©SOPHIABENNET@2024-2025 Friday, August 23, 2024 10:49 AM
Washington State Property & Casualty
Insurance Exam Study Guide
Authorized Insurer - 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 - Answer✔️✔️-the accepter of the contract must "adhere"
to the written contract
inducement - Answer✔️✔️-An action aimed at persuading
insolvent - Answer✔️✔️-Bankrupt; unable to pay debts.
Transacting Insurance - Answer✔️✔️-Conducting insurance business, such
as soliciting or negotiating to buy or sell an insurance policy.
Unauthorized Insurer - 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? - Answer✔️✔️-
When a unauthorized insurer improperly placed a policy. Would be
replaced by a policy with a legal insurer.
Surplus Lines - Answer✔️✔️-Insurance that is not available or offered in the
regular marketplace from admitted insurers.
1
, ©SOPHIABENNET@2024-2025 Friday, August 23, 2024 10:49 AM
Insurance Commissioner (IOC) - Answer✔️✔️-State elected term of 4 years.
insurance Commissioner duties - 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? -
Answer✔️✔️-As often as deemed necessary, but MUST be done every 5
years
Receiving Written Notice from Commissioner - Answer✔️✔️-the person
must respond within 90 days. if not made the request is considered waved.
Notice of Hearing - Answer✔️✔️-- must state grounds of hearing (can be
written demand by aggrieved person)
- Right to request administrative law judge
Licence Suspension Hearing - Answer✔️✔️-Commissioner must hold a
hearing within 90 days.
2
, ©SOPHIABENNET@2024-2025 Friday, August 23, 2024 10:49 AM
Insurance Producer - 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) - Answer✔️✔️-solicits
licences for variable life and variable annuity
Temporary Insurance Producers Licence - 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 - 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? - Answer✔️✔️-When they work at a
company or themself but do not conduct the solicitation, sale, negotiation
of insurance.
3
, ©SOPHIABENNET@2024-2025 Friday, August 23, 2024 10:49 AM
Appointing a insurance producer - 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 - Answer✔️✔️-A business must have AT LEAST 1
affiliated individual licence to transact insurance
If business Entity Affiliate is terminated - Answer✔️✔️-The commissioner
must receive notice within 30 days of termination.
Renewal - 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 - Answer✔️✔️-(Every 2 years)
Producer- $55
Limited insurance- $20
Surplus lines broker- $20
Ajuster- $50
4
Washington State Property & Casualty
Insurance Exam Study Guide
Authorized Insurer - 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 - Answer✔️✔️-the accepter of the contract must "adhere"
to the written contract
inducement - Answer✔️✔️-An action aimed at persuading
insolvent - Answer✔️✔️-Bankrupt; unable to pay debts.
Transacting Insurance - Answer✔️✔️-Conducting insurance business, such
as soliciting or negotiating to buy or sell an insurance policy.
Unauthorized Insurer - 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? - Answer✔️✔️-
When a unauthorized insurer improperly placed a policy. Would be
replaced by a policy with a legal insurer.
Surplus Lines - Answer✔️✔️-Insurance that is not available or offered in the
regular marketplace from admitted insurers.
1
, ©SOPHIABENNET@2024-2025 Friday, August 23, 2024 10:49 AM
Insurance Commissioner (IOC) - Answer✔️✔️-State elected term of 4 years.
insurance Commissioner duties - 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? -
Answer✔️✔️-As often as deemed necessary, but MUST be done every 5
years
Receiving Written Notice from Commissioner - Answer✔️✔️-the person
must respond within 90 days. if not made the request is considered waved.
Notice of Hearing - Answer✔️✔️-- must state grounds of hearing (can be
written demand by aggrieved person)
- Right to request administrative law judge
Licence Suspension Hearing - Answer✔️✔️-Commissioner must hold a
hearing within 90 days.
2
, ©SOPHIABENNET@2024-2025 Friday, August 23, 2024 10:49 AM
Insurance Producer - 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) - Answer✔️✔️-solicits
licences for variable life and variable annuity
Temporary Insurance Producers Licence - 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 - 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? - Answer✔️✔️-When they work at a
company or themself but do not conduct the solicitation, sale, negotiation
of insurance.
3
, ©SOPHIABENNET@2024-2025 Friday, August 23, 2024 10:49 AM
Appointing a insurance producer - 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 - Answer✔️✔️-A business must have AT LEAST 1
affiliated individual licence to transact insurance
If business Entity Affiliate is terminated - Answer✔️✔️-The commissioner
must receive notice within 30 days of termination.
Renewal - 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 - Answer✔️✔️-(Every 2 years)
Producer- $55
Limited insurance- $20
Surplus lines broker- $20
Ajuster- $50
4
