WASHINGTON STATE PROPERTY &
CASUALTY INSURANCE 2025 EXAM
STUDY GUIDE
Fiduciary Capacity Correct Answer When the business a
person transacts or the money or property which he
handles is not for his own benefit but for another person
-Agent/producer represents the insurance company
- Any diversion of funds is considered larceny by
embezzlement and will be prosecuted accordingly
Separate Account Requirement Correct Answer Withing
Fiduciary Capacity: all premium or returned premiums
must be accounted for and in a seperate account.
(may be intrest barring accounts and held by producer to
help with bank fees/charges)
Reply to the Insurance Commissioner Correct Answer
must be done within 15 days
Display of license Correct Answer each broker and
salesperson must display their license customarily where
the public can see it
Federal Regulations: Fair Credit Reporting Act Correct
Answer Purpose is to protect the public.
,Reports fall into two categories:
- Consumer
- Investigative consumer
Consumer Reports Correct Answer Written and /or oral
statements regarding a consumer's credit, character,
reputation, or habits collected by a reporting agency from
employment records, credit reports, and other public
sources.
investigative consumer reports Correct Answer A report
similar to a consumer report, but one that also provides
information on the consumer's character, reputation, and
habits. (insurer must share report within 5 days)
The customer has a right to know what was in the report
Individual unknowingly violates the Fair Credit Report Act
Correct Answer is liable for the amount equal to the loss
as well as any legal fees
Individual knowingly (willfully) violates the Fair Credit
Reporting act Correct Answer Agent: 2 years in prison
individual: a $2,500 fine
Fair Credit Act: Prohibited Info Correct Answer -
Bankruptcy more then 10 years
- 150,000 or less in credit transactions
- civil suits, records of arrest/convictions/crimes
- any negative information older that 7 years
,Unlawful Insurance Fraud Correct Answer May be fined,
imprisoned for up to 10 years or both . if they endanger a
accompanied insurer up to 15 years.
* if the embezzlement amount is less then $5,000 prison
time may be reduced to 1 year.
1033 waiver Correct Answer a personal convicted of a
felony may apply for a ____ to transact insurance
business. cannot be 50k+ for each violation.
Unilateral Contract Correct Answer promise in exchange
for an act
(NFIP)
National Flood Insurance Program Correct Answer
Identifies floodplains and maps thru FEMA. the community
must meet the federal requirements and must purchase
within 1 year after becoming available.
*- structures must have two solid walls and a roof. be
partially above ground, and not entirely over water.
(WYO) Write Your Own insurance program Correct
Answer the same insurance you would receive in the
NFIP...non risk baring though the FIA
NFIP
National Flood Insurance Program Limits Correct Answer
Single Family: Building-$250,000. Contents- $100,000
, Other Residential: Building- $250,000. Contents- $100,000
Small Businesses: Building- $500,000 Contents: $500,000
Other Non Residential: Building- $500,000 Contents-
$500,000
*if a community has NFIP they must purchase flood
insurance as part of the mortgage process.
Federal EMERGENCY Flood Program Correct Answer *in
effect after all NFIP criteria has been met.
Single Family: Building-$35,000 Contents- $10,000
Other residential: $100,000 and $100,000
Small Businesses: $100,000 and $100,000
Other Non Residential : $100,000 and $100,000
Define flood Correct Answer partial or complete inundation
of 2 or more acres normally in a dry land area, or 2 or
more properties (at least one being the insured's)
Exclusions of a flood Correct Answer landslides, sewer
backups unrelated to a flood, windblown rain, snow or
sleet and flooding within the insureds control.
Single-family dwelling are automatically provided with
replacement cost insurance to ___% of the replacement
value maximum allowed under FIP. Correct Answer 80
There is a 30 day waiting period after the applicant has
been accepted before the coverage goes into effect
except under the following conditions: Correct Answer -
CASUALTY INSURANCE 2025 EXAM
STUDY GUIDE
Fiduciary Capacity Correct Answer When the business a
person transacts or the money or property which he
handles is not for his own benefit but for another person
-Agent/producer represents the insurance company
- Any diversion of funds is considered larceny by
embezzlement and will be prosecuted accordingly
Separate Account Requirement Correct Answer Withing
Fiduciary Capacity: all premium or returned premiums
must be accounted for and in a seperate account.
(may be intrest barring accounts and held by producer to
help with bank fees/charges)
Reply to the Insurance Commissioner Correct Answer
must be done within 15 days
Display of license Correct Answer each broker and
salesperson must display their license customarily where
the public can see it
Federal Regulations: Fair Credit Reporting Act Correct
Answer Purpose is to protect the public.
,Reports fall into two categories:
- Consumer
- Investigative consumer
Consumer Reports Correct Answer Written and /or oral
statements regarding a consumer's credit, character,
reputation, or habits collected by a reporting agency from
employment records, credit reports, and other public
sources.
investigative consumer reports Correct Answer A report
similar to a consumer report, but one that also provides
information on the consumer's character, reputation, and
habits. (insurer must share report within 5 days)
The customer has a right to know what was in the report
Individual unknowingly violates the Fair Credit Report Act
Correct Answer is liable for the amount equal to the loss
as well as any legal fees
Individual knowingly (willfully) violates the Fair Credit
Reporting act Correct Answer Agent: 2 years in prison
individual: a $2,500 fine
Fair Credit Act: Prohibited Info Correct Answer -
Bankruptcy more then 10 years
- 150,000 or less in credit transactions
- civil suits, records of arrest/convictions/crimes
- any negative information older that 7 years
,Unlawful Insurance Fraud Correct Answer May be fined,
imprisoned for up to 10 years or both . if they endanger a
accompanied insurer up to 15 years.
* if the embezzlement amount is less then $5,000 prison
time may be reduced to 1 year.
1033 waiver Correct Answer a personal convicted of a
felony may apply for a ____ to transact insurance
business. cannot be 50k+ for each violation.
Unilateral Contract Correct Answer promise in exchange
for an act
(NFIP)
National Flood Insurance Program Correct Answer
Identifies floodplains and maps thru FEMA. the community
must meet the federal requirements and must purchase
within 1 year after becoming available.
*- structures must have two solid walls and a roof. be
partially above ground, and not entirely over water.
(WYO) Write Your Own insurance program Correct
Answer the same insurance you would receive in the
NFIP...non risk baring though the FIA
NFIP
National Flood Insurance Program Limits Correct Answer
Single Family: Building-$250,000. Contents- $100,000
, Other Residential: Building- $250,000. Contents- $100,000
Small Businesses: Building- $500,000 Contents: $500,000
Other Non Residential: Building- $500,000 Contents-
$500,000
*if a community has NFIP they must purchase flood
insurance as part of the mortgage process.
Federal EMERGENCY Flood Program Correct Answer *in
effect after all NFIP criteria has been met.
Single Family: Building-$35,000 Contents- $10,000
Other residential: $100,000 and $100,000
Small Businesses: $100,000 and $100,000
Other Non Residential : $100,000 and $100,000
Define flood Correct Answer partial or complete inundation
of 2 or more acres normally in a dry land area, or 2 or
more properties (at least one being the insured's)
Exclusions of a flood Correct Answer landslides, sewer
backups unrelated to a flood, windblown rain, snow or
sleet and flooding within the insureds control.
Single-family dwelling are automatically provided with
replacement cost insurance to ___% of the replacement
value maximum allowed under FIP. Correct Answer 80
There is a 30 day waiting period after the applicant has
been accepted before the coverage goes into effect
except under the following conditions: Correct Answer -
