Laws Flashcards
Surplus Lines Broker
Bond in favor of People of WA: $2500 or 5 % premiums brokered in previous year - whichever is greater
Bond in favor of WA state: $20,000
60 days to notify Department of Insurance with facts supporting effort to place business with authorized insurer in WA
Nonrenewal
45 day in WA
20 day for auto
Cancellation
10-day notice if due to non-payment
45-day notice otherwise (20 for auto)
Premium Returns
Pro-rata basis if insurance company cancels. no service fee allowed (45 days)
Short rate basis if insured cancels. Service fee allowed (30 days)
Notice to producer/broker
copy of any notice (CAN/nonrenew/offer to renew) must be provided within 5 days
Binder
temporary guaranteed coverage
must be in writing/printed form and delivered to insured no later than the next business day
good for 90 days. only can be extended by commish
Termination of Agency Contract
120 days advance written notice to terminate independent agent.
during the 120 days, the agent may not bind or write any new business on behalf of the terminating insurer
insurer may continue to renew all policies in agent’s book and pay commissions to the agent for a period of one year
Credit Score
Insurer can’t cancel/non-renew based on credit history/score
insurance score must be updated at least every 3 years. most recent used for premium calculations
if insurer takes adverse action against consumer based on credit history they must provide them with written notice
Record Retention
Producers: 5 years
Insurance companies: 3 years
Passenger car
every motor vehicle except motorcycles and motor-driven cycles
Personal Injury Protection (P.I.P.)
coverage for first party injured in an insured’s auto, regardless of fault.
coverage must be offered. any rejection of PIP must be in WRITING
benefits must be reasonably related to accident and within 3 years of accident
PIP coverage limits
Medical Payments: $10,000 - $35,000
Lost Income: $10,000-$35,000 max / $200-700 per week
14-day waiting period on payments. Can’t exceed 80% of salary
Loss of Services: $40/day max / $5,000-14,600 max
Funeral Costs: $2,000
Underinsured Motorist (UIM)
Must be offered. Any rejection needs to be in writing. Insurer has to keep for 3 years.
Can’t exceed limit of Coverage “A”
Pays for Bodily Injuries and damage to insured’s covered auto if caused by uninsured or underinsured drivers. also pays if other insurer becomes insolvent within 3 years
stacking not permitted
Auto Cancellation
after first 60 days of auto contract, cancellation is only permitted for non-payment or suspension/revocation of drivers license of named insured/regular operator.
Insurer can’t consider traffic violations past 3 years old
Assigned Risk Pool
allows people in WA with bad driving records to secure auto insurance
WA Financial Responsibility Liability Law
requires driver to prove they can pay for damages. applies to driver and owner of vehicle.
Failure to do so can result in loss of vehicle registration, license suspension or fine.
Could be suspended up to 3 years.
Minimum required: $60,000 (Single or Split limit, surety bond, or deposited cash)
Washington F.A.I.R. Plan
makes property insurance available/affordable for properties that might otherwise be uninsurable because of environmental hazards
Industry Placement Facility (“the facility”)
organization formed by insurers to assist applicants in FAIR plan
applicants not required to show they were unable to get coverage
MAX LIMIT on any one property: 1.5 million
Agents don’t have binding authority but get a 10% commission if associated with applicant
one year term
National Flood Insurance Program
Managed and subsidized by Federal Insurance Administration (FIA), branch of FEMA
coverage effective 30 days after application is made
flood insurance is a single peril policy and covers loss to property , NOT land
Max coverage:
-Single Family Dwelling - $250,000 (replacement cost)
-Personal Property - $100,000 (ACV)
-Commercial Buildings - $500,000
TRIA
