WASHINGTON COMMON INSURANCE
LAW TEST WITH QUESTIONS AND
ANSWERS 2025 UPDATE.
Twisting and Defamation - ANS When attempting to get a consumer to purchase a new policy,
the producer makes malicious and false statements about the current insurance company and
current policy of the prospect. In this situation the producer is guilty of
SHIBA - ANS Ms. A had questions regarding health care insurance. Who can she call who has
training and can assist her?
61 days to one year from the expiration - ANS If a producer does not renew his license, the
producer has what period of time to reinstate the license without having to retake the exam and
pre license education?
Misdemeanor - ANS A producer puts his personal funds into his separate account. He could be
charged with
Use of financial statements - ANS Which of the following is NOT considered an Unfair Trade
Practice?
o Defamation
o Rebating
o Misrepresentation
o Use of financial statements
Setting premium rates - ANS The Washington Insurance Commissioner is responsible for all of
the following actions, EXCEPT
o Issuing Cease and Desist Orders
o Issuing Certificates of Authority
o Issuing Producer Licenses
o Setting premium rates
January 31st - ANS Producer Clancy Wiggum, whose birthday is January 10th, does not send in
his renewal application to the State to renew his producer license. The last day in which he can
sell insurance is __________.
It is legal only for securing insurance which is not available through authorized insurers. - ANS
In Washington State, when is it legal to transact insurance business through an unauthorized
insurer?
Insurer - ANS The appointment fee for a producer acting as an agent for an insurer is paid by the
, 90 days - ANS A producer issues a binder to an applicant when applying for auto insurance. The
binder is good for a maximum of __________.
any of these would be within the powers of the Commissioner - ANS A life insurance producer
binds coverage on an auto policy. The Commissioner could __________.
A new licensee who acts as an agent cannot sell insurance until they have an appointment, but
the appointment must be secured within 180 days. - ANS Which of the following is an
INCORRECT statement regarding new licensees?
o A new licensee who acts as an agent cannot sell insurance until they have an appointment with
the insurer they want to transact business with.
o License candidates have 180 days to apply for an insurance license after passing their pre-
licensing exam.
o A new licensee who acts as an agent cannot sell insurance until they have an appointment, but
the appointment must be secured within 180 days.
o A new licensee who acts as a broker cannot sell insurance until they secure a bond of $2,500.
His license will EXPIRE at midnight every two years on his birth date and there is a 30-day
grace period before any late fee or penalty is charged. - ANS A producer is confused about when
his license renews. You explain to him the procedure. Which of the following would NOT be
correct?
o His license will EXPIRE at midnight every two years on his birth date and there is a 30-day
grace period before any late fee or penalty is charged.
o If his renewal application is late, but less than 30 days late, there will be a 50% surcharge
penalty on top of the license fee.
o If he does not apply for renewal, the last day he will be able to sell insurance is the last day of
his/her birth month.
o His license will EXPIRE at midnight every two years on the last day of his/ her birth month.
Certificate of Authority - ANS What license is required for an insurance company to do
insurance business in Washington?
To protect the public, the Commissioner may order the immediate suspension of a producer's
license. - ANS Which of the following statements regarding the Washington Insurance
Commissioner is INCORRECT?
o The Commissioner may require any of his deputies or employees to post a $25,000 surety
bond.
o The Commissioner must supply a $25,000 surety bond.
o To protect the public, the Commissioner may order the immediate suspension of a producer's
license.
The Commissioner carries out the task of administering and enforcing the Code.
advance written notice to the insurer and send a copy via e-mail to the Commissioner. - ANS A
producer may terminate his appointment by sending
LAW TEST WITH QUESTIONS AND
ANSWERS 2025 UPDATE.
Twisting and Defamation - ANS When attempting to get a consumer to purchase a new policy,
the producer makes malicious and false statements about the current insurance company and
current policy of the prospect. In this situation the producer is guilty of
SHIBA - ANS Ms. A had questions regarding health care insurance. Who can she call who has
training and can assist her?
61 days to one year from the expiration - ANS If a producer does not renew his license, the
producer has what period of time to reinstate the license without having to retake the exam and
pre license education?
Misdemeanor - ANS A producer puts his personal funds into his separate account. He could be
charged with
Use of financial statements - ANS Which of the following is NOT considered an Unfair Trade
Practice?
o Defamation
o Rebating
o Misrepresentation
o Use of financial statements
Setting premium rates - ANS The Washington Insurance Commissioner is responsible for all of
the following actions, EXCEPT
o Issuing Cease and Desist Orders
o Issuing Certificates of Authority
o Issuing Producer Licenses
o Setting premium rates
January 31st - ANS Producer Clancy Wiggum, whose birthday is January 10th, does not send in
his renewal application to the State to renew his producer license. The last day in which he can
sell insurance is __________.
It is legal only for securing insurance which is not available through authorized insurers. - ANS
In Washington State, when is it legal to transact insurance business through an unauthorized
insurer?
Insurer - ANS The appointment fee for a producer acting as an agent for an insurer is paid by the
, 90 days - ANS A producer issues a binder to an applicant when applying for auto insurance. The
binder is good for a maximum of __________.
any of these would be within the powers of the Commissioner - ANS A life insurance producer
binds coverage on an auto policy. The Commissioner could __________.
A new licensee who acts as an agent cannot sell insurance until they have an appointment, but
the appointment must be secured within 180 days. - ANS Which of the following is an
INCORRECT statement regarding new licensees?
o A new licensee who acts as an agent cannot sell insurance until they have an appointment with
the insurer they want to transact business with.
o License candidates have 180 days to apply for an insurance license after passing their pre-
licensing exam.
o A new licensee who acts as an agent cannot sell insurance until they have an appointment, but
the appointment must be secured within 180 days.
o A new licensee who acts as a broker cannot sell insurance until they secure a bond of $2,500.
His license will EXPIRE at midnight every two years on his birth date and there is a 30-day
grace period before any late fee or penalty is charged. - ANS A producer is confused about when
his license renews. You explain to him the procedure. Which of the following would NOT be
correct?
o His license will EXPIRE at midnight every two years on his birth date and there is a 30-day
grace period before any late fee or penalty is charged.
o If his renewal application is late, but less than 30 days late, there will be a 50% surcharge
penalty on top of the license fee.
o If he does not apply for renewal, the last day he will be able to sell insurance is the last day of
his/her birth month.
o His license will EXPIRE at midnight every two years on the last day of his/ her birth month.
Certificate of Authority - ANS What license is required for an insurance company to do
insurance business in Washington?
To protect the public, the Commissioner may order the immediate suspension of a producer's
license. - ANS Which of the following statements regarding the Washington Insurance
Commissioner is INCORRECT?
o The Commissioner may require any of his deputies or employees to post a $25,000 surety
bond.
o The Commissioner must supply a $25,000 surety bond.
o To protect the public, the Commissioner may order the immediate suspension of a producer's
license.
The Commissioner carries out the task of administering and enforcing the Code.
advance written notice to the insurer and send a copy via e-mail to the Commissioner. - ANS A
producer may terminate his appointment by sending
