Washington State Property & Casualty
Insurance Exam Program used: ExamFX
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.
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.
Record Retention -✅✅-Requires insurer to maintain records for 5 years.
(DRPL) Designated Responsible Licensed Person - ✅✅-Responsible for
insurers compliance with insurance laws/ rules
, Misrepresentation - ✅✅ -Materials that are false, misleading, or deceptive of
policy benefits, terms, payment of dividends. Also includes oral statements.
Knowingly committing this is considered a gross misdemeanor, and licences
can be revoked
False Advertising - ✅✅-Advertising that is misleading, deceptive, and untrue.
Ex: newspaper add with untrue statements about terms and benefits of a
policy.
Rebating - ✅✅ -the practice of giving an individual a premium reduction or
some other 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 - ✅✅ -illegal action. referring to rebating to have someone
purchase a policy for a reward.
Twisting -✅✅ -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 - ✅✅ -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 - ✅✅ -allowing insurers to charge a reduction fee, overall
charges must be reasonable to the value of work.
Claimant - ✅✅ -either the first party, third party or both. can include
immediate family members designated by client
First Party Claimant - ✅✅-The insured is the first party claimant.
Ex: Making a claim to your own insurance company
Third Party Claimant - ✅✅-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.
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