WLDI - Washington Life and Disability Insurance Exam

Question 21: A permanent policy combines flexible premiums and an adjustable death benefit with cash value invested in subaccounts the owner selects, so both flexibility and investment risk rest with the policyowner. Which of the following policies is this?

Variable universal life

Universal life

Whole life

Decreasing term

Question 22: A Washington producer earns more continuing education hours than her license period requires and hopes to apply the surplus hours toward the next renewal cycle. Which of the following states how Washington treats excess continuing education hours at renewal?

They carry over to the next period

No carry-over to the next period

They convert into ethics credit

They reduce the next renewal fee

Question 23: An insurer covered by the Washington guaranty association becomes insolvent, and the association continues a nongroup policy while a replacement is arranged. Which of the following states how long the association continues that nongroup coverage under the statute?

Ninety days in every case

Until the policyholder cancels

A flat six months always

Earlier of renewal or year; thirty-day floor

Question 24: A required element of a valid contract is that its objective be lawful, so an agreement to accomplish something illegal cannot be enforced as a valid insurance contract. Which of the following elements does this describe?

Offer and acceptance

Legal purpose

Consideration

Competent parties

Question 25: An insured intentionally sets fire to insured property in order to collect on the policy, a dishonest act that increases the chance of loss through deliberate wrongdoing rather than mere carelessness. Which of the following does this illustrate?

Moral hazard

Morale hazard

Physical hazard

A peril

Question 26: A Washington insurer terminates a producer's appointment for cause and must send the producer a copy of the notification it filed with the commissioner. Which of the following states how Washington requires that for-cause copy to be delivered to the producer?

By ordinary first-class mail

By email to the producer

By posting on the insurer's website

Certified mail return receipt, or overnight

Question 27: A saver is drawn to permanent life insurance partly because it builds a cash value the owner can access during life through loans or surrender, serving as a supplemental savings element. Which of the following personal uses does this emphasize?

Estate creation

Survivor protection

Cash accumulation

Key person protection

Question 28: A Washington long-term care policy imposes a preexisting condition limitation, and an applicant asks about the look-back and exclusion periods. Which of the following states the preexisting limits the long-term care statute allows, and how they differ from the Medigap figures?

Three months back; three months excluded

Six months back; six months excluded

Twelve months back; twelve months excluded

No preexisting limits are allowed

Question 29: A contract is formed when one party proposes definite terms and the other agrees to those exact terms, creating the mutual assent needed for a binding agreement. Which of the following elements of a valid contract does this describe?

Competent parties

Consideration

Legal purpose

Offer and acceptance

Question 30: A life policy provision limits the amount the insurer must pay if the insured dies by suicide within a stated period after the policy is issued, after which a suicide is treated like any other covered death. Which of the following provisions is this?

The suicide provision

The incontestability provision

The reinstatement provision

The grace period provision

Question 31: For an insurance contract to be valid, the parties must have the legal capacity to contract, so a policy issued to a person who is a minor or mentally incompetent may be voidable. Which of the following contract elements does this address?

Offer and acceptance

Legal purpose

Consideration

Competent parties

Question 32: An annuity credits interest based on the growth of a market index up to a cap, while a floor guarantees the value will not decline even if the index falls, blending features of fixed and variable contracts. Which of the following annuities is this?

A variable annuity

A fixed annuity

An indexed annuity

An immediate annuity

Question 33: A limited health policy covers only routine eye examinations, prescription lenses, and frames, paying scheduled amounts toward those services and nothing at all toward hospital stays or general medical care. Which of the following limited policies is this?

A specified disease policy

A dental policy

A hospital indemnity policy

A vision care policy

Question 34: A Washington producer overstates the benefits of a competitor's policy while comparing it to one he sells, and a colleague asks whether the misrepresentation statute requires proof that he intended to deceive. Which of the following correctly states the mental element for misrepresentation of policies?

Only reckless conduct qualifies

Specific intent to deceive is required

No intent element is required

A general business practice is required

Question 35: A limited health policy pays scheduled benefits toward cleanings, fillings, extractions, and similar services, and typically classifies procedures into preventive, basic, and major categories with different coverage levels. Which of the following limited policies is this?

A dental policy

A vision policy

A disability income policy

A major medical policy

Question 36: A Washington producer solicits an individual life policy and must give the applicant the Buyer's Guide at the right time under the life disclosure rule. Which of the following states when the Buyer's Guide must be provided to the applicant?

Within ten days after the sale

Only after the policy is delivered

Before accepting the application or premium

Solely upon the applicant's request

Question 37: A licensed individual generally represents the insurer, acting on its behalf so that the individual's knowledge and authorized acts are attributed to the company. Which of the following best describes whom a producer ordinarily represents in a transaction?

The beneficiary

The applicant only

The state regulator

The insurer

Question 38: A Washington association wants to sponsor group life insurance for its members, and the insurer checks whether the association qualifies as an eligible group. Which of the following states a requirement the statute places on an association group beyond simply having members?

At least one year in active existence

At least one thousand members

A minimum of five years operating

Approval by a majority of insurers

Question 39: A part of Medicare provides prescription drug coverage through private plans that beneficiaries may join for an additional premium, helping pay the cost of medications. Which of the following parts of Medicare is this?

Part C

Part A

Part B

Part D

Question 40: A disability income rider coordinates with government benefits by paying an extra amount if the insured is disabled but does not qualify for or receive Social Security disability benefits, filling that gap. Which of the following riders is this?

A guaranteed insurability rider

A cost of living rider

A Social Security supplemental rider

A return of premium rider

WLDI Washington Life and Disability Insurance Exam - Set 4 - Part 2

Question 21: A permanent policy combines flexible premiums and an adjustable death benefit with cash value invested in subaccounts the owner selects, so both flexibility and investment risk rest with the policyowner. Which of the following policies is this?

Question 22: A Washington producer earns more continuing education hours than her license period requires and hopes to apply the surplus hours toward the next renewal cycle. Which of the following states how Washington treats excess continuing education hours at renewal?

Question 23: An insurer covered by the Washington guaranty association becomes insolvent, and the association continues a nongroup policy while a replacement is arranged. Which of the following states how long the association continues that nongroup coverage under the statute?

Question 24: A required element of a valid contract is that its objective be lawful, so an agreement to accomplish something illegal cannot be enforced as a valid insurance contract. Which of the following elements does this describe?

Question 25: An insured intentionally sets fire to insured property in order to collect on the policy, a dishonest act that increases the chance of loss through deliberate wrongdoing rather than mere carelessness. Which of the following does this illustrate?

Question 26: A Washington insurer terminates a producer's appointment for cause and must send the producer a copy of the notification it filed with the commissioner. Which of the following states how Washington requires that for-cause copy to be delivered to the producer?

Question 27: A saver is drawn to permanent life insurance partly because it builds a cash value the owner can access during life through loans or surrender, serving as a supplemental savings element. Which of the following personal uses does this emphasize?

Question 28: A Washington long-term care policy imposes a preexisting condition limitation, and an applicant asks about the look-back and exclusion periods. Which of the following states the preexisting limits the long-term care statute allows, and how they differ from the Medigap figures?

Question 29: A contract is formed when one party proposes definite terms and the other agrees to those exact terms, creating the mutual assent needed for a binding agreement. Which of the following elements of a valid contract does this describe?

Question 30: A life policy provision limits the amount the insurer must pay if the insured dies by suicide within a stated period after the policy is issued, after which a suicide is treated like any other covered death. Which of the following provisions is this?

Question 31: For an insurance contract to be valid, the parties must have the legal capacity to contract, so a policy issued to a person who is a minor or mentally incompetent may be voidable. Which of the following contract elements does this address?

Question 32: An annuity credits interest based on the growth of a market index up to a cap, while a floor guarantees the value will not decline even if the index falls, blending features of fixed and variable contracts. Which of the following annuities is this?

Question 33: A limited health policy covers only routine eye examinations, prescription lenses, and frames, paying scheduled amounts toward those services and nothing at all toward hospital stays or general medical care. Which of the following limited policies is this?

Question 35: A limited health policy pays scheduled benefits toward cleanings, fillings, extractions, and similar services, and typically classifies procedures into preventive, basic, and major categories with different coverage levels. Which of the following limited policies is this?

Question 36: A Washington producer solicits an individual life policy and must give the applicant the Buyer's Guide at the right time under the life disclosure rule. Which of the following states when the Buyer's Guide must be provided to the applicant?

Question 37: A licensed individual generally represents the insurer, acting on its behalf so that the individual's knowledge and authorized acts are attributed to the company. Which of the following best describes whom a producer ordinarily represents in a transaction?

Question 38: A Washington association wants to sponsor group life insurance for its members, and the insurer checks whether the association qualifies as an eligible group. Which of the following states a requirement the statute places on an association group beyond simply having members?

Question 39: A part of Medicare provides prescription drug coverage through private plans that beneficiaries may join for an additional premium, helping pay the cost of medications. Which of the following parts of Medicare is this?

Question 40: A disability income rider coordinates with government benefits by paying an extra amount if the insured is disabled but does not qualify for or receive Social Security disability benefits, filling that gap. Which of the following riders is this?

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