Extra Law Questions
If a binder is needed for longer than 90 days, who would have the authority to extend the binder?
The Insurance Commissioner
Your compensation as an insurance producer when dealing directly with the insured includes a fee. What would you NOT have to disclose in writing to the insured?
The expected issue date of the policy for which the premium was received. There is not a guarantee that a policy will be issued, let alone know WHEN it might be issued.
You are fined by the Insurance Commissioner for a law violation. Which of the following is INCORRECT regarding the fine?
You can demand an immediate hearing of the Insurance Commissioner.
Which of the following would NOT be an example of Illegal Dealings in Premium?
You immediately return premiums collected which are in excess of the amount of premium actually due.
The Commissioner can fine a maximum of $__________, per offense, for a violation of the insurance code.
$1,000
The Guarantee Association (Property and Casualty) coverage limit is
$300,000 per claim
The Guarantee Association (Property and Casualty) coverage limit is __________.
$300,000 per claim
The Life and Disability Guarantee Association coverage limit is __________.
$500,000 per person
A producer must respond to any Commissioner inquiries promptly and it must be in writing. Promptly means within __________ from the receipt of the inquiry.
15 business days
A producer issues a binder to an applicant when applying for auto insurance. The binder is good for a maximum of __________.
90 days A binder is also known as an unconditional receipt. It gives temporary guaranteed coverage until the policy issues and is valid for 90 days. Only an AGENT may have binding authority as the agent represents the company.
An insurer is the insurance company assuming risks and agreeing to pay claims for an insured. All written communications from the insurance companies must
All of these are correct. be phrased in simple language list the full name of the insurer list the location of its home office or principal office if any, in the United States
The Commissioner may give permission to an insurance producer to enter into arrangements with any person to charge a fee in situations where services that are charged for are provided beyond the scope of services customarily provided in connection with the solicitation and procurement of insurance. Which of the following would be INCORRECT?
Dates, times, and locations of the services must be disclosed to the Commissioner along with expectations of any future insurance sales.
You send in an application to the insurance company with whom you are appointed. On the application there is incorrect information of which you are aware. You are guilty of __________.
Misrepresentation on an application
When are your Continuing Education (CE) credits due?
Prior to applying for renewal of your license
An insurer is the insurance company assuming risks and agreeing to pay claims for an insured. All written communications from the insurance companies must __________.
all of these are correct be phrased in simple language list the full name of the insurer list the location of its home office or principal office
A temporary license may be issued to any person legally representing the interests of the licensed producer that is __________.
all of these are correct statements. entering active service in the U.S. Armed Forces deceased disabled
AAA Insurance Group wishes to non-renew a homeowner's policy. They are required to:
all of these are correct. give at least 45 days written notice to the named insured. give notice to the mortgage company. give written notice to the producer of record. When a carrier non-renews a policy they must give a 45 day notice to the insured in WA (30 is ISO standard) with the actual reason given in clear and simple language.
You must notify the Insurance Commissioner if __________.
all of these circumstances require notification to the Commissioner you write any insurance as a surplus lines broker you change your appointment from one company to another you change your mailing address
You, the producer, can share commissions with all of the following, except __________.
an attorney who referred a client to you It is illegal to share commissions with anyone who is not licensed. A producer may share commissions with another producer even if they are licensed in different lines of insurance. A producer with a license may NOT sell, solicit, or negotiate insurance in a line they are not licensed in. The producer may, for example, refer the client to another producer who is licensed in those lines and share in the commission.
A temporary licensee could be given to any of the following, EXCEPT:
an employee or spouse of a producer while the producer is on vacation.
In Washington, sending written notice means transmitting the required information in writing on forms designated by the Commissioner via __________.
any of these methods of sending written notice is acceptable electronic telefacsimile transmission (fax) a commercial delivery company regular mail carrier or e-mail
A life insurance producer binds coverage on an auto policy. The Commissioner could __________.
any of these would be within the powers of the Commissioner fine the producer suspend the license of the producer revoke the license of the producer Doing a transaction in a line of insurance a producer is not licensed in could result in a civil penalty of $25,000 and a Class B felony in addition to a fine of $1000 and/or up to 1 year in jail and/or a license being suspended or revoked.
You want to become a nonresident licensee in Washington. You must:
be currently licensed in the state where you live.
When you receive a premium, you must give a receipt __________.
by the next working day
For an insurance company to write insurance in our state, it must __________.
file for a Certificate of Authority
A producer puts insurance premiums, paid to them directly, into a separate (a.k.a. Trust) account. A producer may also deposit money into the separate account for all of the following situations, EXCEPT
funds to cover premiums paid for auto insurance of the producer. Premiums paid for personal or business insurance needs to be paid out of a business or personal checking account.
In Washington, if Farmers Insurance Group wishes to cancel a homeowners policy, they are required to all of the following, EXCEPT
give disclosure to the named insured on alternative means for acquiring homeowner protection.
The named insured wishes to cancel her policy. She must
give written notice and return the policy to the insurance company.
The named insured wishes to cancel his policy. He must
give written notice or return the policy to the insurance company
The aggregate that can be given in gifts or services is $100 per year. Violation of the state law is considered illegal __________.
inducement
If an insurance company or its authorized representative terminates the appointment of a producer for cause, the insurer must __________.
notify the Commissioner If an insurance company or its authorized representative terminates the appointment of a producer for cause, the insurer must notify the Commissioner, in writing, within 30 days following the effective date of the termination.
You are an employee for Vern Fonk Insurance Agency. You must be licensed if you want to __________.
receive commissions
A person needs to be bonded to become a Public Adjuster because he/she __________.
represents the consumer (or insured)
Even though you have to keep your transaction records for five years, you only need to keep Continuing Education (CE) certificates for __________ from the date on the certificate.
three years
No person can, by misrepresentations or misleading comparisons, induce or tend to induce, any insured to lapse, terminate, forfeit, surrender, retain, or convert any insurance policy. Violation of this law is considered __________.
twisting
You want a prospective customer to cancel his current insurance policy and buy the same coverage from you. Your premiums are higher, so you offset the high premiums by overstating the benefits of your policy and you give some misleading facts about your company. You could lose your license for __________.
twisting
The Washington Insurance Commissioner is put into office by the __________.
voters
You are fined by the Insurance Commissioner for a violation. You must pay the fine __________ after the receipt of the order to pay.
within 30 days
You must notify the Insurance Commissioner for all of the following circumstances, EXCEPT
you place premiums directly into a separate account. You do NOT need to tell the commissioner when using your separate account.