Copy Of Washington Regulation Quiz

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  • 1/491 Questions

    What is the Fair Credit Reporting Act Purpose?

    • A. Establishes Procedures that consumer-reporting agencies must follow in order to ensure that records are confidential, accurate, relevant and properly used. 
    • B. Protects consumers against the circulation of inaccurate/obsolete personal/financial information.
    • C. Protects against discrimination
    • D. Both A and B are correct.
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About This Quiz

This quiz, titled 'Copy of Washington Regulation Quiz', assesses knowledge on the Fair Credit Reporting Act (FCRA), focusing on its purpose, types of reports, and liabilities for violations. It is designed to enhance understanding of consumer rights and legal responsibilities in credit reporting.

Copy Of Washington Regulation Quiz - Quiz

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  • 2. 

    Reports fall into what categories?

    • A. Consumer Reports

    • B. MIB Reports

    • C. Investigative Consumer Reports

    • D. Both A and C

    Correct Answer
    A. D. Both A and C
    Explanation
    Consumer reports and investigative consumer reports are two distinct categories of reports. Consumer reports provide information about products and services to help consumers make informed decisions. Investigative consumer reports, on the other hand, gather information about individuals' character, reputation, and personal characteristics for employment or insurance purposes. The correct answer, D, indicates that reports can fall into both categories, suggesting that some reports serve the purpose of providing consumer information while others focus on investigating individuals.

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  • 3. 

    Consumer Reports include:

    • A. Written or oral information regarding consumer's health, hobbies and job.

    • B. Written or oral information regarding consumer's past medical history.

    • C. Written or oral information regarding consumer's credit, character, reputation and habits.

    • D. Written or oral information regarding consumer's employment history.

    Correct Answer
    A. C. Written or oral information regarding consumer's credit, character, reputation and habits.
    Explanation
    Consumer Reports include written or oral information regarding the consumer's credit, character, reputation, and habits. This information is collected and compiled by consumer reporting agencies and is used by businesses to make decisions about providing credit, employment, insurance, and other services to consumers. This includes information such as credit scores, payment history, public records, and personal information that may impact a consumer's ability to obtain credit or other services.

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  • 4. 

    Investigative Consumer Reports:

    • A. Information obtained through the MIB

    • B. Information obtained through an investigation and interviews with associates, friends, neighbors and neighbors.

    • C.  Reports cannot be made unless the consumer is advised in writing about the the report within 3 days of the date the report was requested.

    • D. Both options B and C.

    Correct Answer
    A. D. Both options B and C.
    Explanation
    The correct answer is D. Both options B and C. This means that investigative consumer reports can include information obtained through an investigation and interviews with associates, friends, neighbors, as well as reports cannot be made unless the consumer is advised in writing about the report within 3 days of the date the report was requested.

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  • 5. 

    Someone unknowingly violating the Fair Credit Reporting Act (FCRA) is liable for?

    • A. Any lawsuits brought upon the insurance company

    • B. For equal loss and attorney fees

    • C. Lawsuit fees against the insured

    • D.

    Correct Answer
    A. B. For equal loss and attorney fees
    Explanation
    If someone unknowingly violates the Fair Credit Reporting Act (FCRA), they are liable for equal loss and attorney fees. This means that they would be responsible for compensating any losses suffered by the affected party, as well as covering the legal expenses incurred by the plaintiff in pursuing legal action. This is to ensure that individuals are held accountable for any violations of the FCRA, even if they were unaware of the act's provisions.

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  • 6. 

    Knowingly obtaining information information on a consumer from a Consumer Reporting Agency under false pretenses you may...

    • A. Be fined up to $2,500

    • B. Be fined, $1,000 and imprisoned for 2 years.

    • C. Be imprisoned up to 2 years. 

    • D. Be fined $2,500 and imprisoned for up to 2 years.

    Correct Answer
    A. C. Be imprisoned up to 2 years. 
    Explanation
    Knowingly obtaining information on a consumer from a Consumer Reporting Agency under false pretenses is a violation of privacy and can be considered as fraud. In such cases, the individual may be subject to imprisonment for a maximum period of 2 years. This punishment is meant to deter individuals from engaging in fraudulent activities and protect the privacy and security of consumers' information.

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  • 7. 

    Under FCRA if a policy is declined or modified because of the information obtained in a consumer or investigative consumer report, the consumer must:

    • A. Be notified within 30 days

    • B. Be notified immediately

    • C. Both A and D

    • D. Be notified and provided with the name and address of the reporting agency. 

    Correct Answer
    A. D. Be notified and provided with the name and address of the reporting agency. 
    Explanation
    Under the FCRA, if a policy is declined or modified based on information from a consumer or investigative consumer report, the consumer must be notified and provided with the name and address of the reporting agency. This requirement ensures that consumers have access to the information used in the decision-making process and allows them to address any inaccuracies or disputes directly with the reporting agency. Providing this information is essential for transparency and consumer protection.

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  • 8. 

    Consumer reports cannot contain:

    • A. Medical history and criminal records

    • B. Bankruptcies more than 10 years old, civil suits, records of arrests, convictions of crimes.

    • Negative information (delinquencies, late payments, insolvency, or any other form of default).

    • D. Both options B and C

    Correct Answer
    A. D. Both options B and C
    Explanation
    Consumer reports cannot contain bankruptcies more than 10 years old, civil suits, records of arrests, convictions of crimes, and negative information such as delinquencies, late payments, insolvency, or any other form of default. Therefore, the correct answer is D, which states that both options B and C are not allowed in consumer reports.

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  • 9. 

    Anyone engaged in the business of insurance whose activities affect interstate commerce and who knowingly makes false material statements may be:

    • A. Fined or imprisoned

    • B. Fined or imprisoned for up to 5 years

    • C. Fined or imprisoned for up to 10 years, or both.

    • D. Imprisoned for up to 15 years.

    Correct Answer
    A. C. Fined or imprisoned for up to 10 years, or both.
  • 10. 

    If activity jeopardizes insurer, the punishment can be up to? 

    • A. 7 years

    • B. 10 years

    • C. 5 years

    • D. 15 years

    Correct Answer
    A. D. 15 years
    Explanation
    If an activity jeopardizes the insurer, the punishment can be up to 15 years.

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  • 11. 

    If embezzlement is less than $5,000 prison time may be reduced to...

    • A. 5 years

    • B. 1 year

    • C. 2 years

    • D. 3 years

    Correct Answer
    A. B. 1 year
    Explanation
    If the embezzlement amount is less than $5,000, the prison time may be reduced to 1 year. This suggests that there is a specific threshold for the severity of the crime, and if the amount embezzled is below that threshold, the punishment is less severe.

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  • 12. 

    Federal law makes it illegal for any individual convicted of a crime involving dishonesty, breach of trust or a violation of the violent crime control and law enforcement act of 1994 to work in the business of insurance affecting interstate commerce without receiving a letter of consent from an insurance regulatory official, this is...

    • A. Title 18

    • B. Title 48

    • C.1033 Waiver

    • D. Section 1034

    Correct Answer
    A. C.1033 Waiver
    Explanation
    The correct answer is C. 1033 Waiver. This is because a 1033 Waiver refers to the specific provision in federal law that allows individuals convicted of crimes involving dishonesty, breach of trust, or a violation of the violent crime control and law enforcement act of 1994 to work in the insurance industry affecting interstate commerce, provided they receive a letter of consent from an insurance regulatory official.

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  • 13. 

    A 1033 Waiver...

    • A. the consent of the official must specify that it is granted for the purpose of 18 U.S.C. 1033

    • B. Civil penalties and injunctions for violations of section 1034.

    • C. Civil action in the appropriate U.S. district court against any person who engages in conduct that is in violation 

    • D.

    Correct Answer
    A. A. the consent of the official must specify that it is granted for the purpose of 18 U.S.C. 1033
    Explanation
    The correct answer is A because it states that for a 1033 Waiver to be valid, the consent of the official must specify that it is granted for the purpose of 18 U.S.C. 1033. This means that the official granting the waiver must explicitly state that it is being done in accordance with the specific section of the U.S. Code that pertains to 1033 Waivers.

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  • 14. 

    Section 1034...

    • A. States that the Attorney General may bring a civil action in the appropriate U.S. district court against any person who engages in conduct that is in violation of Section 1033 of not more than $50,000 for each violation, or the amount of compensation the person received as a result of the prohibited conduct, whichever is greater.

    • B. Civil Penalties and injunctions for violations of section 1033

    • C. Options both A and B

    • D. There is no Section 1034

    Correct Answer
    A. C. Options both A and B
    Explanation
    The correct answer is C because it states that the Attorney General may bring a civil action in the appropriate U.S. district court against any person who engages in conduct that is in violation of Section 1033 and imposes penalties and injunctions for violations of Section 1033. Therefore, both options A and B are correct.

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  • 15. 

    What is the Code of Washington?

    • A. Title 48

    • B. Title 248

    • C. Title 50

    • D. Title 68

    Correct Answer
    A. A. Title 48
    Explanation
    The Code of Washington refers to the codified laws of the state of Washington. It is a collection of statutes that have been enacted by the Washington State Legislature. The correct answer is A. Title 48 because it indicates that Title 48 of the Code of Washington contains the relevant laws for the state of Washington.

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  • 16. 

    What is the Washington Administrative Code (WAC)?

    • A. Title 68

    • B. Title 48

    • C. Title 50

    • D. Title 284

    Correct Answer
    A. D. Title 284
  • 17. 

    How long is the Commissioner's term in Washington?

    • A. 2 years

    • B. 4 years

    • C. 5 years

    • D. 6 years

    Correct Answer
    A. B. 4 years
    Explanation
    The Commissioner's term in Washington is 4 years. This means that once elected, the Commissioner will serve a 4-year term before having to run for re-election. This allows for stability and continuity in the position, as well as providing enough time for the Commissioner to implement their policies and initiatives.

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  • 18. 

    Commissioner's main duties are?

    • A. To regulate insurance companies

    • B. To solicit insurance

    • C. Issue cease and desist orders

    • D. Administration and enforcement of the rules of the Insurance Code.

    Correct Answer
    A. D. Administration and enforcement of the rules of the Insurance Code.
    Explanation
    The correct answer is D. Administration and enforcement of the rules of the Insurance Code. The main duties of a Commissioner involve overseeing the implementation and enforcement of the rules and regulations outlined in the Insurance Code. This includes ensuring that insurance companies comply with the code, investigating any violations, and taking appropriate administrative and enforcement actions. The Commissioner plays a crucial role in maintaining the integrity and fairness of the insurance industry by upholding the standards set forth in the Insurance Code.

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  • 19. 

    Title 48 is the Washington Insurance Code and it...

    • A. Protects insurance companies

    • B. Protects the Department of Health

    • C. Protects the public

    • D. Both A and C

    • E. All of the above

    Correct Answer
    A. C. Protects the public
    Explanation
    Title 48 of the Washington Insurance Code is designed to protect the public. This means that the regulations and provisions outlined in this code are aimed at ensuring that insurance companies operate in a fair and ethical manner, providing adequate coverage and protection to policyholders. The code likely includes regulations regarding consumer rights, claims handling procedures, and licensing requirements for insurance agents, all of which are intended to safeguard the interests of the public. Therefore, option C is the correct answer.

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  • 20. 

    General powers, duties and responsibilities include:

    • A. Follow rules and regulations to enforce provisions of the Insurance Code.

    • B. Conduct Examinations, investigations and hearings to determine if anyone has violated any provisions of the Insurance Code.

    • C. Maintain confidentiality of documents, materials, or other information used in regulatory or legal action.

    • D. Issue cease and desist order if any one is believed to have violated rules.

    • E. Issue insurance licenses or certificates of authority, and take action against, fine, or suspend the license of any company and or producers.

    • F. Spread information concerning insurance laws of Washington and provide assistance to the public in obtaining information about insurance products.

    • G. Appoint a Chief Deputy Commissioner (assists the Commissioner) and other deputies

    • H. Answers A, C, and D

    • I. All of the above

    Correct Answer
    A. I. All of the above
    Explanation
    The correct answer is I. All of the above. This is because all of the options listed in the question are general powers, duties, and responsibilities that are typically associated with the role of a commissioner in enforcing the provisions of the Insurance Code. These include following rules and regulations, conducting examinations and investigations, maintaining confidentiality, issuing cease and desist orders, issuing licenses or certificates of authority, spreading information about insurance laws, and appointing deputies.

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  • 21. 

    The purpose of examination ensures...

    • A. companies remain solvent and conduct business of insurance in compliance with state laws or regulations in regards to licensing, policy forms, rates, claims and market conduct.

    • B. accounts or transactions records are kept accordingly

    • C. Both A and B

    • D. None of the above

    Correct Answer
    A. A. companies remain solvent and conduct business of insurance in compliance with state laws or regulations in regards to licensing, policy forms, rates, claims and market conduct.
    Explanation
    The purpose of examination ensures that companies in the insurance industry remain financially stable and operate in accordance with state laws and regulations. This includes aspects such as licensing, policy forms, rates, claims, and market conduct. The examination process helps to ensure that companies are conducting their business in a compliant and responsible manner, protecting the interests of policyholders and maintaining the overall integrity of the insurance market.

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  • 22. 

    At least every 5 years the Commissioner may...

    • A. Examine Aliens insurers

    • B. Examine Public records

    • C. Examine accounts or transaction records and documents of all authorized insurers, rating organizations, joint underwriting association, and any insurance producer.

    • D. All of the above

    Correct Answer
    A. C. Examine accounts or transaction records and documents of all authorized insurers, rating organizations, joint underwriting association, and any insurance producer.
    Explanation
    The correct answer is C. This is because the question is asking what the Commissioner may examine, and option C states that the Commissioner may examine accounts or transaction records and documents of all authorized insurers, rating organizations, joint underwriting association, and any insurance producer. This option covers all the entities mentioned in the question and is therefore the correct answer.

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  • 23. 

    Examination of an Alien insurer may be...

    • A. limited to its amount of insurance

    • B. limited to the amount of insureds

    • C. Both A and D

    • D. limited to its transactions in the U.S.

    Correct Answer
    A. D. limited to its transactions in the U.S.
    Explanation
    The correct answer is D. limited to its transactions in the U.S. When examining an Alien insurer, the examination is focused on the insurer's transactions within the United States. This means that the examination is limited to the insurer's activities, operations, and financial transactions that occur within the U.S. It does not consider the amount of insurance or the number of insureds. The examination is specifically concerned with the insurer's compliance with U.S. regulations and laws.

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  • 24. 

    The Commissioner may rely on an audit report from an...

    • A. Investigative Consumer Agency

    • B. Independent certified public accountant 

    • C. The IRS

    • D. Both B and C

    Correct Answer
    A. B. Independent certified public accountant 
    Explanation
    The Commissioner may rely on an audit report from an independent certified public accountant because they are professionals who have the expertise and knowledge to conduct thorough and unbiased audits. Their independence ensures that their findings and conclusions are objective and reliable. This allows the Commissioner to make informed decisions based on the audit report's findings. The IRS, on the other hand, is a government agency responsible for enforcing tax laws and collecting taxes, but they may not have the same level of expertise and independence as a certified public accountant. Therefore, option B is the correct answer.

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  • 25. 

    State Administrative Code makes the procedures that the...

    • A. office of the Insurance Commissioner must follow to provide the public with information regarding insurance

    • B. office of the Insurance Commissioner must follow to provide the public with access to information of general accounts

    • C. office of the Insurance Commissioner must follow to provide the public with full access to public records.

    • D. All of the above

    Correct Answer
    A. C. office of the Insurance Commissioner must follow to provide the public with full access to public records.
    Explanation
    The State Administrative Code outlines the procedures that the office of the Insurance Commissioner must follow. This includes providing the public with full access to public records. This means that any information regarding insurance or general accounts that is considered public record must be made available to the public. Therefore, option C is the correct answer as it encompasses both insurance information and general account information.

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  • 26. 

    Anyone wanting to inspect records must...

    • A.Write a request to the Commissioner

    • B. Contact the Insurance Commissioner

    • C. Both A and D

    • D. Make a written request and an approved form

    Correct Answer
    A. D. Make a written request and an approved form
    Explanation
    To inspect records, individuals must make a written request and use an approved form. This means that they need to submit a formal written request and ensure that it is accompanied by the appropriate form that has been authorized or approved by the relevant authority. This process ensures that there is a standardized procedure for requesting access to records and helps to streamline the process for both the individual and the organization maintaining the records.

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  • 27. 

    If the Commissioner suspects an insurer and or its agent has committed a violation or is engaged in an unfair trade practice, the Commissioner may...

    • A. Issue penalties for each violation

    • Fine both the insurance company and the agent each $1,000 for each individual violation

    • C. Issue a statement of charges and hold a hearing for any purpose deemed necessary (within the Insurance Code)

    • D. All of the above

    Correct Answer
    A. C. Issue a statement of charges and hold a hearing for any purpose deemed necessary (within the Insurance Code)
    Explanation
    The correct answer is C. If the Commissioner suspects an insurer and or its agent has committed a violation or is engaged in an unfair trade practice, the Commissioner may issue a statement of charges and hold a hearing for any purpose deemed necessary within the Insurance Code. This means that the Commissioner has the authority to investigate and take legal action against the insurer and/or agent if they are suspected of wrongdoing. The statement of charges serves as a formal accusation, and the hearing allows for the presentation of evidence and arguments before a decision is made on how to proceed.

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  • 28. 

    A Licensee may request to have a ____ present at a hearing

    • A. a Lawyer

    • B. A jury

    • C. The Commissioner

    • D. Administrative law judge 

    Correct Answer
    A. D. Administrative law judge 
    Explanation
    A licensee may request to have an administrative law judge present at a hearing. Administrative law judges are impartial individuals who preside over administrative hearings and make decisions based on the facts and evidence presented. They ensure that the hearing is conducted fairly and in accordance with the law.

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  • 29. 

    Any licensee has ____ to respond to Commissioner's written request and to request a hearing/

    • A. 75 days

    • B. 15 days

    • C. 90 days

    • D. 10 days

    Correct Answer
    A. C. 90 days
    Explanation
    Any licensee has 90 days to respond to the Commissioner's written request and to request a hearing. This means that the licensee has a period of 90 days to provide a written response to the Commissioner and to request a hearing if needed.

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  • 30. 

    A person with a temporary or suspended license may request to have a hearing and the Commissioner must have a hearing within ___ days, or within ____ days of the effective date of temporary license suspension issued after such demand, unless postponed by mutual consent

    • A. 15 days and 10 days

    • B. 30 days and 30 days

    • C. 30 days and 15 days

    • D. 10 days and 15 days

    Correct Answer
    A. B. 30 days and 30 days
    Explanation
    A person with a temporary or suspended license has the right to request a hearing. According to the given information, the Commissioner must hold a hearing within 30 days of the request being made. Additionally, if a temporary license suspension is issued after the hearing request, the Commissioner must hold a hearing within 30 days of the effective date of the suspension, unless both parties agree to postpone it.

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  • 31. 

    Any insurance policy form or written application issued, delivered or used in Washington must be first...

    • A. filed with and approved by the Commissioner

    • B. Filed by the Commissioner

    • C. Approved by the Commissioner

    • D. None of the Above

    Correct Answer
    A. A. filed with and approved by the Commissioner
    Explanation
    In Washington, any insurance policy form or written application must undergo a process of filing and approval by the Commissioner. This means that before being issued, delivered, or used, the insurance policy or application must be submitted to the Commissioner for review and approval. This ensures that the policy or application complies with the necessary regulations and meets the standards set by the Commissioner. Therefore, option A is the correct answer.

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  • 32. 

    Every filing containing a certificate by the Chief Executive Officer (CEO) of the Insurer, attesting that the filing complies with the Washington Administrative Code (WAC), may be used ____ after the filing. 

    • A. 15 days

    • B. 30 days

    • C. 10 days

    • D. immediately

    Correct Answer
    A. D. immediately
    Explanation
    The CEO of the Insurer can use the filing immediately after submitting it, as long as it contains a certificate attesting that it complies with the Washington Administrative Code (WAC). There is no waiting period specified, so the filing can be used right away.

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  • 33. 

    Any other filing must be made ___ days in advance of issuance, delivery or use.

    • A. 5

    • B. 30

    • C. 15

    • D. 10

    Correct Answer
    A. B. 30
    Explanation
    Any other filing must be made 30 days in advance of issuance, delivery or use. This means that if someone needs to make a filing for a certain issue, they must do so 30 days before the issuance, delivery, or use of that particular thing. The other options (5, 15, and 10) do not provide enough time in advance for the filing to be made.

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  • 34. 

    At the end of 30 days the form is approved unless...

    • A. the Commissioner denies the form

    • B. Both A and C

    • C. disapproved by prior order of the Commissioner

    • C. Is not filed within the time limit

    Correct Answer
    A. A. the Commissioner denies the form
    Explanation
    The correct answer is A. the Commissioner denies the form. This means that if the Commissioner denies the form at the end of the 30-day period, then it will not be approved. This implies that if the Commissioner does not deny the form, it will be approved. The other options (B, C, and D) do not necessarily prevent the form from being approved, as they either involve additional conditions (B and C) or are unrelated to the approval process (D).

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  • 35. 

    Commissioner may extend the approval period for forms by a maximum of ____ days, if notice of extension is given before expiration of 30 days.

    • A. 30 days

    • B. 10 days

    • C. 15 days

    • D. 31 days

    Correct Answer
    A. C. 15 days
    Explanation
    The correct answer is C. 15 days. The question states that the Commissioner may extend the approval period for forms by a maximum of ____ days, if notice of extension is given before expiration of 30 days. This means that the approval period can be extended for a maximum of 15 days, as long as the notice of extension is given before the initial 30-day expiration period.

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  • 36. 

    If extension period is over and notice of disapproval is not given, the form is deemed to be

    • A. Approved

    • B. Disapproved

    Correct Answer
    A. A. Approved
    Explanation
    If the extension period is over and no notice of disapproval is given, it implies that the form has not been rejected. Therefore, it can be inferred that the form is deemed to be approved.

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  • 37. 

    Commissioner can withdraw approval at...

    • A. 10 days

    • B. anytime

    • C. 15 days

    • D. None of the above

    Correct Answer
    A. B. anytime
    Explanation
    The correct answer is B. anytime. This means that the Commissioner has the authority to withdraw approval at any given time, without any specific timeframe or restrictions. This suggests that the Commissioner has the flexibility to revoke their approval whenever they deem necessary, regardless of how much time has passed since the initial approval was granted.

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  • 38. 

    Every Insurer or Rating organization must file with the Commissioner every...

    • A. Policy, Provision and Riders 

    • B. Classification manual, manual of rules and rates, rating plan, and rating schedule

    • C. Both A and D

    • D. Minimum rate, class rate, rating rule, and any rate modification, and must indicate the type of coverage, and have sufficient information.

    Correct Answer
    A. C. Both A and D
    Explanation
    Insurers and rating organizations are required to file various documents with the Commissioner. These documents include policies, provisions, riders, minimum rates, class rates, rating rules, rate modifications, and information about the type of coverage. Therefore, the correct answer is C, as it includes both the items mentioned in option A and option D.

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  • 39. 

    An insurer or rating organization must offer support of any filing:

    • A. An exhibit detailing the major elements of operating expense for the types of insurance affecting by the filing.

    • B. Experience of insurer or rating organization making the filing

    • C. Explanation on how investment income has been taken into account in the proposed rates

    • D. Any other information that the insurer or rating organization deems relevant.

    • E.  Both A and C

    • F. All of the above

    Correct Answer
    A. F. All of the above
    Explanation
    The correct answer is F. All of the above. This means that an insurer or rating organization must offer support for any filing by providing an exhibit detailing the major elements of operating expense for the types of insurance affected by the filing, the experience of the insurer or rating organization making the filing, an explanation of how investment income has been taken into account in the proposed rates, and any other information that the insurer or rating organization deems relevant.

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  • 40. 

    The Commissioner may suspend, revoke, or refuse to issue or renew a producer license; as well as fine for violations in any of the following areas:

    • A. Laws, rules or regulations of the Insurance Code

    • B. Licensing laws, producer's fiduciary responsibility, and unfair trade practices

    • C. Embezzelment

    • D. Both A and B

    Correct Answer
    A. A. Laws, rules or regulations of the Insurance Code
    Explanation
    The correct answer is A. Laws, rules or regulations of the Insurance Code. This means that the Commissioner has the authority to suspend, revoke, or refuse to issue or renew a producer license, as well as impose fines, if there are violations of the laws, rules, or regulations outlined in the Insurance Code. This includes any violations related to insurance laws, regulations, or requirements that govern the insurance industry.

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  • 41. 

    An insurance contract is...

    • A. An agreement between the insurance company and insured 

    • B. An agreement between the policyowner and the insured

    • C. An agreement between the policyowner and an insurer

    • D. None of the above

    Correct Answer
    A. C. An agreement between the policyowner and an insurer
    Explanation
    The correct answer is C. An agreement between the policyowner and an insurer. This answer is correct because an insurance contract is a legally binding agreement between the policyowner (the person purchasing the insurance policy) and an insurer (the insurance company). The contract outlines the terms and conditions of the insurance coverage, including the premiums to be paid and the benefits to be provided. The insurer agrees to provide financial protection to the policyowner in exchange for the payment of premiums.

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  • 42. 

    The insurer agrees for a ___, to compensate for ___of the insured by specific events.

    • A. license, peril

    • B. payment, loss

    • C. Both A and B

    • D. None of the above

    Correct Answer
    A. B. payment, loss
    Explanation
    The correct answer is B. payment, loss. In insurance, the insurer agrees to make a payment to the insured in the event of a loss. The payment is meant to compensate for the financial loss suffered by the insured due to specific events that are covered by the insurance policy. This can include events such as accidents, theft, or damage to property. The insurer's agreement to make a payment is a key aspect of the insurance contract, as it provides financial protection to the insured in case of unexpected events.

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  • 43. 

    In Washington state any of the following is considered transacting insurance:

    • A.Fiduciary Responsibility, and insuring of a contract

    • B.Solicitation, Negotiations preliminary to execution, and put into effect of an insurance contract

    • C. Transaction of a contract under consideration, to the execution of the contract, and insuring

    • D. Both B and C

    Correct Answer
    A. D. Both B and C
    Explanation
    The correct answer is D. Both B and C. This means that in Washington state, transacting insurance includes both the activities of solicitation, negotiations preliminary to execution, and putting into effect an insurance contract (option B), as well as the activities from the transaction of a contract under consideration to the execution of the contract and insuring (option C). In other words, any activity related to the process of selling and executing an insurance contract is considered as transacting insurance in Washington state.

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  • 44. 

    Any person or company engaged as the main party in the business of entering into the insurance contracts is?

    • A. The policyowner

    • B. The Insured

    • C. The beneficiary

    • D. The Insurer

    Correct Answer
    A. D. The Insurer
    Explanation
    The correct answer is D. The Insurer. The insurer is the person or company that is engaged as the main party in the business of entering into insurance contracts. They are responsible for providing insurance coverage and accepting the risk of potential losses in exchange for premium payments. The insurer assumes the financial responsibility for paying out claims to policyholders in the event of covered losses.

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  • 45. 

    Domestic mutual insurers must be owned by and operated in the interest of?

    • A. Their insurance producers

    • B. Their members

    • C. Their employees

    • D. None of the above

    Correct Answer
    A. B. Their members
    Explanation
    Domestic mutual insurers are insurance companies that are owned by their policyholders, who are also referred to as members. These members have a vested interest in the success of the insurance company and therefore the company must be operated in their best interest. This ensures that the company's decisions and actions align with the needs and preferences of its members, as they are the ones who will ultimately benefit from the company's success.

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  • 46. 

    Types of licenses include?

    • A. Life and Health

    • B. Property and Casualty 

    • C. Individual and Group

    • D. Individual and Temporary

    Correct Answer
    A. D. Individual and Temporary
    Explanation
    The question asks about the types of licenses, and the correct answer is "D. Individual and Temporary." This suggests that there are different types of licenses, and two of them are "Individual" and "Temporary." These types of licenses may refer to specific permissions granted to individuals for a limited period of time, such as for a specific project or event.

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  • 47. 

    Individual licenses are:

    • A. Foreign and Domestic

    • B. Valid for 180 days

    • C. Resident and nonresident

    • D. Commercial and noncommercial

    Correct Answer
    A. C. Resident and nonresident
    Explanation
    Individual licenses are categorized as either resident or nonresident licenses. A resident license is issued to individuals who are permanent residents of a particular state or country, while a nonresident license is issued to individuals who do not reside permanently in that state or country. This categorization helps differentiate between individuals who are eligible for certain privileges and benefits based on their residency status.

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  • 48. 

    A temporary license is?

    • A. Valid for 15 days; issued to maintain the existing business

    • B. Valid for 180 days; issued to maintain the existing business

    • C. Valid for 90 days; issued to maintain the existing business

    • D. Valid for 75 days; issued to maintain the existing business

    Correct Answer
    A. B. Valid for 180 days; issued to maintain the existing business
    Explanation
    A temporary license is valid for 180 days and is issued to maintain the existing business. This suggests that the temporary license is a short-term authorization that allows a business to continue its operations while it goes through the necessary processes to obtain a permanent license. The 180-day duration provides a reasonable amount of time for the business to complete any required paperwork or meet any specific requirements before obtaining a long-term license.

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  • 49. 

    License must be renewed every?

    • A. 1 year

    • B. 2 years

    • C. 3 years

    • D. 5 years

    Correct Answer
    A. B. 2 years
    Explanation
    A license must be renewed every 2 years. This means that after obtaining a license, the individual must go through a renewal process every 2 years to ensure that their license remains valid. This renewal process may involve submitting updated documentation, paying a renewal fee, and possibly completing any required continuing education or training. Renewing a license helps to ensure that the individual's qualifications, knowledge, and skills are up to date and in line with current regulations and standards.

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Quiz Review Timeline (Updated): Jun 7, 2024 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Jun 07, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Mar 19, 2020
    Quiz Created by
    Mikaylakleinsass

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