Washington Laws and Rules Pertinent To
Insurance Exam Questions with Verified
Correct Detailed Answers Latest Update
2025
Which of the following is NOT considered to be an act of "transacting
insurance"? --- correct answer ---Gathering prospective buyer
information
In the event of a controversy between the insured and the company,
the producer is considered to represent the --- correct answer ---
Company
Inducement is BEST defined as --- correct answer ---Offering to buy,
sell, give, or allow a prospective insurance employment, stock or
special favors in exchange for an insurance contract
Which of these is NOT an Unfair Claims Settlement practice? ---
correct answer ---Settling a claim by arbitration
,The Life and Disability Guaranty Association provides funds to carry
out its powers and duties by assessing --- correct answer ---Member
insurers
Which of these is not a characteristic of a Fraternal Benefit Society ---
correct answer ---Exists for profit
What provision states that the policy and application shall constitute
the entire contract between parties? --- correct answer ---Entire
contract
Which of the following unfair trade practices involves a producer who
makes public, malicious statements about an insurer's financial
condition? --- correct answer ---Defamation
A foreign insurance company doing business in Washington --- correct
answer ---Is a company that was formed under the laws of another
state
An insurer is REQUIRED to offer which of the following to each long-
term care applicant at the time of purchase? --- correct answer ---
Inflation protection
, Tim's individual life insurance policy has just recently lapsed. His
policy may be reinstated at any time within ___ year(s) --- correct
answer ---3
Which of the following is CORRECT regarding disclosure regulation? --
- correct answer ---It requires the delivery of a buyer's guide and a
disclosure document to applicants
Under which circumstances may a commission be shared between two
producers? --- correct answer ---When they are both licensed in the
same line of business
A person cannot sell Long-Term care insurance unless that person is
licensed as an insurance producer and has successfully completed a
one-time education course of --- correct answer ---8 hours
During the examination of an insurer's books and records by the
Commissioner, the insurer --- correct answer ---Must not impede the
examination
The free look period provided in a life insurance policy is usually ---
correct answer ---10 days
Insurance Exam Questions with Verified
Correct Detailed Answers Latest Update
2025
Which of the following is NOT considered to be an act of "transacting
insurance"? --- correct answer ---Gathering prospective buyer
information
In the event of a controversy between the insured and the company,
the producer is considered to represent the --- correct answer ---
Company
Inducement is BEST defined as --- correct answer ---Offering to buy,
sell, give, or allow a prospective insurance employment, stock or
special favors in exchange for an insurance contract
Which of these is NOT an Unfair Claims Settlement practice? ---
correct answer ---Settling a claim by arbitration
,The Life and Disability Guaranty Association provides funds to carry
out its powers and duties by assessing --- correct answer ---Member
insurers
Which of these is not a characteristic of a Fraternal Benefit Society ---
correct answer ---Exists for profit
What provision states that the policy and application shall constitute
the entire contract between parties? --- correct answer ---Entire
contract
Which of the following unfair trade practices involves a producer who
makes public, malicious statements about an insurer's financial
condition? --- correct answer ---Defamation
A foreign insurance company doing business in Washington --- correct
answer ---Is a company that was formed under the laws of another
state
An insurer is REQUIRED to offer which of the following to each long-
term care applicant at the time of purchase? --- correct answer ---
Inflation protection
, Tim's individual life insurance policy has just recently lapsed. His
policy may be reinstated at any time within ___ year(s) --- correct
answer ---3
Which of the following is CORRECT regarding disclosure regulation? --
- correct answer ---It requires the delivery of a buyer's guide and a
disclosure document to applicants
Under which circumstances may a commission be shared between two
producers? --- correct answer ---When they are both licensed in the
same line of business
A person cannot sell Long-Term care insurance unless that person is
licensed as an insurance producer and has successfully completed a
one-time education course of --- correct answer ---8 hours
During the examination of an insurer's books and records by the
Commissioner, the insurer --- correct answer ---Must not impede the
examination
The free look period provided in a life insurance policy is usually ---
correct answer ---10 days
