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