Laws Common to Life, Disability, Property, Casualty

Question 1

Insurance Transaction

Answer 1

Includes any: 
Solicitation.
Negotiations preliminary to execution.
Execution of an insurance contract.
Transaction of matters subsequent to the execution of the contract and arising out of it.
Insuring.

Question 2

Penalties

Answer 2

any person violating any provision of this code is guilty of a gross misdemeanor and will, upon conviction, be fined not less than $10 nor more than $1,000, or imprisoned for not more than 364 days, or both.
Provisions of this code relating to a particular kind of insurance prevail over provisions relating to insurance in general.
Adopted children shall be considered dependent children for insurance purposes.
Immunity from civil liability exists for any person who files reports, required under Title 48 RCW, unless actual malice, fraud, or bad faith is shown.
Assistance or services in exchange for dues, assessments, or periodic or lump-sum payments - Certificate of authority required - Certain travel or automobile services excepted - Violations. See RCW 48.01.250.
Private air ambulance service - Subscription service - Exempt when conditions are met. See RCW 48.01.280.

Question 3

Insurance Commissioner term

Answer 3

Elected for 4 years

Question 4

Insurance Commissioner-General Powers and Duties

Answer 4

The IC has the authority expressly conferred upon him or implied from the provisions of this code.
The IC must execute his or her duties and must enforce the provisions of this code.

The IC may:
Make reasonable rules for effectuating this code, which first must be filed for public inspection.
Conduct investigations to determine whether any person has violated any provision of this code.
Conduct examinations, investigations, and hearings for the efficient administration of this code.

Question 5

Insurance Commissioner- General Power and Duties - Under State of Emergency

Answer 5

Reporting requirements for claims;
Grace periods for payment of insurance premiums and performance of other duties by insureds;
Temporary postponement of cancellations and nonrenewals; and
Medical coverage to ensure access to care.
An order by the IC under subsection (4) of this section may remain effective for not more than sixty days.
The IC may adopt rules that establish general criteria for orders issued under subsection (4) of this section and may adopt emergency rules applicable to a specific proclamation of a state of emergency by the governor.

Question 6

Enforcement via the IC

Answer 6

The IC may prosecute an action in any court of competent jurisdiction.
The IC shall certify the facts of the violation to the public prosecutor of jurisdiction.
The IC may:
issue a cease and desist order; and/or
bring an action in any court of competent jurisdiction to enjoin the person from continuing the violation.
The attorney general and the several prosecuting attorneys throughout the state shall prosecute or defend all proceedings brought pursuant to the provisions of this code when requested by the IC.
IC may delegate authority to any deputy, assistant, examiner, or employee of the IC.

Question 7

Special Duties of the IC

Answer 7

Publish tables showing the average expectancy of life and values of annuities and of life and term estates.
Disseminate information concerning the insurance laws of this state.
Provide assistance to the public in obtaining information about products and in resolving complaints involving insurers and other licensees.

Question 8

Examination of Records

Answer 8

IC shall examine each insurer holding a certificate at least every 5 years.
IC shall examine rating organizations and examining bureaus at least every 5 years.
IC may accept an audit of out of state insurers from their state of domicile or port-of-entry state.
IC may examine insurance producers, adjusters or title insurance agents or a person holding shares or proxies of domestic insurers for the purpose of control of its management.
IC shall maintain records for public inspection. (Trade secrets are excepted.)

Question 9

Penalties Enforced by IC

Answer 9

The IC may place on probation, suspend, revoke or refuse to issue or renew a license for:
Providing misleading information in the license application.
Violating insurance laws or orders of this state or other states.
Misappropriating money in the course of insurance.
Misrepresenting an insurance contract.
Conviction of a felony.
Committing any insurance unfair trade practice.
Using dishonest practices or demonstrating incompetence or financial irresponsibility, anywhere.
Having an insurance license restricted in another state or territory.
Forging the name of another person in an insurance transaction.
Cheating on an insurance test.
Knowingly accepting insurance business from an unlicensed person.
Obtaining a loan from an insurance client that is not a financial institution, relatives excepted.
The license of a business may be revoked if the managers don’t report violations of employees.
The IC may enforce the law even if a license has been lapsed by the operation of law.
A revoked or suspended license shall be surrendered.
The IC may place on probation and require:
Regular reports.
The practice to be limited.
Renewal of continuing education.
Violations of probation may result in the enforcement of the IC’s original order.
A license shall be suspended for non-compliance with a DSHS order.
To revoke or suspend a license the IC must give 15 days written notice (3 days public safety concern).
Suspension may not exceed 12 months.
Fines shall not exceed $1,000 per violation and be paid within 30 days.

Question 10

Unlicensed activities

Answer 10

Unlicensed activities are a Class B felony - a fine of up to $20,000 and 10 years imprisonment, in addition to any civil penalty imposed.
Civil Penalties - The insurance commissioner may issue a cease and desist order, suspend or revoke a producer’s license, and/or impose a fine of up to $25,000 per violation.