WASHINGTON STATE PROPERTY AND CASUALTY
INSURANCE ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS LATEST UPDATES (VERIFIED
ANSWERS) ALREADY GRADED A+
Authorized Insurer - ANSWERS-An insurer that has qualified and received a Certificate of
Authority from the Department of Insurance to transact insurance in the state.
Contact adhesion - ANSWERS-the accepter of the contract must "adhere" to the written
contract
inducement - ANSWERS-An action aimed at persuading
insolvent - ANSWERS-Bankrupt; unable to pay debts.
Transacting Insurance - ANSWERS-Conducting insurance business, such as soliciting or
negotiating to buy or sell an insurance policy.
Unauthorized Insurer - ANSWERS-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? - ANSWERS-When a unauthorized
insurer improperly placed a policy. Would be replaced by a policy with a legal insurer.
,Surplus Lines - ANSWERS-Insurance that is not available or offered in the regular marketplace
from admitted insurers.
Insurance Commissioner (IOC) - ANSWERS-State elected term of 4 years.
insurance Commissioner duties - ANSWERS--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? - ANSWERS-As often as
deemed necessary, but MUST be done every 5 years
Receiving Written Notice from Commissioner - ANSWERS-the person must respond within 90
days. if not made the request is considered waved.
Notice of Hearing - ANSWERS-- must state grounds of hearing (can be written demand by
aggrieved person)
- Right to request administrative law judge
Licence Suspension Hearing - ANSWERS-Commissioner must hold a hearing within 90 days.
,Insurance Producer - ANSWERS-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) - ANSWERS-solicits licences for variable life
and variable annuity
Temporary Insurance Producers Licence - ANSWERS-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 - ANSWERS-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? - ANSWERS-When they work at a company or themself
but do not conduct the solicitation, sale, negotiation of insurance.
Appointing a insurance producer - ANSWERS-- 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 - ANSWERS-A business must have AT LEAST 1 affiliated individual
licence to transact insurance
If business Entity Affiliate is terminated - ANSWERS-The commissioner must receive notice
within 30 days of termination.
Renewal - ANSWERS-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 - ANSWERS-(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) - ANSWERS-Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
Change of Address - ANSWERS-Must contact commissioner within 30 days. this includes a
change of residence, mailing, business, or email
INSURANCE ACTUAL EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS LATEST UPDATES (VERIFIED
ANSWERS) ALREADY GRADED A+
Authorized Insurer - ANSWERS-An insurer that has qualified and received a Certificate of
Authority from the Department of Insurance to transact insurance in the state.
Contact adhesion - ANSWERS-the accepter of the contract must "adhere" to the written
contract
inducement - ANSWERS-An action aimed at persuading
insolvent - ANSWERS-Bankrupt; unable to pay debts.
Transacting Insurance - ANSWERS-Conducting insurance business, such as soliciting or
negotiating to buy or sell an insurance policy.
Unauthorized Insurer - ANSWERS-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? - ANSWERS-When a unauthorized
insurer improperly placed a policy. Would be replaced by a policy with a legal insurer.
,Surplus Lines - ANSWERS-Insurance that is not available or offered in the regular marketplace
from admitted insurers.
Insurance Commissioner (IOC) - ANSWERS-State elected term of 4 years.
insurance Commissioner duties - ANSWERS--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? - ANSWERS-As often as
deemed necessary, but MUST be done every 5 years
Receiving Written Notice from Commissioner - ANSWERS-the person must respond within 90
days. if not made the request is considered waved.
Notice of Hearing - ANSWERS-- must state grounds of hearing (can be written demand by
aggrieved person)
- Right to request administrative law judge
Licence Suspension Hearing - ANSWERS-Commissioner must hold a hearing within 90 days.
,Insurance Producer - ANSWERS-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) - ANSWERS-solicits licences for variable life
and variable annuity
Temporary Insurance Producers Licence - ANSWERS-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 - ANSWERS-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? - ANSWERS-When they work at a company or themself
but do not conduct the solicitation, sale, negotiation of insurance.
Appointing a insurance producer - ANSWERS-- 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 - ANSWERS-A business must have AT LEAST 1 affiliated individual
licence to transact insurance
If business Entity Affiliate is terminated - ANSWERS-The commissioner must receive notice
within 30 days of termination.
Renewal - ANSWERS-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 - ANSWERS-(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) - ANSWERS-Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
Change of Address - ANSWERS-Must contact commissioner within 30 days. this includes a
change of residence, mailing, business, or email
