WA material
The maximum amount of a commissioner fine is: > $25,000 > $50,000 > $75,000 > $100,000
$25,000
The minimum amount of bodily injury coverage for all persons per accident under Washington's auto insurance laws is: > $25,000 > $50,000 > $75,000 > $100,000
$50,000
Before placing a surplus lines policy, a Surplus Line Broker must determine that such insurance is not available through an authorized Washington Insurer. The law requires the Surplus Line Broker to first check with how many authorized Insurers who sell that type of insurance? > At least one. > No less than 3 but not more than 10 such authorized insurers who sell the type of insurance in question. > A majority of such Insurers. > All of them.
a majority of such insurers
Which of the following is TRUE regarding Washington law on the Underinsured Motorist property damage deductible? > It cannot exceed $100 for any vehicle, > it cannot exceed $300 for a phantom or hit and run vehicle, > it cannot exceed $1,000 > it must at least be $500
it cannot exceed $300 for a phantom or hit-and-run vehicle
Each of the following is true regarding PIP EXCEPT: > it has replaced the traditional auto Med Pay coverage, > it covers loss of income, > it provides no-fault coverage, > it must be offered, but the insured can reject it either orally or in writing
it must be offered, but the insured can reject it either orally or in writing (can only be rejected in writing)
If an Insured's check is made payable to the Insurer, the funds: > must be deposited directly into the premium trust account. > may be sent to the Insurer without first depositing the check in the premium trust account.
may be sent to the Insurer without first depositing the check in the premium trust account.
Underinsured Motorist and Personal Injury Protection (PIP) are similar in that both: > must be offered by the Producer but need not be purchased by the Insured. > are required as part of auto liability insurance in Washington.
must be offered by the producer but need not be purchased by the insured
If a producer changes the producer's address for mail, email, home or business, the producer: > Must notify the Commissioner within 60 days. > Is not required to notify the Commissioner. > Must notify both the Producer's appointing Insurers and clients immediately. > Must notify the Commissioner within 30 days.
must notify the commissioner within 30 days
If the Commissioner is going to terminate an illegally issued policy, Washington law requires the Commissioner to give how much advance written notice? > none > 10 days > 30 days > 45 days
none
The purpose of requiring Surplus Line Brokers to have a bond to protect the State is to ensure that the Surplus Line Broker will? > Adequately represent all parties while obtaining surplus lines insurance. > Pay the sales tax owing on the policies sold. > Not steal funds from the premium trust account. > Not commingle personal funds in the premium trust account.
pay the sales tax owing on the policies sold
The Commissioner is LEAST LIKELY to have authority to examine the financial records of which of the following? > Producers > Insurance companies > Policy holders > Adjusters
policy holders
It is acceptable for a Producer to induce a person to purchase insurance by offering part of the Producer's commission as which of the following? > special items not specified in the policy, > shares of stocks, > prizes or good over $5 > prizes or good valued up to $25
prizes or good valued up to $25
If an Insurer cancels a dwelling policy, the refund of unearned premium is calculated by which method? > pro rata > short rate
pro rata
An appointment letter gives the Producer expressed authority to: > represent the Insurer. > sell all lines of Insurance in the State of Washington.
represent the insurer
A foreign insurer is domiciled in another: > country. > state
state
Personal Injury Protection (PIP) covers: > a person injured in a prearranged racing contest > a person who intentionally causes injury to himself or herself > the Insured regardless of whether anyone is "at fault" in causing the accident > injuries caused by using motorcycles
the Insured regardless of whether anyone is "at fault" in causing the accident
The optional PIP (personal injury protection) covers which of the following: > Injury to an Insured resulting from the use of a motor vehicle in the commission of a felony. > The Insured's expenses for home cleaning and cooking if the Insured is injured in an auto accident. > The Insured or a relative while occupying a vehicle owned by or furnished for the Insured's regular use. > An injury resulting from a prearranged speed or racing contest.
the insured's expenses for home cleaning and cooking if the insured is injured in an auto accident
An Insurer advertising in Washington must include in the ad the full name of the Insurer and: > the location of the Insurer's principal office, if it is in the U.S. > the Insurer's web site address or toll free phone number. > a statement indicating that the Insurer is authorized to do business in Washington. > a statement clearly indicating that the Insurer's policies are protected by the Guaranty Fund.
the location of the Insurer's principal office, if it is in the U.S.
The Commissioner may order the immediate cancellation of a policy if: > the policy violates any Washington law > the Insurer's contract with an independent Producer has been terminated > the policy was procured from an Insurer Unauthorized in Washington > the policy will expire in less than 30 days
the policy violates any WA law
The Washington Insurance Commissioner is chosen by: > The Guaranty Association. > The voters. > The Governor. > The Department of Commerce.
the voters
Under Washington law, a Producer is required to respond to a Commissioner inquiry within: > 10 days > 15 days > 20 days > 30 days
15 days
When an insurer appoints a producer, the insurer must notify the commissioner of the appointment within > One business day > 7 days > 15 days > 31 days
15 days
The license of a Temporary Agent is effective for: > Only 180 days > The time limit determined by the Insurer > One year from the Temporary Agent's next birthday > The current year
180 days
Which Producer must be bonded? > A Producer who represents an Insurer. > A Producer who is not appointed by an Insurer.
A Producer who is not appointed by an Insurer.
Which of the following is NOT required to maintain an office in this state? > A Bonded Producer > A Resident Life or Disability Producer > A Resident Producer > A Temporary Producer
A Resident Life or Disability Producer
The Commissioner has scheduled a hearing regarding the suspension of Q's Producer license. Q prefers not to have the hearing with the Commissioner. Washington law permits Q to request a hearing with: > a representative group of his policy holders. > the governor or one appointed to represent the governor. > an administrative law judge. > a group of producers who are his peers.
An administrative law judge
Which of the following is required to be licensed as an adjuster in WA; > a salaried adjuster representing only foreign insurers, and independent adjuster, > a marine adjuster, > a salaried adjuster representing only domestic insurers
An independent adjuster
A Washington producer may hold a policy without delivering the policy to the insured when holding the policy as: > As a favor for the Insured > According to the Insured's written instructions > For safekeeping > As a guardian
As a guardian
For each long-time Producer, a Washington Insurer must pay an appointment fee to the Commissioner and provide notice of the Producer's appointment at which time? > January 1 of each year > A time specified by the Producer > December 31 of each year > At the producer's renewal date every two years
At the producer's renewal date every 2 years
What does Washington call a Producer who doesn't have an appointment yet is permitted to represent Insureds and collect a commission from both the Insurer and the Insured? > Independent Producer > Bonded Producer > Insured's Producer > Appointed Producer
Bonded Producer
If a Washington driver owning 25 or more vehicles wants to satisfy the State's Financial Responsibility law by self-insuring, the driver must obtain from the Licensing Department a: > Certificate of Insurance > Certificate of Self-insurance > Certificate of Financial Responsibility > Certificate of Authority
Certificate of Self-insurance
The optional Personal Injury Protection (PIP) covers which of the following? > The cost of vehicle repair. > Death resulting from an auto accident. > An injury resulting from a prearranged speed or racing contest. > A self-inflicted injury.
Death resulting from an auto accident.
Which of the following is designed to provide property coverage for applicants who could not obtain insurance in the voluntary market? > Guaranty Association > FAIR Plan > Surplus Lines > WSHIP
FAIR Plan
Violation of the fraudulent claims act is a: > Misdemeanor > Felony
Felony
The Commissioner may refuse to issue a resident Producer license because the applicant: > Has not yet reached age 21. > Has been convicted of a felony. > Has not posted a bond. > Has not lived in Washington for at least 90 days.
Has been convicted of a felony.
Which of the following are prohibited from making contributions to the Insurance Commissioner's political campaign? > Bonded producers, > resident producers, > non resident producers > insurers
Insurers
Every 5 years, the Washington Insurance Commissioner is required to examine the financial records of: > Underwriters > Insureds > Producers > Insurers
insurers
If a producer converts client funds from the separate account, the producer is guilty of: > larcenous theft. > misjudgment.
Larcenous theft
Each of the following are "licensed adjusters" EXCEPT: > Each of the following are "licensed adjusters" EXCEPT > Public adjusters. > Marine adjusters.
Marine adjusters.
Which Insurer is a "participating" Insurer because it pays dividends to its members who are policyholders? > Foreign > Mutual > Alien > Domestic
Mutual insurer
Which of the following must designate the Commissioner to receive legal process in the event of a lawsuit? > Every Resident and Nonresident Producer > Bonded Producers > Nonresident Producers > Temporary Producers
Nonresident Producers
Washington's FAIR Plan is designed to provide: > Health coverage > Property and liability coverage > Casualty coverage only > Property coverage only
Property coverage only
Each of the following are "licensed adjusters" EXCEPT: > Salaried adjusters working for Insurers > Public adjusters > Independent adjusters
Salaried adjusters working for Insurers
The Commissioner may do each of the following EXCEPT: > Set and collect Producer license fees > Set premiums > Suspend Producer licensers for up to 12 months > Fine Producers up to $1,000
Set premiums
PIP covers each of the following resulting from an auto accident EXCEPT: > The Insured's medical bills. > The Insured's expenses for vehicle repair. > The Insured's expenses for a funeral if death is caused by an auto accident. > The Insured's loss of income.
The Insured's expenses for vehicle repair.
To be eligible to receive a Certificate of Authority in Washington, each of the following is correct EXCEPT: > The Insurer must receive permission from the Insurance Commissioner. > The Insurer must be a domestic or foreign Insurer. > The Insurer must be a stock, mutual, or fraternal insurer. > The Insurer must comply with Washington's capital funds requirements.
The Insurer must be a domestic or foreign Insurer.
If a Producer receives an excess fee paid by the Insured, the Producer must disclose each of the following to the Insured EXCEPT: > Whether the Producer may receive any additional commission from the Insurer in the future. > The date the Producer first had contact with the Insured. > The full amount of the fee paid by the Insured. > The full amount of any commission paid to the Producer by the Insurer.
The date the Producer first had contact with the Insured.
A mutual insurer is owned by: > A consortium of other authorized insurance companies > The State of Washington > The mutual's policyholders > The mutual's stockholders
The mutual's policyholders
Who is responsible for determining whether a policy sold in Washington is issued by a company authorized to do business in the state? > The Underwriter. > The Insured. > The Producer. > The Commissioner.
The producer
If an Insurer provides the Insured with a written offer to renew, or a written notice of cancellation or nonrenewal, the Insurer must: > document the reasons for the action in writing to the Commissioner within 5 working days. > give notice to the Producer within 5 working days.
give notice to the producer within 5 working days
Rebating includes each of the following EXCEPT: > giving the applicant part of the commission > giving the applicant all of the commission > giving a premium discount to one applicant while charging a higher premium to a similar applicant with the same risk factors > giving an applicant a gift valued at over $100
giving a premium discount to one applicant while charging a higher premium to a similar applicant with the same risk factors
The Insurance Commissioner may: > be an officer of an insurance company. > limit the number of licensed companies. > set policy premiums. > issue cease and desist orders.
issue cease and desist orders.
A producer knowingly insuring a property in excess of its value is known as: > twisting > defamation > fraudulent valuation > overinsurance
overinsurance
A binder premium receipt must include each of the following EXCEPT: > identify the Insurer > briefly describe the coverage bound > state the Producer's address > state that it is a binder
state the Producer's address
The Premium Receipt must be delivered within 1 business day and must contain each of the following EXCEPT: > the date. > the policy's deductible, exclusions, and Producer's commission. > the Producer and the Producer's address. > the amount received.
the policy's deductible, exclusions, and Producer's commission.
An unlicensed office person working in a Washington insurance office may: > review policy provisions, > solicit applications, > recommend the appropriate policy for an applicant >perform normal office duties
perform normal office duties
The Insured may cancel a policy by providing written notice to the Insurer or: > providing notice to the Insurer over the phone > surrendering the policy to the Insurer
surrendering the policy to the Insurer
It is permissible for a Surplus Lines Broker to procure surplus lines insurance because: > the premium is lower. > a better commission rate. > the coverage terms are better. > the insurance was unavailable through authorized Insurers.
the insurance was unavailable through authorized Insurers.
An Insurer's cancellation or nonrenewal may be effected only if: > the Insurer provides the Insured with advance written notice. > the Insurer first notifies the Commissioner. > the Insured has submitted more than one claim in a 6-month period. > the Insured has failed to pay premiums due.
the insurer provides the insured with written notice
A bonded producer must post a bond of? > $1,000 > $2,500 > $5,000 > $20,000
$2,500
What is the minimum amount of bodily injury coverage for each person per accident under WA auto insurance laws? > $25,000 > $50,000 > $75,000 > $100,000
$25,000
The commissioner may fine a licensee up to what amount for violating a cease and desist order and what amount for violating any other insurance law? > $250, $1,000 > $500, $2,500 > $1,000, $5,000 > $2,000, $10,000
$250, $1,000
Under Washington's work comp system, an injured worker may only recover disability benefits (lost wages) after a waiting period of: > 24 hours > 2 days > 3 days > 7 days
3 days
within how many days must a producer notify the insurance commissioner of a change in: email address, mailing address, business address, or residence address?
30 days
A bonded producer must post a bond in the amount of
$2,500
The Financial Responsibility Law requires drivers to show: > Certificate of Authority > Certificate of Financial Responsibility > Certificate of Insurance > Certificate of Self-insurance
Certificate of insurance
Either an Appointed Producer or a Bonded Producer may receive: > a commission paid by the Insured > a fee paid by the Insurer > a combination of a commission paid by the Insurer and a fee paid by the Insured > all of the above
a combination of a commission paid by the insurer and a fee paid by the insured
A foreign insurer is: > Permitted to sell insurance only in other countries. > Sells insurance in more than one country. > Formed in another country. > Is formed in another state within the U.S.
Is formed in another state within the U.S.
To be licensed as a Nonresident Producer, a person: > Must be currently licensed and in good standing in another state. > Must post a bond in the amount of at least $25,000. > Must have been licensed for at least 5 years. > Must have been a resident of Washington for at least 6 months.
Must be currently licensed and in good standing in another state.
The Evil Insurance Company is selling policies in Washington at premiums lower than those contained in its rate filing. The Commissioner may: > On an emergency basis without a hearing, revoke the licenses of all of Evil's Producers. > Suspend Evil's Certificate of Authority until it once again charges the filed rates. > Cancel all policies that had been issued by Evil under the reduced rate structure. > Seize all premiums Evil received from selling policies below the filed rates.
Suspend Evil's Certificate of Authority until it once again charges the filed rates.
Following an auto accident involving death, bodily injury, or more than $1,000 property damage, an out-of-state driver must post at least a $500 security deposit in each situation EXCEPT: > The driver's out-of-state auto Insurer is authorized to sell auto insurance in Washington, > The out-of-state driver has auto liability insurance exceeding the amount required in Washington >The driver's out-of-state auto Insurer has given the Director of Licensing authority to accept service of process in a lawsuit.
The out-of-state driver has auto liability insurance exceeding the amount required in Washington
How frequently may the Commissioner examine the records of an insurance company? > There is no statutory limitation, thus, as often as the Commissioner deems appropriate. > Only once per year. > Only once every 5 years. > Not more than twice per year.
There is no statutory limitation, thus, as often as the Commissioner deems appropriate.
An applicant for a Nonresident License must have: > At least 5 years' residence in the other state > Designated a resident Insurer to receive notice of lawsuits > A corresponding license from the other state > A Washington driver's license or other I.D. issued in this state
a corresponding license from another state
What type of producers must have an office in WA state?
all resident producers except for life and disability producers must have an office in WA
An Insurer cannot deny a homeowner policy if the applicant plans to open a: > car repair facility in the home. > day care facility in the home. > bed and breakfast in the home. > hair cutting salon in the home.
day care center
Making false statements intended to harm an Insurer is called: > boycotting. > misrepresentation. > defamation. > unfair discrimination.
defamation
The assigned Risk Plan is designed to provide coverage for? > small businesses in low income neighborhoods > minorities having difficulty insuring start-up businesses > large manufacturers selling products internationally > drivers who can't get insurance
drivers who can't get insurance
An "Appointed Producer" or a "Bonded Producer" may receive compensation from? > the Insurer only > the Insured only > the Insurance Commissioner only > either the Insurer or the Insured or both
either the insurer or the insured or both
An Insurer permitted to appoint Producers to do business in Washington is referred to as: > an authorized Insurer. > a permitted Insurer. > a designated Insurer. > an approved Insurer.
an authorized insurer
Under Washington law, Underinsured Motorist coverage: > is required to be purchased as a part of any commercial auto policy. > covers both underinsured and uninsured motorists. > covers underinsured but not uninsured motorists. > is required to be purchased as a part of any personal auto policy.
covers both underinsured and uninsured motorists.
Washington generally requires drivers to have auto liability insurance in the amount of $25,000/$50,000/$10,000. These numbers represent the minimum insurance that is required: > per 6 months, > per year, > per accident > per month
per accident
If a personal auto policy has been in effect 60 days or more, the policy may be cancelled by the Insurer if: > the Insured fails to file a claim > the Insured's driver's license is suspended > the Insured rejected PIP coverage > the insured submits more than 3 claims
the Insured's driver's license is suspended
Both PIP and Underinsured Motorist cover: > the other party. > the Insured. > both cover the Insured because liability insurance covers "the other guy."
the Insured.
The insurance commissioner must examine company records every: > 2 years. > 3 years. > 4 years. > 5 years.
5 years
Each of the following would be a valid Insurer explanation for terminating a policy EXCEPT? > "The roof of your house is in such disrepair that it will leak every time it rains." > "You no longer meet our company's underwriting standards." > "You failed to pay the policy premium due last December 15." > "You have had 43 speeding tickets in the last six weeks."
"You no longer meet our company's underwriting standards."
A driver involved in a Washington auto accident may be required to post a minimum $500 security deposit with the Department of Licensing if the accident involves bodily injury or property damage in the amount of at least: > $500 > $1,000 > $2,500 > $5,000
$1,000
A Producer has 4 licenses - Life, Disability, Property, and Casualty. She knows that the fee to renew a single license is $55 every two years. What will it cost for her to renew all four licenses? > $55 > $110 > $165 > $220
$55
Washington requires employers to provide work comp coverage if the employer has how many employees? > 1 or more > 5 or more > 10 or more > 25 or more
1 or more
A producer failed to renew the producer's license and the license lapsed. To be able to renew without having to pass the licensing exam again, the producer must pay a late fee and renew within a maximum of: > 12 months. > 90 days. > 18 months. > 180 days.
12 months
If an applicant is eligible for FAIR Plan coverage, the policy must provide coverage for at least what time period? > 3 months > 6 months > 9 months > 12 months
12 months
If an Insurer decides to terminate an Independent Producer for failure to meet sales quotas, the Independent Producer must be given how much advance notice of the termination? > 90 days > 120 days > 180 days > 365 days
120 days
Jasmine knows that she must complete 24 hours of continuing education every two years to renew her life license. However, if she also obtains a casualty license, her total continuing education requirement every two years will be: > 24 hours > 30 hours > 48 hours > 72 hours
24 hours
Every 2 year renewal period, a Producer must complete: > 6 hours of Continuing Education. > 24 hours of Continuing Education. > 25 hours of Continuing Education. > 12 hours of Continuing Education.
24 hours of Continuing Education.
The option in Washington to self-insure instead of buying auto insurance only applies to entities owning at least how many vehicles? > 5 > 10 > 20 > 25
25
As part of the Continuing Education requirements, Producers must complete: > 3 hours of ethics training every renewal period. > 4 hours of ethics training every renewal period. > 6 hours of ethics training every renewal period. > 7 hours of ethics training every renewal period.
3 hours of ethics training every renewal period.
For most property and casualty policies, the Insurer must provide notice of a cancellation or nonrenewal at least: > 10 days in advance > 20 days in advance > 45 days in advance > 90 days in advance
45 days
A Producer must keep transaction records for: > 1 year. > 3 years. > 4 years. > 5 years.
5 years.
A Washington Producer must keep records of premium trust accounts for: > 3 years. > 5 years. > 10 years. > the duration of the policy.
5 years.
Each of the following is true about the Producer's office EXCEPT: > Except for Life or Disability Producers, all resident Producers must maintain an office. > A separate license must be purchased for each place of business. > A Producer with a Life or Disability license must maintain an office. > A full fee must be paid for each additional office license.
A Producer with a Life or Disability license must maintain an office.
Which must maintain an office in this state? > A licensed Nonresident Producer > A licensed resident Property or Casualty Producer
A licensed resident Property or Casualty Producer
Selling insurance in Washington State without a license is a: > Class C felony. > Class D felony. > Class B felony. > Class A felony.
Class B Felony
Under the FAIR Plan, residential and commercial properties are eligible for which type of coverage? > All risk, including fire, flood, and earthquake > Broad form excluding both flood and earthquake > Open perils including volcano but excluding flood > Fire, Extended Coverage, and Vandalism and Malicious Mischief
Fire, Extended Coverage, and Vandalism and Malicious Mischief
An unlicensed person selling insurance in the State of Washington: > Has committed a felony. > Has a 6-month grace period to become licensed. > Has a 3-month grace period to become licensed. > Has committed a misdemeanor.
Has committed a felony.
Although it may be waived in writing by the Insured, each auto Insurer must offer how much Underinsured Motorist coverage in Washington? > Not less than the amount of the Insured's liability coverage. > Whatever amount is selected by the Insured not to exceed $15,000. > Not more than $25,000/$50,000, $10,000 > Not more than $300,000/$500,000/$50,000
Not less than the amount of the Insured's liability coverage.
Each of the following activities requiring a Washington insurance license is considered an illegal "unlicensed activity" EXCEPT: > Determining the appropriate policy to cover the applicant's risk > Acting as a bookkeeper for multiple insurance companies > Explaining policy provision > Acting as an independent adjuster
Perform bookkeeper duties
If an Insurer's proposed premium rates are too low, the Commissioner will: > Require the Insurer to raise the proposed rates so that they are at least equal to the lowest rates of any currently approved Insurer. > Reject the proposed rates. > Raise the proposed rates to the average of other company's rates. > Require the Insurer to stop selling insurance in the state of Washington.
Reject the proposed rates.
Which of the following is correct regarding a Producer who works with eligible FAIR Plan properties? > The Producer cannot be appointed by the FAIR Plan. > The Producer may issue binders on behalf of the FAIR Plan only after being appointed. > The Producer must be appointed by the FAIR Plan prior to taking applications. > The Producer may issue binders on behalf of the FAIR Plan without receiving an appointment.
The Producer cannot be appointed by the FAIR Plan.
A Nonresident Producer may be licensed in Washington if: > The Producer's home state has a reciprocal agreement providing similar status to Washington Producers. > The Producer posts a bond.
The Producer's home state has a reciprocal agreement providing similar status to Washington Producers.
Who may obtain a temporary producer license? > The Producer's next of kin. > Only a person already holding an insurance license in the state of Washington.
The Producer's next of kin.
The written binder which must be given to the Insured within 1 business day must contain which of the following? > The address of the Producer's principal place of business or web address > The date coverage becomes effective > The amount of the Producer's commission > The amount of the policy's deductible
The date coverage becomes effective
On August 1st, a Producer received written notice from the Commissioner that the Producer's license is due to be renewed. What is the earliest date that that Producer could be required to stop selling insurance (without license renewal)? > The end of the Producer's birth month > 61 days after receiving the notice > The 61st day after the Producer's birthday > The 91st day after the Producer's birthday
The end of the Producer's birth month
The Surplus Line Broker is required to have: > a $2,500 bond to protect the Insureds and a $20,000 bond to protect the State. > a $5,000 bond to protect the Insureds and a $50,000 bond to protect the State. > a $2,500 bond to protect the State and a $20,000 bond to protect the Insureds. > a $5,000 bond to protect the State and a $50,000 bond to protect the Insureds.
a $20,000 bond to protect the state and a $2,500 bond to protect the insured
Each of the following must be included in the premium receipt EXCEPT: > the Producer's address > a brief description of the procedures for filing a claim > a brief description of the coverage > the full legal name of the Insurer
a brief description of the procedures for filing a claim
An Insurer formed in Wyoming is referred to as? > a foreign Insurer. > an alien Insurer. > a domestic Insurer. > an interstate Insurer.
a foreign insurer
To be eligible to sell federal flood insurance through FEMA, a property Producer must complete: > a one-time 8-hour flood course plus a 2-hour refresher course every two years. > a one-time 3-hour flood course but there are no required refresher courses. > a one-time 8-hour flood course but there are no required refresher courses. > a one-time 3-hour flood course plus a 2-hour refresher course every two years.
a one-time 3-hour flood course but there are no required refresher courses.
Each of the following is a method of complying with Washington's Proof of Financial Responsibility Law EXCEPT: > bond > a statement of financial responsibility certified by an independent CPA > insurance > pledging cash or proving self-insurance
a statement of financial responsibility certified by an independent CPA
Which of the following may receive a temporary Producer license? > a surviving spouse. > an Insurer.
a surviving spouse.
A Producer may normally inform a client of the existence of the Guaranty Association: > at any time > during preliminary negotiations > at the time of application > after the policy has been purchased
after the policy has been purchased
The Commissioner has notified a Producer of a hearing regarding a licensing violation. The Producer is concerned that the Commissioner may be biased against her. She may choose to in effect disqualify the Commissioner and demand a hearing before: > a lawyer chosen by the Producer. > an arbitrator agreed to by both the Commissioner and the Producer. > The Washington Attorney General (or a designated staff member). > an administrative law judge.
an administrative law judge.
Independent adjusters may represent: > the public. > any Insurer. > only the Washington Insurance Commissioner. > any Insured.
any Insurer.
Bonded Producers must post a bond of: > at least $2000 but not more than 2% of the premiums brokered in the previous year > at least $2500 but not more than 5% of the premiums brokered in the previous year > at least $3000 but not more than 7% of the premiums brokered in the previous year > at least $5000 but not more than 10% of the premiums brokered in the previous year
at least $2500 but not more than 5% of the premiums brokered in the previous year
A Producer license is needed to: > confirm a premium payment > set a meeting time for a client and Producer > mail application forms > bind coverage
bind coverage
Under Washington Law, Underinsured Motorist coverage: > covers Underinsured vehicles but excludes Uninsured Vehicles > covers an insured vehicle where the Insurer is insolvent and can't pay > covers bodily injury but not property damage > excludes hit-and-run vehicles
covers an insured vehicle where the Insurer is insolvent and can't pay
Offering different premium rates or policy terms to applicants of substantially the same risk and hazard classification is an illegal activity known as: > rebating > defamation > discrimination > commingling
discrimination
A Producer's license must be: > displayed in the place of business. > carried with the Producer while acting as a Producer. > carried in the Producer's vehicle. > retained by the Insurer.
displayed in the place of business.
A producer has an office license and has paid the full office license fee. If the producer establishes more offices: > each office must be licensed and the fee is pro-rated among each of the offices. > each office must be licensed and the full fee must be paid for each office. > only the principal office must be licensed. > each office must be licensed but there is no additional fee.
each office must be licensed and the full fee must be paid for each office.
The Commissioner may suspend or revoke a Producer's license for each of the following EXCEPT: > exceeding Continuing Education requirements. > conviction of a felony. > knowingly violating an insurance law. > demonstrating incompetence.
exceeding Continuing Education requirements.
Violation of the Fraudulent Claims Act is a: > Misdemeanor > Felony
felony
Offering an applicant a $150 rebate as an incentive to purchase insurance is referred to as: > an illegal provocation > an illegal impetus > an illegal inducement > an illegal encouragement
illegal inducement
All funds representing premiums or return premiums received by a WA producer must be held > in the Producers office account. >in a fiduciary capacity in a separate trust account that is in a federally insured financial institution.
in a fiduciary capacity, in a separate trust account that is federally insured financial institution
Following an auto accident, Personal Injury Protection covers each of the following except: > liability for bodily injury to others, > medical and hospital expenses, > loss of income plus loss of services, > funeral expenses
liability for bodily injury to others.
The Guaranty Association: > protects Producers if an Insurer is unable to pay commissions. > protects Insureds if an Insurer is unable to pay claims.
protects Insureds if an Insurer is unable to pay claims.
If the Insurer's actuary documents that there are bona fide statistical differences, an Insurer can discriminate on the basis of each of the following EXCEPT: > sex > marital status > race > geographical location
race
A Producer has been paid by both the Insurer and the Insured. The Insured has filed a complaint against the Producer. The Commissioner will determine that the Producer may accept from the Insured: > not less than the amount of the commission received from the Insurer > a reasonable compensation > no payment or compensation whatever > not more than the amount of the commission received from the Insurer
reasonable compensation
Surplus Line Brokers are: > required to represent the Insurer. > required to be appointed by at least one authorized Insurer. > required to be licensed in more than one state. > required to be bonded.
required to be bonded
When the policy is issued to the Producer, Washington law: > requires the producer to deliver the policy to the Insured. > permits the producer to keep the policy for safekeeping after so notifying the Insured.
requires the producer to deliver the policy to the Insured.
A Producer must give the applicant a copy of the binder no later than: > the next business day. > the time period determined to be convenient for the Producer. > 30 days. > 60 days.
the next business day.
Who is eligible for coverage under Washington's FAIR Plan? > Farm properties only > Residential and commercial property only > Manufacturing facilities located in high unemployment areas only > Automobiles only
residential and commercial property only
Which of the following types of properties are eligible for coverage under the Washington FAIR Plan? > farm > manufacturing > automobile > residential property
residential property
The commissioner May: > approve premium rates. > set premiums rates.
set premiums rates.
Molly decided to drop the coverage under her policy partway through the policy period. She has notified the Insurer and has returned the policy. The Insurer must send Molly a: > pro rata refund of unearned premium. > short rate refund of unearned premium.
short rate refund of unearned premium
Which of the following is licensed in Washington, assists in the procurement of insurance policies, is not appointed by an Insurer, is not a representative of an Insurer, and is not a representative of the Insured? > bonded producer, > property producer, > casualty producer, > surplus line broker
surplus line broker
A Producer may receive compensation directly from: > a commission paid by the Insurer only. > the Insurer, the Insured, or both. > a fee paid by the Insured only. > the reimbursement account funded by the Commissioner from the tax on premiums.
the Insurer, the Insured, or both.
When initiating a sales presentation while away from the office, a Washington Producer must disclose each of the following EXCEPT: > the amount of the Producer's commission. > that the Producer is an insurance agent. > the full name of the Producer's insurance company.
the amount of the Producer's commission.
A binder must contain each of the following EXCEPT: > receipt of any premium > the amount of the deductible > a description of the coverage bound > the name of the Insurer
the amount of the deductible
If an Insurer fails to replace a binder with a regular policy within the required 90 day period, to be able to extend the duration of the binder beyond 90 days requires that the Insurer obtain written permission from: > the Insured. > the Producer. > the Insurance Commissioner. > both the Insured and the Producer.
the insurance commissioner
An Insurer MAY deny personal insurance based on: > a credit history that changes due to the purchase of a home > the total number of credit lines available to the consumer > the ratio of outstanding debt to available credit
the ratio of outstanding debt to available credit
An insurer may deny personal insurance due to: > Number of credit cards > the ratio of the amount of outstanding debt in relation to the available line of credit > an initial purchase or finance of a vehicle or house that adds a new loan to a consumer's existing credit history > number of credit inquiries
the ratio of the amount of outstanding debt in relation to the available line of credit
Under Washington's work comp system, an employer may provide coverage from: > a self-insurance program or a private Insurer. > the state or through self-insurance. > a private Insurer. > self-insurance, a private Insurer, or the state.
the state or through self insurance
An Insurer may deny personal insurance based on an individual's credit history only if: > there are other substantive underwriting factors. > the Insured's credit score is based on medical collections.
there are other substantive underwriting factors.
Making false or misleading policy comparisons to induce policy replacement is: > twisting > commingling > defamation > whispering
twisting
A driver in an auto accident may be required to post with the department of licensing a security deposit in at least what amount? > $500 > $1,000 > $2,500 > $5,000
$500
To cancel an insurance policy in Washington, the Insured must give the Insurer at least _____ days' advance notice. > 0 > 20 > 30 > 60
0
Q has given a cash premium to a Producer. How long does the Producer have to provide a signed premium receipt? > 1 business day > 2 business days > 3 business days > 48 hours
1 business day
To nonrenew a private auto insurance policy in Washington, the Insurer must give the Insured at least _____ days' advance notice explaining the actual reasons for the nonrenewal. > 30 > 60 > 10 > 20
20 days
If an appointment is revoked by the Insurer for cause, the Commissioner must be notified within: > 30 days. > 60 days. > 90 days. > 120 days.
30 days
If the Insurer cancels, any unearned premium must be refunded to the Insured within: > 10 days > 20 days > 45 days > 90 days
45 days
A local insurance firm has just terminated one of its most active Producers. The firm must keep copies of the Producer's records for: > 2 years > 3 years > 4 years > 5 years
5 years
The Insurer does not need a reason to cancel an auto policy that has been in effect less than: > 7 days > 14 days > 30 days > 60 days
60 days
Binders should be replaced promptly with insurance policies within: > 60 days. > 90 days. > 120 days. > 180 days.
90 days
Every Insurer ad must start with the following: > whether or not the Insurer is an authorized Washington Insurer > whether or not the Insurer is a member of the Guaranty Fund > the primary phone number of the Insurer > the full name of the Insurer
Full name of the insurer
Which of the following drivers could be subject to Washington's Financial Responsibility Law's security deposit requirement if involved in an auto accident? > A WA resident with 25/50/10 coverage, > a non resident with 25/50/10 coverage from an authorized insurer, > A WA resident with 10/20/10 coverage > all of the above?
Washington Resident with 10/20/10 coverage
A foreign or alien Insurer may only be sued in Washington by: > seeking permission from the Guaranty Fund. > filing the service of process with the Insurance Commissioner. > notifying the Washington Attorney General. > requesting permission from the federal government.
filing the service of process with the Insurance Commissioner.
Which type of insurer doesn't sell stock and is operated for its members on a nonprofit ritualistic lodge basis? > Alien > Fraternal > Domestic > Mutual
fraternal
An out-of-state driver from Idaho is involved in a serious auto accident in Washington involving significant bodily injury. The out-of-state driver may have to post a $500 security deposit: > in both Washington and Idaho. > in Idaho only. > in Washington only.
in Washington only.
A public adjuster represents the interest of: > Insurer > Public. > Insurance Department. > Insured
insured
A Producer who converts to his own use funds received in a fiduciary capacity is guilty of: > commingling > permissible embezzlement > larcenous theft > rebating
larcenous theft
If the Premium Trust Account is interest bearing, the interest: > Must be submitted to the Commissioner for deposit in the state general fund. > May be kept by the Producer but shouldn't be commingled with the funds in the separate account.
May be kept by the Producer but shouldn't be commingled with the funds in the separate account.
The insurer must acknowledge the receipt of the claim within: > 10 days for an individual policy and 15 days for a group policy > 15 days for an individual policy and 10 days for a group policy > 20 days for an individual policy and 30 days for a group policy > 30 days for an individual policy and 20 days for a group policy
10 days for an individual policy and 15 days for a group policy
If a Washington Producer violates state law, the Commissioner may, after a hearing, suspend the Producer's license for a maximum of: > 30 days > 60 days > 6 months > 12 months
12 months
If an insurer decides to terminate an independent producer for failure to meet sales quotas, the independent producer must be given how much advance notice of the termination
120 days
Jabin is an independent Producer representing a number of Insurers, including the Mean Insurance Company. For no reason at all, Mean decides to terminate Jabin's appointment. Mean is required to offer to renew any of the policies in Jabin's book of business for 1 year. What does Washington law say about commissions on those renewed policies? > Jabin is not entitled to any commission because his appointment has been terminated. > Jabin is entitled to a commission on the renewed policies for 1 year. > Washington law is silent on the issue - Jabin and the Insurer must negotiate the commission split. > Jabin is entitled to a commission for as long as the policies continue to be renewed.
Jabin is entitled to a commission on the renewed policies for 1 year
If the Guaranty Association is required to pay a claim, the funds come from: > a reduction in the amount of claim payments by the remaining Insurers. > a special tax imposed on all insurance policies sold within the state. > the Insurance Department's annual budget. > an assessment against the premiums collected by each Insurer.
an assessment against the premiums collected by each insurer
Washington requires Insurer's to offer Underinsured Motorist limits that are: > 10/5/10 > at least equal to the limits of the Insured's auto liability policy > less than the limits of the Insured's auto liability policy > greater than the limits of the Insured's auto liability policy
at least equal to the limits of the insured's auto liability policy
A Washington Insurer may discriminate against an applicant due to: > color > race > bona fide statistical differences in risk based on sex, marital status, mental handicap, or physical handicap > sexual orientation
bona fide statistical differences in risk based on sex, marital status, mental handicap, or physical handicap
An alien insurer is formed in another: > country. > state.
country
The Commissioner may suspend or revoke a Producer's license for any of the following EXCEPT: > guaranteeing dividends > rebating, > twisting, > waiting one business day before putting a premium in the premium trust account
waiting one business day before putting a premium in the premium trust account.
A Producer must provide proof of completion of continuing education: > when applying for the first license > within 10 days after completing any continuing education course > when applying for license renewal > when first meeting a potential client
when applying for license renewal
A Producer must give the Applicant notice of the Insurer's practices regarding the collection of personal financial information no later than: > when providing the Applicant with an application form. > when first meeting the Applicant. > when the Applicant completes the application form. > when delivering the policy to the Applicant.
when delivering the policy to the applicant
A Washington Producer has been given an issued policy. The Producer must deliver the policy: > By the next business day > Within the time specified by the Insurer > Within a reasonable time > Only if the applicant has requested policy delivery
within a reasonable time
If the Commissioner discovers that an insurance policy violates Washington laws, the Commissioner may cancel the policy: > Has not lived in Washington for at least 90 days. > only with 10 days advance notice. > only with 20 days advance notice. > only with 90 days advance notice.
without advance notice
