Laws Flashcards

1
Q

Surplus Lines Broker

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Nonrenewal

A

45 day in WA
20 day for auto

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Cancellation

A

10-day notice if due to non-payment

45-day notice otherwise (20 for auto)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Premium Returns

A

Pro-rata basis if insurance company cancels. no service fee allowed (45 days)

Short rate basis if insured cancels. Service fee allowed (30 days)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Notice to producer/broker

A

copy of any notice (CAN/nonrenew/offer to renew) must be provided within 5 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Binder

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Termination of Agency Contract

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Credit Score

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Record Retention

A

Producers: 5 years

Insurance companies: 3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Passenger car

A

every motor vehicle except motorcycles and motor-driven cycles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Personal Injury Protection (P.I.P.)

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

PIP coverage limits

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Underinsured Motorist (UIM)

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Auto Cancellation

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Assigned Risk Pool

A

allows people in WA with bad driving records to secure auto insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

WA Financial Responsibility Liability Law

A

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)

15
Q

Washington F.A.I.R. Plan

A

makes property insurance available/affordable for properties that might otherwise be uninsurable because of environmental hazards

16
Q

Industry Placement Facility (“the facility”)

A

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

17
Q

National Flood Insurance Program

A

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

18
Q

TRIA

A