WASHINGTON LAWS AND RULES
PERTINENT TO INSURANCE EXAM
WITH QUESTIONS AND ANSWERS.
Violations of US Code Title 18 section 1033, may result in - ANS Fine and/or imprisonment
Charles is a producer who is licensed in Washington but resides in Oregon. Charles is considered
to be a(n) - ANS Nonresident producer
Before a producer may sell, solicit, or negotiate insurance from an insurer, the producer must
have a(n) - ANS Appointment
The act of using misrepresentation to induce an insured person to terminate an existing policy
and purchase a new policy is referred to as - ANS Twisting
An example of an unfair claims settlement practice is - ANS Turning down a claim without
providing the basis of denial
One role of the Commissioner is to - ANS Enforce state insurance laws
Every producer licensed in Washington must notify the Commissioner within ___ days of any
change of the address. - ANS 30
The identity of the _____ must be made clear in every health (disability) insurance
advertisement. - ANS Insurer
A life insurance policy becomes incontestable after it has been in force for - ANS 2 years
Advertising regulations exist to - ANS Assure full and truthful disclosures to the public
When a Medicare Supplement insurance policy is being replaced, who must sign the notice of
replacement? - ANS The producer and the applicant
What is the MINIMUM benefit period that must be offered by a Long-Term Care policy? - ANS
12 months
No legal action can be initiated after ___ years from the initial time written proof of loss has
been provided. - ANS 3
When replacing a life insurance policy, a producer must provide the applicant with a - ANS
Notice Regarding Replacement
A Medicare Supplement policy can be cancelled by the insurer for - ANS Nonpayment
, A company that is chartered and organized of the state in which its home office is located is
called a(n) - ANS Domestic insurer
An insurance company may only pay commissions to a(n) - ANS Licensed producer appointed
by the insurer
An example of an Unfair Claims Settlement practice is - ANS Failing to promptly provide
reasonable explanations for the denial of claims
An insurance company that has qualified and received a Certificate of Authority from the
Insurance Department to sell insurance in this state is called a(n) - ANS Authorized insurer
Replacement can be BEST described as - ANS Exchanging a new policy for one already in force
An insurer may exclude preexisting conditions on a Medicare Supplement policy for ___
months. - ANS 6
What is the purpose of the Washington Life and Disability Insurance Guaranty Association? -
ANS Ensures that claims filed against insolvent insurance companies will be paid
An example of rebating is - ANS A producer who shares commissions with a client
The required grace period for life insurance policies sold in Washington is - ANS 30 days
Kiara filled out a life insurance application and was given a policy illustration that showed future
premiums being paid out of nonguaranteed values. This illustration MUST disclose that - ANS
She may need to resume premium payments, depending on actual results
Which of the following is required for an insurer to conduct business in this state? - ANS
Certificate of Authority
Which of the following is an example of a producer's fiduciary duty? - ANS Recording receipt
and remittance of premiums due to the insurance company
The _____ is responsible for determining the appropriateness of a Medicare Supplement policy
for an applicant - ANS Producer
Which of the following is NOT considered to be an act of "transacting insurance"? - ANS
Gathering prospective buyer information
In the event of a controversy between the insured and the company, the producer is considered to
represent the - ANS Company
Inducement is BEST defined as - ANS Offering to buy, sell, give, or allow a prospective
insurance employment, stock or special favors in exchange for an insurance contract
PERTINENT TO INSURANCE EXAM
WITH QUESTIONS AND ANSWERS.
Violations of US Code Title 18 section 1033, may result in - ANS Fine and/or imprisonment
Charles is a producer who is licensed in Washington but resides in Oregon. Charles is considered
to be a(n) - ANS Nonresident producer
Before a producer may sell, solicit, or negotiate insurance from an insurer, the producer must
have a(n) - ANS Appointment
The act of using misrepresentation to induce an insured person to terminate an existing policy
and purchase a new policy is referred to as - ANS Twisting
An example of an unfair claims settlement practice is - ANS Turning down a claim without
providing the basis of denial
One role of the Commissioner is to - ANS Enforce state insurance laws
Every producer licensed in Washington must notify the Commissioner within ___ days of any
change of the address. - ANS 30
The identity of the _____ must be made clear in every health (disability) insurance
advertisement. - ANS Insurer
A life insurance policy becomes incontestable after it has been in force for - ANS 2 years
Advertising regulations exist to - ANS Assure full and truthful disclosures to the public
When a Medicare Supplement insurance policy is being replaced, who must sign the notice of
replacement? - ANS The producer and the applicant
What is the MINIMUM benefit period that must be offered by a Long-Term Care policy? - ANS
12 months
No legal action can be initiated after ___ years from the initial time written proof of loss has
been provided. - ANS 3
When replacing a life insurance policy, a producer must provide the applicant with a - ANS
Notice Regarding Replacement
A Medicare Supplement policy can be cancelled by the insurer for - ANS Nonpayment
, A company that is chartered and organized of the state in which its home office is located is
called a(n) - ANS Domestic insurer
An insurance company may only pay commissions to a(n) - ANS Licensed producer appointed
by the insurer
An example of an Unfair Claims Settlement practice is - ANS Failing to promptly provide
reasonable explanations for the denial of claims
An insurance company that has qualified and received a Certificate of Authority from the
Insurance Department to sell insurance in this state is called a(n) - ANS Authorized insurer
Replacement can be BEST described as - ANS Exchanging a new policy for one already in force
An insurer may exclude preexisting conditions on a Medicare Supplement policy for ___
months. - ANS 6
What is the purpose of the Washington Life and Disability Insurance Guaranty Association? -
ANS Ensures that claims filed against insolvent insurance companies will be paid
An example of rebating is - ANS A producer who shares commissions with a client
The required grace period for life insurance policies sold in Washington is - ANS 30 days
Kiara filled out a life insurance application and was given a policy illustration that showed future
premiums being paid out of nonguaranteed values. This illustration MUST disclose that - ANS
She may need to resume premium payments, depending on actual results
Which of the following is required for an insurer to conduct business in this state? - ANS
Certificate of Authority
Which of the following is an example of a producer's fiduciary duty? - ANS Recording receipt
and remittance of premiums due to the insurance company
The _____ is responsible for determining the appropriateness of a Medicare Supplement policy
for an applicant - ANS Producer
Which of the following is NOT considered to be an act of "transacting insurance"? - ANS
Gathering prospective buyer information
In the event of a controversy between the insured and the company, the producer is considered to
represent the - ANS Company
Inducement is BEST defined as - ANS Offering to buy, sell, give, or allow a prospective
insurance employment, stock or special favors in exchange for an insurance contract
