Washington Insurance Exam Guides
Pick the license you're studying for. Each guide covers Washington-specific requirements, fees, and official links — plus a free practice exam. Then scroll down to explore the Washington exam's state-law material, mapped.
Free study resource
What's actually tested on the Washington exam — the state regulations, mapped
Every Washington insurance exam reserves a block of questions for Washington-specific law — the fees, deadlines, limits, and rules that generic national study guides gloss over. This is that material: 152 facts from the TESTivity Washington regulations curriculum, organized the way we teach them. Open a branch, explore, and let the structure do some of the remembering for you.
Every fact below carries its source citation and the date we last verified it (most recently August 2026) — and is re-checked on a schedule. Facts marked tested are ones you should expect to see on the exam.
Life 18 facts
The life insurance rules that differ by state — free look, grace, reinstatement.
- Incontestability period, individual life tested2 years from date of issue, and only while the policy has been in force during the insured's lifetime. Nonpayment of premium is always contestable; total-and-permanent-disability and accidental-death provisions are contestable at the insurer's OPTION.
- Grace period, individual life testedOne month, but not less than 30 days, for any premium AFTER the first. The insurer may charge interest capped at 6% per annum, and if the policy becomes a claim during the grace period the policy still pays - the overdue premium (plus any deferred premiums of the current policy year) with interest is deducted from the settlement.
- Window to reinstate a lapsed life policy tested3 years after the date of default in payment of any premium, on evidence of insurability satisfactory to the insurer and payment of all overdue premiums. Barred if the policy was surrendered for its cash value or the extended-insurance period has expired.
- Interest cap on reinstatement testedCapped by statute, not left to the policy: overdue premiums carry interest 'at a rate not exceeding six percent per annum compounded annually'.
- Suicide limitation, individual life tested2 years from date of issue - and Washington's floor is NOT a refund of premium. The insurer may limit its liability to 'a determinable amount not less than the full reserve of the policy and of dividend additions thereto'. Note where that language sits: the reserve floor is in the flush opening of subsection (1), and (1)(b) supplies only the suicide trigger. The same section also permits limitation for war or military service and for aviation.
- Free look, individual life tested10 days after the policy is received by the policy owner. An additional 10% penalty is added to any premium refund not paid within 30 days of the policy's return, and a returned policy is 'void from the beginning'. Does not apply to policies issued in connection with a credit transaction or under a contractual change or conversion privilege.
- Free look, ordinary annuity testedThe OIC tells consumers they have 10 days to return an annuity contract, and WAC 284-23-350(1) supplies the 10-day 'unconditional refund period' figure - but as a conditional alternative that shifts contract-summary timing rather than as a free-standing mandate. RCW 48.23.380 by its own terms reaches 'every individual life insurance policy' and does not name annuities.
- Free look, replacement of a life policy or annuity tested20 days from the date of DELIVERY of the policy, an unconditional refund of all premiums paid - and it is the REPLACING INSURER's duty to provide that right in the policy or in a separate notice delivered with it.
- Free look, long-term care tested30 days after delivery, for any reason - plus a second 30-day clock on the insurer: refunds or denials of applications must be made within 30 days of the return or denial.
- Nonforfeiture, what the life statute requires testedA table showing loan values and any options available on default for at least the first 20 years, and a provision specifying the option the policyholder is automatically entitled to if no other option is elected. The Standard Nonforfeiture Law for life is chapter 48.76 RCW, which requires a paid-up nonforfeiture benefit and a cash surrender value rather than naming a three-option triad.
- Authority required to sell variable products testedA SEPARATE Washington line of authority - 'variable life and variable annuity products' - covering products that reflect the investment experience of a separate account. It is not an extension of the Life line.
- Does the state regulate life settlements? testedYes - and note the vocabulary: chapter 48.102 RCW never uses the word 'viator'. The seller is the OWNER, defined as an owner of a policy 'with or without a terminal illness'. Providers are licensed by the Commissioner; brokers must have held a resident life line for at least one year.
- Owner's rescission window on a life settlement tested15 days, running from the date the contract is executed BY ALL PARTIES. Effective only if the owner both gives notice AND repays all proceeds, premiums, loans and loan interest within the period. If the insured dies during the window the contract is deemed rescinded, subject to the same repayment. Failure to give written notice of the right tolls it until 30 days after notice is given.
- Has the state adopted the NAIC best interest annuity standard? testedYES, effective January 1, 2024. A producer recommending an annuity must act in the best interest of the consumer by satisfying four obligations - CARE, DISCLOSURE, CONFLICT OF INTEREST and DOCUMENTATION. The implementing rule adopts NAIC Suitability in Annuity Transactions Model Regulation #275 appendices. Note the narrow definitions: 'annuity' means a fixed or variable annuity that is INDIVIDUALLY SOLICITED, and 'recommendation' means advice that was intended to or does result in a purchase, exchange or replacement. Records are kept five years, and the section creates no private cause of action.
- Misstatement of age, life versus annuity testedFor life, the amount payable is what the premium would have purchased at the correct age, at the insurer's rate on the date of issue - the trigger is AGE alone. Sex is added only for annuities and pure endowments.
- Entire contract, individual life testedThe policy and the application form the entire contract only if a copy of the application 'has been endorsed upon or attached to the policy at issue'. Statements by the applicant or insured are representations and not warranties - 'in the absence of fraud'. The section exempts policies that are incontestable from date of issue.
- Policy loan availability, individual life testedAvailable after three full years' premiums have been paid, while the policy is in force, on the sole security of the policy. The insurer may defer a loan up to six months - except a loan made to pay premiums. Termination for indebtedness takes at least 30 days' notice.
- Maximum policy loan interest rate testedFor policies issued ON OR AFTER AUGUST 1, 1981, the policy must contain either (a) a provision permitting 'a maximum interest rate of not more than eight percent per annum', or (b) an adjustable maximum established from time to time by the insurer. Where the adjustable option is used, the rate 'shall not exceed the higher of' the published monthly average for the calendar month ending two months before the applicable period, or the rate used to compute the policy's cash surrender values during that period PLUS ONE PERCENT per annum. 'Published monthly average' is defined by reference to Moody's Corporate Bond Yield Average - Monthly Average Corporates. TRAP: the 6% fixed and 4-8% variable figures in RCW 48.23.080(1)(c) apply, by their own terms, ONLY to policies in existence before August 1, 1981.
Health 20 facts
Health coverage rules — continuation, prompt pay, mandates, public programs.
- Has the state expanded Medicaid? testedYES - Washington covers the ACA adult expansion group, adults 19 through 64 with net countable income at or below 133% of the federal poverty level (commonly stated as 138% with the 5% disregard). The programme is branded Washington Apple Health.
- Effective date of expansion, if expanded testedFull ACA expansion took effect January 1, 2014 (Washington was also one of the early-expansion states before 2014)
- Agency administering Medicaid testedThe Washington State Health Care Authority (HCA). 'Authority' is the defined term in RCW 74.09.010.
- Federal marketplace or state-based exchange? testedA STATE-BASED marketplace. The Washington health benefit exchange is 'a self-sustaining public-private partnership separate and distinct from the state', subject only to the Open Public Meetings Act and the Public Records Act and 'not to any other law or regulation generally applicable to state agencies'. It was established under chapter 43.71 RCW and operational by January 1, 2014.
- Name of the state CHIP programme testedApple Health for Kids - coverage for children under 19 with family income not greater than 260% of the federal poverty level at enrolment, and (subject to appropriation) not greater than 312%. No premiums at or below 210% FPL; families above 312% may buy in without an explicit subsidy.
- Clean-claim payment standard, 30-day prong tested95% of the monthly volume of CLEAN claims must be PAID within 30 days of receipt by the carrier or its agent. It is a standard on the carrier's monthly book, not a per-claim guarantee, and it operates through participating provider and facility contracts.
- Clean-claim payment standard, 60-day prong tested95% of the monthly volume of ALL claims must be paid OR DENIED within 60 days of receipt, except as agreed in writing by the parties on a claim-by-claim basis. Note the differences from the 30-day prong: all claims rather than clean ones, and pay-or-deny rather than pay.
- Does Washington distinguish electronic from paper claims? testedNo. WAC 284-170-431 draws no distinction anywhere in its seven subsections; the only reference to medium is the receipt-date rule, which treats 'either written or electronic notice' identically.
- Interest on a late claim payment tested1% per month, simple, prorated for part of a month - on claims that are undenied, unpaid, clean and MORE THAN 61 DAYS OLD. The carrier adds it automatically without a further claim, and may not apply it to the covered person's deductible, copayment or coinsurance. Carve-outs exist for substantial evidence of fraud, denied access to information, and force majeure.
- Is the external review decision binding? testedYes, on the carrier: 'Carriers must timely implement the certified independent review organization's determination, and must pay the certified independent review organization's charges.' The review is provided without cost to the appellant, and the Commissioner assigns IROs off a rotational registry.
- Employer size at which federal COBRA applies testedFederal COBRA applies at 20 or more employees. Washington adds no small-employer continuation entitlement of fixed duration, but it does require insurers, health care service contractors and HMOs to OFFER the group a continuation provision - see the continuation leaves.
- What Washington requires instead of a mini-COBRA testedAn OFFER duty running to the group, not an entitlement running to the employee: every insurer, health care service contractor and HMO 'shall offer the policyholder an option to include a policy provision' granting continuation to a person who becomes ineligible. Whether any employee gets it depends on whether the group bought the option.
- Duration of Washington continuation coverage testedNot fixed by statute. The three offer-duty sections say the continuation runs 'for a period of time and at a rate agreed upon' between the insurer and the group. No month count, no maximum premium percentage and no election window appears in any of them.
- Conversion election window after group coverage ends testedThe real individual right: written application AND the first premium payment not later than 31 days after coverage terminates, or 31 days after the person received notice of termination, whichever is LATER. The conversion policy takes effect without a lapse in coverage.
- Rating of a conversion policy testedPremium is determined by the insurer's rate table for the age and class of risk and the type and amount of benefits - not by a statutory percentage of the group rate.
- External review decision deadline tested15 days after receiving the necessary information, OR 20 days after receiving the referral, whichever is EARLIER - a single two-pronged test, extendable to 25 days after referral in exceptional circumstances (WAC 284-43A-070(3)(a)(i)). Expedited review is 72 hours (WAC 284-43A-070(3)(a)(ii); RCW 48.43.535(7)(a)). The OIC's separate 45-day figure is the FEDERAL standard for self-funded plans, which are not health plans under RCW 48.43.535.
- Conversion after termination for misconduct testedThe insurer need not offer conversion to a person terminated for misconduct - but a conversion policy 'shall be offered to the spouse and/or dependents' of that person, on the same terms available to those terminated for other reasons. Conversion may also be refused to a person eligible for Medicare or covered under another group plan.
- Continuation for former family members testedA separate right with no stated duration: a covered spouse or dependent who ceases to be a qualified family member by reason of TERMINATION OF MARRIAGE or DEATH of the principal enrollee may continue the coverage without a physical examination, statement of health, or other proof of insurability.
- Short-term limited duration medical plans testedMaximum three months from the original effective date, taking into account any extension the member may elect; cannot be issued if it would leave a person covered by such a plan for more than three months in any twelve-month period; and cannot be renewed or extended, except while a member remains hospitalized as an inpatient on the expiration date.
- Definition of small employer / small group testedAn entity actively engaged in business that employed an average of at least ONE but no more than 50 employees. Washington merges the two terms and the floor is one employee.
Auto 15 facts
Auto insurance — minimum limits, fault system, required coverages.
- Fault system testedTORT (at-fault) - the at-fault driver's liability insurance pays the other party's damages. Washington is NOT a no-fault state: PIP must be offered as an optional coverage under RCW 48.22.085(1) but is not required to be carried, and financial responsibility is proved under RCW 46.30.020.
- Minimum bodily injury liability per person tested$25,000 per person. RCW 46.29.090(1) is the section that SETS the limits; RCW 46.30.020(1)(a) imposes the duty by cross-reference to them.
- Minimum bodily injury liability per occurrence tested$50,000 per accident, subject to the per-person limit.
- Minimum property damage liability tested$10,000 per accident.
- The memorizable shorthand tested25/50/10.
- Underinsured motorist coverage, how it attaches testedStronger than an offer: no new or renewal policy may be issued for a vehicle registered or principally garaged in Washington 'unless coverage is provided' against underinsured, hit-and-run and phantom vehicles - so it is included and charged for unless rejected. Motorcycles and motor-driven cycles are excepted.
- Uninsured versus underinsured in Washington testedOne coverage, not two. 'Underinsured motor vehicle' is defined to include a vehicle for which EITHER no liability bond or policy applies at all, OR the limits are less than the damages - so the uninsured case is folded into the underinsured definition. Washington's coverage is called underinsured coverage.
- Personal injury protection, how it attaches testedThe OPPOSITE structure from underinsured coverage: no policy may be issued 'unless personal injury protection coverage is offered as an optional coverage'. A named insured's written rejection is binding as to all levels of coverage and all persons who might otherwise have been insured.
- Negligence doctrine testedPURE COMPARATIVE FAULT. RCW 4.22.005: contributory fault 'diminishes proportionately the amount awarded as compensatory damages for an injury attributable to the claimant's contributory fault, but does not bar recovery' - and the rule applies 'whether or not under prior law the claimant's contributory fault constituted a defense or was disregarded under applicable legal doctrines, such as last clear chance'.
- Is there a fault percentage that bars recovery? testedNo. Contributory fault 'diminishes proportionately the amount awarded as compensatory damages... but does not bar recovery.' The section contains no 50% or 51% threshold, so a claimant 99% at fault still recovers 1%.
- Assigned risk plan for automobile testedThe Washington Automobile Insurance Plan. RCW 48.22.020 requires the Commissioner to approve a plan for the equitable apportionment of applicants who cannot obtain insurance by ordinary methods, and all licensed motor vehicle liability insurers must subscribe and participate. The OIC publishes 800-227-4659, and a producer may contact the plan on the applicant's behalf.
- Alternatives to buying auto liability insurance testedThree: self-insurance, available to a person in whose name MORE THAN 25 vehicles are registered in this state; a certificate of deposit of $60,000 in cash or qualifying securities, which the department will not accept unless accompanied by evidence of no unsatisfied judgments against the depositor in their county of residence; or a liability bond at the RCW 46.29.090 amounts.
- How underinsured coverage is rejected testedThe named insured OR SPOUSE may reject it in writing, and once rejected it stays out of supplemental and renewal policies unless a named insured or spouse later requests it in writing. Bodily injury and property damage may be rejected separately. The rejection form must carry prescribed bold wording above the signature line.
- Statutory PIP minimum benefit levels tested$10,000 medical and hospital; $2,000 funeral expense; $10,000 income continuation subject to $200 per week; $5,000 loss of services subject to $200 per week. On request the insurer must OFFER higher limits: $35,000 medical, $2,000 funeral, $35,000 income continuation at $700 per week, and $14,600 loss of services.
- Phantom-vehicle and hit-and-run claims testedNo physical contact is required, provided the facts are corroborated by evidence other than the covered person's own testimony AND the accident has been reported to the appropriate law enforcement agency within 72 hours.
CE & Renewal 12 facts
Continuing education and renewal rules — the numbers the exam loves.
- How long a Washington individual license lasts testedThe INITIAL term is fixed by rule: initial and reinstated individual licenses run 'from their date of issuance until the end of the licensee's next birth month plus one year' - so a first license lasts roughly 12 to 24 months depending on when it is issued. The ONGOING term is never stated in terms: RCW 48.17.170(3) leaves it to 'the time period established by the commissioner', WAC 284-17-423(2) fixes two years for BUSINESS ENTITY licenses only, WAC 284-17-425 was repealed in 2009, and neither the OIC's renewal, licensing or CE pages nor NIPR states a term for individuals. It is nonetheless a two-year cycle in practice, because WAC 284-17-224(1) requires CE to be completed 'within the 24-month period prior to the: (a) Expiration date of the license; (b) Date of late renewal; or (c) Date of the request for reinstatement' - a 24-month window measured against an individual licence's own expiration date.
- What the renewal date keys off testedThe licensee's birth month. Additional licenses issued to the same active licensee go onto the same renewal cycle as the first, so expiry dates do not stagger. Renew through NIPR from 90 days before expiration to 60 days after.
- CE hours per continuation period tested24 credit hours of approved insurance continuing education per license continuation period.
- Do CE hours increase with more lines? testedNo. WAC 284-17-224 names personal lines, life, disability, property, casualty and variable products together and sets one flat figure of 24 - it does not scale with the number of lines held.
- Ethics hours required testedThree of the 24 must be ethics education, 'during every license continuation period'.
- Who approves CE providers and courses testedThe Commissioner, directly. Provider applications and course approval forms go to the OIC's education mailbox, and a new course must be submitted at least 20 days before the first date it is offered for credit. Standards, approval, audit and revocation all sit with the Commissioner, and the fines in WAC 284-17-302 fall on PROVIDERS, not licensees. Providers report completions within 10 days.
- Product-specific training requirements testedThree gates, on three different licences. LONG-TERM CARE (disability line): a one-time course of no fewer than EIGHT hours before selling LTC, then no fewer than FOUR hours every 24 months - plus, to sell a Washington Supplemental LTC policy designed to pay after WA Cares benefits are exhausted, a one-time ONE-credit course. ANNUITIES (life line): a one-time FOUR-credit suitability course including the best interest standards, required after January 1, 2024, with no refresher. FLOOD (property AND casualty lines): a one-time course of at least THREE credit hours meeting National Flood Insurance Program guidelines before selling a federal flood policy. WAC 284-17-224(3) names all four together and requires the certificates to be kept for as long as the producer transacts the product, and not less than three years. Reciprocity: LTC training completed in any state satisfies Washington's; annuity training completed in another state satisfies Washington's if the course itself included the best interest standards.
- What happens if CE is not completed testedCE completion is a precondition of renewal, so the license expires and the late/termination/reinstatement cascade begins. There is no separate monetary penalty on the licensee for the CE failure itself - WAC 284-17-302's fines apply to education providers.
- Late renewal and reinstatement tiers testedSurcharges on the renewal fee: +50% for 1-30 days late, +100% for 31-60 days, +200% for 61 days to 12 months (reinstatement). On a $55 full-lines producer license that is $82.50, $110 and $165. If no request for late renewal arrives within 60 days of expiration the license AND all associated appointments and affiliations are terminated. Reinstatement between 61 days and 12 months additionally requires 24 CE hours including three of ethics - but NOT a re-examination: RCW 48.17.170(9) permits reinstatement within 12 months without retaking the exam. Past 12 months the license is not eligible for reinstatement at all.
- CE exemptions and waivers testedIndividuals holding only limited credit insurance, travel insurance or surety licenses are exempt from CE entirely. Waivers are available for military activation or medical reasons, and RCW 48.17.170(10) lets a producer facing military service or other extenuating circumstances ask the Commissioner to waive renewal procedures, examinations or sanctions. Nonresidents may satisfy Washington CE by meeting their home state's requirement where that state reciprocates.
- The CE completion window, and carryover testedNo carryover of excess credits. The rule sets ONE window with three possible anchor dates: courses 'must be completed within the 24-month period prior to the: (a) Expiration date of the license; (b) Date of late renewal; or (c) Date of the request for reinstatement.' The OIC's plain-language version of the same rule is 'between your last expiration date and current expiration date.'
- Flood insurance training testedTo sell a federal flood insurance policy a producer must hold a licence with the PROPERTY AND CASUALTY lines of authority and complete a one-time flood insurance course of at least THREE credit hours meeting National Flood Insurance Program guidelines. Property alone or Casualty alone does not reach it, and neither does Personal Lines. Neither OIC page states whether those three credits also count toward the 24-hour CE requirement.
Property 12 facts
Property insurance — rate regulation, residual markets, catastrophe exposure.
- Rate regulation system testedTwo tracks, and note the structure: RCW 48.19.060 is the GENERAL filing section, not a personal-lines provision - personal lines land on it because commercial property casualty is carved out elsewhere. On the general track the filing is PRIOR APPROVAL with a deemer: no filing takes effect within 30 days of filing, extendable by up to 15, and a filing is 'deemed to meet the requirements' unless disapproved inside that window. COMMERCIAL PROPERTY CASUALTY is carved onto a USE AND FILE track: the policy may be issued before the rates are filed, with filing due within 30 days after issuance. Medical malpractice and portable electronics are excluded from the commercial definition and go back to the general prior-approval track - RCW 48.19.060(3) says expressly that medical malpractice rate filings are subject to that section.
- Credit-based insurance scoring in personal lines testedPermitted but restricted, and the restriction differs by action. An insurer may NEVER cancel or nonrenew personal insurance based in whole or in part on credit history or an insurance score; it may DENY only in combination with other substantive underwriting factors. Six categories of data may never be used at all: absence of credit history where complete information was given, the number of inquiries, medical-coded collections, the new loan from a first purchase or finance of a vehicle or house, the type of card held, and the total available line of credit. Note the history: the OIC's 2021 emergency rule banning credit scoring outright was held to exceed the Commissioner's authority, final order entered August 29, 2022 and not appealed - the statutory scheme, not a ban, is what governs.
- Does the state have a FAIR Plan? testedYES. Washington operates the Washington Essential Property Insurance Inspection and Placement Program, whose stated purpose includes 'To establish a FAIR plan (fair access to insurance requirements), an industry placement facility and a joint reinsurance association.' It is created by RULE under the Commissioner's general authority rather than by an RCW chapter, which is why an RCW-only search misses it. The OIC publishes its number, 425-745-9808.
- Name of the FAIR Plan and what it writes testedThe Washington Essential Property Insurance Inspection and Placement Program - the name is given by WAC 284-19-010, captioned 'Title'. What it writes is defined separately at WAC 284-19-050(2): 'essential property insurance', meaning the coverage against direct loss to real and tangible personal property at a fixed location provided by the standard fire policy and extended coverage endorsement, plus vandalism and malicious mischief, and including builder's risk. Automobile and farm or manufacturing risks are excluded.
- Coastal windstorm pool or beach plan testedNone was located after reading chapter 284-19 WAC in full, the Title 284 WAC chapter list, the section lists of chapters 48.19 and 48.22 RCW, and the OIC's 2026 legislative summary and priorities. Washington's residual property mechanism is the FAIR Plan, whose 'essential property insurance' definition already reaches fire, extended coverage (which includes windstorm) and vandalism - so wind is handled inside the FAIR Plan rather than by a separate pool. Recorded as not located rather than as a finding of absence.
- Dominant catastrophe perils testedEarthquake (the Cascadia Subduction Zone and the Seattle Fault beneath the Puget Sound population centre), wildfire (especially east of the Cascades), and volcanic hazard. Earthquake coverage for a residence or personal property is expressly within the definition of 'personal insurance' for credit-history purposes, so the RCW 48.18.545 and RCW 48.19.035 restrictions apply to it. The OIC reports that homeowners nonrenewed or cancelled 'doubled since 2021, growing from 11,763 to 24,106'.
- What license you must hold to write surplus lines testedA resident surplus line broker 'must have and maintain' a Washington resident insurance producer license with PROPERTY AND CASUALTY lines of authority - it is a continuing condition, not just a prerequisite - and must pass a separate surplus lines examination. The license fee is $200. Two bonds are required: a $20,000 bond in favour of the state, and a second bond of $2,500 or 5% of the prior calendar year's surplus line premiums, whichever is greater, capped at $100,000 aggregate.
- Is a diligent-effort search required, and how many declinations? testedYes - the insurance 'must not be procurable, after diligent effort has been made to do so from among a MAJORITY of the insurers authorized to transact that kind of insurance in this state.' Washington sets NO numeric declination count; the test is qualitative. The broker certifies the supporting facts under penalty of license suspension or revocation and files the certification within 60 days after the insurance is procured. An exempt commercial purchaser may waive the requirement in writing after disclosure.
- Policy form filing and approval testedForms must be filed with and approved by the Commissioner before use, and are deemed approved 30 days after filing unless affirmatively approved or disapproved - EXCEPT that a filing carrying a certification by the insurer's chief executive officer or by an actuary who is a member of the American Academy of Actuaries may be used immediately after filing. Surplus lines contracts are exempt from form approval.
- Does Washington prescribe a standard fire policy? testedYes, by rule: no company may issue a basic contract of fire insurance 'other than on the form known as the 1943 New York Standard Fire Insurance Policy', subject to specified modifications for cancellation notice and inception and expiration times. Alternative plain-language forms are permitted only if they provide terms equal to or better than the standard policy. The rule is current - last amended by WSR 25-23-079, effective December 19, 2025.
- Wildfire nonrenewal moratorium testedNot a standing statute - an emergency-order mechanism. During a governor-proclaimed state of emergency the Commissioner may issue orders addressing claims reporting, premium grace periods, temporary postponement of cancellations and nonrenewals, and access to medical coverage (RCW 48.02.060(4)); the duration limit sits in the NEXT subsection - an order 'may remain effective for not more than sixty days unless the commissioner extends the termination date for the order for an additional period of not more than thirty days' (RCW 48.02.060(5)). The August 2026 wildfire order extended property nonrenewal notice from 60 days to 120, auto nonrenewal from 20 to 60, required 45-day premium grace periods and barred cancellation for nonpayment unless the policyholder directs it.
- Surplus lines premium tax tested2%, the same rate applicable to authorized foreign insurers. The SURPLUS LINE BROKER remits it to the state treasurer through the Commissioner on or before March 1 for the preceding calendar year, exclusive of sums collected to cover federal and state taxes and examination fees. The date insurance was transacted is the date coverage is bound or effective, whichever is later.
Guaranty 12 facts
The safety nets when an insurer fails — and their limits.
- Name of the life and disability guaranty association testedThe Washington life and disability insurance guaranty association - 'a nonprofit unincorporated legal entity... composed of the commissioner ex officio and each member insurer', under the immediate supervision of the Commissioner. It keeps a life insurance and annuity account (with life, annuity and unallocated annuity subaccounts) and a disability insurance account covering health benefit plans, disability policies and long-term care. The chapter's short title is at RCW 48.32A.005.
- Life death benefit limit tested$500,000 with respect to one life, regardless of the number of policies or contracts - and the same subdivision caps net cash surrender and net cash withdrawal values for life insurance at $500,000, as a sub-limit rather than a separate additional bucket. Subject to the $500,000 aggregate per-life ceiling and to the 'lesser of' rule.
- Life cash surrender or withdrawal value limit tested$500,000 - but note it shares the same subdivision as the death benefit rather than stacking on top of it: the statute says 'but not more than five hundred thousand dollars in net cash surrender and net cash withdrawal values for life insurance'.
- Annuity benefit limit tested$500,000 in the present value of annuity benefits, including net cash surrender and net cash withdrawal values, with respect to one life. Two exceptions sit alongside: $100,000 for each individual in a governmental retirement plan under IRC 401, 403(b) or 457 covered by an unallocated annuity contract, and $5,000,000 for one contract owner or plan sponsor whose plans own unallocated annuity contracts.
- Health and long-term care limit, life and disability association tested$500,000 for health benefit plans, $500,000 for disability income, and $500,000 for long-term care insurance - each stated separately in the statute, and all subject to the $500,000 aggregate per-life ceiling.
- Aggregate per-life ceiling, life and disability association tested$500,000 with respect to any one life across the categories - so the buckets do NOT stack. The whole scheme is also a 'lesser of': the association never owes more than the member insurer's contractual obligation. Two other ceilings sit alongside: $100,000 for each individual in a governmental retirement plan under IRC 401, 403(b) or 457 covered by an unallocated annuity contract (the one per-person figure that is not $500,000), and $5,000,000 for one owner of multiple nongroup life policies.
- Where the life and disability caps live testedIn the coverage-and-limitations section, RCW 48.32A.025(3)(b) - NOT in the chapter's definitions section at RCW 48.32A.045, which carries no dollar figure. Washington applies $500,000 to the life death benefit, to net cash surrender and withdrawal values, to disability income, to health benefit plans, to long-term care, and to the present value of annuity benefits; the limits were set by 2022 c 151 s 2. A long-term care RIDER on a life policy or annuity is treated as the same type of benefit as the base contract, not as long-term care.
- Name of the P&C guaranty association testedThe Washington insurance guaranty association - 'a nonprofit unincorporated legal entity' in which every member insurer must participate as a condition of transacting insurance in the state. It keeps three accounts: automobile insurance; longshore and harbor workers' compensation act insurance; and all other insurance to which the chapter applies. The OIC directs consumers to Western Guaranty Fund Services as the contact.
- P&C guaranty limits testedThree limits in one sentence: the association is obligated for 'only that amount of each covered claim which is IN EXCESS OF ONE HUNDRED DOLLARS and is LESS THAN THREE HUNDRED THOUSAND DOLLARS', and 'in no event' more than the FACE AMOUNT OF THE POLICY. The $100 works like a deductible, and note the statute says 'less than' - $300,000 itself sits outside the band, so the practical ceiling is $299,900 and the first $100 still comes off. The caps live in the obligations section, not in the definition of 'covered claim' at RCW 48.32.030(4), which carries no dollar figure at all.
- Is using a guaranty association as a sales inducement prohibited? testedYes, twice over. RCW 48.32A.185(1) bars any person 'including a member insurer, agent, or affiliate of a member insurer' from using the existence of the association for sales, solicitation or inducement, with a carve-out for entities that do not sell or solicit insurance. And RCW 48.30.075, in the unfair practices chapter, imposes an independent prohibition naming BOTH the Washington Insurance Guaranty Association and the Washington Life and Disability Insurance Guaranty Association.
- What the P&C guaranty fund excludes testedThe scope section excludes life, title, surety, disability, credit, mortgage guaranty, WORKERS' COMPENSATION and ocean marine. But note the exception: USL&H (federal act) covered claims ARE covered, for the full statutory obligations under the longshore act and WITHOUT the $300,000 cap, for insolvencies after April 20, 2005 - and the association keeps a dedicated USL&H account. State act out, federal act in. Also excluded: amounts due any reinsurer, insurer, pool or underwriting association as subrogation recoveries, and any claim filed after the bar date set by the liquidation court.
- Must a claimant exhaust their own policy first? testedYes - a person with a claim against their own insurer that is also a covered claim 'shall be required to exhaust first any right under that policy', and the guaranty payment is reduced by that recovery. Multi-state ordering: seek recovery from the association of the insured's residence, except that a first-party property claim goes to the association where the property is located and a workers' compensation or USL&H claim goes to the association where the claimant permanently resides.
Workers Comp 8 facts
Who must carry workers' compensation and what it pays.
- Is workers' compensation mandatory, and from whom? testedYes, and the market is monopolistic. RCW 51.14.010 in its entirety: 'Every employer under this title shall secure the payment of compensation under this title by: (1) Insuring and keeping insured the payment of such benefits with the state fund; or (2) Qualifying as a self-insurer under this title.' There is no third option - a private carrier may not write Washington state-act industrial insurance. What private carriers DO write is USL&H (federal act) coverage, which has its own Washington assigned risk plan at chapter 284-22 WAC.
- Employee count at which coverage is required testedThere is no minimum-headcount exemption; the duty attaches to employers with employees. RCW 51.12.020 excludes fourteen categories of employment instead, including domestic servants in a private home unless two or more are regularly employed 40 or more hours a week, sole proprietors and partners, bona fide corporate officers, jockeys, newspaper carriers, booth renters, and - worth knowing - INSURANCE PRODUCERS AND SURPLUS LINE BROKERS.
- Agency administering workers' compensation testedThe Washington State Department of Labor & Industries (L&I), which operates the State Fund. RCW 51.04.010 makes the system the exclusive remedy: civil actions for covered personal injuries are 'hereby abolished', and relief is provided 'regardless of questions of fault and to the exclusion of every other remedy'.
- Temporary total disability wage replacement rate tested60% to 75% of wages depending on marital status and number of dependents. Note the routing: RCW 51.32.090(1) does NOT contain the rate - it points to the schedule in RCW 51.32.060(1) and (2), which runs from 60% for an unmarried worker with no children to a maximum of 75%. The section now carries TWO schedules, split at a date of injury or disease manifestation on or after July 1, 2026; both run 60% to 75%.
- Cap on the monthly benefit testedThe monthly payment may not exceed the applicable percentage of the state average monthly wage computed under RCW 51.08.018 - stepped up over the 1990s to 120% after June 30, 1996, which is the operative figure.
- Deadline to file a claim testedInjury: one year after the day upon which the injury occurred. Occupational disease: two years following the date the worker had WRITTEN NOTICE from a physician or a licensed advanced registered nurse practitioner of the existence of the disease - not from onset, diagnosis or last exposure - and the notice itself must state that the worker has two years from its date. (The version of RCW 51.28.055 effective June 30, 2027 changes the job title to 'advanced practice registered nurse'; the two-year period and its trigger are identical in both.) Hearing-loss claims run on a different timeframe, and a late hearing-loss claim receives medical aid benefits only.
- Ways an employer may comply testedTwo only: insure with the state fund at Labor & Industries, or qualify as a self-insurer. Self-insurance is not a published net-worth threshold - RCW 51.14.020(1) requires 'sufficient financial ability' in the director's judgment plus a $150 application fee, and (2)(a) requires a security deposit 'not less than the employer's normal expected annual claim liabilities and in no event less than one hundred thousand dollars'. A letter of credit is acceptable only if the self-insurer has a net worth of not less than $500,000,000. An employer that ceases to be certified may not reapply within three years.
- Waiting period before time-loss is paid testedNo compensation for the day the injury was received or the three days following - UNLESS the disability continues for seven consecutive CALENDAR days from the date of injury, in which case those days are paid. Attempts to return to work in the first seven days do not break the continuity of the period of disability if the disability continues seven days after the injury.
Regulator 8 facts
Who regulates insurance here and what powers the office holds.
- Name of the state insurance regulator testedThe Washington State Office of the Insurance Commissioner (OIC) - not a 'department of insurance'.
- Title of the person who heads it testedInsurance Commissioner
- How the Insurance Commissioner is chosen testedELECTED - 'There shall be an insurance commissioner of this state who shall be elected at the time and in the manner that other state officers are elected.' The FOUR-YEAR TERM is not in Title 48: it comes from RCW 43.01.010, which lists the insurance commissioner alongside the governor, attorney general and other statewide elected officers.
- Where the state's insurance law is codified testedTitle 48 RCW, with producer licensing in chapter 48.17 and rules in Title 284 WAC. Workers' compensation is elsewhere entirely - Title 51 RCW and Title 296 WAC, administered by the Department of Labor & Industries rather than the OIC. RCW 48.01.030 declares the business of insurance 'affected by the public interest', placing the duty of 'preserving inviolate the integrity of insurance' on the insured as well as the insurer.
- Is the regulator structured unusually? testedYes in one respect that the exam tests: the Insurance Commissioner is a standalone, statewide ELECTED official rather than a director or commissioner appointed by the governor. Workers' compensation also sits outside the OIC entirely, with the Department of Labor & Industries under Title 51 RCW.
- The Insurance Fair Conduct Act testedA FIRST PARTY claimant unreasonably denied a claim for coverage or payment of benefits may sue in superior court. Treble damages are DISCRETIONARY ('may... increase the total award... to an amount not to exceed three times the actual damages'); reasonable attorneys' fees and actual and statutory litigation costs including expert witness fees are MANDATORY for a prevailing first party claimant. Enacted by voter Referendum Measure No. 67, approved November 6, 2007. Twenty days before filing, written notice must go to the insurer AND the Office of the Insurance Commissioner, and the limitation period is tolled for those 20 days. It does not apply to a health plan offered by a health carrier.
- Claim-handling clocks testedAcknowledge receipt of a claim within 10 WORKING days on an individual policy, 15 on a group contract - and payment within that period satisfies the acknowledgement. Complete the investigation within 30 days of notification of claim, 'unless the investigation cannot reasonably be completed within that time'. Accept or deny within 15 WORKING days after receipt of FULLY COMPLETED AND EXECUTED PROOFS OF LOSS - not after notice of the claim - citing the specific policy provision, condition or exclusion in writing. Deliver payment on a settled claim within 15 BUSINESS days of receiving release documents. Note that WAC 284-30-320 defines nineteen terms and does NOT define 'day', so the qualifier attached to each individual clock is the whole answer.
- Penalty amounts, and what each is for testedThe producer fine is 'not more than one thousand dollars' PER OFFENSE, reaching licensees and insurance education providers, in addition to or in lieu of suspension, revocation or refusal to renew; payable 'not less than fifteen nor more than thirty days from the date of the order'; nonpayment means the commissioner shall revoke, with collection by the attorney general and proceeds to the state general fund. Two figures that are often misattributed: the $250 in RCW 48.30.010(5) is a fine for violating a CEASE AND DESIST ORDER, and only for violations committed more than ten days after the order was received; and the $250 to $10,000 range in RCW 48.05.185 applies to INSURERS and their certificates of authority, not to producers. The general criminal penalty for the code is a gross misdemeanour, $10 to $1,000 and up to 364 days.
Cancellation 10 facts
When and how policies can be canceled or nonrenewed — heavily tested.
- Initial underwriting window testedIt exists in the AUTO statute and not in the general one. For private passenger automobile, a cancellation notice 'is not valid if sent more than sixty days after the contract has been in effect' unless the ground is nonpayment or the suspension, revocation or cancellation of a driver's license; and inside the first 30 days the insurer may cancel for any stated reason on 10 days' notice. RCW 48.18.290 and RCW 48.18.2901 were read in full and contain NO equivalent property window - the general statute regulates notice and reason and applies to policies cancellable at the insurer's option by their own terms.
- Cancellation notice, homeowners and other property tested60 days' written notice for a cause other than nonpayment - raised from 45 days by 2024 c 244 s 1, effective July 1, 2025. The notice must include the insurer's ACTUAL REASON for cancelling.
- Cancellation notice, private passenger auto testedA different statute and a shorter clock: 20 days' written notice for a permitted cause; 10 days if the cancellation is for nonpayment of premium or falls within the first 30 days the contract has been in effect. The reason must accompany or be included in the notice.
- Cancellation notice for nonpayment tested10 days under both the general statute and the auto statute. A fire policy cancelled under RCW 48.53.040 takes only 5 days.
- Cancellation notice for a cause other than nonpayment tested60 days generally; 90 days for medical malpractice, where the notice must additionally describe the significant risk factors that led to the underwriting action; 20 days for private passenger auto; 5 days for a fire policy cancelled under RCW 48.53.040.
- Notice required for nonrenewal tested60 days before expiration for policies subject to RCW 48.18.290(1)(a), with the actual reason stated; 90 days for medical malpractice; and 20 days for private passenger automobile, which has its own statute at RCW 48.18.292 rather than RCW 48.18.2901. Note the numbering trap: RCW 48.18.291 is AUTO CANCELLATION while RCW 48.18.2901 is GENERAL NONRENEWAL.
- Must the reason be stated proactively? testedYes, in the notice itself: 'The cancellation notice must include the insurer's actual reason for canceling the policy.' The same applies to nonrenewal and to auto. A copy of every cancellation, nonrenewal or offer to renew must also reach the producer on the account within five working days, and like notice must go to each mortgagee or other person shown by the policy to have an interest in a loss.
- Restrictions on the grounds for adverse action testedCredit history is an absolute bar on cancellation and nonrenewal of personal insurance, and may support a DENIAL only in combination with other substantive underwriting factors. Domestic abuse status may not be a basis for denial, refusal to insure or renew, cancellation, restriction, termination or a different rate - but RCW 48.18.550(2) expressly preserves adverse action based on loss history or medical condition. For private passenger auto after 60 days in force, only nonpayment or a driver's licence suspension, revocation or cancellation will support a cancellation. No general statutory ban on nonrenewing because of claims was located in RCW 48.18.289, .290, .291, .292, .293, .295, .297, .2901, .545 or .550.
- Unearned premium refund after cancellation testedNo later than 45 days after the date of the notice of cancellation to the insured - and only for homeowners', dwelling fire and private passenger auto. This is a REFUND clock, not a notice clock; it is the likely source of stale '45 day' notice claims.
- Do the cancellation rules reach surplus lines? testedNo. RCW 48.18.290 'shall not apply to contracts of life or disability insurance without provision for cancellation prior to the date to which premiums have been paid, or to contracts of insurance procured under the provisions of chapter 48.15 RCW' - surplus lines sit outside the statute entirely.
Licensing 37 facts
How you get and keep the license — exams, fees, applications, background checks.
- Is there a standalone life license/exam? testedYes — a standalone Life Producer exam and line of authority (Life includes annuities and may include disability income)
- Is there a standalone health license and exam? testedYes - the DISABILITY Producer exam and line of authority. Washington's word for accident and health coverage is 'disability': RCW 48.17.170(1)(b) defines it as coverage for accident, health, and disability or sickness, bodily injury, or accidental death, and it may include disability income benefits.
- Is there a combined life+health license/exam? testedYes — Washington offers a combined Life and Disability Producer exam in addition to the standalone Life and Disability exams
- Is there a personal lines license/exam? testedYes — a Personal Lines Producer exam and line, covering property and casualty sold to individuals for personal, noncommercial purposes
- Is P&C one combined license or split? testedBoth are offered. Washington sells standalone Property and Casualty exams AND a combined Property and Casualty Producer exam, plus a narrower Personal Lines exam covering property and casualty sold to individuals and families for primarily noncommercial purposes.
- Does the life license cover annuities? testedYes - the Life line covers life insurance, annuities and endowments, and may include disability income. But VARIABLE life and variable annuity products are a SEPARATE line of authority, and selling annuities requires the one-time four-credit suitability training including the best interest standards.
- Does the P&C license already include personal lines authority? testedYes — holding the Property and Casualty lines (or the combined P&C exam) covers personal-lines risks; standalone Personal Lines is a narrower, personal-only line
- Exam-based producer license types testedLife; Disability (Washington's word for accident and health); Property; Casualty; Personal Lines - each with a standalone exam - plus combined Life and Disability and combined Property and Casualty exams. Variable life and variable annuity products are a separate line of authority. Limited lines are surety, limited line credit insurance and travel; specialty lines are portable electronics, rental car and self-service storage.
- Exam administrator testedPSI Services LLC, on behalf of the OIC, at a PSI test centre or by remote proctoring. Candidate portal test-takers.psiexams.com/waoic; phone 855-205-5825. Eleven Washington test centres are listed with street addresses in the candidate bulletin, three of them on college campuses or at a flight school.
- Exam fee tested$38 for a single-line exam (Life, Disability, Property, Casualty, Personal Lines) and $55 for a combined-line exam (Life and Disability Producer Combo, Property and Casualty Producer Combo). Fees are not refundable or transferable, and each retake is a fresh registration and a fresh fee.
- License application fee tested$55 for a resident insurance producer license, and the same $55 at renewal. A nonresident individual producer license is also $55. Limited lines are $20, adjuster $50, surplus line broker $200, life settlement broker $100. A NIPR transaction fee applies on top.
- Fee per insurer appointment testedAppointments are filed by the insurer, which pays the per-appointment fee set under RCW 48.14.010. The insurer must file the notice within 15 days from the date the agency contract is executed or the first application is submitted, whichever is earlier.
- Passing score tested70% correct, stated in those words in the candidate bulletin. It is a raw percentage, not a scaled score - the bulletin contains no language about the score being neither the number nor the percentage of questions answered correctly.
- Minimum age to be licensed tested18. The Commissioner must also find that the applicant has committed no act that is a ground for denial under RCW 48.17.530, has paid the RCW 48.14.010 fees, and has passed the examinations for the lines applied for.
- Is pre-licensing education required? testedNO. HB 1061 (Chapter 21, Laws of 2023) removed it effective July 23, 2023; the prior requirement was 20 hours per line of authority, and RCW 48.17.115 no longer resolves. CAUTION: the PSI candidate bulletin, even in its 8/3/2026 revision, STILL prints 'Producers: Pre-license education is required to take the examinations for a full-line license.' That line is three years out of date.
- Pre-licensing hours and exceptions testedNone for any producer line since July 23, 2023. A study course is strongly recommended and is not legally required.
- Background check method testedA fingerprint-based criminal background check, for RESIDENT applicants only. The OIC states plainly that non-resident applicants have no fingerprint requirement. Fingerprints must be submitted electronically.
- Who takes the fingerprints testedIdentoGO by IDEMIA, with 'Washington Office of the Insurance Commissioner' selected as the State Agency; scheduling on 888-771-5097. The applicant books directly and IdentoGO transmits the prints - the OIC's guidance is 'You don't have to send us anything. IdentoGO will transmit your fingerprints electronically.' The fee is $49.00, described as the background-check fee plus IdentoGO's rolling fee, and the OIC's fee page footnotes an increase to $52.00 effective October 1, 2026.
- Are fingerprints repeated? testedNot at renewal - the background check belongs to the initial application, and a producer who stays continuously licensed is not re-fingerprinted. NIPR notes that prints are not required again if they were submitted within the last 12 months.
- Deadline to complete requirements after passing tested180 DAYS. The bulletin: 'If you do not submit all of the application requirements (application/fees, fingerprints, conviction documentation) within 180 days of passing this examination, you will be required to retake the examination.' Note that the clock runs to ALL requirements being complete, fingerprints included - not merely to filing the application.
- How long a passing score remains usable tested180 days from the date passed, and only if every application requirement is submitted inside that window. There is no 12-month score validity in Washington.
- Waiting period before retaking a failed exam testedNone beyond the same day: 'It is not possible to make a new examination appointment on the same day you have taken an examination.' The bulletin's own example is a candidate who tests unsuccessfully on a Wednesday, calls Thursday and retests as soon as Friday if space allows. A failing candidate receives a diagnostic report by email showing strengths and weaknesses by examination type.
- Limit on number of attempts testedNone: 'There is no limit to the number of times a candidate may retake an examination, if necessary, to pass.' Each attempt requires a new registration and a new fee.
- Notice required to reschedule without forfeiting the fee testedCancellation notice must be received 2 days before the scheduled examination date. Otherwise the fee is forfeited; a missed exam requires a new date and a new fee unless the Commissioner waives repayment because a serious emergency prevented attendance. Arriving late may also mean being refused admission and forfeiting the fee.
- Where you apply testedNIPR (nipr.com), for both resident and nonresident licenses; the OIC processes the license. Exam scheduling is through PSI. A NIPR transaction fee applies on top of the state fee.
- Are temporary licenses available? testedYes - 'The commissioner may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination.' Four circumstances: death or disability of a licensed producer (to the surviving spouse or court-appointed representative, to sell the business or train new personnel); death or disability of a business entity's designated individual (to a member or employee); a producer entering MILITARY SERVICE (to their designee); or any other circumstance where the Commissioner deems the public interest best served.
- Temporary license limits testedThe Commissioner may limit the temporary licensee's authority 'in any way deemed necessary to protect insureds and the public', may require a licensed sponsor to supervise, and may revoke if the interest of insureds or the public is endangered. The license terminates when the business is disposed of.
- Question counts and time limits testedSingle-line exams are 100 scored questions: 150 minutes for Life, Disability, Property and Casualty, but 135 minutes for PERSONAL LINES - the one row that breaks the pattern. Combined exams are 150 scored questions in 195 minutes. Unscored experimental items - one to ten, roughly 10% - are administered 'in addition to' those counts and count against the time.
- Order of operations for fingerprinting testedExam, then application, then fingerprints. PSI: 'Candidates DO NOT need to be fingerprinted BEFORE taking an exam.' The OIC: 'Prior to being fingerprinted, you must have submitted an insurance license application with the OIC,' and 'You will not be able to schedule your fingerprint appointment until we've received your application.' There is NO universal service code - IdentoGO needs the applicant's own OIC or NIPR transaction number, and NIPR advises allowing 36 to 48 hours after applying before scheduling.
- Is remote proctoring available? testedYes, and it is selected at scheduling. IMPORTANT AND RECENT: 'all Remote Proctored tests offered for the Washington Office of the Insurance Commissioner beginning August 3, 2026 will require a smartphone as a second camera security device.' A laptop or desktop is required as the test machine - smartphones and tablets are not allowed for that. No scratch paper, no breaks, no changing computers or spaces. Support line (844) 267-1017. PSI's separate remote-testing instruction sheet is stamped 7/1/2021 and contradicts the current bulletin on ID requirements; the bulletin controls.
- Identification required at the test centre testedONE form of photo identification, valid and unexpired, matching the name scheduled under. The accepted list is: state issued driver's license; state issued identification card; US Government Issued Passport; US Government Issued Military Identification Card; US Government Issued Alien Registration Card; Canadian Government Issued ID. Arrive 30 minutes early. Prohibited items - reference material, phones, cameras, computers, watches, non-religious headgear, bulky clothing, backpacks, food - may not be 'within the candidate's reach or line of sight'.
- Exam waivers testedRCW 48.17.175(1): a person previously licensed for the same lines in another state is not required to complete pre-licensing education or examination if currently licensed there, or applying within 90 days of that license's CANCELLATION, with good-standing certification or NAIC records. RCW 48.17.175(2): a person who moves to Washington must apply within 90 days of establishing legal RESIDENCE, and no pre-licensing education or examination is required for lines previously held. Two distinct windows with different triggers. The surplus line broker exam is waived for a current home-state resident surplus line broker, and the crop adjuster exam for a CAPP certificate holder. NO designation-based waiver (CLU, ChFC, CPCU, RHU) appears in RCW 48.17.110(2) or in the candidate bulletin - recorded as not located rather than as absent.
- Nonresident licensing testedThe applicant must be currently licensed as a resident and in good standing in their home state, submit the request and pay the fee - $55, the same as a resident. No Washington examination and no fingerprints. Where the lines do not map cleanly the Commissioner issues a 'substantially equivalent' license, and the nonresident's authority to transact insurance in Washington 'is limited to the scope of the license granted by the licensee's home state'. Home-state CE satisfies Washington's where that state reciprocates.
- Is appointment by an insurer required? testedYes - a producer 'shall not act as an agent of an insurer unless' appointed by that insurer. The INSURER files the notice of appointment within 15 days from the date the agency contract is executed or the first insurance application is submitted, whichever is earlier. On termination the insurer notifies the Commissioner within 30 days and sends the producer a copy within 15 days of doing so - by certified mail or overnight delivery if the termination was for cause under RCW 48.17.530 - and the producer then has 30 days to file written comments.
- How must a producer handle premium funds? testedAll premium and return-premium funds are received in a FIDUCIARY capacity and must be promptly accounted for and paid to whoever is entitled. They must be 'accounted for and maintained in a separate account from all other business and personal funds', and commingling is prohibited - EXCEPT that the producer may add their own funds for advancing premiums, establishing reserves for return premiums, or contingencies. The exception runs one direction only. Each willful violation is a misdemeanour, and diverting fiduciary funds is theft under chapter 9A.56 RCW.
- Duty to keep the OIC informed testedA licensee must notify the Commissioner of a change of address AND email within 30 days; failure may result in penalties under RCW 48.17.530 or RCW 48.17.560. Licensees must also reply promptly to a Commissioner inquiry.
- Grounds for denial, suspension or revocation testedThirteen grounds at RCW 48.17.530(1)(a)-(m), including providing incorrect, misleading, incomplete or materially untrue information in the license application; a FELONY conviction; improperly withholding, misappropriating or converting moneys received in the course of insurance business; having a license denied, suspended or revoked in any other state, province, district or territory; improperly using notes or reference material during a licensing examination; knowingly accepting insurance business from a person required to be licensed who is not; and obtaining a LOAN FROM AN INSURANCE CLIENT who is not a financial institution and not related by birth, marriage or adoption. The Commissioner retains enforcement authority after a license is surrendered or lapses.