WPCI - Washington Property and Casualty Insurance Exam

Question 1: A new producer studying for the Washington exam assumes the state's insurance commissioner reaches office the same way most states fill the post, by gubernatorial appointment with senate confirmation. Washington actually selects this official differently, and fixes a set term of office. How does Washington choose its commissioner?

Appointed by the governor

Chosen by the legislature

Named by the insurance industry

Elected by the state's voters

Question 2: During a hearing, an insurer's lawyer argues the commissioner may take only the specific actions the insurance code spells out word for word, and nothing more. Washington's grant of authority is broader than that literal reading. Which statement best describes the scope of the commissioner's authority?

Powers expressly conferred or reasonably implied

Only powers the code expressly states

Any power the commissioner wishes

Powers granted by the governor

Question 3: An insurer files a new homeowners policy form that is not certified for immediate use and hears nothing back from the commissioner. The producer wants to know the minimum advance period after which, absent action by the commissioner, the filed form is treated as approved. Which period applies?

Sixty days after filing

Forty-five days after filing

Thirty days after filing

Fifteen days after filing

Question 4: A domestic mutual insurer issues a single group policy that covers hundreds of individuals under one named policyholder. At the annual meeting a member asks how voting power is measured for that group contract. Under Washington law, how many votes does the group arrangement carry?

One vote for the policyholder

One vote per insured individual

One vote per dollar insured

One vote for each certificate

Question 5: A foreign company wants to begin writing property coverage for Washington residents and asks a producer what single document the state requires before the company may legally transact any insurance business here. The producer explains the threshold authorization the commissioner issues. What is that document?

A producer license

A surplus line broker license

A certificate of deposit

A certificate of authority

Question 6: A broker cannot place an unusual commercial risk with admitted carriers and considers the surplus line market. A colleague insists Washington simply requires three declinations from admitted insurers first. The broker checks the statute and finds a different diligent-effort standard. What must the broker actually establish?

Three written declinations from insurers

Approval from the commissioner first

Unavailability among a majority of insurers

A lower premium than admitted markets

Question 7: A person convicted of a felony involving dishonesty wants to work in the business of insurance affecting interstate commerce. A friend claims any old felony permanently bars such work, while another says only certain felonies do. Which statement correctly states the federal prohibition and its limit?

Any felony bars insurance work permanently

Only violent felonies trigger the bar

A pardon always restores eligibility

Dishonesty felonies bar work absent consent

Question 8: A federal embezzlement charge under the insurance-crime statute turns partly on the amount taken. When the value embezzled does not exceed a certain small threshold, the maximum prison term drops sharply to one year. Below which dollar amount does that reduced one-year maximum apply?

Five thousand dollars

One thousand dollars

Fifty thousand dollars

Twenty-five thousand dollars

Question 9: An individual in Tacoma wants to approach consumers and urge them to apply for a particular insurer's auto policies, expecting commission on sales. Before doing any of that in Washington, what must this individual obtain for the relevant line of authority?

Only a business registration

Nothing until first sale closes

An insurer appointment alone

A producer license for that line

Question 10: When a licensed producer in Everett suddenly dies, the surviving spouse needs to keep the agency running while affairs are settled. Washington lets the commissioner issue a temporary producer license without an examination for a limited stretch. What is the maximum length of that temporary license?

Ninety days

One hundred eighty days

Ninety days, renewable once

Two years

Question 11: An office employee enrolls workers in an employer's group property and casualty plan, furnishing information and issuing certificates. She believes this clerical enrollment work is exempt from producer licensing. Whether the exemption holds turns on one condition in the statute. What is that condition?

She works only part time

The employer approves in writing

She holds a business license

She receives no commission for it

Question 12: An insurer terminates a producer's appointment and files the required notice with the commissioner. It must then mail the producer a copy of that notification. A new compliance clerk assumes the fifteen-day deadline runs from the termination date. From what event does it actually run?

From the termination effective date

From the producer's receipt of notice

From making the commissioner notification

From the appointment's original date

Question 13: A Bellevue agency must designate a responsible licensed producer to oversee the entity's compliance with insurance laws. A partner argues this person must personally guarantee the agency never breaks a rule. Washington's rule sets a more modest standard for what the designee must be able to do. What is it?

Cause or influence the entity's compliance

Guarantee the entity's full compliance

Personally perform every compliance task

Insure against all compliance failures

Question 14: After a hearing, the commissioner decides to fine a licensed producer for a disciplinary violation instead of suspending the license. The producer asks the maximum fine the commissioner may levy for each offense under the licensee-discipline statute. What is that per-offense maximum?

Twenty-five thousand dollars

Ten thousand dollars

Two hundred fifty dollars

One thousand dollars

Question 15: A newly licensed individual producer in Yakima wants to know when her first license expires. A coworker says it ends on her birthday next year. Washington actually ties the initial term to a monthly, not a daily, marker plus additional time. When does that initial license end?

End of birth month plus one year

On her birthday the next year

Exactly two years from issuance

One year from the issue date

Question 16: A resident property and casualty producer in Kent is planning continuing education before renewal. He wants the total approved credit hours required each license continuation period and how many of those must be ethics. What does Washington require?

Twenty-seven hours, three being ethics

Twenty-four hours, three being ethics

Twenty-four hours, all general lines

Thirty hours, five being ethics

Question 17: An adjuster commits one clear violation of Washington's claims-settlement standards, but the insurer argues no unfair practice occurred because a single act cannot show a general business practice. The Washington Supreme Court settled this question. Under Washington law, how many violations are needed to establish an unfair practice?

A repeated pattern of violations

At least three separate violations

Enough to show general practice

A single violation is enough

Question 18: A liability insurer knows a third-party claimant in Vancouver has retained an attorney, yet an adjuster contacts the claimant directly to negotiate and close a settlement without involving counsel. Washington's claims-settlement rules specifically address this conduct. How is the adjuster's direct settlement best characterized?

Acceptable if the offer is fair

Permitted once counsel is later notified

A prohibited unfair claims practice

Allowed for third-party claimants only

Question 19: A producer in Spokane Valley circulates statements meant to damage a competing authorized insurer's reputation. The producer insists there is no violation because everything stated was technically true. Washington's defamation-of-insurer statute reaches more than falsehoods. What kind of statement does the statute prohibit?

False or maliciously critical statements

Only demonstrably false statements

Only written published statements

Statements about unauthorized insurers

Question 20: A homeowner in Bellingham notifies her insurer of a claim under her individual policy. The producer wants to know how quickly the insurer must acknowledge receiving that notice, and in which kind of days the regulation counts the period. What is the acknowledgement deadline?

Ten calendar days

Fifteen working days

Ten working days

Thirty days, no unit stated

WPCI Washington Property and Casualty Insurance Exam - Set 1 - Part 1