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This document provides the latest verified real questions and correct answers from the 2025 Washington State Property and Casualty Insurance Exam. It covers essential topics such as insurance regulations, underwriting, property and liability coverages, policy provisions, claims processes, and Washington-specific laws. Graded A, this guide is ideal for candidates preparing for state licensure in property and casualty insurance. Keywords: Washington insurance exam 2025 property and casualty licensing insurance regulations WA policy coverages and claims underwriting process state-specific insurance laws real exam questions grade A verified answers insurance agent prep casualty insurance certification
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Authorized Insurer - CORRECT An insurer that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state. Contact adhesion - CORRECT the accepter of the contract must "adhere" to the written contract inducement - CORRECT An action aimed at persuading insolvent - CORRECT Bankrupt; unable to pay debts. Transacting Insurance - CORRECT Conducting insurance business, such as soliciting or negotiating to buy or sell an insurance policy. Unauthorized Insurer - CORRECT 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? - CORRECT When a unauthorized insurer improperly placed a policy. Would be replaced by a policy with a legal insurer. Surplus Lines - CORRECT Insurance that is not available or offered in the regular marketplace from admitted insurers. Insurance Commissioner (IOC) - CORRECT State elected term of 4 years.
insurance Commissioner duties - CORRECT - Protects the Public from unfair trade practices
How often must the Insurance Commissioner examine companies? - CORRECT As often as deemed necessary, but MUST be done every 5 years Receiving Written Notice from Commissioner - CORRECT the person must respond within 90 days. if not made the request is considered waved. Notice of Hearing - CORRECT - must state grounds of hearing (can be written demand by aggrieved person)
Late Fees: 30 days: 50% of renewal 31 - 60 days: 100% 61 - 12 months 200% (12+ months must restart licensing process) Continuing Education (CE) - CORRECT Every 2 years. 24 hours total, 3 hours in ethics. must hold on to certificate for 3 years Change of Address - CORRECT Must contact commissioner within 30 days. this includes a change of residence, mailing, business, or email Reporting of Actions - CORRECT 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 - CORRECT 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 - CORRECT up to 12 months Guilty of violations - CORRECT each fine of up to $1,000, must be paid within 15-30 days Place of Business Requirements - CORRECT Must be accessible to the public. Does not apply to life and disability insurance. Record Retention - CORRECT Requires insurer to maintain records for 5 years. (DRPL) Designated Responsible Licensed Person - CORRECT Responsible for insurers compliance with insurance laws/ rules Misrepresentation - CORRECT 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 - CORRECT Advertising that is misleading, deceptive, and untrue. Ex: newspaper add with untrue statements about terms and benefits of a policy. Rebating - CORRECT the practice of giving an individual a premium reduction or some other financial advantage not stated in the policy as an inducement to purchase the policy. It May not exceed $100 per person in a 12 month period. Inducement - CORRECT illegal action. referring to rebating to have someone purchase a policy for a reward. Twisting - CORRECT Misrepresentation for the purpose of inducing a person to purchase, lapse, forfeit, surrender or change an insurance policy. Twisting is an unfair trade practice. Deformation - CORRECT An oral or written statement of insurance policies that persuades a person to engage in insurance. including financial conditions of people or another company. Excess Charge - CORRECT allowing insurers to charge a reduction fee, overall charges must be reasonable to the value of work. Claimant - CORRECT either the first party, third party or both. can include immediate family members designated by client First Party Claimant - CORRECT The insured is the first party claimant. Ex: Making a claim to your own insurance company
Display of license - CORRECT each broker and salesperson must display their license customarily where the public can see it Federal Regulations: Fair Credit Reporting Act - CORRECT Purpose is to protect the public. Reports fall into two categories:
Unlawful Insurance Fraud - CORRECT May be fined, imprisoned for up to 10 years or both. if they endanger a accompanied insurer up to 15 years.
Fire Policy Cancelation - CORRECT 5 days prior notice needed medical malpractice insurance - CORRECT a type of liability insurance that covers physicians and other health care professionals for liability claims arising from patient treatment. medical malpractice insurance cancelation - CORRECT 90 days notice of cancelation Notice of Cancellation - CORRECT To cancel your policy, your insurance company must mail notice or be delivered "unsured" portion of premium - CORRECT money must be returned to the insured no later then 45 days after date of cancelation. Cannot deny based on - CORRECT gender sex age credit score Binder - CORRECT A temporary written or oral agreement to provide insurance coverage until a formal written policy is issued.
Policy Structure - CORRECT 1. Declarations
Coinsurance Penalty - CORRECT the amount of insurance carried over the amount of insurance should have had, multiplied by loss, which equals the reduced payment of loss. Example: for a $100K building insured at 80% coinsurance. the insured would carry at least $80K ($100K x.80) to meet the insurance requirement. Example 2: only carried $40K of insurance and had a 10K loss, they would bear 50% of the loss due to deficiency, or 5K and any deductible Other Insurance - CORRECT a provision in an insurance policy that defines how the policy will respond if there is other valid insurance written on the same risk Nonconcurrency - CORRECT A situation in which other insurance is written on the same risk, but not on the same coverage basis. Primary Policy - CORRECT A policy that pays first in the event of a covered loss or, in a layered program of insurance, the policy that covers the first layer of loss. Excess Policy - CORRECT A policy that only pays for loss after the primary policy has paid its limit. Pro Rata - CORRECT A provision found in some property insurance policies that provides for the sharing of loss with other insurance that may be written on the same risk in the same proportion as their limits of insurance bear to the total of coverage of all policies covering the risk, whether collectible or not. Limits of Liability - CORRECT The insurer's liability for payment as stated in the policy Per Occurrence (Accident) - CORRECT A sublimit in a liability policy that puts a ceiling on the payment for all claims that arise from a single accident/occurrence Aggregate Limit - CORRECT The maximum amount an insurer will pay for all covered losses during the covered policy year.
Split Limits - CORRECT the limits of liability for different coverages. The limits my be stated per person, per occurrence, or per period basis. (many auto polices) Example: 25/50/ 25k for single person 50k for bodily injury to 2+ people 25k for damaged property of others Combined Single - CORRECT A single dollar limit of liability applying to the total of damages for bodily injury and property damage combined, resulting from one accident or occurrence. vacancy - CORRECT refers to an insured structure in which no people have been living or working, and no property has been stored for the period of time required as stated in the policy (usually 60 days) Unoccupied - CORRECT A property that has contents or furnishings in it, but is not being used or lived in. Vacant vs Unoccupied - CORRECT if someone moves completely out it is considered vacant. if they go on vacation for two weeks it would be considered unoccupied. Duties after a loss - CORRECT - Protect the damaged property from further damage
No Benefit to Bailee - CORRECT A provision that excludes any assignment or granting of any policy provision to any person or organization holding, storing, repairing, or moving insured property for a fee. Tort - CORRECT a wrongful act or the violation of someone's right that leads to legal liability Intentional Tort - CORRECT any deliberate act that causes harm to another person Unintentional tort - CORRECT The result of acting without proper care, generally referred to as negligence. Elements of Negligence Act - CORRECT 1. Legal Duty
Part B- Medical Payments Coverage Part C- Uninsured Motorist Coverage Part D- Coverage for Damage to your auto Part E- Duties after an Accident or Loss Part F- General Provisions Coverage will be extended to newly required auto for replacement vehicles as follows - CORRECT - coverage will be broadest offered on the existing vehicles on dec page