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

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A Washington life insurer designs a small final-expense policy and asks whether the illustration chapter applies. Which of the following states the death benefit threshold at or below which a policy is excepted from the life illustration requirements?

Ten thousand dollars

Five thousand dollars

Twenty-five thousand dollars

Fifty thousand dollars

Question 42: On an application, a statement that is guaranteed to be literally and absolutely true, so that any falsity may breach the contract regardless of intent, illustrates a stricter kind of statement than an ordinary belief. Which of the following describes it?

An estoppel

A representation

A concealment

A warranty

Question 43: A homeowner buys term insurance whose face amount declines over the years, matching the shrinking balance of a mortgage so the coverage roughly tracks the debt as it is paid down. Which of the following types of term insurance is this?

Level term

Decreasing term

Increasing term

Annually renewable term

Question 44: A producer explains that whole life insurance builds a living value the owner can borrow against or receive on surrender, a feature that term insurance does not provide. Which of the following features is being described?

Cash value

The death benefit

The grace period

The free look

Question 45: After paying a claim to its insured for damage caused by a negligent third party, an insurer steps into the insured's shoes to pursue recovery from that wrongdoer. Which of the following principles gives the insurer this right?

Contribution

Indemnity

Subrogation

Estoppel

Question 46: An insurer provides life insurance only to members of a lodge or benevolent organization that has a representative form of government and exists for the social and charitable benefit of its members. Which of the following types of insurer is this?

A stock insurer

A fraternal benefit society

A reciprocal exchange

A mutual insurer

Question 47: A Washington study group is listing the elements that make an activity an insurance transaction under the code, and one member counts the prongs the definition sets out. Which of the following correctly states how many activities the statutory definition of an insurance transaction includes?

Five activities

Three activities

Seven activities

Two activities

Question 48: A closely held corporation itself buys and owns life insurance on each of its several owners, and at an owner's death the business uses the proceeds to purchase that owner's shares from the estate. Which of the following buy-sell structures is this?

An executive bonus plan

A cross-purchase plan

A key person plan

An entity purchase plan

Question 49: A disability policy provides that certain severe losses, such as the loss of sight in both eyes or the loss of two limbs, are automatically treated as total disability without further proof of inability to work. Which of the following provisions is this?

Residual disability

Presumptive disability

The elimination period

Own-occupation coverage

Question 50: A producer's written agency contract with the insurer specifically grants the power to solicit applications and deliver policies, and those explicitly stated powers define what the producer may do. Which of the following types of authority is this?

Express authority

Implied authority

Apparent authority

Assumed authority

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