Section 1 - Producer Licensing & Appointments

o licenses o appointments o temporary licenses o CE requirements o nonresident rules

What is the minimum age required to obtain a Washington insurance producer license? 18 years old

What agreement allows a producer to sell, solicit, or negotiate insurance on behalf of an insurer? Appointment

Before selling insurance for an insurer, a producer must have what? An appointment with the insurer

How many days does an insurer have to notify the Commissioner after appointing a producer? 15 days

Who must notify the producer if an appointment is terminated? The insurer

How many days does an insurer have to notify the Commissioner after terminating a producer’s appointment? 30 days

What type of producer lives in another state but is licensed in Washington? Nonresident producer

Can a nonresident producer obtain a Washington license without taking another written exam? Yes

What is the maximum duration of a temporary producer license in Washington? 180 days

Who may receive a temporary producer license after a producer dies? The surviving spouse or personal representative

Can a person waiting to take the licensing exam receive a temporary license? No

How often must a Washington producer license be renewed? Every 2 years

How many hours of continuing education are required every 2 years in Washington? 24 hours

How many hours of ethics/law continuing education are required every reporting period? 3 hours

Within how many days must a producer notify the Commissioner of an address change? 30 days

A producer represents whom in disputes between the insured and insurer? The insurance company

Can commissions be paid to an unlicensed person for selling insurance? No

When may deferred commissions be paid to an individual? If the individual was licensed at the time of the sale

When may commissions be shared between producers? When both are licensed in the same line of business

What fiduciary duty does a producer have regarding premiums? Proper handling and remittance of premium funds

What happens if a producer misappropriates premium funds? The producer may be disciplined by the Commissioner

Can a producer’s license be suspended or revoked without a hearing? No

What federal law may result in fines and imprisonment for insurance fraud involving interstate commerce? US Code Title 18 Section 1033

Who prosecutes crimes under US Code 1033? The U.S. Attorney General

What is required for a person to discuss premiums with a potential insured? An insurance producer license

Is gathering prospective buyer information considered transacting insurance? No

Is delivering an insurance policy considered transacting insurance? Yes

What is the term for a person who sells, solicits, or negotiates insurance for compensation? Insurance producer

Can a producer act for an insurer without an agreement in place? No

What is the purpose of continuing education requirements? To maintain producer competency and knowledge

Which producers are generally required to complete continuing education? Resident producers

Can a producer be disciplined for felony-related misconduct? Yes

What is controlled business? Insurance written on the producer or people closely connected to the producer

What is the Commissioner’s role regarding producer licenses? To regulate and enforce insurance laws

What must an insurer possess before transacting business in Washington? Certificate of Authority

What is an authorized insurer? An insurer with a Certificate of Authority

What is an unauthorized insurer? An insurer without a Certificate of Authority

What is a domestic insurer? An insurer formed under Washington law

What is a foreign insurer? An insurer formed under another state’s laws

What is an alien insurer? An insurer formed under another country’s laws