Washington Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Washington?
- a.The Office of the Insurance Commissioner✓
- b.The Department of Licensing
- c.The Department of Revenue
- d.The Department of Financial Institutions
Washington regulates insurance and licenses producers through the Office of the Insurance Commissioner (OIC), led by an elected Insurance Commissioner. The Department of Licensing handles driver and vehicle licensing, not insurance producers.
A Washington producer offers to pay part of the first-year premium out of her own commission to persuade a client to buy a homeowners policy. This is:
- a.Permitted if the insurer is notified
- b.Permitted for new customers only
- c.Prohibited rebating under Washington's unfair trade practices law✓
- d.Required to be reported but otherwise lawful
Rebating, giving any part of the premium or commission or other valuable consideration as an inducement to buy, is a prohibited unfair trade practice in Washington and can bring fines and license action by the Office of the Insurance Commissioner.
After a Washington personal auto or homeowners policy is in force beyond its initial underwriting period, mid-term cancellation by the insurer is generally allowed only:
- a.For specific statutory reasons such as nonpayment of premium, fraud or material misrepresentation, or a substantial increase in the hazard, with required advance written notice✓
- b.For any reason, with no notice to the insured
- c.Only during the first month after issuance
- d.Never under any circumstances
Washington limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud or material misrepresentation, or a substantial increase in the hazard, and requires advance written notice. The exact notice day-counts are set by statute; verify current figures with the Office of the Insurance Commissioner.