UNIT 21 WASHINGTON STATE RULES
AND REGULATIONS - COMMON TO
PROPERTY AND CASUALTY
INSURANCE EXAM WITH QUESTIONS
AND ANSWERS.
For how long does a Commissioner serve for, beginning when? - ANS 4 years
Beginning the wed after the 2nd Monday, in January after the election.
Before taking office, the Commissioner must execute a bond in the amount of what, payable to
whom? - ANS $25000
Payable to the state
What does the commissioner have the authority to do? - ANS Conduct investigations
Conduct examinations
Take action against any insurance company, fraternal benefit, HMO, or HCSC by revoking or
suspending its COA
Fine, revoke, or suspend the licenses of insurance agents, brokers, solicitors, or adjusters,
Issue cease and desist orders
Bring actions in court regarding violations of the ins. code
What may the commissioner do if there is cause to believe anyone is violating the insurance code
or any regulation or order made by the Commissioner? - ANS Issue a cease and desist order
Bring an action in court to stop the person from continuing the violation
Or both
When examining an authorized insurer, what does the Commissioner need to examine? - ANS 1)
each insurer holding a certificate of authority at least once every 5 years
2) any managing general agent, if necessary, for the company exam
3) each rating organization and examining bureau licensed in WA at least once every five years
or as often as necessary
What happens if the Commissioner finds accounts to be inadequate, or improperly kept or
posted? - ANS The Commissioner may employ experts to rewrite, post or balance them at the
expense of the person being examined.
When must public insurance records be available to the public? - ANS Must be available for
public inspection and copying during normal business hours.
Requests for public records must be made to whom? - ANS The public records officer in the
Commissioner's office.
, What types of documents must be filed with and approved by the Commissioner before they can
be used? - ANS All insurance policy forms
applications
riders
endorsements
How many days must a fined licensee pay the fines after the date of an order? Hint. $1000 per
offense. - ANS Between 15-30 days after the date of the order.
What happens if a licensee does not pay the fine when due? - ANS The Commissioner will
revoke the license. The fine may be recovered in a civil action brought on by behalf of the
Commissioner by the attorney general.
Anyone who knowingly acts as an insurance agent, broker, solicitor, or adjustor without being
properly licensed is guilty of what? - ANS A class B felony
What may the commissioner do if they believe a person is unlawfully acting without a license? -
ANS The commissioner may take any or all of the following actions:
1) issue and enforce a cease and desist order
2) suspend or revoke a license
3) after notice and an opportunity for a hearing, assess a civil penalty of up to $25000 for each
violation
What must every certificate of authority state? - ANS 1) name of the insurer
2) location of its principal office
3) name and location of the principal office of its attorney-in- fact if a reciprocal insurer
4) the kinds of insurance it is authorized to transact in the state
What conditions must be met to obtain coverage from an unauthorized user? - ANS 1) insurance
must be procured through a licensed surplus lines broker
2) insurance must not be available from among a majority of the insurers authorized to transact
that kind of insurance in WA
3) coverage may not be procured from an unauthorized insurer to obtain a lower premium or
other competitive advantage
Who is licensed to place coverage that is not available in WA through insurers not licensed in
WA? - ANS Surplus lines brokers
The surplus lines broker must set forth an affidavit that what and in how many days must the
affidavit be filed with the commissioner? - ANS 1) the insurance is not available from a majority
of the authorized insurers
2) coverage is not being procured from an unauthorized insurer to obtain a lower premium or
other competitive advantage
AND REGULATIONS - COMMON TO
PROPERTY AND CASUALTY
INSURANCE EXAM WITH QUESTIONS
AND ANSWERS.
For how long does a Commissioner serve for, beginning when? - ANS 4 years
Beginning the wed after the 2nd Monday, in January after the election.
Before taking office, the Commissioner must execute a bond in the amount of what, payable to
whom? - ANS $25000
Payable to the state
What does the commissioner have the authority to do? - ANS Conduct investigations
Conduct examinations
Take action against any insurance company, fraternal benefit, HMO, or HCSC by revoking or
suspending its COA
Fine, revoke, or suspend the licenses of insurance agents, brokers, solicitors, or adjusters,
Issue cease and desist orders
Bring actions in court regarding violations of the ins. code
What may the commissioner do if there is cause to believe anyone is violating the insurance code
or any regulation or order made by the Commissioner? - ANS Issue a cease and desist order
Bring an action in court to stop the person from continuing the violation
Or both
When examining an authorized insurer, what does the Commissioner need to examine? - ANS 1)
each insurer holding a certificate of authority at least once every 5 years
2) any managing general agent, if necessary, for the company exam
3) each rating organization and examining bureau licensed in WA at least once every five years
or as often as necessary
What happens if the Commissioner finds accounts to be inadequate, or improperly kept or
posted? - ANS The Commissioner may employ experts to rewrite, post or balance them at the
expense of the person being examined.
When must public insurance records be available to the public? - ANS Must be available for
public inspection and copying during normal business hours.
Requests for public records must be made to whom? - ANS The public records officer in the
Commissioner's office.
, What types of documents must be filed with and approved by the Commissioner before they can
be used? - ANS All insurance policy forms
applications
riders
endorsements
How many days must a fined licensee pay the fines after the date of an order? Hint. $1000 per
offense. - ANS Between 15-30 days after the date of the order.
What happens if a licensee does not pay the fine when due? - ANS The Commissioner will
revoke the license. The fine may be recovered in a civil action brought on by behalf of the
Commissioner by the attorney general.
Anyone who knowingly acts as an insurance agent, broker, solicitor, or adjustor without being
properly licensed is guilty of what? - ANS A class B felony
What may the commissioner do if they believe a person is unlawfully acting without a license? -
ANS The commissioner may take any or all of the following actions:
1) issue and enforce a cease and desist order
2) suspend or revoke a license
3) after notice and an opportunity for a hearing, assess a civil penalty of up to $25000 for each
violation
What must every certificate of authority state? - ANS 1) name of the insurer
2) location of its principal office
3) name and location of the principal office of its attorney-in- fact if a reciprocal insurer
4) the kinds of insurance it is authorized to transact in the state
What conditions must be met to obtain coverage from an unauthorized user? - ANS 1) insurance
must be procured through a licensed surplus lines broker
2) insurance must not be available from among a majority of the insurers authorized to transact
that kind of insurance in WA
3) coverage may not be procured from an unauthorized insurer to obtain a lower premium or
other competitive advantage
Who is licensed to place coverage that is not available in WA through insurers not licensed in
WA? - ANS Surplus lines brokers
The surplus lines broker must set forth an affidavit that what and in how many days must the
affidavit be filed with the commissioner? - ANS 1) the insurance is not available from a majority
of the authorized insurers
2) coverage is not being procured from an unauthorized insurer to obtain a lower premium or
other competitive advantage
