Washington State Property & Casualty
Insurance Exam UPDATED ACTUAL
Questions And CORRECT 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:
30 days: 50% of renewal
31-60 days: 100%
61-12 months 200% (12+ months must restart licensing process)
Continuing Education (CE) - CORRECT ANSWER - Every 2 years. 24 hours total, 3
hours in ethics.
must hold on to certificate for 3 years
Change of Address - CORRECT ANSWER - Must contact commissioner within 30 days.
this includes a change of residence, mailing, business, or email
Reporting of Actions - CORRECT ANSWER - You must report to the commissioner
within 30 days of any administrative action taken on them by another jurisdiction or
governmental agency
Convicted of a felony - CORRECT ANSWER - Commissioner may revoke or refuse
insurers licenses immediately. Within 15 days may revoke a ordered licence or by ordering a
hearing within 10 days.
Suspended license period - CORRECT ANSWER - up to 12 months
Insurance Exam UPDATED ACTUAL
Questions And CORRECT 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:
30 days: 50% of renewal
31-60 days: 100%
61-12 months 200% (12+ months must restart licensing process)
Continuing Education (CE) - CORRECT ANSWER - Every 2 years. 24 hours total, 3
hours in ethics.
must hold on to certificate for 3 years
Change of Address - CORRECT ANSWER - Must contact commissioner within 30 days.
this includes a change of residence, mailing, business, or email
Reporting of Actions - CORRECT ANSWER - You must report to the commissioner
within 30 days of any administrative action taken on them by another jurisdiction or
governmental agency
Convicted of a felony - CORRECT ANSWER - Commissioner may revoke or refuse
insurers licenses immediately. Within 15 days may revoke a ordered licence or by ordering a
hearing within 10 days.
Suspended license period - CORRECT ANSWER - up to 12 months
