WLDI - Washington Life and Disability Insurance Exam

Question 1: In a major medical plan, the fixed amount the insured must pay out of pocket each year before the plan begins to pay its share of covered expenses is set by a specific plan feature. Which of the following features is this?

The deductible

The coinsurance

The out-of-pocket maximum

The premium

Question 2: A managed care plan encourages a member facing elective surgery to obtain a second physician's opinion before proceeding, aiming to avoid unnecessary procedures and hold down the plan's costs. Which of the following describes this technique?

A guaranteed renewal feature

A coinsurance requirement

A cost-containment measure

A coordination of benefits rule

Question 3: A Washington insurer files new individual health benefit plan rates and wants to know when it may begin using them if the commissioner neither approves nor disapproves the filing. Which of the following states the Washington rule governing when those rates may be used?

Immediately upon filing them

Not until sixty days after filing

Only after written approval arrives

Not until one year has passed

Question 4: A tax advantage of permanent life insurance is that the growth of the policy's cash value is generally not taxed as it accumulates, so the inside buildup grows without current income tax. Which of the following describes this treatment?

A current deduction for premiums

Tax-free withdrawals at any time

Tax-deferred cash value growth

Capital gains on the death benefit

Question 5: A whole life policyowner decides to end the policy and take its accumulated cash value in a single payment, surrendering all future coverage in exchange for the money. Which of the following nonforfeiture options is this?

Cash surrender

Reduced paid-up insurance

Extended term insurance

Automatic premium loan

Question 6: A term policy is renewed each year without proof of insurability, but its premium increases with the insured's attained age at every renewal, starting low and climbing over time. Which of the following types of term is this?

Decreasing term

Level term

Annually renewable term

Return of premium term

Question 7: A Washington Medicare supplement policy contains a preexisting condition limitation, and a buyer asks how far back the insurer may look and how long the exclusion may last. Which of the following states the Medigap preexisting look-back and exclusion limits Washington sets?

Six months back; six months excluded

No limits apply to Medigap

Twelve months back; twelve months excluded

Three months back; three months excluded

Question 8: A health policy optional provision adjusts benefits if the insured changes to a more hazardous occupation, generally reducing the benefits to what the paid premium would buy at the more hazardous classification. Which of the following provisions is this?

Other insurance

Misstatement of age

Change of occupation

Illegal occupation

Question 9: A Washington producer completes continuing education and wants to know how long she must keep each certificate of completion after finishing the courses. Which of the following states the retention period the continuing education rule requires for those certificates?

One year

Two years

Ten years

Three years

Question 10: A disability policy provides that if an insured returns to work but becomes disabled again from the same cause within a short time, the new period is treated as a continuation of the prior claim rather than a new one. Which of the following provisions is this?

The presumptive disability provision

The recurrent disability provision

The elimination period

The probationary period

Question 11: A health policy provision keeps the coverage in force without further premiums during a period the insured is totally disabled, relieving the insured of paying premiums while unable to work. Which of the following provisions is this?

Coordination of benefits

The grace period

Waiver of premium

The free look

Question 12: A health policy that the insurer may decline to renew only on specified conditions stated in the contract, such as the insured reaching a certain age, offers a middle level of renewal protection. Which of the following renewability classifications is this?

Noncancellable

Conditionally renewable

Guaranteed renewable

Optionally renewable

Question 13: A policy provision names the person who holds the rights of ownership in the contract and may exercise them, and it allows those ownership rights to be transferred to another party. Which of the following provisions is this?

The ownership provision

The insuring clause

The consideration clause

The entire contract provision

Question 14: When an employer pays the premium for an employee's disability income coverage and does not include it in the employee's income, the benefits the employee later receives are generally taxable. Which of the following states this rule?

Employee-paid premiums make benefits taxable

Benefits are always tax-free

Employer-paid premiums make benefits taxable

Benefits are taxed as capital gains

Question 15: A Washington mutual insurer proposes to pay its policyholders a dividend, and its board of directors asks about the statutory limits on those distributions. Which of the following correctly states a limit Washington places on dividends paid by a mutual insurer?

Contingent on paying renewal premium

Payable from any account at will

Guaranteed in every policy year

Only from surplus above required minimum

Question 16: A managed care plan requires that certain nonemergency hospital admissions be approved in advance by the plan, which reviews whether the proposed care is medically necessary before it is provided. Which of the following cost-containment techniques is this?

Coinsurance

Precertification

A deductible

Coordination of benefits

Question 17: A lender arranges life insurance on a borrower in an amount tied to the loan balance, so that if the borrower dies the outstanding debt is paid off from the coverage. Which of the following types of life insurance is this?

Juvenile life

Group universal life

Survivorship life

Credit life insurance

Question 18: A young couple with a new baby buys life insurance chiefly so that, if a parent dies, there will be funds to raise and educate the child and replace the lost parental support. Which of the following personal uses does this serve?

Survivor protection

Estate conservation

Cash accumulation

Business continuation

Question 19: A person shopping for coverage works with an intermediary who legally represents the buyer rather than any single insurer, seeking coverage from various companies on the client's behalf. Which of the following terms traditionally describes this intermediary?

An adjuster

An agent

An underwriter

A broker

Question 20: A single insurance contract covers a group of people who are not individually named but who belong to a changing class, such as passengers on a common carrier or students of a school. Which of the following describes this coverage?

Franchise coverage

Blanket coverage

An individual policy

A conversion policy

WLDI Washington Life and Disability Insurance Exam - Set 4 - Part 1