Life Quiz - 07

Every order by the Commissioner suspending any insurance license must specify the period during which the suspension will be effective and may not last longer than A. 12 months. B. 18 months. C. 2 years. D. 6 months.

A. 12 months. Every order suspending any such license must specify the period during which the suspension will be effective and may not last longer than 12 months.

Life insurance policies that have been in force for 3 ears must provide for a maximum policy loan interest rate of what annual percentage? A. 8% B. 12% C. 9% D. 10%

A. 8% There must be a provision that after 3 full years' premiums have been paid, the insurer will advance at any time at a fixed interest rate not exceeding 6% per year or variable rate not more than 8% per year.

No insurance policy form can be issued, delivered, or used unless it has been A. Filed with and approved by the Commissioner. B. Developed by the Commissioner. C. Proofread by the Commissioner's staff and filed with the Superior Court. D. Reviewed by the Commissioner and approved by the Governor.

A. Filed with and approved by the Commissioner. No insurance policy form can be issued, delivered, or used unless it has been filed with and approved by the Commissioner.

A producer has been convicted of a felony. How will that affect the producer's license? A. The license may be revoked immediately. B. The license may only be revoked with a 30-day notice. C. The license will not be renewed at the next license anniversary. D. The license will be suspended for up to 12 months.

A. The license may be revoked immediately. Any type of fraud or misrepresentation is a violation that may cause a license to be denied, suspended or revoked. If a producer is convicted of a felony, the Commissioner may revoke or refuse to renew the producer's license immediately and without hearing if the facts leading to the conviction show the licensee to be untrustworthy.

A life insurance policy was issued with a face amount of $100,000. The policy's cash value is $50,000. If the insurer becomes insolvent, and the beneficiary submits a death benefit claim, what will the Insurance Guaranty Association pay to the policy claimant? A. $50,000 B. $100,000 C. $150.000 D. $500,000

B. $100,000 The benefits that the Association may become obligated to cover cannot exceed the lesser of the amount the insurer would have been liable for if it had not become impaired, or $500,000.

Which of the following qualifications is required for producers who want to sell annuities in this state? A. An annuities license B. A life insurance license and a 4-hour training course C. An annuities license and continuing education hours related to annuities every 2 years D. A life insurance license only

B. A life insurance license and a 4-hour training course A producer may sell, solicit, or negotiate the sale of annuity contracts only if appropriately licensed as an insurance producer and has successfully completed a one-time, 4-hour annuity suitability training.

What is the penalty for the insurer who fails to refund premiums within 30 days after the free-look period? A. 3% B. 5% C. 10% D. 12%

C. 10% If an insurer does not refund the premium within 30 days of return of the policy, an additional 10% penalty is added to any premium refund due.

Every licensed person in this state must reply to an inquiry by the Commissioner regarding the business of insurance within what time period? A. Immediately B. 3 business day C. 15 business days D. 48 hours

C. 15 business days Every person licensed under this chapter must reply within 15 business days to an inquiry of the Commissioner regarding the business of insurance

A producer just completed a continuing education (CE) course. How soon would the producer be allowed to repeat the same course as part of his CE requirement? A. Never B. No sooner than 3 years C. During the next licensing renewal period D. No sooner than after 5 years

C. During the next licensing renewal period An approved course for which the licensee has previously claimed credit may be repeated for credit once every license renewal period.

Which of the following would pay covered claims when an insurance company becomes insolvent? A. State Department of Insurance B. NAIC C. Guaranty Association D. Insurance pool

C. Guaranty Association The Guaranty Association is made up of insurance companies authorized to write insurance in the state. Should a member company become unable to perform contractual obligations to their insureds because of impairment, each member company is assessed a portion of the amount necessary satisfy these obligations.

The Washington Insurance Code regulation regarding policy replacement applies to which of the following types of transactions? A. Replacement of policies by the same insurer B. Group life insurance C. Immediate annuity contract D. Credit life insurance

C. Immediate annuity contract Credit life insurance, group contracts, and policies issued and replaced by the same insurer are exempt from replacement regulations.

All of the following are required to be included in all life insurance policy illustrations EXCEPT A. The generic name of the policy. B. The initial death benefit. C. The marital status of the insured. D. The underwriting or rate classification.

C. The marital status of the insured. All life insurance policy illustrates must clearly be titled "Life Insurance Illustration" and must contain the following details: name of the insurer; name and business address of the producer or insurer's authorized representative, if any; name, age, and sex of proposed insured, except where a composite illustration is permitted; underwriting or rating classification upon which the illustration is based; generic name of the policy, the company product name, if different, and form number; initial death benefit; and dividend option election or application of nonguaranteed elements, if applicable.

What is the maximum benefit that the Washington Life and Disability Insurance Guaranty Association will pay for any one individual? A. $100.000 B. $200,000 C. $300,000 D. $500,000

D. $500,000 The benefits that the Association may become obligated to cover cannot exceed the lesser of the amount the insurer would have been liable for if it had not become impaired, or $500,000.

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? A. Legal, provided that the information can be verified B. Illegal until endorsed by the Guaranty Association C. Legal, provided that the other insurers are paid royalties for the usage of their names D. Illegal under any circumstances

D. Illegal under any circumstances When a company criticizes the financial situation of another company with the intention of injuring that company, it has committed an illegal trade practice called defamation.

An insurer must pay interest on death benefits payable under the terms of a life insurance policy A. To any insured party upon written request for all term life insurance policies. B. Insuring the life of any person who was a resident of this state within 3 years of their death. C. Insuring the life of any person who was a nonresident of this state at the time of death. D. Insuring the life of any person who was a resident of this state at the time of death.

D. Insuring the life of any person who was a resident of this state at the time of death. An insurer must pay interest on death benefits payable under the terms of a life insurance policy insuring the life of any person who was a resident of this state at the time of death.