Washington Laws and Rules Pertinent to Insurance Test Questions and Answers | 100% Correct | Latest 2024/2025

Violations of US Code Title 18 section 1033, may result in correct answers Fine and/or imprisonment Charles is a producer who is licensed in Washington but resides in Oregon. Charles is considered to be a(n) correct answers Nonresident producer Before a producer may sell, solicit, or negotiate insurance from an insurer, the producer must have a(n) correct answers Appointment The act of using misrepresentation to induce an insured person to terminate an existing policy and purchase a new policy is referred to as correct answers Twisting An example of an unfair claims settlement practice is correct answers Turning down a claim without providing the basis of denial One role of the Commissioner is to correct answers Enforce state insurance laws Every producer licensed in Washington must notify the Commissioner within ___ days of any change of the address. correct answers 30 The identity of the _____ must be made clear in every health (disability) insurance advertisement. correct answers Insurer A life insurance policy becomes incontestable after it has been in force for correct answers 2 years Advertising regulations exist to correct answers Assure full and truthful disclosures to the public When a Medicare Supplement insurance policy is being replaced, who must sign the notice of replacement? correct answers The producer and the applicant What is the MINIMUM benefit period that must be offered by a Long-Term Care policy? correct answers 12 months No legal action can be initiated after ___ years from the initial time written proof of loss has been provided. correct answers 3 When replacing a life insurance policy, a producer must provide the applicant with a correct answers Notice Regarding Replacement A Medicare Supplement policy can be cancelled by the insurer for correct answers Nonpayment Washington Laws and Rules Pertinent to Insurance Test Questions and Answers | 100% Correct | Latest 2024/2025 A company that is chartered and organized of the state in which its home office is located is called a(n) correct answers Domestic insurer An insurance company may only pay commissions to a(n) correct answers Licensed producer appointed by the insurer An example of an Unfair Claims Settlement practice is correct answers Failing to promptly provide reasonable explanations for the denial of claims An insurance company that has qualified and received a Certificate of Authority from the Insurance Department to sell insurance in this state is called a(n) correct answers Authorized insurer Replacement can be BEST described as correct answers Exchanging a new policy for one already in force An insurer may exclude preexisting conditions on a Medicare Supplement policy for ___ months. correct answers 6 What is the purpose of the Washington Life and Disability Insurance Guaranty Association? correct answers Ensures that claims filed against insolvent insurance companies will be paid An example of rebating is correct answers A producer who shares commissions with a client The required grace period for life insurance policies sold in Washington is correct answers 30 days Kiara filled out a life insurance application and was given a policy illustration that showed future premiums being paid out of nonguaranteed values. This illustration MUST disclose that correct answers She may need to resume premium payments, depending on actual results Which of the following is required for an insurer to conduct business in this state? correct answers Certificate of Authority Which of the following is an example of a producer's fiduciary duty? correct answers Recording receipt and remittance of premiums due to the insurance company The _____ is responsible for determining the appropriateness of a Medicare Supplement policy for an applicant correct answers Producer Which of the following is NOT considered to be an act of "transacting insurance"? correct answers Gathering prospective buyer information In the event of a controversy between the insured and the company, the producer is considered to represent the correct answers Company Inducement is BEST defined as correct answers Offering to buy, sell, give, or allow a prospective insurance employment, stock or special favors in exchange for an insurance contract Which of these is NOT an Unfair Claims Settlement practice? correct answers Settling a claim by arbitration The Life and Disability Guaranty Association provides funds to carry out its powers and duties by assessing correct answers Member insurers Which of these is not a characteristic of a Fraternal Benefit Society correct answers Exists for profit What provision states that the policy and application shall constitute the entire contract between parties? correct answers Entire contract Which of the following unfair trade practices involves a producer who makes public, malicious statements about an insurer's financial condition? correct answers Defamation A foreign insurance company doing business in Washington correct answers Is a company that was formed under the laws of another state An insurer is REQUIRED to offer which of the following to each long-term care applicant at the time of purchase? correct answers Inflation protection Tim's individual life insurance policy has just recently lapsed. His policy may be reinstated at any time within ___ year(s) correct answers 3 Which of the following is CORRECT regarding disclosure regulation? correct answers It requires the delivery of a buyer's guide and a disclosure document to applicants Under which circumstances may a commission be shared between two producers? correct answers When they are both licensed in the same line of business A person cannot sell Long-Term care insurance unless that person is licensed as an insurance producer and has successfully completed a one-time education course of correct answers 8 hours During the examination of an insurer's books and records by the Commissioner, the insurer correct answers Must not impede the examination The free look period provided in a life insurance policy is usually correct answers 10 days An insurer would be committing Unfair Discrimination if coverage was denied based upon correct answers Marital status A _____ license may be issued in cases where a producer has become disabled or dies, requiring a replacement to service the producer's business. correct answers Temporary If an Insurer terminates a producer's appointment, it must notify the Commissioner within ___ days of the termination. correct answers 30 An alien insurer correct answers Is an insurer that is operating in the U.S. but headquartered outside the U.S. A producer has committed an insurance crime that violates the U.S. Code 1033 (interstate commerce). Who would be responsible for the prosecution of this crime? correct answers US Attorney General A producer is meeting with a client to determine whether an annuity would be suitable for purchase. Which of the following topics needs to be discussed with the client? correct answers Financial objectives A producer who is licensed in Washington but resident in another state is called a correct answers Nonresident producer The grace period for an accident and health (disability) policy is ___ days for weekly premium policies. correct answers 7 An insurer must submit all policy forms and applications to the Commissioner at least ___ days before they can be used. correct answers 30 The Washington Life and Health _____ Association is used to rehabilitate insolvent users. correct answers Guaranty Barry offers Chris a mountain cabin for the weekend to secure his order for his insurance business. This is an example of correct answers Rebating A temporary license is valid for a maximum of ___ days correct answers 180 XYZ Life Insurance company's home office is located in Ohio and is incorporated in Ohio. In Washington, they are considered to be correct answers Foreign In Washington, a Long-Term Care policy must be ______ renewable. correct answers Guaranteed Coverage for newborns under an accident and health (disability) plan MUST include coverage for correct answers Birth abnormalities In Washington, an insurance producer cannot sell, solicit, or negotiate policies for an insurer unless there is an agreement in place between the producer and insurer. This agreement is called a(n) correct answers Appointment A life policy loan in Washington cannot charge a fixed rate of interest higher than correct answers 8% A producer's license may only be suspended or revoked if the producer correct answers Has been afforded a right to a hearing Producers must complete ___ hours of continuing education biannually. correct answers 24 Benefits for a Medicare Supplement policy correct answers Must not duplicate Medicare benefits Carmen's individual life insurance policy has recently lapsed. She may reinstate her policy anytime within ___ year(s) correct answers 3 Washington requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of laws and ethics every reporting period. correct answers 3 Which of these is NOT an Unfair Claims Settlement practice? correct answers Providing claim payments to insureds under the the guidance of the insurance contract An insurer must send a notice of appointment for a producer within ___ days from the date of an executed agency contract or after submitting the first application to the insurer. correct answers 15