WLDI - Washington Life and Disability Insurance Exam

Question 21: A Washington whole life policy issued after the modern operative date carries a fixed policy loan interest rate, and the owner asks the highest rate the insurer may charge. Which of the following states the maximum fixed policy loan rate Washington allows for such a policy?

Six percent per year

Ten percent per year

Eight percent per year

Twelve percent per year

Question 22: A permanent policy credits interest to the cash value based on the performance of a stated market index, offering some upside when the index rises while guaranteeing the value will not fall due to index losses. Which of the following policies is this?

Indexed universal life

Variable life

Term life

Straight whole life

Question 23: A participating policyowner directs each dividend to buy a small amount of one-year term insurance on the insured, sometimes to protect the current cash value or add temporary coverage. Which of the following dividend options is this?

The cash payment option

The paid-up additions option

The one-year term option

The accumulation at interest option

Question 24: A policyowner buys whole life insurance on which level premiums are payable for the insured's entire lifetime, and the coverage and guaranteed cash value continue as long as those premiums are paid. 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 25: A supplemental health policy pays the insured a flat dollar amount for each day spent as an inpatient in a hospital, paid directly to the insured regardless of the actual hospital charges. Which of the following policies is this?

A major medical policy

A hospital indemnity policy

A specified disease policy

A disability income policy

Question 26: A Washington Medicare supplement insurer must meet a minimum loss ratio, returning a set share of premium to policyholders as benefits. Which of the following states the minimum loss ratios Washington requires for group and for individual Medicare supplement policies?

Sixty percent group, fifty percent individual

Eighty percent group, seventy percent individual

Seventy-five percent group, sixty-five percent individual

The same ratio for both types

Question 27: A Washington replacing insurer processes a life insurance replacement and must retain the resulting records for a set time. Which of the following states how long the insurer must keep those replacement records under the Washington replacement rule?

Three years, or the next exam

One year from the replacement date

Six months and no longer

Permanently, with no time limit

Question 28: A person transacts insurance in Washington without holding any license, and the commissioner pursues a civil penalty after notice and an opportunity for a hearing. Which of the following states the maximum civil penalty the statute authorizes for each such unlicensed act?

One thousand dollars per violation

Ten thousand dollars per violation

Twenty-five thousand dollars per violation

Fifty dollars per violation

Question 29: Because an insurer acts through its producers, the law generally holds the insurer responsible for the acts of a producer performed within the scope of the producer's authority. Which of the following bodies of law establishes this responsibility?

The doctrine of indemnity

The law of large numbers

The parol evidence rule

The law of agency

Question 30: When a producer holds and handles a client's premium funds, the law imposes a duty to act with the highest good faith and to keep those funds separate rather than treating them as personal property. Which of the following duties does this describe?

A subrogation duty

A fiduciary duty

A duty of indemnity

A warranty duty

Question 31: A life insurance policy is funded so heavily and quickly that it fails a federal seven-pay test, causing living distributions such as loans and withdrawals to be taxed less favorably than an ordinary policy. Which of the following describes this policy?

A single-premium annuity

A qualified retirement plan

A variable universal policy

A modified endowment contract

Question 32: An annuity places the owner's contributions into investment subaccounts of stocks and bonds, so the accumulation value rises or falls with market performance and the owner bears the investment risk. Which of the following annuities is this?

A fixed annuity

A variable annuity

An immediate annuity

A structured settlement annuity

Question 33: A person applies for a policy on their own life, and the law presumes that everyone has an unlimited interest in the continuation of their own life, satisfying a basic requirement for the policy. Which of the following requirements is presumed satisfied here?

Insurable interest

Legal capacity

Consideration

Utmost good faith

Question 34: A disability income policy specifies the longest time it will continue paying benefits for a single period of disability, such as two years, five years, or to a stated age. Which of the following features is this?

The grace period

The elimination period

The probationary period

The benefit period

Question 35: A health maintenance organization pays a participating physician a set amount per enrolled member each month regardless of how many services that member uses, shifting some financial risk to the provider. Which of the following payment methods is this?

Capitation

Fee-for-service

Coinsurance

Indemnity reimbursement

Question 36: The Washington guaranty association sets a separate aggregate ceiling for one owner who holds several nongroup life insurance policies, regardless of how many policies that owner has. Which of the following states that aggregate figure under the association's coverage schedule?

Five hundred thousand dollars

One million dollars

One hundred thousand dollars

Five million dollars

Question 37: A health policy provision lets the insurer have the insured examined by a physician of its choosing, at its own expense, as often as reasonably necessary while a claim is pending. Which of the following provisions is this?

Physical examination

Proof of loss

Coordination of benefits

The elimination period

Question 38: A joint federal and state program provides health coverage to people with low income and limited resources, with eligibility based on financial need rather than age or work history. Which of the following programs is this?

A health savings account

Medicare

Social Security disability

Medicaid

Question 39: A Washington producer completes an annuity sale governed by the best interest standard and must keep records of the transaction. Which of the following states how long the producer and insurer must retain the consumer information and disclosures used in making the recommendation?

Three years after the transaction

Five years after the transaction

One year after the transaction

No retention period is set

Question 40: A wealthy buyer pays for a whole life policy entirely with one large lump-sum payment at issue, so the policy is immediately fully paid up with no further premiums ever due. Which of the following policies is this?

Annually renewable term

Straight whole life

Twenty-pay whole life

Single-premium whole life

WLDI Washington Life and Disability Insurance Exam - Set 3 - Part 2

Question 21: A Washington whole life policy issued after the modern operative date carries a fixed policy loan interest rate, and the owner asks the highest rate the insurer may charge. Which of the following states the maximum fixed policy loan rate Washington allows for such a policy?

Question 22: A permanent policy credits interest to the cash value based on the performance of a stated market index, offering some upside when the index rises while guaranteeing the value will not fall due to index losses. Which of the following policies is this?

Question 23: A participating policyowner directs each dividend to buy a small amount of one-year term insurance on the insured, sometimes to protect the current cash value or add temporary coverage. Which of the following dividend options is this?

Question 24: A policyowner buys whole life insurance on which level premiums are payable for the insured's entire lifetime, and the coverage and guaranteed cash value continue as long as those premiums are paid. Which of the following types of whole life is this?

Question 25: A supplemental health policy pays the insured a flat dollar amount for each day spent as an inpatient in a hospital, paid directly to the insured regardless of the actual hospital charges. Which of the following policies is this?

Question 26: A Washington Medicare supplement insurer must meet a minimum loss ratio, returning a set share of premium to policyholders as benefits. Which of the following states the minimum loss ratios Washington requires for group and for individual Medicare supplement policies?

Question 27: A Washington replacing insurer processes a life insurance replacement and must retain the resulting records for a set time. Which of the following states how long the insurer must keep those replacement records under the Washington replacement rule?

Question 28: A person transacts insurance in Washington without holding any license, and the commissioner pursues a civil penalty after notice and an opportunity for a hearing. Which of the following states the maximum civil penalty the statute authorizes for each such unlicensed act?

Question 29: Because an insurer acts through its producers, the law generally holds the insurer responsible for the acts of a producer performed within the scope of the producer's authority. Which of the following bodies of law establishes this responsibility?

Question 30: When a producer holds and handles a client's premium funds, the law imposes a duty to act with the highest good faith and to keep those funds separate rather than treating them as personal property. Which of the following duties does this describe?

Question 31: A life insurance policy is funded so heavily and quickly that it fails a federal seven-pay test, causing living distributions such as loans and withdrawals to be taxed less favorably than an ordinary policy. Which of the following describes this policy?

Question 32: An annuity places the owner's contributions into investment subaccounts of stocks and bonds, so the accumulation value rises or falls with market performance and the owner bears the investment risk. Which of the following annuities is this?

Question 33: A person applies for a policy on their own life, and the law presumes that everyone has an unlimited interest in the continuation of their own life, satisfying a basic requirement for the policy. Which of the following requirements is presumed satisfied here?

Question 34: A disability income policy specifies the longest time it will continue paying benefits for a single period of disability, such as two years, five years, or to a stated age. Which of the following features is this?

Question 35: A health maintenance organization pays a participating physician a set amount per enrolled member each month regardless of how many services that member uses, shifting some financial risk to the provider. Which of the following payment methods is this?

Question 36: The Washington guaranty association sets a separate aggregate ceiling for one owner who holds several nongroup life insurance policies, regardless of how many policies that owner has. Which of the following states that aggregate figure under the association's coverage schedule?

Question 37: A health policy provision lets the insurer have the insured examined by a physician of its choosing, at its own expense, as often as reasonably necessary while a claim is pending. Which of the following provisions is this?

Question 38: A joint federal and state program provides health coverage to people with low income and limited resources, with eligibility based on financial need rather than age or work history. Which of the following programs is this?

Question 39: A Washington producer completes an annuity sale governed by the best interest standard and must keep records of the transaction. Which of the following states how long the producer and insurer must retain the consumer information and disclosures used in making the recommendation?

Question 40: A wealthy buyer pays for a whole life policy entirely with one large lump-sum payment at issue, so the policy is immediately fully paid up with no further premiums ever due. Which of the following policies is this?

Don't Want to Study?