Washington Life Insurance Exam

A business entity that wants to transact insurance business in this state must have at least how many affiliated individual licensees?

1

Upon reinstatement or renewal of a policy, after a written request by the insured, how soon must an insurer provide a copy of the policy application?

15 days

How many hours of ethics education are producers required to complete every licensing period?

3 hours

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

Life insurance policies that have been in force for 3 years must provide for a maximum policy loan interest rate of what annual percentage?

8%

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?

A debtor has an insurable interest in the life of a lender

All of the following could own group life insurance EXCEPT

A group needing low-cost life insurance

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy

Upon written request, the records of the Insurance Commissioner may be inspected by which of the following?

Any member of the public

How many eligible employees must elect coverage before a policy can be placed for a Public Employee Association?

At least 75%

If an insurer meets the state's fiancial requirements and is approved to transact business in the state, it is considered to be

Authorized

A policy owner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what preovision?

Automatic premium loan

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called

Cost of living rider

The general powers and duties of the Insurance Department include all of the following EXCEPT

Enacting statues to regulate the insurance industry

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business?

Implied

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint life

Death benefits payable to a beneficiary under a life insurance policy are generally

Not subject to income taxation by the Federal Government

A business entity that wants to transact insurance business in this state much have at least how many affiliated individual licensees?

One

The policy owner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check every year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium

Annuities can be used to fund which of the following?

Retirement Plans

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single premium whole life

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act

All of the following statements are true regarding installments for a fixed amount EXCEPT

The payments will stop when the annuitant dies

Which of the following is the best reason to purchase life insurance rather than an annuity?

To create an estate

What type of account will most likely be established for a minor?

Trust

Which of the following types of policies allows for a flexible premium and a variable investment component?

Variable universal life insurance

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

When the agent delivers the policy, collects the intial premium, and the applicant completes an acceptable Statement of Good Health