Washington State Property & Casualty Insurance
Exam Question and Answer (2026) | Verified
Answers with Detailed Rationales | A+ Verified
• 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.
• 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.
• 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.
• 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
Late Fees:
30 days: 50% of renewal
31-60 days: 100%
61-12 months 200% (12+ months must restart licensing process)
• Continuing Education (CE) . Answer: Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
• Change of Address . Answer: Must contact commissioner within 30 days. this includes
a change of residence, mailing, business, or email
• Reporting of Actions . 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 . 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 . Answer: up to 12 months
• Guilty of violations . Answer: each fine of up to $1,000, must be paid within 15-30 days
• Place of Business Requirements . Answer: Must be accessible to the public. Does not
apply to life and disability insurance.
• Record Retention . Answer: Requires insurer to maintain records for 5 years.
• (DRPL) Designated Responsible Licensed Person . Answer: Responsible for insurers
compliance with insurance laws/ rules
• Misrepresentation . Answer: Materials that are false, misleading, or deceptive of policy
benefits, terms, payment of dividends. Also includes oral statements.
Knowingly committing this is considered a gross misdemeanor, and licences can be
revoked
• False Advertising . Answer: Advertising that is misleading, deceptive, and untrue.
Ex: newspaper add with untrue statements about terms and benefits of a policy.
• Rebating . Answer: the practice of giving an individual a premium reduction or some
other financial advantage not stated in the policy as an inducement to purchase the
policy.
Exam Question and Answer (2026) | Verified
Answers with Detailed Rationales | A+ Verified
• 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.
• 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.
• 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.
• 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
Late Fees:
30 days: 50% of renewal
31-60 days: 100%
61-12 months 200% (12+ months must restart licensing process)
• Continuing Education (CE) . Answer: Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
• Change of Address . Answer: Must contact commissioner within 30 days. this includes
a change of residence, mailing, business, or email
• Reporting of Actions . 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 . 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 . Answer: up to 12 months
• Guilty of violations . Answer: each fine of up to $1,000, must be paid within 15-30 days
• Place of Business Requirements . Answer: Must be accessible to the public. Does not
apply to life and disability insurance.
• Record Retention . Answer: Requires insurer to maintain records for 5 years.
• (DRPL) Designated Responsible Licensed Person . Answer: Responsible for insurers
compliance with insurance laws/ rules
• Misrepresentation . Answer: Materials that are false, misleading, or deceptive of policy
benefits, terms, payment of dividends. Also includes oral statements.
Knowingly committing this is considered a gross misdemeanor, and licences can be
revoked
• False Advertising . Answer: Advertising that is misleading, deceptive, and untrue.
Ex: newspaper add with untrue statements about terms and benefits of a policy.
• Rebating . Answer: the practice of giving an individual a premium reduction or some
other financial advantage not stated in the policy as an inducement to purchase the
policy.
