CH. 19: WASHINGTON LAWS & RULES
PERTINENT TO INSURANCE EXAM
WITH QUESTIONS AND ANSWERS.
Commissioner - ANS The Commissioner of Insurance is the chief officer of the Washington
Insurance Department. This is an elected position serving a term of 4 years. The Commissioner
also makes rules and regulations to help carry out the provisions of the Washington insurance
code.
Hearing - ANS The Commissioner may hold a hearing whenever deemed necessary. All hearings
must be held or refused within 30 days after the Commissioner receives demand. The
Commissioner must give notice of the time and place of a hearing at least 10 days in advance.
Penalties - ANS After the hearing, the Commissioner can impose a fine of up to $1,000 for each
violation upon any person who violates the Washington insurance code.
Cease and Desist - ANS The Commissioner can issue a cease and desist order to anyone
violating the Washington insurance code.
Rates and Forms - ANS All insurance policy forms, applications, riders, or endorsements must
be filed with and approved by the Commissioner before they can be used.
Insurance - ANS Insurance is a contract in which one party (the insurer) agrees, for a
consideration (premiums), to pay the other (the insured) a specified amount upon determinable
contingencies.
Insurer - ANS An insurer is anyone in the business of making insurance contracts other than a
fraternal benefit society.
Premium - ANS A premium is consideration or payment for insurance coverage. Premiums are
sometimes called assessments, policy fees, or service fees.
Policy - ANS A policy is a written contract for insurance, including all clauses, riders,
endorsements, and attached papers.
Insurance Producer - ANS An individual who in any manner sells, solicits, or negotiates
insurance on behalf of insurance companies for compensation is an insurance producer.
Assumed Names - ANS An insurance producer doing business under any name other than the
producer's legal name shall notify the Commissioner before using the assumed name.
Commissions - ANS No person shall pay or accept commissions to/from an unlicensed
individual for the purpose of selling or negotiating insurance business. Renewal or deferred
PERTINENT TO INSURANCE EXAM
WITH QUESTIONS AND ANSWERS.
Commissioner - ANS The Commissioner of Insurance is the chief officer of the Washington
Insurance Department. This is an elected position serving a term of 4 years. The Commissioner
also makes rules and regulations to help carry out the provisions of the Washington insurance
code.
Hearing - ANS The Commissioner may hold a hearing whenever deemed necessary. All hearings
must be held or refused within 30 days after the Commissioner receives demand. The
Commissioner must give notice of the time and place of a hearing at least 10 days in advance.
Penalties - ANS After the hearing, the Commissioner can impose a fine of up to $1,000 for each
violation upon any person who violates the Washington insurance code.
Cease and Desist - ANS The Commissioner can issue a cease and desist order to anyone
violating the Washington insurance code.
Rates and Forms - ANS All insurance policy forms, applications, riders, or endorsements must
be filed with and approved by the Commissioner before they can be used.
Insurance - ANS Insurance is a contract in which one party (the insurer) agrees, for a
consideration (premiums), to pay the other (the insured) a specified amount upon determinable
contingencies.
Insurer - ANS An insurer is anyone in the business of making insurance contracts other than a
fraternal benefit society.
Premium - ANS A premium is consideration or payment for insurance coverage. Premiums are
sometimes called assessments, policy fees, or service fees.
Policy - ANS A policy is a written contract for insurance, including all clauses, riders,
endorsements, and attached papers.
Insurance Producer - ANS An individual who in any manner sells, solicits, or negotiates
insurance on behalf of insurance companies for compensation is an insurance producer.
Assumed Names - ANS An insurance producer doing business under any name other than the
producer's legal name shall notify the Commissioner before using the assumed name.
Commissions - ANS No person shall pay or accept commissions to/from an unlicensed
individual for the purpose of selling or negotiating insurance business. Renewal or deferred
