WLDI - Washington Life and Disability Insurance Exam

Question 21: A permanent policy lets the owner adjust the premium amount and timing within limits and pays a current interest rate on the cash value, giving flexibility not found in traditional whole life. Which of the following policies is this?

Term life

Whole life

Universal life

Endowment

Question 22: During the phase before income begins, an annuity owner makes contributions that grow tax-deferred, and only later does the contract convert those funds into a stream of income payments. Which of the following describes the earlier phase?

The accumulation phase

The annuitization phase

The payout phase

The surrender phase

Question 23: When a person is covered by two group health plans, a provision determines which plan pays first and limits the total so the insured does not collect more than the actual expenses. Which of the following provisions does this?

Subrogation

Coordination of benefits

The elimination period

The free look

Question 24: A health policy contains a limitation excluding coverage for a condition for which the insured received treatment or advice during a stated period before the coverage began. Which of the following does this describe?

A probationary period for accidents

An elimination period

A coinsurance clause

A preexisting condition provision

Question 25: A business owner decides to handle a serious risk of loss by paying premiums to an insurer that agrees to bear the financial consequences of that loss, moving the risk off the business itself. Which of the following risk-handling methods is this?

Risk avoidance

Risk retention

Risk transfer

Risk reduction

Question 26: A Washington disability income claimant furnishes written proof of loss and grows impatient to sue. Which of the following states the earliest the claimant may bring legal action and the outer limit for doing so under the uniform provisions?

After sixty days, within three years

Immediately, with a one-year limit

After thirty days, within two years

After ninety days, within five years

Question 27: A managed care plan combines features of a health maintenance organization and a preferred provider plan, using a primary physician gatekeeper for the richest benefits but still covering out-of-network care at a lower level. Which of the following plans is this?

An indemnity plan

An exclusive provider organization

A point-of-service plan

A health savings account

Question 28: A policy provision automatically borrows against available cash value to pay a premium the owner failed to pay by the end of the grace period, keeping the policy from lapsing. Which of the following provisions does this?

Waiver of premium

Automatic premium loan

Reinstatement

Extended term

Question 29: A major medical plan sets a figure at which the insured's share of covered costs stops for the year, after which the plan pays all remaining covered expenses in full. Which of the following features is this?

The coinsurance percentage

The deductible

The out-of-pocket maximum

The premium

Question 30: A beneficiary elects to receive the death proceeds in equal payments of both principal and interest over a chosen number of years, after which the payments end and the proceeds are exhausted. Which of the following settlement options is this?

Interest-only option

Fixed-period option

Life income option

Lump-sum option

Question 31: A Washington labor union sponsors group life insurance for its members and asks the minimum number of members the union must cover at the date of issue. Which of the following states that minimum for a labor union group under the eligible-groups statute?

At least two members

At least ten members

At least twenty-five members

At least fifty members

Question 32: A rider allows a terminally ill insured to receive a portion of the death benefit while still living, providing funds for care before death rather than only paying beneficiaries afterward. Which of the following riders is this?

Waiver of premium

Guaranteed insurability

Return of premium

Accelerated death benefit

Question 33: A limited health policy pays benefits only if the insured is diagnosed with one specifically named illness, such as cancer, and pays nothing for unrelated medical conditions. Which of the following policies is this?

A hospital indemnity policy

A major medical policy

A specified disease policy

A disability income policy

Question 34: A Washington existing insurer receives a replacement notice and decides to try to conserve its policyholder. Which of the following states how long that existing insurer has to furnish the policyowner a policy summary or ledger statement when it undertakes a conservation?

Three working days

Five working days

Thirty days

Twenty days

Question 35: A traditional medical plan pays first-dollar benefits for a limited list of hospital and surgical charges, and a second layer of coverage then takes over for large expenses beyond those basic limits. Which of the following describes that second layer?

A limited disease policy

Basic hospital coverage

Major medical coverage

A disability income rider

Question 36: A part of Medicare covers physician services, outpatient care, and preventive services, and it requires enrollees to pay a monthly premium along with an annual deductible and coinsurance. Which of the following parts of Medicare is this?

Part B

Part A

Part C

Part D

Question 37: The Washington insurance commissioner issues an emergency order without a hearing when the public welfare requires immediate action. Which of the following states how long that emergency order stays effective and the extension the commissioner may grant beyond it?

Ninety days, extendable another ninety

One year, extendable indefinitely

Thirty days, with no extension allowed

Sixty days, extendable another thirty

Question 38: A Washington producer collects premiums from clients and holds those funds before remitting them to the insurer. Which of the following describes the capacity in which the producer holds that money and the consequence of converting it under the code?

An ownership interest in the funds

A personal debt owed casually

A fiduciary capacity; conversion is theft

A gift the producer may keep

Question 39: A Washington producer is charged in a criminal prosecution in another jurisdiction and must report the matter to the commissioner within the statutory window. Which of the following states the event that starts the reporting deadline under the Washington reporting statute?

The date of arrest

The date of conviction

The date charges are filed

The initial pretrial hearing date

Question 40: A woman applies for insurance on the life of her business partner, arguing that the partner's death would cause her a genuine financial loss because of their shared enterprise. Which of the following does this genuine exposure to loss represent?

Adverse selection

Insurable interest

A moral hazard

A speculative risk

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