WASHINGTON STATE INSURANCE
LAWS WITH QUESTIONS AND ANSWERS
GRADED A+.
Commissioner's Term of Office - ANS Elected by the voters
4 years
Commissioner Powers - ANS Investigate insurance transactions,
Adopt rules to regular unfair or deceptive acts and implement the legislature's insurance code
Issue a cease and desist order to force compliance with insurance laws
Prosecute a legal action to enforce the commissioner's orders
Obtain and publish for the use of courts and appraisers, tables showing the average life
expectancy
Disseminate information concerning the insurance laws
Provide assistance to member of the public in getting information about insurance and resolving
complaints
Commissioner Examinations - ANS May examine Insurers and Producers records at any time,
but must examine insurer's records every 5 years
Commissioner Rate and Form Approval - ANS New policy forms and applications can't be used
before they've been approved by the commissioner
Property and Casualty Rates - Commissioner - ANS Must be filed with and approved by
commissioner. Commissioner cannot set rates. Can reject for being excessive, inadequate, or
unfairly discriminatory.
Producer license suspension - ANS No more than 12 months
Producer rights if Commissioner initiates disciplinary action - ANS Request hearing with
commissioner or with an administrative judge and be represented by an attorney
Selling insurance without a producer license - ANS Class B felony
Court: jail term 10 years and/or criminal fine of $20,000
Commissioner: may issue cease and desist order, and call for a civil fine of $25,000
Policy Cancellation by Commissioner - ANS No advance notice if policy violates insurance laws
Commissioner Fines - ANS Cease and desist - $250
Violating an insurance law - $1000
, Selling insurance without license - $25,000
Insurer requirements - ANS Must have a Certificate of Authority issues by Commissioner.
-be a stock, mutual, or fraternal insurer
-comply with capital funds requirements
-receive permission from commissioner
Unauthorized insurers cannot do business is WA
Commissioner can revoke Certificate of Authority
Foreign Insurer - ANS Formed under the laws of the united states, any other state or territory of
US or DC
Alien Insurer - ANS Formed under the laws of another nation. Have to designate the
commissioner as agent for receiving lawsuits, harder to sue
Designated Responsible Licensed Producer (DRLP) - ANS Producer responsible for a firm's
compliance with state laws, allows a business to get a producer's license
Temporary Producer License - ANS Temporary license can be issues by commissioner for 6
months to a surviving spouse or court-appointed representative of a producer who is dead or
disabled.
Appointed Producer - ANS Producer must be appointed by an Insurer to act as an agent for them.
Insurer must notify commissioner within 30 days of termination of appointment. Notify of
appointment in 15 days.
yearly $20 fee for insurer
Bonded Producer - ANS Represent InsurED
can be paid by client or insurer
must post a bond of at least $2500 but not more than 5% of premium brokered in the previous
calendar year
Continuing Education - ANS 24 hours every 2 years with at least 3 hours of ethics. in person or
self study with exam.
Producers Place of Business - ANS Must maintain a place of business accessible to the public
where the producer conducts transactions, with licenses displayed in public area, and an office
for each place of business.
LAWS WITH QUESTIONS AND ANSWERS
GRADED A+.
Commissioner's Term of Office - ANS Elected by the voters
4 years
Commissioner Powers - ANS Investigate insurance transactions,
Adopt rules to regular unfair or deceptive acts and implement the legislature's insurance code
Issue a cease and desist order to force compliance with insurance laws
Prosecute a legal action to enforce the commissioner's orders
Obtain and publish for the use of courts and appraisers, tables showing the average life
expectancy
Disseminate information concerning the insurance laws
Provide assistance to member of the public in getting information about insurance and resolving
complaints
Commissioner Examinations - ANS May examine Insurers and Producers records at any time,
but must examine insurer's records every 5 years
Commissioner Rate and Form Approval - ANS New policy forms and applications can't be used
before they've been approved by the commissioner
Property and Casualty Rates - Commissioner - ANS Must be filed with and approved by
commissioner. Commissioner cannot set rates. Can reject for being excessive, inadequate, or
unfairly discriminatory.
Producer license suspension - ANS No more than 12 months
Producer rights if Commissioner initiates disciplinary action - ANS Request hearing with
commissioner or with an administrative judge and be represented by an attorney
Selling insurance without a producer license - ANS Class B felony
Court: jail term 10 years and/or criminal fine of $20,000
Commissioner: may issue cease and desist order, and call for a civil fine of $25,000
Policy Cancellation by Commissioner - ANS No advance notice if policy violates insurance laws
Commissioner Fines - ANS Cease and desist - $250
Violating an insurance law - $1000
, Selling insurance without license - $25,000
Insurer requirements - ANS Must have a Certificate of Authority issues by Commissioner.
-be a stock, mutual, or fraternal insurer
-comply with capital funds requirements
-receive permission from commissioner
Unauthorized insurers cannot do business is WA
Commissioner can revoke Certificate of Authority
Foreign Insurer - ANS Formed under the laws of the united states, any other state or territory of
US or DC
Alien Insurer - ANS Formed under the laws of another nation. Have to designate the
commissioner as agent for receiving lawsuits, harder to sue
Designated Responsible Licensed Producer (DRLP) - ANS Producer responsible for a firm's
compliance with state laws, allows a business to get a producer's license
Temporary Producer License - ANS Temporary license can be issues by commissioner for 6
months to a surviving spouse or court-appointed representative of a producer who is dead or
disabled.
Appointed Producer - ANS Producer must be appointed by an Insurer to act as an agent for them.
Insurer must notify commissioner within 30 days of termination of appointment. Notify of
appointment in 15 days.
yearly $20 fee for insurer
Bonded Producer - ANS Represent InsurED
can be paid by client or insurer
must post a bond of at least $2500 but not more than 5% of premium brokered in the previous
calendar year
Continuing Education - ANS 24 hours every 2 years with at least 3 hours of ethics. in person or
self study with exam.
Producers Place of Business - ANS Must maintain a place of business accessible to the public
where the producer conducts transactions, with licenses displayed in public area, and an office
for each place of business.
