Washington State Insurance Practice Exam

Who is responsible for paying an agent’s appointment fees in Washington State?

1. The agent

2. The client

3. The insurer

4. The state insurance department

The correct answer is: The agent

In Washington State, the responsibility for paying an agent's appointment fees typically falls on the agent themselves. This is a common practice in the insurance industry where agents are required to cover the costs associated with getting appointed by insurance companies. It is important for agents to understand this financial aspect of their profession as they build relationships with insurers and clients. The other options are not correct because: - The client is not responsible for the agent's appointment fees as this is a cost that is usually borne by the agent. - The insurer is not typically responsible for paying the agent's appointment fees, as these are considered part of the agent's business expenses. - The state insurance department does not usually cover the agent's appointment fees; it is the agent's responsibility to manage these costs.