Washington Life and Disability | Questions and Answers with complete

The federal Risk Retention Act of 1986 applies to which businesses? - self-insuring businesses John, an insurance producer, receives a request for information from the Commissioner. His written reply is due within how many days after receiving the request? - 15 business days For a misrepresentation to affect the validity of an insurance policy, it must be: - material An agent for ABC Insurance Company meets with a client. The agent shows the client ABC's sample policies, refers to the ABC rate book, and gives the client an ABC business card. The client assumes that ABC has appointed the agent to represent it. What kind of authority does the agent have? - apparent authority What is the maximum time for which the Commissioner can order the suspension of a producer's license? - 12 months How often must insurance producers licensed in Washington fulfill continuing education requirements to maintain their licenses? - every 24 months In Washington, what is not considered an insurance producer? - brokering surplus lines What is the maximum period for which an insurance license may be suspended? - 12 months A producer receives a policy that the insurance company issued for delivery to a new customer. The producer forgets to deliver the policy before going on an extended vacation. Who is responsible to the insured for the delayed delivery? - the producer and the insurance company what statement correctly describes the 7-pay test and the modified endowment contract (MEC)? - The 7-pay test applies specifically to the premiums paid into a contract during its first seven years. If this amount exceeds the net level premiums that would have been required to produce a paid-up policy after seven level annual payments, then the policy is a MEC.