WLDI - Washington Life and Disability Insurance Exam

Question 21: A policyowner names a beneficiary but keeps the right to change that designation at any time without the beneficiary's consent, retaining full control over who will receive the proceeds. Which of the following types of beneficiary designation is this?

A contingent beneficiary

An irrevocable beneficiary

A revocable beneficiary

A tertiary beneficiary

Question 22: A managed care arrangement contracts with a network of doctors and hospitals that agree to provide services to members at negotiated, discounted rates, and members pay less when they use these contracted providers. Which of the following describes this network feature?

A coordination of benefits clause

A capitated payment system

An indemnity schedule

A preferred provider network

Question 23: A producer explains that a health savings account offers a tax advantage on the way in, because eligible contributions may be deducted or made before tax, reducing the account owner's current taxable income. Which of the following describes this feature of a health savings account?

Tax-deductible contributions

Taxable employer contributions

A use-it-or-lose-it rule

A required high premium

Question 24: A grandmother applies for and owns a life insurance policy on the life of her grandchild, paying the premiums, while the child is the person whose death would trigger the benefit. Which of the following correctly identifies the child in this arrangement?

The applicant

The policyowner

The beneficiary

The insured

Question 25: A Washington producer wants to sell variable life insurance and variable annuities and asks what licensing the state requires for those products. Which of the following states the combination Washington requires before a producer may sell variable products?

Securities license plus life and variable

Only a securities license is needed

A life producer license alone suffices

No license beyond a general producer license

Question 26: A federal rule provides that if a life insurance policy is sold or transferred for valuable consideration, the death proceeds may lose their income-tax-free status except in certain protected transfers. Which of the following rules is this?

The incidents of ownership rule

The exclusion ratio

The seven-pay test

The transfer-for-value rule

Question 27: A Washington small business asks whether it qualifies as a small employer for health coverage purposes, based on the size of its workforce. Which of the following states the employee count Washington uses to define a small employer, and the period over which it is measured?

Two to twenty-five, averaged quarterly

One to one hundred, measured monthly

One to fifty, prior calendar year

Fewer than five, measured at hire

Question 28: An employer provides its workers with life insurance under a single master contract, with each employee receiving temporary coverage that ends when employment ends and no cash value accumulating. Which of the following types of coverage is this?

Industrial life

Individual whole life

Credit life

Group term life

Question 29: A long-term care policy begins paying benefits when the insured cannot perform a stated number of basic self-care tasks, such as bathing, dressing, eating, and transferring, without substantial assistance. Which of the following are these tasks called?

Cognitive impairments

Essential health benefits

Activities of daily living

Coordination of benefits

Question 30: An annuity is purchased with one lump-sum payment now, but the contract accumulates value on a tax-deferred basis for years before the owner elects to begin receiving income. Which of the following annuities does this describe?

A single-premium deferred annuity

A single-premium immediate annuity

A flexible-premium deferred annuity

A variable immediate annuity

Question 31: The Washington guaranty association levies a class B assessment tied to a long-term care insolvency and must apportion it between two groups of member insurers. Which of the following states how the statute allocates a long-term care class B assessment among member insurers?

Entirely to life and annuity insurers

Entirely to disability and health insurers

In proportion to each insurer's surplus

Fifty percent to each group

Question 32: A participating policyowner leaves each dividend on deposit with the insurer, where it earns interest and can be withdrawn later, though the interest earned is generally taxable to the owner. Which of the following dividend options is this?

Cash payment

Paid-up additions

Accumulation at interest

Reduction of premium

Question 33: In a health maintenance organization, each member selects a primary care physician who provides routine care and must authorize any referral to a specialist before the plan will cover that specialist's services. Which of the following roles does this physician play?

A third-party administrator

A claims adjuster

An underwriter

A gatekeeper

Question 34: A Washington life insurer used an illustration in selling a policy and asks how long it must retain that illustration. Which of the following states the retention period the illustration chapter sets, and the event from which it runs?

Three years from the date of issue

Five years from the sale

Three years after coverage ends

Only until the policy is delivered

Question 35: A Washington agent proposes to sell a client a second Medicare supplement policy to layer extra coverage on top of an existing one. Which of the following states how Washington law treats selling an individual more than one Medicare supplement policy?

Permitted if the second adds benefits

Prohibited; only one policy per individual

Permitted with the commissioner's approval

Permitted for spouses jointly

Question 36: A policyowner designates that the death proceeds be divided equally among the named beneficiaries who are living at the insured's death, with a deceased beneficiary's share going to the surviving named beneficiaries rather than to descendants. Which of the following describes this designation?

Irrevocable

Per stirpes

Per capita

Spendthrift

Question 37: A life policy provision permits the owner, after the policy has built cash value, to borrow from the insurer using that value as security, with any unpaid loan and interest deducted from the proceeds at death. Which of the following provisions is this?

The policy loan provision

The reinstatement provision

The nonforfeiture provision

The free look provision

Question 38: A health policy provision requires the insurer to send the insured the forms needed to file proof of loss within a stated time after receiving notice of a claim, and if it fails to do so the insured may submit proof in any written form. Which of the following provisions is this?

Time of payment of claims

Proof of loss

Physical examination

Claim forms

Question 39: A disability policy covers the insured for disabilities arising from any cause, whether the injury or sickness occurs on the job or off the job, providing round-the-clock protection. Which of the following describes this coverage basis?

Nonoccupational only

Occupational only

Nonoccupational and occupational, all causes

Accident only, never sickness

Question 40: A basic medical plan pays limited first-dollar benefits toward the daily room and board and other charges of a hospital stay, up to stated limits, without requiring the insured to meet a deductible first. Which of the following coverages is this?

Basic hospital expense

Major medical expense

Disability income

Vision care

WLDI Washington Life and Disability Insurance Exam - Set 5 - Part 2