Washington State Property & Casualty
Insurance Exam 2023/2024 GRADED A
LATEST VERSION
Authorized Insurer - CORRECT 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 the accepter of the contract must "adhere" to the written contract
inducement - CORRECT An action aimed at persuading
insolvent - CORRECT Bankrupt; unable to pay debts.
Transacting Insurance - CORRECT Conducting insurance business, such as soliciting or negotiating to buy
or sell an insurance policy.
Unauthorized Insurer - CORRECT 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 When a unauthorized insurer
improperly placed a policy. Would be replaced by a policy with a legal insurer.
Surplus Lines - CORRECT Insurance that is not available or offered in the regular marketplace from
admitted insurers.
Insurance Commissioner (IOC) - CORRECT State elected term of 4 years.
insurance Commissioner duties - CORRECT -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 As often as deemed
necessary, but MUST be done every 5 years
Receiving Written Notice from Commissioner - CORRECT the person must respond within 90 days. if not
made the request is considered waved.
Notice of Hearing - CORRECT - must state grounds of hearing (can be written demand by aggrieved
person)
- Right to request administrative law judge
Licence Suspension Hearing - CORRECT Commissioner must hold a hearing within 90 days.
Insurance Producer - CORRECT 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 solicits licences for variable life and variable
annuity
,Temporary Insurance Producers Licence - CORRECT 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 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 When they work at a company or themself but do not
conduct the solicitation, sale, negotiation of insurance.
Appointing a insurance producer - CORRECT - 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 A business must have AT LEAST 1 affiliated individual licence to
transact insurance
If business Entity Affiliate is terminated - CORRECT The commissioner must receive notice within 30
days of termination.
Renewal - CORRECT 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 (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 Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
Change of Address - CORRECT Must contact commissioner within 30 days. this includes a change of
residence, mailing, business, or email
Reporting of Actions - CORRECT 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 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 up to 12 months
Guilty of violations - CORRECT each fine of up to $1,000, must be paid within 15-30 days
Place of Business Requirements - CORRECT Must be accessible to the public. Does not apply to life and
disability insurance.
Record Retention - CORRECT Requires insurer to maintain records for 5 years.
(DRPL) Designated Responsible Licensed Person - CORRECT Responsible for insurers compliance with
insurance laws/ rules
Misrepresentation - CORRECT Materials that are false, misleading, or deceptive of policy benefits,
terms, payment of dividends. Also includes oral statements.
Insurance Exam 2023/2024 GRADED A
LATEST VERSION
Authorized Insurer - CORRECT 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 the accepter of the contract must "adhere" to the written contract
inducement - CORRECT An action aimed at persuading
insolvent - CORRECT Bankrupt; unable to pay debts.
Transacting Insurance - CORRECT Conducting insurance business, such as soliciting or negotiating to buy
or sell an insurance policy.
Unauthorized Insurer - CORRECT 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 When a unauthorized insurer
improperly placed a policy. Would be replaced by a policy with a legal insurer.
Surplus Lines - CORRECT Insurance that is not available or offered in the regular marketplace from
admitted insurers.
Insurance Commissioner (IOC) - CORRECT State elected term of 4 years.
insurance Commissioner duties - CORRECT -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 As often as deemed
necessary, but MUST be done every 5 years
Receiving Written Notice from Commissioner - CORRECT the person must respond within 90 days. if not
made the request is considered waved.
Notice of Hearing - CORRECT - must state grounds of hearing (can be written demand by aggrieved
person)
- Right to request administrative law judge
Licence Suspension Hearing - CORRECT Commissioner must hold a hearing within 90 days.
Insurance Producer - CORRECT 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 solicits licences for variable life and variable
annuity
,Temporary Insurance Producers Licence - CORRECT 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 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 When they work at a company or themself but do not
conduct the solicitation, sale, negotiation of insurance.
Appointing a insurance producer - CORRECT - 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 A business must have AT LEAST 1 affiliated individual licence to
transact insurance
If business Entity Affiliate is terminated - CORRECT The commissioner must receive notice within 30
days of termination.
Renewal - CORRECT 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 (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 Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
Change of Address - CORRECT Must contact commissioner within 30 days. this includes a change of
residence, mailing, business, or email
Reporting of Actions - CORRECT 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 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 up to 12 months
Guilty of violations - CORRECT each fine of up to $1,000, must be paid within 15-30 days
Place of Business Requirements - CORRECT Must be accessible to the public. Does not apply to life and
disability insurance.
Record Retention - CORRECT Requires insurer to maintain records for 5 years.
(DRPL) Designated Responsible Licensed Person - CORRECT Responsible for insurers compliance with
insurance laws/ rules
Misrepresentation - CORRECT Materials that are false, misleading, or deceptive of policy benefits,
terms, payment of dividends. Also includes oral statements.
