WA SURPLUS LINES BROKER QUESTIONS &
ANSWERS
A public adjuster represents the interest of:
> Insurer
> Public.
> Insurance Department.
> Insured - Answers :insured
Selling insurance in Washington State without a license is a:
> Class C felony.
> Class D felony.
> Class B felony.
> Class A felony. - Answers :Class B Felony
Every Insurer ad must state which of the following:
> whether or not the Insurer is an authorized Washington Insurer
> whether or not the Insurer is a member of the Guaranty Fund
> the primary phone number of the Insurer
> the full name of the Insurer - Answers :Full name of the insurer
A foreign insurer is domiciled in another:
> country.
> state - Answers :state
Which type of insurer doesn't sell stock and is operated for its members on a nonprofit
ritualistic lodge basis?
> Alien
> Fraternal
> Domestic
> Mutual - Answers :fraternal
If the Guaranty Association is required to pay a claim, the funds come from:
> a reduction in the amount of claim payments by the remaining Insurers.
> a special tax imposed on all insurance policies sold within the state.
> the Insurance Department's annual budget.
> an assessment against the premiums collected by each Insurer. - Answers :an
assessment against the premiums collected by each insurer
,When an insurer appoints a producer, the insurer must notify the commissioner of the
appointment within
> One business day
> 7 days
> 15 days
> 31 days - Answers :15 days
A bonded producer must post a bond in the amount of - Answers :$2,500
within how many days must a producer notify the insurance commissioner of a change
in: email address, mailing address, business address, or residence address? - Answers
:30 days
Violation of the fraudulent claims act is a:
> Misdemeanor
> Felony - Answers :Felony
A producer knowingly insuring a property in excess of its value is known as:
> twisting
> defamation
> fraudulent valuation
> overinsurance - Answers :overinsurance
If an insurer decides to terminate an independent producer for failure to meet sales
quotas, the independent producer must be given how much advance notice of the
termination - Answers :120 days
Which of the following are prohibited from making contributions to the Insurance
Commissioner's political campaign?
> Bonded producers,
> resident producers,
> non resident producers
> insurers - Answers :Insurers
An unlicensed office person working in a Washington insurance office may:
> review policy provisions,
> solicit applications,
> recommend the appropriate policy for an applicant
>perform normal office duties - Answers :perform normal office duties
Washington requires Insurer's to offer Underinsured Motorist limits that are:
,> 10/5/10
> at least equal to the limits of the Insured's auto liability policy
> less than the limits of the Insured's auto liability policy
> greater than the limits of the Insured's auto liability policy - Answers :at least equal to
the limits of the insured's auto liability policy
The commissioner may fine a licensee up to what amount for violating a cease and
desist order and what amount for violating any other insurance law?
> $250, $1,000
> $500, $2,500
> $1,000, $5,000
> $2,000, $10,000 - Answers :$250, $1,000
Q has given a cash premium to a Producer. How long does the Producer have to
provide a signed premium receipt?
> 1 business day
> 2 business days
> 3 business days
> 48 hours - Answers :1 business day
The Surplus Line Broker is required to have:
> a $2,500 bond to protect the Insureds and a $20,000 bond to protect the State.
> a $5,000 bond to protect the Insureds and a $50,000 bond to protect the State.
> a $2,500 bond to protect the State and a $20,000 bond to protect the Insureds.
> a $5,000 bond to protect the State and a $50,000 bond to protect the Insureds. -
Answers :a $2,500 bond to protect the Insureds and a $20,000 bond to protect the
State.
If a Producer changes the Producer's address for mail, email, home, or business, the
Producer:
> Must notify the Commissioner within 60 days.
> Is not required to notify the Commissioner.
> Must notify both the Producer's appointing Insurers and clients immediately.
> Must notify the Commissioner within 30 days. - Answers :must notify the
commissioner within 30 days
A driver in an auto accident may be required to post with the department of licensing a
security deposit in at least what amount?
> $500
> $1,000
, > $2,500
> $5,000 - Answers :$500
An appointment letter gives the Producer expressed authority to:
> represent the Insurer.
> sell all lines of Insurance in the State of Washington. - Answers :represent the insurer
If the Insurer cancels, any unearned premium must be refunded to the Insured within:
> 10 days
> 20 days
> 45 days
> 90 days - Answers :45 days
Jabin is an independent Producer representing a number of Insurers, including the
Mean Insurance Company. For no reason at all, Mean decides to terminate Jabin's
appointment. Mean is required to offer to renew any of the policies in Jabin's book of
business for 1 year. What does Washington law say about commissions on those
renewed policies?
> Jabin is not entitled to any commission because his appointment has been
terminated.
> Jabin is entitled to a commission on the renewed policies for 1 year.
> Washington law is silent on the issue - Jabin and the Insurer must negotiate the
commission split.
> Jabin is entitled to a commission for as long as the policies continue to be renewed. -
Answers :Jabin is entitled to a commission on the renewed policies for 1 year
Making false or misleading policy comparisons to induce policy replacement is:
> twisting
> commingling
> defamation
> whispering - Answers :twisting
If the Premium Trust Account is interest bearing, the interest:
> Must be submitted to the Commissioner for deposit in the state general fund.
> May be kept by the Producer but shouldn't be commingled with the funds in the
separate account. - Answers :May be kept by the Producer but shouldn't be commingled
with the funds in the separate account.
The license of a Temporary Agent is effective for:
> Only 180 days
ANSWERS
A public adjuster represents the interest of:
> Insurer
> Public.
> Insurance Department.
> Insured - Answers :insured
Selling insurance in Washington State without a license is a:
> Class C felony.
> Class D felony.
> Class B felony.
> Class A felony. - Answers :Class B Felony
Every Insurer ad must state which of the following:
> whether or not the Insurer is an authorized Washington Insurer
> whether or not the Insurer is a member of the Guaranty Fund
> the primary phone number of the Insurer
> the full name of the Insurer - Answers :Full name of the insurer
A foreign insurer is domiciled in another:
> country.
> state - Answers :state
Which type of insurer doesn't sell stock and is operated for its members on a nonprofit
ritualistic lodge basis?
> Alien
> Fraternal
> Domestic
> Mutual - Answers :fraternal
If the Guaranty Association is required to pay a claim, the funds come from:
> a reduction in the amount of claim payments by the remaining Insurers.
> a special tax imposed on all insurance policies sold within the state.
> the Insurance Department's annual budget.
> an assessment against the premiums collected by each Insurer. - Answers :an
assessment against the premiums collected by each insurer
,When an insurer appoints a producer, the insurer must notify the commissioner of the
appointment within
> One business day
> 7 days
> 15 days
> 31 days - Answers :15 days
A bonded producer must post a bond in the amount of - Answers :$2,500
within how many days must a producer notify the insurance commissioner of a change
in: email address, mailing address, business address, or residence address? - Answers
:30 days
Violation of the fraudulent claims act is a:
> Misdemeanor
> Felony - Answers :Felony
A producer knowingly insuring a property in excess of its value is known as:
> twisting
> defamation
> fraudulent valuation
> overinsurance - Answers :overinsurance
If an insurer decides to terminate an independent producer for failure to meet sales
quotas, the independent producer must be given how much advance notice of the
termination - Answers :120 days
Which of the following are prohibited from making contributions to the Insurance
Commissioner's political campaign?
> Bonded producers,
> resident producers,
> non resident producers
> insurers - Answers :Insurers
An unlicensed office person working in a Washington insurance office may:
> review policy provisions,
> solicit applications,
> recommend the appropriate policy for an applicant
>perform normal office duties - Answers :perform normal office duties
Washington requires Insurer's to offer Underinsured Motorist limits that are:
,> 10/5/10
> at least equal to the limits of the Insured's auto liability policy
> less than the limits of the Insured's auto liability policy
> greater than the limits of the Insured's auto liability policy - Answers :at least equal to
the limits of the insured's auto liability policy
The commissioner may fine a licensee up to what amount for violating a cease and
desist order and what amount for violating any other insurance law?
> $250, $1,000
> $500, $2,500
> $1,000, $5,000
> $2,000, $10,000 - Answers :$250, $1,000
Q has given a cash premium to a Producer. How long does the Producer have to
provide a signed premium receipt?
> 1 business day
> 2 business days
> 3 business days
> 48 hours - Answers :1 business day
The Surplus Line Broker is required to have:
> a $2,500 bond to protect the Insureds and a $20,000 bond to protect the State.
> a $5,000 bond to protect the Insureds and a $50,000 bond to protect the State.
> a $2,500 bond to protect the State and a $20,000 bond to protect the Insureds.
> a $5,000 bond to protect the State and a $50,000 bond to protect the Insureds. -
Answers :a $2,500 bond to protect the Insureds and a $20,000 bond to protect the
State.
If a Producer changes the Producer's address for mail, email, home, or business, the
Producer:
> Must notify the Commissioner within 60 days.
> Is not required to notify the Commissioner.
> Must notify both the Producer's appointing Insurers and clients immediately.
> Must notify the Commissioner within 30 days. - Answers :must notify the
commissioner within 30 days
A driver in an auto accident may be required to post with the department of licensing a
security deposit in at least what amount?
> $500
> $1,000
, > $2,500
> $5,000 - Answers :$500
An appointment letter gives the Producer expressed authority to:
> represent the Insurer.
> sell all lines of Insurance in the State of Washington. - Answers :represent the insurer
If the Insurer cancels, any unearned premium must be refunded to the Insured within:
> 10 days
> 20 days
> 45 days
> 90 days - Answers :45 days
Jabin is an independent Producer representing a number of Insurers, including the
Mean Insurance Company. For no reason at all, Mean decides to terminate Jabin's
appointment. Mean is required to offer to renew any of the policies in Jabin's book of
business for 1 year. What does Washington law say about commissions on those
renewed policies?
> Jabin is not entitled to any commission because his appointment has been
terminated.
> Jabin is entitled to a commission on the renewed policies for 1 year.
> Washington law is silent on the issue - Jabin and the Insurer must negotiate the
commission split.
> Jabin is entitled to a commission for as long as the policies continue to be renewed. -
Answers :Jabin is entitled to a commission on the renewed policies for 1 year
Making false or misleading policy comparisons to induce policy replacement is:
> twisting
> commingling
> defamation
> whispering - Answers :twisting
If the Premium Trust Account is interest bearing, the interest:
> Must be submitted to the Commissioner for deposit in the state general fund.
> May be kept by the Producer but shouldn't be commingled with the funds in the
separate account. - Answers :May be kept by the Producer but shouldn't be commingled
with the funds in the separate account.
The license of a Temporary Agent is effective for:
> Only 180 days
