WASHINGTON LAWS AND RULES AND
RULES PERTINENT TO INSURANCE
TEST WITH QUESTIONS AND 100%
CORRECT ANSWERS 2025 UPDATE.
Insurance Producer - ANS A person required to be licensed under the laws of this state to sell,
solicit, or negotiate insurance.
How long must an insurance producer maintain insurance transaction records? - ANS five years
Immediate revocation (without a hearing) of any insurance license is allowed upon - ANS The
sentencing of the licensee for conviction of a felony, but only if the facts of the conviction
demonstrate the licensee to be untrustworthy.
For a licensed producer to sell insurance contracts for an insurance company, the producer must -
ANS be appointed by that insurance company.
Which of the following is an INCORRECT statement regarding the Washington Separate
Account law? - ANS A producer may use the account for personal funds.
A producer who knowingly over charges premiums to a consumer is guilty of - ANS Illegal
Dealings in Premiums
Insurance Producers are considered to have fiduciary responsibilities because they - ANS have
responsibilities for the money and financial affairs of others.
Insurance companies must keep their transaction records for a period of __________ years. -
ANS 3
commissioner in Washington responsible for - ANS -Approving rates charged to the consumer
-Forms used by the insurance companies.
-Sets the rules and conduct which an agent must use when doing business with a consumer
When a bonding company or insurance company issues a bond, it represents - ANS acceptance
by the issuing company.
The application submitted to a bonding company represents the - ANS an offer for coverage or
protection.
A life producer gives $50 back to the policy owner for life insurance after the policy issues as a
thank you for purchasing insurance. The life producer is guilty of__________. - ANS Illegal
Rebating
, If an insurance license is renewed AFTER 60 days of the birth date of the licensee __________ -
ANS -the license must be reinstated.
-all associated appointments and affiliations are terminated.
-the individual must also complete an application for reinstatement and pay the license fee and
200% surcharge.
If an individual tries to reinstate his insurance license OVER ONE YEAR from the termination
date of the license, the producer - ANS will have to begin the entire licensing process again, re-
taking all applicable licensing exams, new fingerprint card and re-apply with the state.
Every insurance producer shall promptly reply in writing to an inquiry of the commissioner
relative to the business of insurance. A timely response is one that is received by the
commissioner within __________ from receipt of the inquiry. - ANS fifteen business days
Which of the following is true about an insurance contract? - ANS - In order for a contract to be
legal, it must be for legal purposes only.
-A contract does not cover intentional or criminal acts of the insured.
-An insurance company may cancel a policy or bond and deny a claim due to fraud committed
by the insured or principal against the insurance company or bonding company.
A Surety Producer must always - ANS serve the best interest of the public.
For any contract to be legal it must be - ANS for legal purposes only.
Which of the following is true regarding the cancellation of an appointment between a producer
and the insurance company? - ANS -An insurer may terminate an appointment by sending
written notice of termination to the producer and to the Commissioner.
- A producer may terminate an appointment by sending advance written notice to the insurance
company and the Commissioner.
-If an insurer terminates the appointment of a producer FOR CAUSE, the insurer must notify the
Insurance Commissioner within 30 days following the effective date of the termination.
A insurance producer guarantees the client a dividend from the policy which they recently
purchased. This is known as __________. - ANS Illegal Rebating
The Commissioner must hold hearings if required by any provision of the court or for any
purpose within the scope of the insurance code. The commissioner must grant a __________
notice to licensees prior to holding any hearing. - ANS 15 working day
Which of the following statements regarding Place of Business of a producer would NOT be
correct? - ANS A producer may keep his insurance records is a storage facility in the city of
residence of the producer
When money is collected for insurance, that money must - ANS be deposited in a trust account
promptly.
RULES PERTINENT TO INSURANCE
TEST WITH QUESTIONS AND 100%
CORRECT ANSWERS 2025 UPDATE.
Insurance Producer - ANS A person required to be licensed under the laws of this state to sell,
solicit, or negotiate insurance.
How long must an insurance producer maintain insurance transaction records? - ANS five years
Immediate revocation (without a hearing) of any insurance license is allowed upon - ANS The
sentencing of the licensee for conviction of a felony, but only if the facts of the conviction
demonstrate the licensee to be untrustworthy.
For a licensed producer to sell insurance contracts for an insurance company, the producer must -
ANS be appointed by that insurance company.
Which of the following is an INCORRECT statement regarding the Washington Separate
Account law? - ANS A producer may use the account for personal funds.
A producer who knowingly over charges premiums to a consumer is guilty of - ANS Illegal
Dealings in Premiums
Insurance Producers are considered to have fiduciary responsibilities because they - ANS have
responsibilities for the money and financial affairs of others.
Insurance companies must keep their transaction records for a period of __________ years. -
ANS 3
commissioner in Washington responsible for - ANS -Approving rates charged to the consumer
-Forms used by the insurance companies.
-Sets the rules and conduct which an agent must use when doing business with a consumer
When a bonding company or insurance company issues a bond, it represents - ANS acceptance
by the issuing company.
The application submitted to a bonding company represents the - ANS an offer for coverage or
protection.
A life producer gives $50 back to the policy owner for life insurance after the policy issues as a
thank you for purchasing insurance. The life producer is guilty of__________. - ANS Illegal
Rebating
, If an insurance license is renewed AFTER 60 days of the birth date of the licensee __________ -
ANS -the license must be reinstated.
-all associated appointments and affiliations are terminated.
-the individual must also complete an application for reinstatement and pay the license fee and
200% surcharge.
If an individual tries to reinstate his insurance license OVER ONE YEAR from the termination
date of the license, the producer - ANS will have to begin the entire licensing process again, re-
taking all applicable licensing exams, new fingerprint card and re-apply with the state.
Every insurance producer shall promptly reply in writing to an inquiry of the commissioner
relative to the business of insurance. A timely response is one that is received by the
commissioner within __________ from receipt of the inquiry. - ANS fifteen business days
Which of the following is true about an insurance contract? - ANS - In order for a contract to be
legal, it must be for legal purposes only.
-A contract does not cover intentional or criminal acts of the insured.
-An insurance company may cancel a policy or bond and deny a claim due to fraud committed
by the insured or principal against the insurance company or bonding company.
A Surety Producer must always - ANS serve the best interest of the public.
For any contract to be legal it must be - ANS for legal purposes only.
Which of the following is true regarding the cancellation of an appointment between a producer
and the insurance company? - ANS -An insurer may terminate an appointment by sending
written notice of termination to the producer and to the Commissioner.
- A producer may terminate an appointment by sending advance written notice to the insurance
company and the Commissioner.
-If an insurer terminates the appointment of a producer FOR CAUSE, the insurer must notify the
Insurance Commissioner within 30 days following the effective date of the termination.
A insurance producer guarantees the client a dividend from the policy which they recently
purchased. This is known as __________. - ANS Illegal Rebating
The Commissioner must hold hearings if required by any provision of the court or for any
purpose within the scope of the insurance code. The commissioner must grant a __________
notice to licensees prior to holding any hearing. - ANS 15 working day
Which of the following statements regarding Place of Business of a producer would NOT be
correct? - ANS A producer may keep his insurance records is a storage facility in the city of
residence of the producer
When money is collected for insurance, that money must - ANS be deposited in a trust account
promptly.
