is silent on the issue - Jabin and the Insurer must negotiate the
commission split. - ✔✔c. Jabin is entitled to a commission on the renewed policies
for 1 year.
An Insurer permitted to appoint Producers to do business in Washington is referred to
as:
a. a designated Insurer.
b. an approved Insurer.
c. a permitted Insurer.
d. an authorized Insurer. - ✔✔d. an authorized Insurer.
Producer license is needed to:
