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WASHINGTON STATE PRO PERTY
& CASUALTY INSURANCE EXAM
100% CORRECT ANSWERS
Question :Authorized Insurer
Correct answer:An insurer that has qualified and received
a Certificate of Authority from the Department of Insurance to transact insurance in the state.
Question :Contact adhesion
Correct answer:the accepter of the contract must "adhere"
to the written contract
Question :inducement
Correct answer:An action aimed at persuading
Question :insolvent
Correct answer:Bankrupt; unable to pay debts.
Question :Transacting Insurance
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Correct answer:Conducting insurance business, such as
soliciting or negotiating to buy or sell an insurance policy.
Question :Unauthorized Insurer
Correct answer: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)
Question :When would a commissioner order a
replacement policy?
Correct answer:When a unauthorized insurer improperly
placed a policy. Would be replaced by a policy with a legal insurer.
Question :Surplus Lines
Correct answer:Insurance that is not available or offered
in the regular marketplace from admitted insurers.
Question :Insurance Commissioner (IOC)
Correct answer:State elected term of 4 years.
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Question :insurance Commissioner duties
Correct answer:-Protects the Public from unfair trade
practices
Examinations/investigations
Hearings
Cease and Desist orders
Public information
Appoints Dep. Chief Commissioner
Question :How often must the Insurance Commissioner
examine companies?
Correct answer:As often as deemed necessary, but MUST
be done every 5 years
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Question :Receiving Written Notice from Commissioner
Correct answer:the person must respond within 90 days. if
not made the request is considered waved.
Question :Notice of Hearing
Correct answer:- must state grounds of hearing (can be
written demand by aggrieved person)
Right to request administrative law judge
Question :Licence Suspension Hearing
Correct answer:Commissioner must hold a hearing within
90 days.
Question :Insurance Producer
Correct answer:A person required to be licensed under the
laws of this state to sell, solicit, or negotiate insurance.