WLDI - Washington Life and Disability Insurance Exam

Question 21: An individual enrolls in a qualified high-deductible health plan and opens a companion account allowing tax-favored contributions to be saved and used for eligible medical expenses, with unused funds rolling over each year. Which of the following accounts is this?

A health reimbursement arrangement

A flexible spending arrangement

A health savings account

A coordination of benefits account

Question 22: A Washington resident turning sixty-five enrolls in Medicare Part B and wants to buy a Medicare supplement policy during open enrollment. Which of the following states the length of the Medigap open enrollment period and when it begins?

Six months, from Part B at sixty-five

Three months, beginning at age sixty-four

One year, beginning at retirement

Thirty days, beginning at delivery

Question 23: A Washington whole life policyowner wants to borrow against the policy's accumulated cash value and asks when that loan right first becomes available under the governing statute. Which of the following states when the policy loan right vests?

Immediately upon policy issue

After one full year's premium

After three full years' premiums are paid

Only after the policy is paid up

Question 24: A hazard arises from an insured's careless or indifferent attitude that makes a loss more likely, such as leaving doors unlocked because insurance will cover any theft. Which of the following types of hazard does this describe?

Morale hazard

Physical hazard

Moral hazard

Speculative hazard

Question 25: A managed care plan requires each member to select a primary care physician who coordinates care and must authorize referrals before the plan covers a visit to a specialist. Which of the following plans relies most heavily on this gatekeeper design?

A fee-for-service plan

A preferred provider organization

An indemnity plan

A health maintenance organization

Question 26: A life insurance applicant designates that the death proceeds be left with the insurer, which pays the beneficiary only the earnings on the retained proceeds while the principal remains intact for later. Which of the following settlement options is this?

The life income option

The fixed-period option

The interest-only option

The lump-sum option

Question 27: An employer and a key employee share the cost and benefits of a life insurance policy, with the employer typically paying part of the premium and recovering its outlay from the proceeds or cash value. Which of the following plans does this describe?

A split-dollar plan

An executive bonus plan

A key person plan

A cross-purchase plan

Question 28: A Washington group life master policy itself terminates, and a long-covered employee seeks to convert. Which of the following states the length of prior coverage the statute requires for conversion on termination of the group policy, and the ceiling on the converted amount?

No minimum; the full group amount

One year insured; five thousand ceiling

Three years insured; no ceiling

Five years insured; two thousand ceiling

Question 29: A life insurance policy names the insured's estate as beneficiary, and at death the proceeds are paid into the estate, where they may be subject to the claims of the deceased's creditors. Which of the following is a consequence of naming the estate as beneficiary?

Proceeds may be reached by creditors

Proceeds avoid all taxes automatically

Proceeds bypass the probate process

Proceeds are paid to contingent heirs first

Question 30: The Washington commissioner suspends a resident producer's license after a hearing establishes grounds for discipline. Which of the following states the longest period the commissioner may impose for that suspension under the general licensing statute before it must end?

Six months

Twenty-four months

Twelve months

An indefinite period

Question 31: A person violates a provision of the Washington insurance code for which no specific penalty is stated elsewhere. Which of the following describes the general penalty the code imposes for such a violation when the section provides no other punishment?

Gross misdemeanor, fine and possible jail

A class C felony automatically

A civil forfeiture with no jail

A written reprimand only

Question 32: A policyowner buys a whole life policy on which premiums are payable only for a set number of years, after which the policy is fully paid up while coverage continues for life. Which of the following types of whole life is this?

Straight whole life

Limited-pay whole life

Single-premium whole life

Modified whole life

Question 33: A rider lets the insured purchase additional amounts of coverage at specified future dates or life events without submitting new evidence of insurability, locking in the ability to buy more later. Which of the following riders provides this?

Accidental death rider

Cost of living rider

Return of premium rider

Guaranteed insurability rider

Question 34: A Washington employee whose group health coverage is ending asks how many months of continuation the group disability continuation statutes guarantee before that coverage must stop. Which of the following most accurately describes what those Washington continuation provisions actually require?

Eighteen months of continuation

Thirty-six months of continuation

No fixed month figure at all

Twelve months of continuation

Question 35: A claims principle holds that an insured who suffers a covered loss should be restored to roughly the same financial position held just before the loss, neither better nor worse. Which of the following principles does this describe?

Indemnity

Utmost good faith

Adverse selection

Insurable interest

Question 36: A resident Washington producer places business with an insurer that has not appointed her, and she asks whether a surety bond is required and how its amount is set. Which of the following states the Washington producer bond requirement?

A flat ten thousand dollar bond

No bond is ever required

One percent of annual commissions

Twenty-five hundred or five percent, whichever greater

Question 37: A Washington first-party policyholder plans to sue her insurer under the Insurance Fair Conduct Act and learns she must give advance written notice before filing. Which of the following states who must receive that notice and how far in advance?

The insurer only, ten days ahead

The commissioner only, thirty days ahead

Insurer and commissioner, twenty days ahead

No advance notice is required

Question 38: A federal law lets employees and dependents who lose group health coverage because of certain qualifying events continue that same coverage for a limited time by paying the premium themselves. Which of the following laws provides this continuation right?

HIPAA

COBRA

The Affordable Care Act

ERISA

Question 39: An individual life policyowner in Washington misses a premium payment, and the policy provides the grace period Washington requires. Which of the following states the minimum grace period for an individual life policy on a premium falling due after the first?

Seven days

Ten days

Sixty days

One month, at least thirty days

Question 40: A disability policy pays a partial benefit proportional to the income an insured loses while working in a reduced capacity after a disability, rather than requiring complete inability to work. Which of the following describes this benefit?

Presumptive disability benefit

Residual disability benefit

Elimination period

Cost of living benefit

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