WASHINGTON STATE INSURANCE EXAM

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WASHINGTON STATE INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The item needed to transact business in a specific State, received from the state department of insurance. Along with item, the company needs to meet any financial (capital and surplus) requirements set down by the state.

Answer:

Order Replacement of Policies

Question 2: Retention

Answer:

Is the planned assumption of risk by the insured through the use of deductibles, co-payments, or self-insurance. It is also known as self-insurance when the insured accepts the responsibility for the loss before the insurance company pays.Question 3: An individual who is domiciled and licensed as a resident producer in a state other than Washington. All that is needed is to provide proof to commissioner that the producer is licensed in his/her state of residence and they will wave the licensing attainment requirement.

Answer:

Any officer, director or employee of an insurer or organization employed by insurers, provided they are not directly or indirectly involved with the actual sale of an insurance contract and DO NOT RECEIVE

ANY COMMISION.

Question 4: Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements

Answer:

The policy will not be affected

Question 5: Producer Licensing period

Answer:

24 Hours and 3 ethics training hours

Question 6: Defamation

Answer:

Statements that are false as to the financial condition of any insurer

Question 7: Conditions

Answer:

States the legal obligations and duties of the parties to the contract.Question 8: Maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims made or the number of accidents that occur. Losses paid under aggregate limits reduce the amount available for a future loss. Limits are restored at the anniversary of the policy.

Answer:

Insurer Provisions Question 9: Method of valuation reinforces the principle of Indemnity because it recognizes the reduction of value of property as it ages and become subject to wear and tear and obsolescence

Answer:

Replacement Cost

Question 10: Washington property and casualty insurance guaranty association

Answer:

Direct loss

Question 11: Physical damage to buildings and/or personal property.

Answer:

Blanket insurance Question 12: Insurers can also be defined by their location of incorporation and whether or not they are authorized to write business in a state.

Answer:

Certificate of authority Question 13: If there is unearned premium, this premium must be returned to the insured no later than...

Answer:

The industry placement facility

Question 14: Assignment

Answer:

The transfer of a legal right or interest in an insurance policy. In property and casualty insurance, assignments of policies are usually valid only with the prior written consent of the insurer. Example: transferring a policy to a friend who will be taking over renters insurance when you move out.Question 15: Compensate the injured person for pain and suffering, mental anguish, disfigurement, and other similar types of losses.

Answer:

Absolute Liability

Question 16: Consequential loss

Answer:

Also known as an indirect loss, is a second financial loss caused by a covered direct loss.Question 17: Single property insurance policy that provides coverage for multiple classes of property at one location, or for one or more classes of property at multiple locations

Answer:

Specific insurance

Question 18: Basis provision for all real property. In the event of a loss to real property, payment will be made to the insured and the mortgagee as their insurable interest appears.

Answer:

Transacting Insurance Question 19: When 2 or more insurance company policies cover at the same level (primary and excess). Each insurer contributes an EQUAL amount to the loss settlement until either the loss is paid or the policies reach their limits.

Answer:

Aggregate Limit Question 20: At the time of loss, the insurer's loss payment options, or claim settlement

options, include paying the least of the following:

Answer:

Standard Mortgage Clause (loss-payable clause) Question 21: How often does a producer need to renew their license with continuing education?

Answer:

$100 Question 22: The insured's own past loss experience enters into the determination of the final premium. Experience rating is superimposed on a class rating system and adjusts the insurance premium either up or down, depending on the extent to which his experience has deviated from the average experience of the class

Answer:

Retrospective Rating Question 23: One insurance policy pays first, up to its limits in a covered loss. After which, the second insurance policy pays the remainder up to its limits.

Answer:

Pro Rata Question 24: Rates are developed by applying a schedule of charges and credits to some base rate to determine the appropriate rate for an individual exposure.

Answer:

Experience Rating