A claims-consulting firm that is not an insurer plans to do business in Washington under the name 'Evergreen Mutual Assurance Company.' Which rule governs whether it may use that name?

A non-insurer may not use a name that deceptively suggests it is an insurer

A producer drafts a print advertisement on behalf of an alien insurer that it represents. Under Washington law, what must the advertisement set out about that insurer?

Its full name and the location of its US home or principal office

An insurer authorized in Washington has been ordered liquidated, and claims are pending under several kinds of direct insurance it wrote. Under the scope section of Washington's insurance guaranty association chapter, which of these kinds of insurance falls within the chapter?

Longshore and harbor workers' compensation act insurance

Before placing a dwelling through Washington's FAIR plan, what may the industry placement facility require of the applicant's insurance producer?

Documents or information showing the producer's effort in the normal market

Which practice does Washington's statute on misrepresentation of policies expressly prohibit?

Giving a policy a name or title that misrepresents its true nature

Lee, a licensed Washington property and casualty producer, currently does not act as an agent for any insurer. Under RCW 48.17.160(1), what is Lee's appointment obligation?

Lee is not required to become appointed while not acting as an insurer's agent

A producer receives a written demand issued by an examiner on the commissioner's staff rather than by the commissioner personally. Which statement reflects Washington law on who may exercise the commissioner's powers?

Staff such as an examiner may exercise them in the commissioner's name and authority

An insurer licensed only in its home state plans to write Washington homeowners policies directly, outside any arrangement for which the code expressly provides otherwise. It has never applied to the Washington commissioner. What does Washington law require before it may transact this business?

A certificate of authority issued by the Washington commissioner and then in force

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1.Washington's insurance guaranty association chapter defines the term 'account' by reference to the accounts created within the association. How many such accounts does that definition describe?
Answer: C. Three accounts
In the definitions section of the guaranty association chapter, an 'account' is one of the three accounts created in RCW 48.32.040. A count of two, four, or eight does not match the number the definition states.
Source
Wash. Rev. Code Sec. 48.32.030(1) (Definitions)
Choose an answer to see the explanation.
2.A claims-consulting firm that is not an insurer plans to do business in Washington under the name 'Evergreen Mutual Assurance Company.' Which rule governs whether it may use that name?
Answer: A. A non-insurer may not use a name that deceptively suggests it is an insurer
Washington bars any person that is not an insurer from taking or using a name that deceptively implies or suggests that it is an insurer. The prohibition reaches every non-insurer, not only producers, and the statute provides no filing or disclosure that makes a deceptive name acceptable.
Source
Wash. Rev. Code Sec. 48.30.060 (Insurer name, deceptive use prohibited)
Choose an answer to see the explanation.
3.A Washington resident producer places business with insurers that have not appointed the producer, and brokered $80,000 in premiums in the previous calendar year. Under RCW 48.17.250(1), what minimum bond amount must the producer maintain?
Answer: A. $4,000
RCW 48.17.250(1) requires a resident producer who places insurance with an insurer that has not appointed the producer to keep a surety bond of $2,500 or five percent of the prior calendar year's brokered premiums, whichever is greater, with total aggregate liability capped at $100,000. Five percent of $80,000 is $4,000, which exceeds $2,500, so $4,000 is the required amount. $2,500 is only the floor and governs when five percent is smaller. The statute takes the greater of the two figures rather than adding them, so $6,500 is wrong. $100,000 is the ceiling on aggregate liability, not the amount this producer owes.
Source
Wash. Rev. Code Sec. 48.17.250(1) (Insurance producer's bond)
Choose an answer to see the explanation.
4.A producer drafts a print advertisement on behalf of an alien insurer that it represents. Under Washington law, what must the advertisement set out about that insurer?
Answer: D. Its full name and the location of its US home or principal office
Washington requires every advertisement made by or for an insurer to give the insurer's name in full and the location of its home office or principal office; for an alien insurer, that is its office in the United States, if it has one. The statute does not call for a certificate of authority number, a financial rating, a reinsurer's name, or a producer's license number, and an abbreviated trade name falls short of the full name it requires.
Source
Wash. Rev. Code Sec. 48.30.050 (Advertising must show name and domicile)
Choose an answer to see the explanation.
5.An insurer authorized in Washington has been ordered liquidated, and claims are pending under several kinds of direct insurance it wrote. Under the scope section of Washington's insurance guaranty association chapter, which of these kinds of insurance falls within the chapter?
Answer: B. Longshore and harbor workers' compensation act insurance
The chapter reaches all kinds of direct insurance apart from a listed set of exclusions: life, title, surety, disability, credit, mortgage guaranty, workers' compensation, and ocean marine. The same section says that workers' compensation, as used there, does not include longshore and harbor workers' compensation act insurance, so longshore coverage stays within the chapter. Ordinary workers' compensation, ocean marine on a cargo vessel, and mortgage guaranty on a home loan are each named exclusions.
Source
Wash. Rev. Code Sec. 48.32.020 (Scope)
Choose an answer to see the explanation.
6.Before placing a dwelling through Washington's FAIR plan, what may the industry placement facility require of the applicant's insurance producer?
Answer: A. Documents or information showing the producer's effort in the normal market
The facility may not make the applicant prove an inability to obtain insurance in the normal market as a condition of FAIR plan placement. It may, however, require the producer to furnish copies of documents or information showing what effort the producer made to obtain normal-market coverage, and it forwards to the commissioner the names of producers who fail to cooperate or appear not to make reasonable efforts. Proof of declinations and an applicant's no-coverage statement are both forms of the showing the rule forbids, and the rule contains no bond requirement.
Source
WAC Sec. 284-19-070(1) (FAIR plan business, distribution and placement; eff. January 22, 2011)
Choose an answer to see the explanation.
7.Which practice does Washington's statute on misrepresentation of policies expressly prohibit?
Answer: B. Giving a policy a name or title that misrepresents its true nature
Washington's misrepresentation-of-policies statute bars any person from making, issuing, or circulating a misrepresentation of a policy's terms, benefits, or advantages, or of dividends or surplus shares to be received, and from using a name or title for a policy or class of policies that misrepresents what it is. Charging different rates for different risk factors, paying a producer commission on the producer's own property, and quoting a premium by telephone are not conduct this statute describes.
Source
Wash. Rev. Code Sec. 48.30.090 (Misrepresentation of policies)
Choose an answer to see the explanation.
8.Lee, a licensed Washington property and casualty producer, currently does not act as an agent for any insurer. Under RCW 48.17.160(1), what is Lee's appointment obligation?
Answer: D. Lee is not required to become appointed while not acting as an insurer's agent
RCW 48.17.160(1) bars a producer from acting as an insurer's agent without becoming that insurer's appointed agent, and then states that a producer who is not acting as an agent of an insurer need not be appointed. Nothing in the section makes an appointment a condition of holding a license. Because Lee acts for no insurer, no insurer's appointment is required. Under subsection (2) the notice of appointment is filed by the appointing insurer, not by the producer, so a self-appointment filing has no basis in the section.
Source
Wash. Rev. Code Sec. 48.17.160(1) (Appointment of agents)
Choose an answer to see the explanation.
9.A producer receives a written demand issued by an examiner on the commissioner's staff rather than by the commissioner personally. Which statement reflects Washington law on who may exercise the commissioner's powers?
Answer: C. Staff such as an examiner may exercise them in the commissioner's name and authority
Wash. Rev. Code Sec. 48.02.100 allows any power or duty given to the commissioner by the code to be exercised or discharged by a deputy, assistant, examiner, or employee of the commissioner who acts in the commissioner's name and by the commissioner's authority. The section therefore does not limit those powers to the commissioner personally, and it attaches no condition of legislative confirmation or producer consent.
Source
Wash. Rev. Code Sec. 48.02.100 (Commissioner may delegate authority)
Choose an answer to see the explanation.
10.An insurer licensed only in its home state plans to write Washington homeowners policies directly, outside any arrangement for which the code expressly provides otherwise. It has never applied to the Washington commissioner. What does Washington law require before it may transact this business?
Answer: B. A certificate of authority issued by the Washington commissioner and then in force
Wash. Rev. Code Sec. 48.05.030(1) bars any person from acting as an insurer, and any insurer from transacting insurance in Washington, except as authorized by a certificate of authority issued by the commissioner and then in force, subject only to transactions the code expressly provides for otherwise. A home-state license does not substitute for that certificate, and appointing a Washington producer or obtaining a countersignature does not either, because the section makes the certificate itself the condition for transacting insurance here.
Source
Wash. Rev. Code Sec. 48.05.030(1) (Certificate of authority required)
Choose an answer to see the explanation.

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The scored exam is free, 20 questions in 30 minutes, and needs an account. These 10 do not.

1.Washington's insurance guaranty association chapter defines the term 'account' by reference to the accounts created within the association. How many such accounts does that definition describe?

2.A claims-consulting firm that is not an insurer plans to do business in Washington under the name 'Evergreen Mutual Assurance Company.' Which rule governs whether it may use that name?

3.A Washington resident producer places business with insurers that have not appointed the producer, and brokered $80,000 in premiums in the previous calendar year. Under RCW 48.17.250(1), what minimum bond amount must the producer maintain?

4.A producer drafts a print advertisement on behalf of an alien insurer that it represents. Under Washington law, what must the advertisement set out about that insurer?

5.An insurer authorized in Washington has been ordered liquidated, and claims are pending under several kinds of direct insurance it wrote. Under the scope section of Washington's insurance guaranty association chapter, which of these kinds of insurance falls within the chapter?

6.Before placing a dwelling through Washington's FAIR plan, what may the industry placement facility require of the applicant's insurance producer?

7.Which practice does Washington's statute on misrepresentation of policies expressly prohibit?

8.Lee, a licensed Washington property and casualty producer, currently does not act as an agent for any insurer. Under RCW 48.17.160(1), what is Lee's appointment obligation?

9.A producer receives a written demand issued by an examiner on the commissioner's staff rather than by the commissioner personally. Which statement reflects Washington law on who may exercise the commissioner's powers?

10.An insurer licensed only in its home state plans to write Washington homeowners policies directly, outside any arrangement for which the code expressly provides otherwise. It has never applied to the Washington commissioner. What does Washington law require before it may transact this business?

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