Washington State Insurance Exam: Complete Guide

The Washington state insurance licensing exam is your gateway to practicing in one of the country's most economically distinctive insurance markets — no state income tax, a massive technology industry, a state-based health exchange, and geography ranging from the Cascades to the Olympic Peninsula creating genuine P&C complexity. Washington's exam has characteristics that distinguish it from most other states: a relatively low $35-52 fee, both in-person and well-established remote testing options, a single 70% passing threshold (not Arizona's two-section independent scoring), and Washington-specific content drawn from RCW Title 48 that reflects some genuinely distinctive state insurance laws including the elected Commissioner, Health Care Service Contractors, and Washington Healthplanfinder.

Here's the complete guide to the Washington state insurance exam.

Who Administers the Exam

Washington insurance licensing exams are administered by PSI Services LLC under contract with the Office of the Insurance Commissioner (OIC).

PSI Washington contact:

Website: test-takers.psiexams.com (select WA Office of the Insurance Commissioner)

Phone: (855) 205-5825

Pay exam fee at registration

Testing Options — In-Person and Remote

Washington offers genuine choice between testing formats:

PSI testing centers (in-person):

Seattle area (Bellevue/Factoria)

Spokane

Tacoma

Olympia

Everett

Bremerton

Ellensburg (Central Washington University campus)

Richland

Also available at PSI centers in neighboring states

PSI Bridge remote testing: Washington was an early national pioneer of remote insurance exam proctoring — OIC launched remote testing in 2020, well ahead of most states. All Washington insurance exams are available remotely, and remote testing is mainstream and widely used.

Remote requirements:

Compatible laptop or desktop computer (not smartphone or tablet)

Webcam and stable internet connection

Private, quiet space with clean desk

Log in 30 minutes before exam time for proctor check-in

Verify system compatibility before scheduling

Choosing your format: Both options deliver identical exam content and requirements. Remote testing is particularly practical for candidates in eastern Washington, the Olympic Peninsula, or other areas where driving to a PSI center requires significant travel.

Washington Exam Fees and Specifications

Single passing score: Washington uses a single 70% threshold — the exam as a whole must score 70%+. Unlike Arizona's two-section independent scoring, Washington's score is combined.

Unscored pretest questions: Washington exams include unscored experimental questions mixed throughout. You won't know which questions are unscored — treat every question seriously.

Combination exam retake note: If you fail one part of a combination exam (e.g., the general section but not the state section), you are required to retake the combination exam — but only need to pass the section you previously failed. Credit for the passed section is preserved temporarily.

Results: Displayed on screen immediately after completing the exam. Score report emailed. Failing candidates receive a diagnostic report showing performance by content area.

Military veterans: May receive reimbursement of exam fees. Contact the U.S. Department of Veterans Affairs at benefits.va.gov or call (888) 442-4551.

Washington Exam Content — Life Exam

The Life exam (100 questions, 2 hours 30 minutes) covers:

Federal Laws and Regulations:

HIPAA provisions affecting life insurance administration

Federal tax treatment of life insurance

ERISA overview and application

Washington Laws, Rules, and Regulations Common to Life and Disability:

Commissioner authority and structure (elected position, 4-year term)

OIC regulatory powers and duties

Producer licensing requirements under RCW 48.17

Unfair trade practices under RCW 48.30

Rebating provisions ($25 threshold for what constitutes a rebate)

Commissioner fine authority ($1,000 per offense)

Washington Laws Pertinent to Life Insurance Only:

Washington life insurance policy requirements

Free-look periods under Washington law

Replacement regulations for life insurance

Washington-specific life insurance policy provisions

General Insurance Concepts:

Risk and insurance principles

Types of insurers and their structures

Agency law and producer authority

Insurance contracts (insurable interest, consideration, etc.)

Life, Accident and Health Insurance Basics:

Life insurance fundamentals

Risk classification and underwriting

Types of Life Insurance Policies:

Term life (level, decreasing, renewable, convertible)

Whole life (straight life, limited pay, single premium, modified)

Universal life and indexed universal life

Variable life and variable universal life

Group life insurance

Business life insurance uses (key person, buy-sell)

Life Insurance Policy Provisions, Options, and Riders:

Grace period, reinstatement, incontestability

Beneficiary designations

Non-forfeiture options (cash value, reduced paid-up, extended term)

Policy loans and assignments

Settlement options

Common riders

Annuities:

Fixed, variable, and indexed annuities

Immediate vs. deferred

Accumulation and payout phases

Tax treatment

Washington Exam Content — Disability Exam

The Disability exam (100 questions, 2 hours 30 minutes) is consistently reported by Washington candidates as the harder of the two L&D exams. It covers:

Federal Laws and Regulations:

HIPAA (portability and privacy)

ERISA (group benefit plan regulation)

ACA (essential health benefits, guaranteed issue, age rating)

Medicare (Parts A, B, C, D)

COBRA (continuation coverage)

Washington Laws Common to Life and Disability:

Same OIC and producer licensing provisions as Life exam

Washington Laws Pertinent to Disability Insurance Only:

Marketing methods and practices for health insurance in Washington

Washington Health Insurance Reform provisions

Washington-specific policy clauses, exclusions, and provisions

Health Care Service Contractors (HCSCs) under RCW 48.44 — Washington-distinctive entity type

Health Maintenance Organizations (HMOs) under RCW 48.46

Health Insurance Coverage Access Act (RCW 48.62)

Washington Healthplanfinder — state-based marketplace

Apple Health — Washington's Medicaid program

Network adequacy standards (WAC 284-170-200)

Balance billing protections

Mental health parity

Individual Accident and Health Insurance Policy Provisions:

Uniform provisions

Common exclusions and limitations

Coordination of benefits

Continuation and conversion rights

Disability Income Insurance:

Own-occupation vs. any-occupation definitions

Elimination periods and benefit periods

Group disability income

Medical Plans:

HMO, PPO, POS, EPO structures

HSAs and HRAs

Group Health and Senior Health:

Group underwriting and continuation (COBRA)

Medicare and Medicare supplement (Medigap)

Long-term care insurance

Washington Exam Content — P&C Exam

The P&C exam(s) cover Washington-specific property and casualty law plus national P&C content:

Washington P&C State Law Content:

OIC authority (same Commissioner structure)

Washington auto insurance requirements (at-fault state; 25/50/10 minimums)

Financial responsibility law (RCW Chapter 46.29)

Washington Property and Casualty Insurance Guaranty Association (RCW 48.32) — covers claims above $100 and less than $300,000

Washington unfair claims settlement practices (RCW 48.30.010; WAC 284-30-330)

Notice of nonrenewal requirements (45 days advance notice for property)

Compensation disclosure retention (5 years)

Commissioner fine authority

Residency and SR-22 provisions

P&C National Content:

Dwelling policies

Homeowners policies

Personal automobile policies (PAP)

Commercial automobile

Commercial property policies

Commercial General Liability (CGL)

Businessowners Policy (BOP)

Workers' compensation

Exam Day Logistics

In-person testing:

Arrive at PSI testing center at your scheduled appointment time

Bring one valid government-issued photo ID with signature — name must exactly match registration

No phones, watches, calculators, or personal items in testing room

Results displayed on screen immediately

Remote testing:

Log into PSI Bridge 30 minutes before exam time

Show government ID to proctor via webcam

Proctor monitors via webcam and screen sharing throughout

Private room, clean desk, stable internet required

Results displayed on screen immediately upon completion

5 Frequently Asked Questions

• Is the Washington Disability exam harder than the Life exam? Yes — Washington candidates and instructors consistently report the Disability exam as harder. Health and disability products are simply more complex than life insurance products, and the federal regulatory overlay (ACA, HIPAA, ERISA, Medicare) adds significant content volume.
• Is the Washington exam scored as two separate sections or one combined score? One combined score. Washington uses a single 70% threshold — your overall exam score must reach 70%. Unlike Arizona's two-section independent scoring model, Washington's score is combined across general and state-specific content.
• What happens if I fail one part of a combination exam? If you fail one section (general or state-specific) of a combination exam (Life & Disability or P&C combined), you must retake the combination exam — but you only need to pass the section you previously failed. Credit for the passed section is preserved temporarily.
• What is Apple Health and why does it appear on Washington's Disability exam? Apple Health is Washington's Medicaid program — the state-branded name for Washington's Medicaid/CHIP coverage. Alongside Washington Healthplanfinder (state-based marketplace), Apple Health is tested as part of Washington's distinctive health coverage landscape.
• What are the most Washington-specific topics on the P&C exam? The elected Commissioner structure, Washington auto minimums (25/50/10), the Washington P&C Guaranty Association limits ($100-$300,000 per claim), the 45-day nonrenewal notice for property policies, compensation disclosure retention (5 years), and the Commissioner's fine authority ($1,000 per offense) are the most distinctively Washington state-specific P&C topics.

Walk Into the Washington Exam Prepared

Both the general content and Washington-specific state law require dedicated preparation. At JustInsurance, our Washington exam prep courses cover the full PSI content outline with specific depth on Washington-distinctive topics — HCSCs, Washington Healthplanfinder, Apple Health, the elected Commissioner, and Washington-specific provisions.

Enroll today and prepare for Washington's exam with the right materials.