Washington State Property & Casualty Insurance, Well and Carefully Prepared over 680 Questions with Correct 100% A+ Answers

Washington State Property & Casualty Insurance, Well and Carefully Prepared over 680 Questions with Correct 100% A+ Answers Authorized Insurer - CORRECT ANSWER-An insurer that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state. Contact adhesion - CORRECT ANSWER-the accepter of the contract must "adhere" to the written contract inducement - CORRECT ANSWER-An action aimed at persuading insolvent - CORRECT ANSWER-Bankrupt; unable to pay debts. Transacting Insurance - CORRECT ANSWER-Conducting insurance business, such as soliciting or negotiating to buy or sell an insurance policy. Unauthorized Insurer - CORRECT 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? - CORRECT ANSWER-When a unauthorized insurer improperly placed a policy. Would be replaced by a policy with a legal insurer. Surplus Lines - CORRECT ANSWER-Insurance that is not available or offered in the regular marketplace from admitted insurers. Insurance Commissioner (IOC) - CORRECT ANSWER-State elected term of 4 years. insurance Commissioner duties - CORRECT 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? - CORRECT ANSWER-As often as deemed necessary, but MUST be done every 5 years Receiving Written Notice from Commissioner - CORRECT ANSWER-the person must respond within 90 days. if not made the request is considered waved. Notice of Hearing - CORRECT ANSWER-- must state grounds of hearing (can be written demand by aggrieved person) - Right to request administrative law judge Licence Suspension Hearing - CORRECT ANSWER-Commissioner must hold a hearing within 90 days. Insurance Producer - CORRECT 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) - CORRECT ANSWER-solicits licences for variable life and variable annuity Temporary Insurance Producers Licence - CORRECT 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 - CORRECT 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? - CORRECT ANSWER-When they work at a company or themself but do not conduct the solicitation, sale, negotiation of insurance. Appointing a insurance producer - CORRECT 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. Business Entity Affiliates - CORRECT ANSWER-A business must have AT LEAST 1 affiliated individual licence to transact insurance If business Entity Affiliate is terminated - CORRECT ANSWER-The commissioner must receive notice within 30 days of termination. Renewal - CORRECT ANSWER-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 - CORRECT ANSWER-(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) - CORRECT ANSWER-Every 2 years. 24 hours total, 3 hours in ethics. must hold on to certificate for 3 years Change of Address - CORRECT ANSWER-Must contact commissioner within 30 days. this includes a change of residence, mailing, business, or email Reporting of Actions - CORRECT ANSWER-You must report to the commissioner within 30 days of any administrative action taken on them by another jurisdiction or governmental agency Convicted of a felony - CORRECT ANSWER-Commissioner may revoke or refuse insurers licenses immediately. Within 15 days may revoke a ordered licence or by ordering a hearing within 10 days. Suspended license period - CORRECT ANSWER-up to 12 months Guilty of violations - CORRECT ANSWER-each fine of up to $1,000, must be paid within 15-30 days Place of Business Requirements - CORRECT ANSWER-Must be accessible to the public. Does not apply to life and disability insurance. Record Retention - CORRECT ANSWER-Requires insurer to maintain records for 5 years. (DRPL) Designated Responsible Licensed Person - CORRECT ANSWER-Responsible for insurers compliance with insurance laws/ rules Misrepresentation - CORRECT ANSWER-Materials that are false, misleading, or deceptive of policy benefits, terms, payment of dividends. Also includes oral statements. Knowingly committing this is considered a gross misdemeanor, and licences can be revoked False Advertising - CORRECT ANSWER-Advertising that is misleading, deceptive, and untrue. Ex: newspaper add with untrue statements about terms and benefits of a policy. Rebating - CORRECT ANSWER-the practice of giving an individual a premium reduction or some other financial advantage not stated in the policy as an inducement to purchase the policy. It May not exceed $100 per person in a 12 month period. Inducement - CORRECT ANSWER-illegal action. referring to rebating to have someone purchase a policy for a reward. Twisting - CORRECT ANSWER-Misrepresentation for the purpose of inducing a person to purchase, lapse, forfeit, surrender or change an insurance policy. Twisting is an unfair trade practice. Deformation - CORRECT ANSWER-An oral or written statement of insurance policies that persuades a person to engage in insurance. including financial conditions of people or another company. Excess Charge - CORRECT ANSWER-allowing insurers to charge a reduction fee, overall charges must be reasonable to the value of work. Claimant - CORRECT ANSWER-either the first party, third party or both. can include immediate family members designated by client First Party Claimant - CORRECT ANSWER-The insured is the first party claimant.