WA Laws + Producer Regulation
30%of exam
P&C Fundamentals
25%of exam
Risk/peril/hazardIndemnity/ACV/RCVContract lawPolicy structureInsurable interestSubrogation
Property Lines
20%of exam
Dwelling DP-1/2/3HO formsCommercial propertyBOPFarm/ranchFAIR Plan
Casualty Lines
25%of exam
PAP partsCommercial autoCGL A/B/CWorkers comp L&IUmbrella/suretyFederal TRIA/NFIP
Quick Facts
- Exam
- WA P&C Combo
- Credential
- WA P&C Producer
- Time
- 195 min
- Pass
- 70%
- Questions
- 150
- Fee
- $55
- Provider
- PSI
WA Licensing Pipeline
Test > Print > Apply > License > CE
Test: 70% passPrint: fingerprintsApply: 180 daysLicense: 2-yr termCE: 24/3 ethics
WAIP vs FAIR Plan
WAIP
- Auto assigned-risk pool
- AIPSO administers
- Insurers must participate
FAIR Plan
- Property residual market
- 1968 association
- Fire/extended coverage
Auto vs property residual
Admitted vs Surplus Lines
Admitted
- Licensed in WA
- Guaranty fund backs
- Standard market
Surplus lines
- Non-admitted
- Diligent effort first
- No guaranty fund
Licensed vs not
Producer Licensing
- Age 18
- Minimum to apply
- No PLE
- Removed July 2023
- 180 days
- Apply post-pass window
- Fingerprint
- IdentoGO background
- DRLP
- Designated responsible licensed producer
- Appointment
- Insurer appoints producer
- 365 days
- Reinstatement window
CE + Renewal Cycle
- 24 hrs
- CE every 2 years
- 3 ethics
- Required in 24
- Biennial
- Renews by birth month
- Birth month
- Last day expires
- Reinstatement
- Within 12 months lapse
- Reapply
- After 12 months lapsed
WA Auto + PIP Rules
- 25/50/10
- Compulsory liability
- PIP $10k
- Offer + written reject
- UM/UIM
- Offer; written reject
- WAIP
- Assigned-risk auto pool
- Tort state
- At-fault auto system
- Financial resp
- Mandatory liability
WA Property + Cancellation
- FAIR Plan
- Residual property market
- 60 days
- Cancel/nonrenew notice
- 10 days
- Nonpayment notice
- Earthquake
- Disclosure required
- Wildfire
- Risk-score transparency
- Credit scoring
- RCW 48.18.545 limits
Unfair Trade Practices
- RCW 48.30
- Unfair practices statute
- WAC 284-30
- Claim-handling rules
- Rebating
- Inducement; prohibited
- Twisting
- Misleading replacement
- Defamation
- False insurer statements
- Prompt claims
- Acknowledge + investigate
Guaranty + Surplus Lines
- WPCIAA
- Guaranty association
- Insolvency
- Pays covered claims
- Surplus lines
- Non-admitted insurers
- Diligent effort
- Try admitted first
- Fiduciary
- Producer holds premiums trust
- Commingling
- Mixing funds; prohibited
Risk Handling
Avoid > Reduce > Retain > Transfer
Avoid: never engageReduce: lower oddsRetain: deductibleTransfer: buy insurance
ACV vs RCV
ACV
- Minus depreciation
- Lower payout
- Lower premium
RCV
- No depreciation
- Full replace cost
- Higher premium
Depreciation vs replace
Risk + Perils + Hazards
- Pure risk
- Loss or no loss
- Speculative
- Loss/no-loss/gain; uninsurable
- Peril
- Cause of loss
- Hazard
- Increases peril odds
- Physical
- Tangible condition
- Moral
- Intentional fraud
- Morale
- Careless indifference
- Law large #
- Predicts aggregate losses
Contract Characteristics
Adhesion | Aleatory | Unilateral | Conditional
Adhesion: insurer draftsAleatory: chance exchangeUnilateral: one promiseConditional: insured complies
Indemnity + Valuation
- Indemnity
- Restore pre-loss; no profit
- ACV
- RCV minus depreciation
- RCV
- Replace no depreciation
- Valued policy
- Agreed amount paid
- Subrogation
- Insurer sues at-fault
- Salvage
- Insurer takes destroyed property
- Coinsurance
- Insure to value
- Insurable interest
- At time of loss
Hazard Types
Physical | Moral | Morale
Physical: tangibleMoral: intentional fraudMorale: careless
Contract Law + Authority
- 4 elements
- Agreement/consideration/competent/legal
- Adhesion
- Insurer drafts; ambiguity vs insurer
- Aleatory
- Unequal exchange
- Unilateral
- Only insurer promises
- Conditional
- Insured must comply
- Express authority
- Written in contract
- Implied
- Reasonably necessary
- Apparent
- Public belief
Policy Structure + Conditions
- Declarations
- Who/what/limits
- Insuring agreement
- Broad promise
- Definitions
- Defined terms
- Conditions
- Duties after loss
- Exclusions
- What is not covered
- Endorsement
- Modifies policy
- Deductible
- Insured retains layer
- Sub-limit
- Cap on subset
HO-3 vs HO-5
HO-3
- Open peril dwelling
- Named peril contents
- Cheaper premium
HO-5
- Open peril both
- Broader contents
- Higher premium
Dwelling open vs both open
Property Form Picker
- Owner-occupied home→HO-3 or HO-5(Open peril)
- Renters contents only→HO-4(Named peril)
- Condo unit owner→HO-6(Walls-in)
- Older home replacement→HO-8(Modified coverage)
- Rental/seasonal dwelling→DP-1/2/3(Landlord)
- Small low-hazard biz→BOP(Package)
- Large commercial risk→CPP + BPP(Commercial)
- Uninsurable standard market→FAIR Plan(Residual)
Dwelling Policy Forms
- DP-1
- Basic named perils
- DP-2
- Broad named perils
- DP-3
- Open peril dwelling
- Cov A
- Dwelling
- Cov B
- Other structures
- Cov C
- Personal property
- Cov D
- Fair rental value
- Cov E
- Personal liability
Named vs Open Peril
Named peril
- Listed perils only
- Burden on insured
- HO-2/DP-1
Open peril
- All except exclusions
- Burden on insurer
- HO-3/DP-3
Listed vs excluded
Homeowners Forms
- HO-2
- Broad named perils
- HO-3
- Open peril dwelling
- HO-4
- Renters contents
- HO-5
- Comprehensive open
- HO-6
- Condo unit owners
- HO-8
- Modified coverage older homes
- Section I
- Property coverage
- Section II
- Liability coverage
Commercial Property + BOP
- CPP
- Commercial package
- BPP
- Building/contents form
- Builders risk
- Construction property
- Business income
- Lost profits coverage
- Extra expense
- Continuing ops cost
- Cause of loss
- Basic/broad/special
- BOP
- Small biz package
- Inland marine
- Goods in transit
PAP Coverage Parts
A=Liability | B=Med | C=UM | D=Physical
A: BI/PD liabilityB: medical paymentsC: UM/UIMD: collision/OTC
Occurrence vs Claims-Made
Occurrence
- Triggers when harm happens
- No tail needed
- Common in CGL
Claims-made
- Triggers when claim filed
- Retroactive date matters
- Tail coverage
When harm vs when filed
PAP Coverage Picker
- At-fault injures others→Part A liability(BI/PD)
- Insured injured in own car→Part B MedPay(Small limits)
- Hit by uninsured driver→Part C UM/UIM(WA offer)
- Vehicle physical damage→Part D(Collision/OTC)
- Pedestrian injury no-fault→PIP(WA offer + reject)
- Upset/impact loss→Collision(Deductible)
- Theft/glass/hail/fire→OTC(Other-than-collision)
Personal Auto Policy
- Part A
- Liability BI/PD
- Part B
- Medical payments
- Part C
- UM/UIM
- Part D
- Physical damage
- Collision
- Upset or impact
- OTC
- Other-than-collision
- PIP
- WA offer + written reject
- Endorsements
- Modify auto policy
CGL Coverage Picker
- Bodily injury on premises→Coverage A(BI/PD)
- False arrest/ad harm→Coverage B(Personal injury)
- Minor injury no suit→Coverage C(Medical payments)
- Product causes harm→Products/completed ops(A coverage)
- Assumed written contract→Contractual liability(Endorsement)
Commercial Auto Symbols
- Symbol 1
- Any auto liability
- Symbol 2
- Owned autos only
- Symbol 7
- Specifically described
- Symbol 8
- Hired autos
- Symbol 9
- Non-owned autos
- Hired
- Rented/leased/borrowed
CGL Coverages
- Cov A
- Bodily injury/property damage
- Cov B
- Personal/advertising injury
- Cov C
- Medical payments
- Occurrence
- Triggers when harm happens
- Claims-made
- Triggers when claim filed
- Premises/ops
- On-site injury
- Products
- Completed-operations harm
- Contractual
- Assumed liability
WA Workers Comp
- Title 51 RCW
- WC statute
- L&I
- Exclusive state fund
- No private WC
- Insurers not authorized
- Self-insurer
- Qualify to self-insure
- Exclusive remedy
- Bars employee suit
- Benefits
- Medical/wage/rehab/death
- Intentional tort
- Lawsuit exception
Umbrella + Federal + Specialty
- Umbrella
- Excess over liability
- Surety bond
- Three-party guarantee
- TRIA
- Terrorism backstop
- NFIP
- Federal flood program
- D&O/E&O
- Management/professional liability
- Cyber
- Data-breach liability
- Farm/ranch
- Specialty ag package
- Mobile home
- Specialty property form
Common Traps
Moral vs Morale Hazard
Moral = intentional fraud ≠ Morale = careless indifference
Insurable Interest Timing
P&C: at time of loss ≠ Life: at inception only
25/50/10 Stacking
Per-person BI cap ≠ Per-accident BI aggregate
PIP + UM/UIM Offer Rule
Must be offered ≠ Reject only in writing
180-Day Post-Exam Window
File app within 180 ≠ 90/365 days wrong
Prelicensing Removed 2023
No required coursework ≠ Content outline unchanged
Cancellation Notice
60 days standard ≠ 10 days nonpayment only
National Default vs WA Exception
Apply national first ≠ Then check WA statute
Last Minute
- 1.150 items, 195 min, 70% pass
- 2.WA law = 45 items = 30%
- 3.Auto = 25/50/10
- 4.PIP $10k: offer + written reject
- 5.CE: 24h/2yr/3 ethics
- 6.Apply within 180 days
- 7.RCW 48 + WAC 284
- 8.OIC = elected Commissioner
- 9.No prelicense ed since 2023
- 10.L&I exclusive WC state fund
- 11.60-day cancel notice (10 nonpay)
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