WLDI - Washington Life and Disability Insurance Exam

Question 1: A newly issued health policy states that sickness beginning during the first several days after the effective date will not be covered, guarding against conditions the insured already had when applying. Which of the following provisions is this?

An elimination period

A probationary period

A grace period

A free look

Question 2: A Washington group life policy offers optional dependent coverage on an insured employee's spouse and children under the master contract. Which of the following states the limit Washington places on the amount of insurance written on any one dependent's life?

It carries no limit whatsoever

It may be twice the employee's amount

It may not exceed the employee's amount

It is capped at one thousand dollars

Question 3: A Washington health plan defines a special enrollment period triggered by a qualifying event such as marriage or loss of other coverage. Which of the following states the minimum length Washington law assigns to a special enrollment period under the health reform definitions?

Not less than fifteen days

Not less than thirty-one days

Not less than sixty days

Not less than ninety days

Question 4: A Washington producer wants to pay a satisfied client a modest thank-you gift for referring friends who might later buy insurance. Which of the following correctly states the limits Washington places on such referral compensation under the referral statute?

Any amount, if it is disclosed

Cash only, up to five hundred

Referral payments are entirely prohibited

One hundred cap, no condition, no cash

Question 5: A Washington producer seeks coverage from surplus line insurers and must first show a diligent effort to place the risk in the admitted market. Which of the following states the diligent-effort standard Washington actually applies before allowing a surplus line placement to proceed?

A majority of authorized insurers declined

Three written declinations are enough

A single declination from any insurer

No search effort is required

Question 6: A federal telemarketing rule defines an established business relationship that exempts certain calls from the do-not-call rules. Which of the following states the periods the federal rule uses for a purchase and for an inquiry when defining that established business relationship?

Ninety days; ten days

One year; thirty days

Two years; six months

Five hundred forty days; ninety days

Question 7: A health policy provision states that no lawsuit to recover on the policy may be brought until a stated period after proof of loss is filed, nor after a longer outer period has passed. Which of the following provisions is this?

Notice of claim

Time of payment of claims

Legal actions

Grace period

Question 8: An insurer formed under the laws of another state but doing business here is described by a term that distinguishes it from insurers chartered in this state or in another country. Which of the following describes such an insurer?

A domestic insurer

A foreign insurer

An alien insurer

An admitted insurer

Question 9: A Washington resident producer relocates to a different state and must update the commissioner about the change of legal residence. Which of the following states the deadline and what else Washington requires of a producer who changes state of legal residence?

Thirty days, no fee, no new application

Ninety days, with a full new application

Ten days, with a transfer fee paid

No notice to the commissioner

Question 10: An advisor sizes a client's life insurance by adding together specific obligations the family would face at the insured's death, such as final expenses, outstanding debts, and an education fund, rather than capitalizing future income. Which of the following approaches is this?

The estate tax approach

The human life value approach

The needs approach

The buy-sell approach

Question 11: A term life policy gives the insured the right to continue the coverage for another term at the end of the current one without proving insurability, though the premium rises with the insured's age. Which of the following features is this?

Waiver of premium

Convertibility

Reinstatement

Renewability

Question 12: A policyowner transfers only a limited interest in a life policy to a bank as security for a loan, so that if the loan is unpaid at death the bank is repaid from the proceeds before the beneficiary. Which of the following describes this transfer?

An absolute assignment

A collateral assignment

An irrevocable beneficiary change

A spendthrift election

Question 13: A managed care plan covers care only when members use its network of contracted providers and pays nothing for care received outside that network, except in an emergency. Which of the following plans is this?

An indemnity plan

A preferred provider organization

An exclusive provider organization

A point-of-service plan

Question 14: A life policy provision states that if the insured's age was misstated on the application, the death benefit will be adjusted to the amount the premium paid would have purchased at the correct age. Which of the following provisions is this?

Suicide provision

Incontestability

Reinstatement

Misstatement of age

Question 15: A Washington disability insurer files its rates and the commissioner reviews them against the statutory standard before they may be used. Which of the following correctly states the three-part standard Washington applies when judging whether an insurer's rates are lawful under the rating chapter?

Approved by a majority of insurers

Only that they cover expected losses

Not excessive, inadequate, or unfairly discriminatory

Whatever the competitive market will bear

Question 16: A health policy provision requires the insured to notify the insurer that a loss has occurred within a stated number of days after the loss, the first formal step in the claim process. Which of the following provisions is this?

Time of payment of claims

Proof of loss

Legal actions

Notice of claim

Question 17: An insurer is organized as a corporation owned by shareholders who provide its capital and receive stockholder dividends, and it sells insurance to the public for profit. Which of the following types of insurer is this?

A stock insurer

A mutual insurer

A fraternal society

A reciprocal exchange

Question 18: An insurer sets the premium for a large employer's group health plan based on that specific group's own past claims history, adjusting the rate to reflect the group's actual loss experience. Which of the following rating methods is this?

Attained-age rating

Community rating

Experience rating

Manual rating

Question 19: A single life insurance contract covers two individuals and pays its death benefit when the first of the two insureds dies, a design sometimes used by business partners. Which of the following policies is this?

Joint life, first-to-die

Survivorship life

Family maintenance policy

Juvenile life

Question 20: A producer licensed and in good standing in another state applies to sell insurance in Washington as a nonresident. Which of the following states the condition under which Washington issues that nonresident license without requiring the applicant to sit for its own examinations?

Only after passing Washington examinations

Never, because nonresidents cannot qualify

Only if the producer relocates here

When the home state grants reciprocity

WLDI Washington Life and Disability Insurance Exam - Set 3 - Part 1