WASHINGTON STATE PROPERTY &
CASUALTY INSURANCE EXAM 2024-
2025 WITH CORRECT ANSWERS AND
QUESTIONS GRADED A+
Authorized Insurer - ANS-An insurer that has qualified and received a Certificate of Authority from the
Department of Insurance to transact insurance in the state.
Contact adhesion - ANS-the accepter of the contract must "adhere" to the written contract
inducement - ANS-An action aimed at persuading
insolvent - ANS-Bankrupt; unable to pay debts.
Transacting Insurance - ANS-Conducting insurance business, such as soliciting or negotiating to buy or
sell an insurance policy.
Unauthorized Insurer - ANS-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? - ANS-When a unauthorized insurer
improperly placed a policy. Would be replaced by a policy with a legal insurer.
,Surplus Lines - ANS-Insurance that is not available or offered in the regular marketplace from admitted
insurers.
Insurance Commissioner (IOC) - ANS-State elected term of 4 years.
insurance Commissioner duties - ANS--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? - ANS-As often as deemed necessary,
but MUST be done every 5 years
Receiving Written Notice from Commissioner - ANS-the person must respond within 90 days. if not
made the request is considered waved.
Notice of Hearing - ANS-- must state grounds of hearing (can be written demand by aggrieved person)
- Right to request administrative law judge
Licence Suspension Hearing - ANS-Commissioner must hold a hearing within 90 days.
Insurance Producer - ANS-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) - ANS-solicits licences for variable life and variable
annuity
Temporary Insurance Producers Licence - ANS-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 - ANS-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? - ANS-When they work at a company or themself but do not
conduct the solicitation, sale, negotiation of insurance.
Appointing a insurance producer - ANS-- 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 - ANS-A business must have AT LEAST 1 affiliated individual licence to transact
insurance
If business Entity Affiliate is terminated - ANS-The commissioner must receive notice within 30 days of
termination.
Renewal - ANS-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 - ANS-(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) - ANS-Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
Change of Address - ANS-Must contact commissioner within 30 days. this includes a change of
residence, mailing, business, or email
Reporting of Actions - ANS-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 - ANS-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 - ANS-up to 12 months
Guilty of violations - ANS-each fine of up to $1,000, must be paid within 15-30 days
Place of Business Requirements - ANS-Must be accessible to the public. Does not apply to life and
disability insurance.
Record Retention - ANS-Requires insurer to maintain records for 5 years.
CASUALTY INSURANCE EXAM 2024-
2025 WITH CORRECT ANSWERS AND
QUESTIONS GRADED A+
Authorized Insurer - ANS-An insurer that has qualified and received a Certificate of Authority from the
Department of Insurance to transact insurance in the state.
Contact adhesion - ANS-the accepter of the contract must "adhere" to the written contract
inducement - ANS-An action aimed at persuading
insolvent - ANS-Bankrupt; unable to pay debts.
Transacting Insurance - ANS-Conducting insurance business, such as soliciting or negotiating to buy or
sell an insurance policy.
Unauthorized Insurer - ANS-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? - ANS-When a unauthorized insurer
improperly placed a policy. Would be replaced by a policy with a legal insurer.
,Surplus Lines - ANS-Insurance that is not available or offered in the regular marketplace from admitted
insurers.
Insurance Commissioner (IOC) - ANS-State elected term of 4 years.
insurance Commissioner duties - ANS--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? - ANS-As often as deemed necessary,
but MUST be done every 5 years
Receiving Written Notice from Commissioner - ANS-the person must respond within 90 days. if not
made the request is considered waved.
Notice of Hearing - ANS-- must state grounds of hearing (can be written demand by aggrieved person)
- Right to request administrative law judge
Licence Suspension Hearing - ANS-Commissioner must hold a hearing within 90 days.
Insurance Producer - ANS-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) - ANS-solicits licences for variable life and variable
annuity
Temporary Insurance Producers Licence - ANS-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 - ANS-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? - ANS-When they work at a company or themself but do not
conduct the solicitation, sale, negotiation of insurance.
Appointing a insurance producer - ANS-- 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 - ANS-A business must have AT LEAST 1 affiliated individual licence to transact
insurance
If business Entity Affiliate is terminated - ANS-The commissioner must receive notice within 30 days of
termination.
Renewal - ANS-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 - ANS-(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) - ANS-Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
Change of Address - ANS-Must contact commissioner within 30 days. this includes a change of
residence, mailing, business, or email
Reporting of Actions - ANS-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 - ANS-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 - ANS-up to 12 months
Guilty of violations - ANS-each fine of up to $1,000, must be paid within 15-30 days
Place of Business Requirements - ANS-Must be accessible to the public. Does not apply to life and
disability insurance.
Record Retention - ANS-Requires insurer to maintain records for 5 years.
