WASHINGTON LIFE & HEALTH
INSURANCE LICENSE TEST WITH
QUESTIONS AND 100% CORRECT
ANSWERS.
Fair Credit Reporting Act - ANS protects consumers against circulation of inaccurate or obsolete
personal or financial information
Domestic - ANS in the state
Foreign - ANS in OTHER state
Alien - ANS out of the U.S. (other country)
Temporary License - ANS 180 DAYS
Peril - ANS cause of loss (such as a fire)
Risk - ANS chance of loss
PURE Risk - ANS chance of loss WITHOUT ANY chance of gain
Consideration Clause - ANS something of value must be exchanged
NONresident - ANS in other state
Renewal of Insurance License - ANS every 2 years 24 hours of Continuing Education (with 3
hours in ethics)
Twisting - ANS agent persuades an insured to cancel, lapse or switch policies, even when its to
the insured's disadvantage
Defamation - ANS injurious statement with intent of harming
illustration - ANS presentation/depiction that includes NONguarenteed elements of a policy of
individual or group life insurance over a period of years
Policy Settlement - ANS within 90 days - if the benefits have not been paid too the beneficiary
within 90 days of the receipt of proof of death, starting the 91st day the insurer will be required
to pay interest at the stated rate (not less than 8%) + 3%
Grace period - ANS 31 days
,insurance contract - ANS agreement between policy owner and insured
FREE LOOK - ANS within 30 days allowed to return policy or certificate for full refund
Group Disability income insurance - ANS the extent of the benefit is determined by the insured's
income
False advertising - ANS implying the agent is the insurer
Prospective Review - ANS physical can submit claim info prior to providing treatment to know
in advance if the procedure is covered under the insured's plan & what rate it will be
HMO - ANS Health Maintenance Organization plan
The Life & Disability Guaranty Association - ANS protects policyowners, insureds &
beneficiaries from financial losses caused by insurers who become insolvent or otherwise unable
to perform their contractual obligations
Riders - ANS are added to policies to modify provisions that already exist
Options - ANS offer insurers and insureds ways to invest or distribute a sum of money available
in a life policy
Interest Only - ANS is a settlement option
Mode - ANS frequency/manner that the policy owner pays the policy premium
Beneficiary - ANS is the person or interest to which the policy proceeds will be paid upon the
death of the insured
Per Capita - ANS by the head; evenly distributes benefits among the living named beneficiaries
Per Stirpes - ANS by the bloodline; distributes the benefits of a beneficiary who died before the
insured to that beneficiary's heirs
Waiver of premium - ANS rider waives the premium for the policy if the insured becomes totally
disabled (usually expires at 65 yrs old)
Payor benefit - ANS rider is primarily used with juveniles policies (if the payor/parent becomes
disabled for at least 6 months or dies, the insurer will waive the premiums until the minor
reaches a certain age, such as 21)
other insured rider - ANS provides coverage for one or more family members other than the
insured (this rider is usually level term insurance attached to the base policy covering the
insured)
, Accelerated Living Benefits - ANS allow the early payment of a portion o the death benefit
Living Needs Rider - ANS provides for the payment of part of the policy death benefit if the
insured is diagnosed with a terminal illness that will result in DEATH WITHIN 2 YEARS!
Long Term Care (LTC) - ANS coverage which is often purchased as a separate policy can also
be marketed as a rider to a life insurance policy; these riders provide for the payment of part of
the death benefit (called accelerated benefits) in order to take care of the insured's health care
expenses which are incurred in a NURSING OR CONVALESCENT HOME - LTC will reduce
the amount payable to the beneficiary upon the insured's death
cost of living rider - ANS addresses the inflation factor by automatically increasing the amount
of insurance without evidence of insurability from the insured; the face value of the policy may
be increased by a cost of living factor tied an inflation index such as the Consumer Price Index
(CPI)
Term Riders - ANS allow for an additional amount of temporary insurance to be provided on the
insured, without the need to issue another policy they are usually attached to a whole life policy
to provide greater protection at a reduced cost
Reinstatement provision - ANS a lapsed policy may be reinstated within 3 years by paying back
premiums, with interest, & proving insurability
Modified Endowment Contract - ANS any life insurance policy that develops cash value faster
than a 7pay whole life contract is called a MEC. It loses the benefits of a standard life contract
Dividend - ANS the return of unused premiums is called a dividend. Dividends are not
considered to be income for tax purposes, since they are a return of the unused premiums
Free Look Provision (Life insurance) - ANS 10 days from policy delivery to look it over and
return it for a full refund of premium for any reason
Incontestability Clause - ANS the life insurance policy clause that prevents an insurance
company from denying payment of a death claim after a specific period of time; if an insurer
wishes to contest any statements on an application, they must do so within the first 2 yrs
Waiver of Cost Rider - ANS is found in universal life policies. If the insured becomes disabled,
the rider allows the cost of insurance to be waived, with the exception of premium costs required
to accumulate cash value
Underwriting - ANS is a risk selection & classification process
Buyer's Guide - ANS is a generic guide that explains life insurance in a way that the average
consumer can understand, and does not address specific policies of the insurer
INSURANCE LICENSE TEST WITH
QUESTIONS AND 100% CORRECT
ANSWERS.
Fair Credit Reporting Act - ANS protects consumers against circulation of inaccurate or obsolete
personal or financial information
Domestic - ANS in the state
Foreign - ANS in OTHER state
Alien - ANS out of the U.S. (other country)
Temporary License - ANS 180 DAYS
Peril - ANS cause of loss (such as a fire)
Risk - ANS chance of loss
PURE Risk - ANS chance of loss WITHOUT ANY chance of gain
Consideration Clause - ANS something of value must be exchanged
NONresident - ANS in other state
Renewal of Insurance License - ANS every 2 years 24 hours of Continuing Education (with 3
hours in ethics)
Twisting - ANS agent persuades an insured to cancel, lapse or switch policies, even when its to
the insured's disadvantage
Defamation - ANS injurious statement with intent of harming
illustration - ANS presentation/depiction that includes NONguarenteed elements of a policy of
individual or group life insurance over a period of years
Policy Settlement - ANS within 90 days - if the benefits have not been paid too the beneficiary
within 90 days of the receipt of proof of death, starting the 91st day the insurer will be required
to pay interest at the stated rate (not less than 8%) + 3%
Grace period - ANS 31 days
,insurance contract - ANS agreement between policy owner and insured
FREE LOOK - ANS within 30 days allowed to return policy or certificate for full refund
Group Disability income insurance - ANS the extent of the benefit is determined by the insured's
income
False advertising - ANS implying the agent is the insurer
Prospective Review - ANS physical can submit claim info prior to providing treatment to know
in advance if the procedure is covered under the insured's plan & what rate it will be
HMO - ANS Health Maintenance Organization plan
The Life & Disability Guaranty Association - ANS protects policyowners, insureds &
beneficiaries from financial losses caused by insurers who become insolvent or otherwise unable
to perform their contractual obligations
Riders - ANS are added to policies to modify provisions that already exist
Options - ANS offer insurers and insureds ways to invest or distribute a sum of money available
in a life policy
Interest Only - ANS is a settlement option
Mode - ANS frequency/manner that the policy owner pays the policy premium
Beneficiary - ANS is the person or interest to which the policy proceeds will be paid upon the
death of the insured
Per Capita - ANS by the head; evenly distributes benefits among the living named beneficiaries
Per Stirpes - ANS by the bloodline; distributes the benefits of a beneficiary who died before the
insured to that beneficiary's heirs
Waiver of premium - ANS rider waives the premium for the policy if the insured becomes totally
disabled (usually expires at 65 yrs old)
Payor benefit - ANS rider is primarily used with juveniles policies (if the payor/parent becomes
disabled for at least 6 months or dies, the insurer will waive the premiums until the minor
reaches a certain age, such as 21)
other insured rider - ANS provides coverage for one or more family members other than the
insured (this rider is usually level term insurance attached to the base policy covering the
insured)
, Accelerated Living Benefits - ANS allow the early payment of a portion o the death benefit
Living Needs Rider - ANS provides for the payment of part of the policy death benefit if the
insured is diagnosed with a terminal illness that will result in DEATH WITHIN 2 YEARS!
Long Term Care (LTC) - ANS coverage which is often purchased as a separate policy can also
be marketed as a rider to a life insurance policy; these riders provide for the payment of part of
the death benefit (called accelerated benefits) in order to take care of the insured's health care
expenses which are incurred in a NURSING OR CONVALESCENT HOME - LTC will reduce
the amount payable to the beneficiary upon the insured's death
cost of living rider - ANS addresses the inflation factor by automatically increasing the amount
of insurance without evidence of insurability from the insured; the face value of the policy may
be increased by a cost of living factor tied an inflation index such as the Consumer Price Index
(CPI)
Term Riders - ANS allow for an additional amount of temporary insurance to be provided on the
insured, without the need to issue another policy they are usually attached to a whole life policy
to provide greater protection at a reduced cost
Reinstatement provision - ANS a lapsed policy may be reinstated within 3 years by paying back
premiums, with interest, & proving insurability
Modified Endowment Contract - ANS any life insurance policy that develops cash value faster
than a 7pay whole life contract is called a MEC. It loses the benefits of a standard life contract
Dividend - ANS the return of unused premiums is called a dividend. Dividends are not
considered to be income for tax purposes, since they are a return of the unused premiums
Free Look Provision (Life insurance) - ANS 10 days from policy delivery to look it over and
return it for a full refund of premium for any reason
Incontestability Clause - ANS the life insurance policy clause that prevents an insurance
company from denying payment of a death claim after a specific period of time; if an insurer
wishes to contest any statements on an application, they must do so within the first 2 yrs
Waiver of Cost Rider - ANS is found in universal life policies. If the insured becomes disabled,
the rider allows the cost of insurance to be waived, with the exception of premium costs required
to accumulate cash value
Underwriting - ANS is a risk selection & classification process
Buyer's Guide - ANS is a generic guide that explains life insurance in a way that the average
consumer can understand, and does not address specific policies of the insurer
