WLDI - Washington Life and Disability Insurance Exam

Question 1: A Washington Medicare beneficiary loses her coverage when a Medicare Advantage plan withdraws, and she seeks a Medigap policy under a guaranteed-issue right. Which of the following states how long she has to apply after the date her prior coverage terminates?

Not later than thirty days

Not later than six months

Not later than ninety days

Not later than sixty-three days

Question 2: A person withdraws money from a nonqualified deferred annuity before annuitizing, and under the general tax rule the earnings come out first and are taxed as ordinary income, with a penalty if taken too early. Which of the following describes this taxation?

Last-in, first-out with an early penalty

First-in, first-out with no tax

Capital gains treatment throughout

Fully tax-free at any age

Question 3: An employer group health plan requires that every eligible employee be covered because the employer pays the entire premium, and no employee contributes toward the cost. Which of the following describes this plan arrangement?

A franchise plan

A contributory plan

A blanket plan

A noncontributory plan

Question 4: A health policy provision requires the insured to submit written proof of the loss within a stated time after the loss occurs so the insurer can determine what it owes. Which of the following provisions is this?

Time of payment of claims

Notice of claim

Proof of loss

Physical examination

Question 5: An annuity payout continues income over the lives of two people, such as a retired couple, and keeps paying, sometimes in a reduced amount, until the second of the two has died. Which of the following payout options is this?

Joint and survivor

Straight life

Period certain

Cash refund

Question 6: A group life plan issues each covered employee a document summarizing the coverage and stating the employee's rights, while the actual contract remains a single master agreement held by the employer. Which of the following is the document given to the employee?

A buyer's guide

The master policy

A conditional receipt

A certificate of insurance

Question 7: After an insurer becomes insolvent, the Washington guaranty association steps in to continue the covered policies, but one policyholder then stops paying premiums on his policy. Which of the following states how that nonpayment affects the association's obligation under the statute?

Nonpayment within thirty-one days ends the obligation

Coverage continues for a full year regardless

Nonpayment never affects the obligation

The association must pay all future premiums

Question 8: A couple buys one life insurance policy covering both spouses that pays its death benefit only when the second of the two insureds dies, a design often used to fund estate taxes. Which of the following policies is this?

Family income policy

Joint first-to-die life

Survivorship life

Juvenile life

Question 9: A person in Washington represents an insurer that holds no certificate of authority in the state, signing up several clients. Which of the following describes how the code treats each such act and the maximum fine it authorizes for representing an unauthorized insurer?

Separate offense; up to twenty-five thousand

A single offense capped at one thousand

No penalty absent proven harm

A civil warning with no fine

Question 10: A policyowner elects to receive each annual dividend as a direct payment from the insurer, taking the money rather than applying it to the policy in any way. Which of the following dividend options is this?

Reduction of premium

Paid-up additions

Accumulation at interest

Cash payment

Question 11: A Washington resident insured under an individual life policy dies, and the beneficiary asks when interest on the death proceeds begins to accrue. Which of the following states the date from which Washington law measures interest on individual life death benefits?

When proof of death is received

From ninety days after the claim

From the date of death

From the date the policy issued

Question 12: A Washington producer wants to begin selling long-term care insurance and asks about the specific training the law requires before making the very first sale. Which of the following states the one-time initial long-term care training requirement under the statute?

Four hours completed each year

No training is required at all

Twenty-four hours before selling

Eight hours, one time, before selling

Question 13: A private insurance policy is designed to pay the deductibles, coinsurance, and other gaps left by original Medicare, sold to beneficiaries who want to reduce their out-of-pocket costs. Which of the following products is this?

A Medicare supplement policy

A Medicare Advantage plan

A long-term care policy

A disability income policy

Question 14: An applicant intentionally makes a false statement of a material fact on an application, and because the insurer relied on it in issuing coverage, the insurer may void the contract. Which of the following does this describe?

A waiver of rights

An immaterial error

A warranty of future acts

Material misrepresentation

Question 15: A particular settlement provision protects a beneficiary's income by preventing the beneficiary from assigning or borrowing against the retained proceeds and by shielding those proceeds from the beneficiary's own creditors. Which of the following clauses does this?

The entire contract clause

The incontestability clause

The spendthrift clause

The insuring clause

Question 16: A Washington producer negotiates and services policies for clients but does not act as the agent of any particular insurer in doing so. Which of the following describes whether that producer must hold an appointment under the Washington rule?

No appointment is required to act

An appointment is always required

Two appointments are required

An appointment is required within ten days

Question 17: An applicant for a Washington resident producer license asks about the minimum age the commissioner must find before the license may be issued to an individual applicant. Which of the following states that minimum age under the licensing statute?

Sixteen years

Eighteen years

Twenty-one years

No minimum age applies

Question 18: A prospective insured is judged an average risk with typical health and habits, and the insurer offers coverage at its ordinary rate, the benchmark against which better and worse risks are measured. Which of the following classifications is this?

Rated

Preferred

Substandard

Standard

Question 19: A federal civil enforcement action targets a person who engaged in the business of insurance in violation of the federal insurance-crimes statute. Which of the following states how the maximum civil penalty for each violation is measured under that federal provision?

A flat ten thousand dollars per violation

One percent of the insurer's assets

Fifty thousand or compensation, whichever greater

No civil penalty is authorized

Question 20: A disability policy sold to a business reimburses the ongoing fixed costs of running the office, such as rent and staff salaries, while the owner is disabled and unable to work. Which of the following coverages is this?

Disability buy-sell

Business overhead expense

Key person disability

Residual disability

WLDI Washington Life and Disability Insurance Exam - Set 2 - Part 1