Washington State Property & Casualty Insurance Exam Questions with 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: