Washington Laws, Rules and Regulations

Maintaining a License

CE every 2 years, renewal fees, current name, address, and reinstatement within 12 months

Domicile

Causes them to be classified as either Domestic, Foreign, or Alien

Penalties (COMMISSIONER)

The Commissioner has the power to suspend, revoke or refuse to issue or renew a producer license, as well as levy a fine as established by state law for violation in any of the following areas of producer activities: laws, rules, or regulations of the insurance code.

Refusal/Nonrenewal

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Fraternals

A fraternal benefit society is an organization formed to provide insurance benefits for members or an affiliated lodge, religious organization or fraternal organization with a representative form of government. Fraternals sell only to their members and are considered charitable institutions and not insurers.

Nonresident

A nonresident producer is an individual domiciled and licensed as a resident producer in a state other than Washington.

Authority

Admitted/Authorized, Nonadmitted/Nonauthorized

Policy Delivery

Agent can't withhold the policy for safekeeping at any time.

Exemptions

An insurance agent license is not required of any officer, director or employee of an insurer or organizations employed by insurers, provided that they are not directly or indirectly involved with the actual sale of an insurance contract and do no receive any commission.

Insurance

An insurance contract is an agreement between a policy owner and an insurer.

Rates and Forms

An insurance policy form or written application issued, delivered, or used in this state must be first filed with and approved by the Commissioner.

Appointments/Termination of appointments

An insurance producer cannot act as the agent of the insurer unless the producer becomes appointed by the insurer. For the insurer to appoint a producer they must file a notice of appointment with Commissioner within 15 days. If the producer is deemed eligible the Commissioner must notify the insurer within 10 days.

Insurer

An insurer is any person or company engaged as the principal party in the business of entering into insurance contracts.

Failure to issue proper receipts

Any producer or other representative of an insurer who receives a contract payment or premium from or on behalf of an insured or applicant for insurance annuities must deliver a signed receipt as promptly as possible (generally no later than the next business day).

Authorized vs. Unauthorized Insurers and Certificate of Authority

Before an insurer may transact business in a specific state, they must apply for a license, or Certificate of Authority from the state Department of Insurance and meet any financial requirements set down by the state. Each violation constitutes a separate offense punishable by a suspension or revocation of a license, and a maxmium fine of 25,000

Defamation of an Insurer

Defamation occurs when an oral or written statement is made that is intended to injure a person engaged in the insurance business. This also applies to statements that are maliciously critical of the financial condition of any person or company.

Domestic, Foreign, Alien

Domestic - in state Foreign - different state Alien - different country or out of contry

Premium Accountability

Don't steal the premiums they'll find out.

Continuing Education

Every licensed producer is required to complete continuing education requirements every 2 years with except of resident adjusters, individuals holding only limited credit insurance, travel insurance, or surety licenses. A producer must complete 24 hours of CE and 3 hours of ethics. The insurance education provider must issue a certificate of completion within 10 days. An approved course for which the licensee has previously claimed credit may be repeated for credit after a period of 3 years from the previous credit date. The licensee must retain the certificate of completion for 3 years from the date on the certificate.

Producers, Compensation, Disclosure

I know what a producer is, and compensation, an act of identifying the name of a producer, representative or firm, or temporary producer on any policy solicitation.

Penalties for noncompliance

I think it's like 1,000 per .. and you can lose your license.

Persons Required to be licensed

I've got this one down already PEACE.

Fines

If a producer has been found guilty of any violations of the provisions of the Insurance Code that are subject to license suspension, revocation, or nonrenewal, in addition to or instead of suspension, revocation, o refusal to renew a producer's license, the Commissioner may levy a fine upon the licensee, after a hearing. The fine for each offense may be UP TO 1,000. The order levying the fine must specify that the fine must be fully paid at a time between 15-30 days from the date of the order. If the fine is not paid by the due date, the Commissioner will revoke the licenses of the licensee, if it is not already revoked.

Suspension/Revocation

If you get a felony you can lose it immediately, or they can just not renew it. They can suspend it for 12 months maximum.

Discrimination

In rates, premiums, or policy benefits for persons within the same class or with marital status, race, national origin, gender identity, sexual orientation, creed, or ancestry unless the distinction is made for a business purpose or required by law.

Unfair Practices

Insurers and producers transacting insurance in this state must not engage in any unfair methods of competition or unfair trade practices.

Twisting

Is a misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, or to cancel, lapse, switch policies, or take out a policy with another insurer. Twisting is prohibited.

Misrepresentation

It is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, the payment of dividends, etc. This also refers to oral statements. Committing this illegal act is called MISREPRESENTATION.

Illegal Inducements

It is unlawful to offer any of the following as an inducement to buy insurance: any shares of stock or securities; any special advisory board contact; any agreement promising profits, special returns or special dividends; or any prizes or goods with an aggregate value in excess of 25.

Separate Account Requirements

It may be in a separate account, that account may be interest bearing.

Obtaining a License

Meet requirements: education and examination, age and residency, good character, application fees

Charges for extra services

Must be match what the the insurer's rates are, or the approved rates of the Commissioner.

Insurance Transaction

No insurance company or agent may pay a commission, service, or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if that person is not properly licensed.

Renewal

Once a license is issued it's the licensee's responsibility to maintain an active license. In this state initial and reinstated licenses are valid from the date they are issued until the licensee's next birthday anniversary, plus a year.

Rebating / Illegal dealing in premiums

Rebating is defined as any inducement offered in the sale of insurance products that is NOT specified in the policy. Rebates include money, prizes, or merchandise, and could also include reductions in commissions, promises, employment, dividends, stock and personal services.

Ownership

Stock or Mutual

Temporary

The Commissioner may issue a temporary insurance producer license for the servicing of existing business, for a maxmium of 180 days without requiring a written exam to the following individual's - the spouse or representative of a licensed producer who dies or becomes disabled, to allow time for the producers recovery: sale of the business; training and licensing of new personnel to operate the business; a member or employee of a business entity licensed as an insurance producer, in the event of death or disability of an individual that is designated in the business entity application or the license; the designee of a license insurance producer entering active duty in the United States Armed Forces; and any other circumstances deemed fit by the Commissioner.

Protection of Public Interest

The business of insurance is one affected by the public interest, requiring that all persons act in good faith abstain from deception, and practice honesty and equity in all insurance matters.

Broad Powers

The general powers, duties and responsibilities of the Commissioner include, but are not limited to the following: adopt rules and regulations to enforce provisions of the Insurance Code: conduct examinations, investigations, and hearings to determine whether any person has violated any provisions of the Code; maintain confidentiality of documents, materials, or other information used in regulatory or legal action; issue insurance licenses and certificate of authority, and take action against, fine or suspend the license of any company and/or producers; appoint a Chief Deputy Commissioner to assist the Commissioner, as well as additional deputies.

Examination of Records

The purpose of the examination is to ensure that the companies remain solvent and conduct business of insurance in compliance with state laws and regulations pertaining to licensing, policy forms, rates, claim and market conduct.

Producer

The term insurance producer means a person required to be licensed under state law to transact insurance.

Late Renewal / Reinstatement

Whenever a producer submits a request for a license renewal after due date, the producer may not transact business renewal or reinstatement is complete. Days Late: 1-30 50% 31-60 100% 61- 12 months 200%

Reply to the Insurance Commissioner

Within 90 days..

Advertising

You can't mention the Guarantee Association IN any advertisement, it is considered an unfair trade practice. Also, whatever insurance company paid for the advertisement is responsible for it, no matter what employee did it.

Receiving Compensation

Yup getting money ...