Section 2 - Commissioner & Insurance Department

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o powers of commissioner o examinations o certificates of authority o insurer regulation

Last updated 7:36 AM on 5/23/26
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50 Terms

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1. What is the primary role of the Washington Insurance Commissioner?
To enforce state insurance laws
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2. How often must the Commissioner examine admitted insurers in Washington?
At least every 5 years
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3. During an examination, what must an insurer NOT do?
Impair or impede the examination
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4. What document must an insurer obtain before transacting insurance in Washington?
Certificate of Authority
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5. What is an authorized insurer?
An insurer with a Certificate of Authority
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6. What is an unauthorized insurer?
An insurer without a Certificate of Authority
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7. What is a domestic insurer?
An insurer formed under Washington law
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8. What is a foreign insurer?
An insurer formed under another state's laws
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9. What is an alien insurer?
An insurer formed under another country's laws
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10. Who regulates insurance companies operating in Washington?
The Insurance Commissioner
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11. What power does the Commissioner have over producer licenses?
Suspend or revoke licenses after a hearing
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12. Can the Commissioner establish new insurance laws?
No
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13. What is one purpose of insurer examinations?
To review financial condition and compliance
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14. How often must producers renew their licenses in Washington?
Every 2 years
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15. What is required before policy forms may be used in Washington?
Approval by the Commissioner
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16. How many days before use must policy forms be filed with the Commissioner?
30 days
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17. What is the purpose of advertising regulations?
To assure truthful and complete disclosures
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18. What must be clearly identified in insurance advertisements?
The insurer’s identity
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19. Can advertisements contain misleading information?
No
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20. Can advertisements exaggerate policy benefits?
No
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21. Who is responsible for regulating insurance advertising?
The Insurance Commissioner
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22. What is the penalty for violating US Code Title 18 Section 1033?
Fine and/or imprisonment
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23. Who prosecutes violations of US Code 1033?
The U.S. Attorney General
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24. What is considered misrepresentation?
Providing false or misleading information
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25. What is defamation in insurance?
Making malicious statements about an insurer
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26. What is rebating?
Giving something of value as an inducement to buy insurance
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27. What is twisting?
Misrepresenting a policy to replace existing insurance
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28. What is illegal discrimination?
Unfairly denying coverage based on prohibited factors
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29. Can coverage be denied based on marital status?
No
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30. What is an unfair claims settlement practice?
Refusing claims without proper investigation
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31. What is another unfair claims settlement practice?
Failing to promptly explain claim denials
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32. Can insurers compel insureds to sue by offering low settlements?
No
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33. What is required after receiving proof of loss on a life insurance claim?
Claims must be paid promptly
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34. What is the Commissioner’s authority regarding hearings?
To conduct hearings for violations
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35. Can a producer lose a license without due process?
No
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36. What is the purpose of the Guaranty Association?
Protect insureds from insolvent insurers
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37. Who funds the Guaranty Association?
Member insurers
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38. What is the Washington Life and Disability Insurance Guaranty Association?
An association protecting policyowners against insurer insolvency
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39. Does the Guaranty Association guarantee all insurance products?
No
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40. What is the purpose of the Fair Credit Reporting Act?
To regulate consumer credit information use
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41. Must applicants be informed of investigative consumer reports?
Yes
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42. Can insurers use deceptive advertising?
No
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43. What is required for insurers to legally conduct business in Washington?
Certificate of Authority
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44. Who may suspend or revoke a producer license?
The Insurance Commissioner
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45. Can insurers operate in Washington without regulation?
No
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46. What is the purpose of continuing education laws?
To maintain producer competency
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47. What is fiduciary responsibility?
Handling another person’s funds in trust
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48. What is misappropriation of premiums?
Improper use of premium funds
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49. Can misappropriation result in disciplinary action?
Yes
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50. What is one role of the Insurance Commissioner regarding consumers?
Protect the public interest