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WASHINGTON STATE PROPERTY & CASULTY INSURANCE EXAM 2025 LATEST ACTUAL QUESTIONS AND CORRECT VERIFIED ANSWERS ALREADY GRADED A+ GUARANTEE PASS BRAND NEW 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.
Notice of Hearing - CORRECT - must state grounds of hearing (can be written demand by aggrieved person)
- Right to request administrative law judge Licence Suspension Hearing - CORRECT Commissioner must hold a hearing within 90 days. Insurance Producer - CORRECT 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) - CORRECT solicits licences for variable life and variable annuity
Temporary Insurance Producers Licence - CORRECT 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 - CORRECT 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? - CORRECT When they work at a company or themself but do not conduct the solicitation, sale, negotiation of insurance. Appointing a insurance producer - CORRECT - notice of appointment within 15 days
- Commissioner will verify within 15 days
- if deemed ineligible commissioner will notify within 10 days
Ajuster- $ 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.
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 Third Party Claimant - CORRECT the opposite party of the first party claimant. Ex: James has a policy with Goosehead (first-party) and gets into an accident, hitting Coles car (third party), cole then makes a claim on James's Goosehead policy.
Fiduciary Capacity - CORRECT 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 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 must be done within 15 days
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:
- Consumer
- Investigative consumer Consumer Reports - CORRECT 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 A report similar to a consumer report, but one that also provides information on the consumer's character,
- any negative information older that 7 years 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.
- if the embezzlement amount is less then $5, prison time may be reduced to 1 year. 1033 waiver - CORRECT a personal convicted of a felony may apply for a ____ to transact insurance business. cannot be 50k+ for each violation. Unilateral Contract - CORRECT promise in exchange for an act (NFIP) National Flood Insurance Program - CORRECT 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 the same insurance you would receive in the NFIP...non risk baring though the FIA NFIP National Flood Insurance Program Limits - CORRECT Single Family: Building-$250,000. Contents- $100, Other Residential: Building- $250,000. Contents- $100, Small Businesses: Building- $500,000 Contents: $500, Other Non Residential: Building- $500,000 Contents- $500,
Single-family dwelling are automatically provided with replacement cost insurance to ___% of the replacement value maximum allowed under FIP. - CORRECT 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 - first 30 days of a community enters emergency or normal programs. the coverage is applied 12:01am the day after
- when existing policy is assigned to the property purchaser and at 12:01am after the 5th day the endorsement requests and premium has been mailed for policy. Overinsurance - CORRECT An excessive amount of insurance that would result in overpayment to the insured in the event of a loss.
- it is prohibited as it violates the principle of indemnity Overinsurance Provision (property insurance) - CORRECT the use of the special provision to cover the cost of repair or replacement of property If an insurer cancels a contract, written notice must be provided to the insured within what a certain period of time. - CORRECT 45 days prior to cancelation *unless from non paid premiums (10 days) 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.
