Washington State Exam - Life and
Disability
Each policy of life insurance shall contain a provision that a grace period shall be
allowed within which the payment of any premium after the first may be made. The
standard grace period shall be.
A.) 45 Days
B.) 15 Days
C.) 30 Days
D.) 60 days - answerC.) 30 days
Correct. Each policy of life insurance shall contain a provision that a grace period shall
be allowed within which the payment of any premium after the first may be made. The
standard grace period shall be 30 days.
When determining whether an annuity is suitable for a client, the producer should ask
about which of the following?
A.) Trusts
B.) Financial Objectives
C.) Wills
D.) Power of Attorney - answerB.) Financial objectives
Correct. When determining whether an annuity is suitable for a client, the producer
should ask about financial objectives.
Replacing an existing life insurance policy with a new one may result in
A.) A surrender charge
B.) Capital gains taxation
C.) an illegal transaction
D.) small business taxation - answerA.) A surrender charge
Correct. Replacing an existing life insurance policy with a new one may result in a
surrender charge.
As classified by the Affordable Care Act (ACA), a Silver Plan offers
A.) 60% actuarial level of coverage provided
B.) 70% actuarial level of coverage provided
C.) 80% actuarial level of coverage provided
D.) 90% actuarial level of coverage provided - answerB.) 70% actuarial level of
coverage provided
,Correct. As classified by the Affordable Care Act (ACA), a silver plan offers 70%
actuarial level of coverage provided.
A life insurance agent is required to give a disclosure notice about information practices
to an applicant or proposed insured.
A.) At time of policy delivery
B.) After the insurer requests a full medical exam
C.) When the insurer requests an attending physician's report
D.) Prior to or at the time of signing the application - answerD.) Prior to or at the time of
signing the application
Correct. A life insurance agent is required to give a disclosure notice about information
practices to an applicant or proposed insured prior to or at the time of signing the
application.
Violations of US Code Title 18 section 1033, may result in
A.) Cease and Desist Order
B.) Suspension of Producers license
C.) Loss of company appointments
D.) Fine and/or imprisonment - answerD.) Fine and/or imprisonment
Correct. Violations of US code title 18 section 1033 may result in a fine of up to $50,000
per violation and/or incarceration up to a maximum of 15 years.
Which federal government agency enforces the security laws enacted by Congress?
A.) The Securities Exchange Commission
B.) The Variable Investment Commission
C.) The National Security Regulatory Commission
D.) The Securities Investment Commission - answerA. The Securities Exchange
Commission.
Correct. The Securities exchange commission is the federal government agency which
enforces the security laws enacted by congress.
Maximum benefits refers to the
A.) Upper limit percentage of what the insurance company will pay for coinsurance
B.) Upper limits of what an insurance company will pay for any particular claim
C.) Upper limits of what the insured will pay in out-of-pocket expenses
D.) Upper limit of the total lifetime benefits the insurance company will pay - answerD.
Upper limit of the total lifetime benefits the insurance company will pay
Correct. The term "maximum benefits" refers to the upper limit of the total lifetime
benefit the insurer will pay.
, A policyowner suffers an injury that renders him incapable of performing one or more
important job duties. Any decrease in income resulting from this injury would make him
eligible for benefits under which provision?
A.) Partial disability
B.) Presumptive disability
C.) Flat amount disability
D.) Nondisabling injury - answerA.) Partial disability
Correct. In this situation, the policy owner would be eligible for benefits under a partial
disability provision.
When a preferred provider organization (PPO) insured goes out-of-network, which of
the following actions occur?
A.) The insured has lower out of pocket expenses
B.) the insured will pay a reduced amount
C.) The benefits are taxable
D.) The insurer will pay a reduced amount - answerD.) The insurer will pay a reduced
amount.
Correct. A reduced benefit occurs when the insured goes out of the PPO network.
Which of these would limit a company's liability to provide insurance coverage?
A.) Exclusion
B.) Waiver
C.) Rider
D.) Provision - answerCorrect. An exclusion is a condition which limits the company's
liability to provide coverage.
A producer who shares commissions with a client maybe guilty of
A.) Rebating
B.) Commingling
C.) Redlining
D.) Fraud - answerA.) Rebating
Correct. A producer who shares commissions with a client may be guilty of rebating.
The purpose of Medicare Supplement Insurance is to address gaps in Medicare
coverage, which can include
A.) Treatment provided in a government hospital
B.) Medicare in-hospital deductible
C.) Replacing HMO coverage
D.) Covering chiropractic treatment - answerB.) Medicare in-hospital deductible
Correct. The purposes of Medicare Supplement insurance is to address gaps in
medicare coverage, such as medicare in-hospital deductibles.
Disability
Each policy of life insurance shall contain a provision that a grace period shall be
allowed within which the payment of any premium after the first may be made. The
standard grace period shall be.
A.) 45 Days
B.) 15 Days
C.) 30 Days
D.) 60 days - answerC.) 30 days
Correct. Each policy of life insurance shall contain a provision that a grace period shall
be allowed within which the payment of any premium after the first may be made. The
standard grace period shall be 30 days.
When determining whether an annuity is suitable for a client, the producer should ask
about which of the following?
A.) Trusts
B.) Financial Objectives
C.) Wills
D.) Power of Attorney - answerB.) Financial objectives
Correct. When determining whether an annuity is suitable for a client, the producer
should ask about financial objectives.
Replacing an existing life insurance policy with a new one may result in
A.) A surrender charge
B.) Capital gains taxation
C.) an illegal transaction
D.) small business taxation - answerA.) A surrender charge
Correct. Replacing an existing life insurance policy with a new one may result in a
surrender charge.
As classified by the Affordable Care Act (ACA), a Silver Plan offers
A.) 60% actuarial level of coverage provided
B.) 70% actuarial level of coverage provided
C.) 80% actuarial level of coverage provided
D.) 90% actuarial level of coverage provided - answerB.) 70% actuarial level of
coverage provided
,Correct. As classified by the Affordable Care Act (ACA), a silver plan offers 70%
actuarial level of coverage provided.
A life insurance agent is required to give a disclosure notice about information practices
to an applicant or proposed insured.
A.) At time of policy delivery
B.) After the insurer requests a full medical exam
C.) When the insurer requests an attending physician's report
D.) Prior to or at the time of signing the application - answerD.) Prior to or at the time of
signing the application
Correct. A life insurance agent is required to give a disclosure notice about information
practices to an applicant or proposed insured prior to or at the time of signing the
application.
Violations of US Code Title 18 section 1033, may result in
A.) Cease and Desist Order
B.) Suspension of Producers license
C.) Loss of company appointments
D.) Fine and/or imprisonment - answerD.) Fine and/or imprisonment
Correct. Violations of US code title 18 section 1033 may result in a fine of up to $50,000
per violation and/or incarceration up to a maximum of 15 years.
Which federal government agency enforces the security laws enacted by Congress?
A.) The Securities Exchange Commission
B.) The Variable Investment Commission
C.) The National Security Regulatory Commission
D.) The Securities Investment Commission - answerA. The Securities Exchange
Commission.
Correct. The Securities exchange commission is the federal government agency which
enforces the security laws enacted by congress.
Maximum benefits refers to the
A.) Upper limit percentage of what the insurance company will pay for coinsurance
B.) Upper limits of what an insurance company will pay for any particular claim
C.) Upper limits of what the insured will pay in out-of-pocket expenses
D.) Upper limit of the total lifetime benefits the insurance company will pay - answerD.
Upper limit of the total lifetime benefits the insurance company will pay
Correct. The term "maximum benefits" refers to the upper limit of the total lifetime
benefit the insurer will pay.
, A policyowner suffers an injury that renders him incapable of performing one or more
important job duties. Any decrease in income resulting from this injury would make him
eligible for benefits under which provision?
A.) Partial disability
B.) Presumptive disability
C.) Flat amount disability
D.) Nondisabling injury - answerA.) Partial disability
Correct. In this situation, the policy owner would be eligible for benefits under a partial
disability provision.
When a preferred provider organization (PPO) insured goes out-of-network, which of
the following actions occur?
A.) The insured has lower out of pocket expenses
B.) the insured will pay a reduced amount
C.) The benefits are taxable
D.) The insurer will pay a reduced amount - answerD.) The insurer will pay a reduced
amount.
Correct. A reduced benefit occurs when the insured goes out of the PPO network.
Which of these would limit a company's liability to provide insurance coverage?
A.) Exclusion
B.) Waiver
C.) Rider
D.) Provision - answerCorrect. An exclusion is a condition which limits the company's
liability to provide coverage.
A producer who shares commissions with a client maybe guilty of
A.) Rebating
B.) Commingling
C.) Redlining
D.) Fraud - answerA.) Rebating
Correct. A producer who shares commissions with a client may be guilty of rebating.
The purpose of Medicare Supplement Insurance is to address gaps in Medicare
coverage, which can include
A.) Treatment provided in a government hospital
B.) Medicare in-hospital deductible
C.) Replacing HMO coverage
D.) Covering chiropractic treatment - answerB.) Medicare in-hospital deductible
Correct. The purposes of Medicare Supplement insurance is to address gaps in
medicare coverage, such as medicare in-hospital deductibles.
