WASHINGTON STATE LAWS FOR INSURNACE

Who is in charge? INSURANCE COMMISSIONER

The insurance commissioner of Washington is an elected position. The term is for 4 years, and remain in office until the successor is elected. They must post a bond of $25,000 with the state of Washington

What are the broad powers of the insurance commissioner?

• Makle Rules and regulations governing activities under the insurance code

• Conduct investigations to determine whether any person has violated any of its provisions

• Conduct examinations and hearings

• prosecute actions in court to enforce any of their orders

• issue cease and desist order, bring citations enjoying continuing violations, or both if they believe that any person is violating or will violate insurance law

• Issues fines and revoke/suspend licenses

• Issue emergency orders in line with a state of emergency as declared by the governor

• Obtain and publish tables showing average life expectancy, the values of annuities and of life and term estates

• Disseminate information concerning Washingtons insurance laws

• help the public get information about insurance

• help resolve complaints involving insurers and other licensees

• Grievances may be filed with the Commissioner against anyone in relation to insurance including brokers and adjusters

• Able to request attorney general and prosecuting attorneys in Washington to prosecute or defend court proceedings

• The office of the Commissioner offers statewide assistance through its Statewide Health Insurance Benefits Advisors (SHIBA) Program

• May order the immediate cancellation of any policy that is in violation of a code.

  • The only exception is when the policy and its terms are not cancellable by the insurer and the insured DID NOT participate in a similar violation

• The Commissioner MUST examine and audit each authorized insurance ONCE every 5 years but may be able to do it as often as they deem advisable for an investigation.

  • The Commissioner must file the report within 60 days and provide a copy of the report to the insurer within 10 days after report is published

Washington State LICENSE INFORMATION

• Certificate of Authority

  • States name of insurer

  • location of main office

  • name and office of attorney

  • type of insurance it is authorized to transact

• Who can get a Washington license?

  • Must be 18 y/o

  • not have committed any grounds for denial, suspension or revocation

  • completed an appropriate prelicensing course

  • pay the required fees

  • pass the appropriate exam

• Who can be exempt from the exam?

  • Applicants for a limited or specialty line license, at the commissioner’s discretion

  • Applicants for an adjuster’s license who, for a period of at least 1 year, had been a full-time salaried employee of an insurer or managing general producer

• Surety Bond Requirement

  • Must maintain a bond to the benefit of the people for every licensed resident insurance producer who directly places insurance with an insurer with which the producer is not appointed as an agent

  • The bond must equal 2,500 or 5% of the premiums brokered in the previous calendar year, whichever is greater (But must not exceed 100,000 total aggregate liability)

    • May be a continuous bond

• In order to be an insurance producer, you need an insurance producer license. Before you can apply, they must have a Designated Responsible Licensed Person who is responsible for staying in compliance with Washington’s rules and laws

• Someone who is trying to get their Washington license that already has a license in another state just needs to file, pay the fee and submit the completed application

• Temporary licenses can be provided for up to 180 if

  • to the spouse if the producer dies or becomes disabled until the producer returns to duty or new personal are trained to run the business

  • To an insurer member or employee upon the death or disability of the insurer designate producer

  • to the designee of a producer entering active service in the US Armed forces

  • In any other circumstances in which issuing a temporary license is in the public interest

• A producer must be APPOINTED by an insurer in order to represent the insurer.

  • If the producer DOES NOT represent the insurer, then they do not be to be appointed.

  • Each insurer must notify the commissioner and pay appointment fee in 15 days after date the agency contract is executed or when the producer submits their first application

    • The Commission must verify or deny and sent notice to the insurer or business entity within 30 days after the commissioner has received notice of appointment from the insurer

  • Initial Appointments and affiliations are continuous. They are effective until

    • The insurance producers license is revoked, terminated or nonrenewed

    • the appointment or affiliation renewal fee is not paid

    • notice of termination is electronically submitted to the commissioner

Adjusters

• Any person who investigations and negotiates settlement relative to insurance claims and applies the factual circumstances of an insurance claim to the insurer policy.