Washington State Property & Casualty Insurance Exam (100% Correct Answers)
Washington State Property & Casualty
Insurance Exam (100% Correct
... [Show More] Answers)
Authorized Insurer
An insurer that has qualified and received a Certificate of Authority from the
Department of Insurance to transact insurance in the state.
Contact adhesion
the accepter of the contract must "adhere" to the written contract
inducement
An action aimed at persuading
insolvent
Bankrupt; unable to pay debts.
Transacting Insurance
Conducting insurance business, such as soliciting or negotiating to buy or sell an
insurance policy.
Unauthorized Insurer
Is held personally liable. Each violation is separate and can result in suspension,
revocation of license, and a min fine of $25,000. (Class B Felony)
When would a commissioner order a replacement policy?
When a unauthorized insurer improperly placed a policy. Would be replaced by a
policy with a legal insurer.
Surplus Lines
Insurance that is not available or offered in the regular marketplace from admitted
insurers.
Insurance Commissioner (IOC)
State elected term of 4 years.
insurance Commissioner duties
-Protects the Public from unfair trade practices
- Examinations/investigations
- Hearings
- Cease and Desist orders
- Public information
- Appoints Dep. Chief Commissioner
-
How often must the Insurance Commissioner examine companies?
As often as deemed necessary, but MUST be done every 5 years
Receiving Written Notice from Commissioner
the person must respond within 90 days. if not made the request is considered
waved.
Notice of Hearing
- must state grounds of hearing (can be written demand by aggrieved person)
- Right to request administrative law judge
Licence Suspension Hearing
Commissioner must hold a hearing within 90 days.
Insurance Producer
A person required to be licensed under the laws of this state to sell, solicit, or
negotiate insurance.
- Must be 18+
- has not had a license denied, suspended, or revoked
- completed Pre-licensing/ exams
- paid fee(s)
- Fingerprinted/ background check
FINRA (Financial Industry Regulatory Authority)
solicits licences for variable life and variable annuity
Temporary Insurance Producers Licence
Commissioner may issue temp. license for a max of 180 days. usually in event of
producers recovery, sale of a business, training and licencing of new personal to
operate a business.
Non-Resident Producer
a producer who lives (domicile) and conducts business from another state other
than Washington. Will receive a non resident producers license.
When is a insurance license exempt?
When they work at a company or themself but do not conduct the solicitation, sale,
negotiation of insurance.
Appointing a insurance producer
- notice of appointment within 15 days
- Commissioner will verify within 15 days
- if deemed ineligible commissioner will notify within 10 days
If approved it must e renewed every 2 years, and will receive notice within 60 days
of the renewal date.
Business Entity Affiliates
A business must have AT LEAST 1 affiliated individual licence to transact
insurance
If business Entity Affiliate is terminated
The commissioner must receive notice within 30 days of termination.
Renewal
The initial licenses are valid from the date that they are issued until the last day of
the licensee's birth month.
Renewal Fees for Licences
(Every 2 years)
Producer- $55
Limited insurance- $20
Surplus lines broker- $20
Ajuster- $50
Late Fees:
30 days: 50% of renewal
31-60 days: 100%
61-12 months 200% (12+ months must restart licensing process)
Continuing Education (CE)
Every 2 years. 24 hours total, 3 hours in ethics.
must hold on to certificate for 3 years
Change of Address
Must contact commissioner within 30 days. this includes a change of residence,
mailing, business, or email
Reporting of Actions
You must report to the commissioner within 30 days of any administrative action
taken on them by another jurisdiction or governmental agency
Convicted of a felony
Commissioner may revoke or refuse insurers licenses immediately. Within 15 days
may revoke a ordered licence or by ordering a hearing within 10 days.
Suspended license period
up to 12 months
Guilty of violations
each fine of up to $1,000, must be paid within 15-30 days
Place of Business Requirements
Must be accessible to the public. Does not apply to life and disability insurance.
Record Retention
Requires insurer to maintain records for 5 years.
(DRPL) Designated Responsible Licensed Person
Responsible for insurers compliance with insurance laws/ rules
Misrepresentation
Materials that are false, misleading, or deceptive of policy benefits, terms, payment
of dividends. Also includes oral statements.
Knowingly committing this is considered a gross misdemeanor, and licences can
be revoked
False Advertising [Show Less]