Washington State Property & Casualty
Insurance Exam/2023-2024/319 Questions
with Detailed Answers/Rated A+
Authorized Insurer - -An insurer that has qualified and received a Certificate of Authority
from the Department of Insurance to transact insurance in the state.
-Contact adhesion - -the accepter of the contract must "adhere" to the written contract
-inducement - -An action aimed at persuading
-insolvent - -Bankrupt; unable to pay debts.
-Transacting Insurance - -Conducting insurance business, such as soliciting or negotiating
to buy or sell an insurance policy.
-Unauthorized Insurer - -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? - -When a unauthorized insurer
improperly placed a policy. Would be replaced by a policy with a legal insurer.
-Surplus Lines - -Insurance that is not available or offered in the regular marketplace from
admitted insurers.
-Insurance Commissioner (IOC) - -State elected term of 4 years.
-insurance Commissioner duties - --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? - -As often as deemed
necessary, but MUST be done every 5 years
-Receiving Written Notice from Commissioner - -the person must respond within 90 days.
if not made the request is considered waved.
-Notice of Hearing - -- must state grounds of hearing (can be written demand by aggrieved
person)
- Right to request administrative law judge
-Licence Suspension Hearing - -Commissioner must hold a hearing within 90 days.
, -Insurance Producer - -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) - -solicits licences for variable life and
variable annuity
-Temporary Insurance Producers Licence - -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 - -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? - -When they work at a company or themself but do
not conduct the solicitation, sale, negotiation of insurance.
-Appointing a insurance producer - -- 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 - -A business must have AT LEAST 1 affiliated individual
licence to transact insurance
-If business Entity Affiliate is terminated - -The commissioner must receive notice within
30 days of termination.
-Renewal - -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 - -(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) - -Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
, -Change of Address - -Must contact commissioner within 30 days. this includes a change
of residence, mailing, business, or email
-Reporting of Actions - -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 - -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 - -up to 12 months
-Guilty of violations - -each fine of up to $1,000, must be paid within 15-30 days
-Place of Business Requirements - -Must be accessible to the public. Does not apply to life
and disability insurance.
-Record Retention - -Requires insurer to maintain records for 5 years.
-(DRPL) Designated Responsible Licensed Person - -Responsible for insurers compliance
with insurance laws/ rules
-Misrepresentation - -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 - -Advertising that is misleading, deceptive, and untrue.
Ex: newspaper add with untrue statements about terms and benefits of a policy.
-Rebating - -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.
It May not exceed $100 per person in a 12 month period.
-Inducement - -illegal action. referring to rebating to have someone purchase a policy for a
reward.
-Twisting - -Misrepresentation for the purpose of inducing a person to purchase, lapse,
forfeit, surrender or change an insurance policy. Twisting is an unfair trade practice.
-Deformation - -An oral or written statement of insurance policies that persuades a person
to engage in insurance. including financial conditions of people or another company.
-Excess Charge - -allowing insurers to charge a reduction fee, overall charges must be
reasonable to the value of work.
Insurance Exam/2023-2024/319 Questions
with Detailed Answers/Rated A+
Authorized Insurer - -An insurer that has qualified and received a Certificate of Authority
from the Department of Insurance to transact insurance in the state.
-Contact adhesion - -the accepter of the contract must "adhere" to the written contract
-inducement - -An action aimed at persuading
-insolvent - -Bankrupt; unable to pay debts.
-Transacting Insurance - -Conducting insurance business, such as soliciting or negotiating
to buy or sell an insurance policy.
-Unauthorized Insurer - -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? - -When a unauthorized insurer
improperly placed a policy. Would be replaced by a policy with a legal insurer.
-Surplus Lines - -Insurance that is not available or offered in the regular marketplace from
admitted insurers.
-Insurance Commissioner (IOC) - -State elected term of 4 years.
-insurance Commissioner duties - --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? - -As often as deemed
necessary, but MUST be done every 5 years
-Receiving Written Notice from Commissioner - -the person must respond within 90 days.
if not made the request is considered waved.
-Notice of Hearing - -- must state grounds of hearing (can be written demand by aggrieved
person)
- Right to request administrative law judge
-Licence Suspension Hearing - -Commissioner must hold a hearing within 90 days.
, -Insurance Producer - -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) - -solicits licences for variable life and
variable annuity
-Temporary Insurance Producers Licence - -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 - -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? - -When they work at a company or themself but do
not conduct the solicitation, sale, negotiation of insurance.
-Appointing a insurance producer - -- 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 - -A business must have AT LEAST 1 affiliated individual
licence to transact insurance
-If business Entity Affiliate is terminated - -The commissioner must receive notice within
30 days of termination.
-Renewal - -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 - -(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) - -Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
, -Change of Address - -Must contact commissioner within 30 days. this includes a change
of residence, mailing, business, or email
-Reporting of Actions - -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 - -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 - -up to 12 months
-Guilty of violations - -each fine of up to $1,000, must be paid within 15-30 days
-Place of Business Requirements - -Must be accessible to the public. Does not apply to life
and disability insurance.
-Record Retention - -Requires insurer to maintain records for 5 years.
-(DRPL) Designated Responsible Licensed Person - -Responsible for insurers compliance
with insurance laws/ rules
-Misrepresentation - -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 - -Advertising that is misleading, deceptive, and untrue.
Ex: newspaper add with untrue statements about terms and benefits of a policy.
-Rebating - -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.
It May not exceed $100 per person in a 12 month period.
-Inducement - -illegal action. referring to rebating to have someone purchase a policy for a
reward.
-Twisting - -Misrepresentation for the purpose of inducing a person to purchase, lapse,
forfeit, surrender or change an insurance policy. Twisting is an unfair trade practice.
-Deformation - -An oral or written statement of insurance policies that persuades a person
to engage in insurance. including financial conditions of people or another company.
-Excess Charge - -allowing insurers to charge a reduction fee, overall charges must be
reasonable to the value of work.
