WPCI - Washington Property and Casualty Insurance Exam

Question 21: An insurer has received a first-party claimant's fully completed and executed proofs of loss on a fire claim near Olympia. The claimant asks within what period, and measured from what event, the insurer must notify her whether the claim is accepted or denied. What governs?

A reasonable time, no deadline

Thirty calendar days after proofs

Fifteen working days after claim notice

Fifteen working days after proofs of loss

Question 22: Before a deadline that could bar a claimant's rights, an insurer must warn of the expiring time limit. A trainee asks how much advance notice a first-party claimant gets compared with a third-party claimant. Under the claims rule, what are those two advance-notice periods?

First party thirty, third party sixty

First party sixty, third party thirty

Both parties thirty days

Both parties sixty days

Question 23: A producer uses misleading comparisons to persuade a policyholder to keep an existing policy that no longer fits, and nothing is actually replaced. A colleague claims this cannot be twisting because the policy was retained and no intent to deceive was proven. Is the colleague correct?

Yes, retention cannot be twisting

Yes, intent must be proven

No, retention and tending both qualify

No, but only if replaced

Question 24: An agency in Seattle plans a promotional program offering the same small gift to all prospective insureds under similar qualifying circumstances. The producer wants the maximum value per person, in the aggregate over twelve months, that Washington allows without the gift becoming an unlawful inducement. What is that ceiling?

One hundred dollars

Twenty-five dollars

Five hundred dollars

No dollar limit applies

Question 25: A property and casualty producer in Spokane asks how long she must keep records of a particular transaction available for the commissioner's inspection. She has heard that the records statute does not reach every line of authority. For her property and casualty business, what does the statute require?

No retention requirement for her

Records kept for three years

Records kept for seven years

Records kept for five years

Question 26: A producer in Tacoma intends to charge a client a fee that exceeds the usual commission for extra services. He believes Washington requires the client to sign a formal fee agreement first. The rule actually imposes a different, lighter obligation before services begin. What must the producer do?

Obtain a signed fee agreement

File the fee with the commissioner

Advise the client in writing beforehand

Nothing beyond charging a reasonable fee

Question 27: An insolvent property insurer is court-ordered into liquidation, and a homeowner presents a covered claim to the Washington insurance guaranty association. A producer asks the outer boundary the association will pay on that single covered claim, above the small retention. Which statement states it correctly?

Up to five hundred thousand dollars

Less than three hundred thousand dollars

Up to and including three hundred thousand

No maximum dollar amount applies

Question 28: A tortfeasor's property insurer is ordered liquidated, and the injured Washington insured also carries underinsured motorist coverage. A producer wants to know how the guaranty association's obligation relates to that own-policy coverage when both might respond to the loss. Which principle controls?

The association pays first, then subrogates

Both coverages share the loss equally

The association ignores the other coverage

The insured's coverage pays first

Question 29: The Washington insurance guaranty association divides its funds among separate accounts corresponding to the kinds of insurance the chapter reaches. A newly licensed producer studying the structure asks how many separate accounts exist and what the second one covers. Which answer is right?

Two accounts, the second workers' compensation

Three accounts, the second longshore coverage

Three accounts, the second ocean marine

One combined account for all lines

Question 30: A commercial building in Tacoma is already insured to its full fair value, and a producer proposes adding a second policy from another insurer covering the same fire hazard for a further large sum. A colleague says stacking coverage is fine if the client pays. Which statement is correct?

It is permitted with written disclosure

It is allowed above fair value

Only the first insurer may object

It is prohibited over-insurance

Question 31: A Clark County homeowner outside any lender requirement applies for a new National Flood Insurance Program policy and pays the initial premium today. The producer is asked when standard flood coverage will generally take effect under the federal waiting-period rule. Which answer is correct?

Immediately upon payment of premium

After a fifteen-day waiting period

After a thirty-day waiting period

After a sixty-day waiting period

Question 32: An Everett homeowners policy issued in August of two thousand twenty-five is being cancelled by the insurer for a reason other than nonpayment, well after the initial period. The producer asks the minimum advance written notice Washington now requires. Which period applies?

Sixty days' written notice

Forty-five days' written notice

Ten days' written notice

Thirty days' written notice

Question 33: A Bellingham insured voluntarily cancels her homeowners policy midterm and expects a premium refund. A national study guide says the insurer computes the return on a short-rate basis. Under Washington's rule for this line, how must the unearned premium be computed? Which is correct?

On a short-rate basis

On a pro rata basis

Insurer keeps ten percent throughout

No refund is due midterm

Question 34: When an insurer mails a cancellation or nonrenewal notice to a Washington insured, it must also furnish a copy to the producer of record. A trainee assumes the deadline runs in calendar days. In what unit and number does the statute set that producer-copy deadline?

Five working days

Five calendar days

Five business days

Ten working days

Question 35: The producer understands the general cancellation and nonrenewal notice rose to sixty days, but wants to know which policies the new figure reaches. A coworker insists it governs every policy already in force on the effective date. Which statement is accurate?

Every policy in force applies

Only policies written before the date

Policies issued or renewed on or after

All policies retroactive to issuance

Question 36: A Yakima insurer wants to nonrenew a personal auto policy citing the insured's weak credit-based insurance score as one of several factors. The producer checks Washington law on using credit history for that decision. What does the statute permit here? Which answer is right?

Credit cannot support cancellation or nonrenewal

Credit alone justifies the nonrenewal

Credit is fine as one factor

Credit may be used freely

Question 37: A Spokane Valley applicant is refused a homeowners policy, and the insurer's letter states only that the risk does not meet the company's underwriting standards. The producer asks whether that explanation satisfies Washington's actual-reason rule. Which response is correct?

Yes, it states a valid reason

No, it is not sufficient

Yes, if medical details follow

No, unless the applicant objects

Question 38: A producer issues a binder effective the first of the month, and the actual policy is issued twelve days later. A colleague believes the binder simply lasts ninety days regardless. Under Washington's binder-duration rule, when did this binder cease to be valid? Which is correct?

After ninety days regardless

After sixty days from application

When the commissioner approves it

When the policy issued, day twelve

Question 39: A property and casualty producer in Vancouver runs her whole practice from a home office and assumes only life and disability producers must keep an office the public can visit. Washington's place-of-business rule actually reaches her situation. What does the rule require of this producer?

No public office is required

Only a mailing address is needed

A publicly accessible place of business

An office only if she employs staff

Question 40: A producer submits a homeowners risk to the Washington essential property insurance program, often called the FAIR plan, and asks how many normal-market declinations the applicant must first show. A national guide says three. What does the Washington rule require of the applicant?

Three prior declinations

No prior declination at all

One prior declination

Two prior declinations

WPCI Washington Property and Casualty Insurance Exam - Set 1 - Part 2