Washington State Property & Casualty Insurance Exam 100% correct answers

Washington State Property & Casualty Insurance Exam 100% correct answers Authorized Insurer An insurer that has qualified and received a Certificate of Authority from the Department of Insurance to transact insurance in the state. Contact adhesion the accepter of the contract must "adhere" to the written contract inducement An action aimed at persuading insolvent Bankrupt; unable to pay debts. Transacting Insurance Conducting insurance business, such as soliciting or negotiating to buy or sell an insurance policy. Unauthorized Insurer 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? When a unauthorized insurer improperly placed a policy. Would be replaced by a policy with a legal insurer. Surplus Lines Insurance that is not available or offered in the regular marketplace from admitted insurers. Insurance Commissioner (IOC) State elected term of 4 years. insurance Commissioner duties -Protects the Public from unfair trade practices - Examinations/investigations - Hearings - Cease and Desist orders - Public information - Appoints Dep. Chief Commissioner - How often must the Insurance Commissioner examine companies? As often as deemed necessary, but MUST be done every 5 years Receiving Written Notice from Commissioner the person must respond within 90 days. if not made the request is considered waved. Notice of Hearing - must state grounds of hearing (can be written demand by aggrieved person) - Right to request administrative law judge Licence Suspension Hearing Commissioner must hold a hearing within 90 days. Insurance Producer 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) solicits licences for variable life and variable annuity Temporary Insurance Producers Licence 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 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? When they work at a company or themself but do not conduct the solicitation, sale, negotiation of insurance. Appointing a insurance producer - notice of appointment within 15 days - Commissioner will verify within 15 days - if deemed ineligible commissioner will notify within 10 days If approved it must e renewed every 2 years, and will receive notice within 60 days of the renewal date. Business Entity Affiliates A business must have AT LEAST 1 affiliated individual licence to transact insurance If business Entity Affiliate is terminated The commissioner must receive notice within 30 days of termination. Renewal The initial licenses are valid from the date that they are issued until the last day of the licensee's birth month. Renewal Fees for Licences (Every 2 years) Producer- $55 Limited insurance- $20 Surplus lines broker- $20 Ajuster- $50 Late Fees: 30 days: 50% of renewal 31-60 days: 100% 61-12 months 200% (12+ months must restart licensing process) Continuing Education (CE) Every 2 years. 24 hours total, 3 hours in ethics. must hold on to certificate for 3 years Change of Address Must contact commissioner within 30 days. this includes a change of residence, mailing, business, or email Reporting of Actions 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 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 up to 12 months Guilty of violations each fine of up to $1,000, must be paid within 15-30 days Place of Business Requirements Must be accessible to the public. Does not apply to life and disability insurance.