2022WA Life Exam

Which is not a source of underwriting information?

A marriage and divorce record.

How soon can the benefit payments begin with a deferred annuity?

A minimum of 12 months after the date of purchase.

A decreasing term policy is issued with a decreasing death benefit and?

A pure death benefit with no cash accumulation, death benefit and premium.

Under the exclusion clause, which is a scenario that would not be covered if death resulted?

A spectator at an auto race.

The type of annuity in which all payments cease upon the death of an annuitant is referred to as a:

A straight life annuity.

A statement guaranteed to be true?

A warranty.

A life insurance policy's double indemnity provision would apply when the policyowner death occurs due to?

Accident

When does an immediate annuity begin making payments?

After the first premium has been paid.

All of the following are purposes of an annuity EXCEPT?

An annuity is designed to distribute accumulated principal.

The securities component of index whole life insure is considered which of the following?

An effective hedge against inflation.

Domestic Insurer

An insurer that conducts business in the state, district or commonwealth in which it was incorporated.

The deeds and actions of a producer indicate what kind of authority?

Apparent

An insurer would consider which of the following in determining whether to accept group life plan?

Average Age

Of these factors would an insurer consider when determining whether to accept a group life plan?

Average Age.

Producers demonstrate their implied power when they?

Calculating the premiums and establishing payment methods.

Survivorship life insurance policies are useful in estate planning because they?

Can provide money to pay taxes on assets.

Variable universal life is a type of permanent life insurance policy with features that include:

Cash value investment variety, flexible premiums and a flexible death benefit.

Which type of beneficiary designation allows the policyowner to name all children as beneficiaries?

Class

A person may not solicit or take applications for, or procure or place for others, any kind of insurance for which he or she is not then licensed is what kind of felony?

Class B Felony

Which of the following would be considered an underwriting duty of an agent?

Completing all applications and collecting initial premiums

An agent's underwriting duties include which of the following?

Completing all applications and collecting initial premiums.

In this state what does a certificate of authority empower an insurer to do?

Conduct business

Which type of beneficiary designation allows the policyowner to name "all children" as beneficiaries?

Contingent Beneficiary

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 (For example, if the annual percentage increase is 4 percent, your payments for the next year will increase by that amount.)

Insurance that is designed to pay the balance of a loan if the insured dies before the loan has been paid?

Credit Life Insurance

Which of the following is not a reason the commissioner may suspend or revoke an insurance producer license?

Discriminating in benefits and coverages based on the insured's habits and lifestyle.

Why are dividends from a mutual insurer not subject to taxation?

Dividends are considered to be a return of premium.

Why are dividends from a mutual insurer not subject to taxation?

Dividends are cosidered to be return of premium.

AN INSURER THAT CONDUCTS BUSINESS IN THE STATE IT WAS INCORPORATED IS A

Domestic Insurer

What is the purpose of a disclosure statement in life insurance policies?

Explain features and benefits of a proposed policy to the consumer.

An insurance company needs to obtain personal information from a third-party concerning an applicant, which law do all insurers and their producers need to comply with?

Fair Credit Reporting Act

Which of these riders will pay a death benefit if the insured's spouse dies?

Family term insurance rider.

If a policy holder does not pay interest when it is due on a policy loan the insurer is permitted to?

First give 30 day period, the policy will automatically terminate without any value on that date.

How long must a producer establish and maintain records for a separate premium account?

Five Years

You must maintain an organized record of all completed transactions for five years. including procured insurance contracts. amount of premium paid or to be paid.

Five years.

When doing business in this state an insurance company that is formed under the laws of another state is known as?

Foreign Insurer

Types of crime requiring the 1033 waiver (letter of written consent) include all of the following except?

Forgery

An organization that solicits insurance only among its members is known as?

Fraternal Benefit Society

Under a universal life insurance policy, a corridor represents the?

Gap between the total death benefit and the policy's cash value.

Even though the premium has not been paid in a life insurance policy, it will remain in force of a?

Grace period. 31 days to pay.

A waiver of premium rider found in a life insurance contract requires the insureds disability to be?

If the insured person becomes totally disabled, ex: Critically ill or physically impaired.

Not formally expressed nor communicated authority given to agent?

Implied authority.

Which of the following protects a policyowner from a misrepresentation caused by an innocent mistake?

Incontestable Clause

Any change in an insurance application must be?

Initialed by the Applicant,

The settlement option that allows proceeds to remain with the insurer and earnings to be paid to beneficiary

Interest only

Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary?

Interest only.

A reason for using consumer agencies to gather information about insurance applicants is to obtain?

Investigative consumer and consumer reports.

A life insurance policy written on one contract for two people in which it is payable upon the first death is called a?

Joint Survivorship

Which is an annuity benefit option that provides payments to a survivor for the remainder of a guaranteed period?

Joint and survivor annuity

Which provides for the continuation of a business if the dies prematurely

Key insurance policy

Which life insurance policy is used to protect business from the financial consequences of the death of their executive director?

Key person isnurance

The settlement option that pays a specific amount to an annuitant, but pays no residential value?

Life income

Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies?

Life only

Which type of policy allows the policy owners to pay the entire premium in a shorter period of time before the policy...

Limited pay whole life gives you a lifetime protection but requires only a limited number of premium payments.

All of the following factors are used in determining premium EXCEPT?

Liquidity

Backdating on a life insurance policy is the practice of?

Making the policy effective on an earlier date than the present.

A producer misleads a client using illustrations to convert an existing policy what is this an example of?

Misrepresentations

Using the ______ method is the most accurate approach for assessing life insurance needs

Needs analysis

What is the maximum period of time the commissioner may revoke your agent's license?

No max time period but max suspension 12 months.

A provision in a whole life policy that allows a policy owner to terminate the policy in return for a reduced paid-up policy of the same type?

Non-forfeiture Provision

A provision in a whole life policy that allows a policyowner to terminate the policy in return for a reduced paid-up policy of the same type is called a:

Nonforfeiture options

Premiums paid on a personal life insurance policy are

Not tax deductible.

If an insurance producer requests suitability information from a client who refuses to provide it?

Obtain a signed statement of the client's refusal to sign a suitability statement.

The ownership provision of a life insurance policy states during the insured individuals lifetime the rights and privileges belong to the?

Owner only

The insurance commissioner is empowered to?

Pass state laws relating to insurance.

In a traditional whole life policy, the death benefit

Remains constant over the life of the policy.

In order to activate the reinstatement clause of lapsed life insurance policy the insured must?

Remit all past due premiums within the grace period.

What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as?

Representation

Specific statements made on a application that the insured guarantees to be true are?

Representations, these are responses to questions to determine whether the applicant is insurable and how much should be charged.

When a producer receives a policy issued for an insured, the producer should?

Send the insurer a statement signed by the applicant.

All funds representing premiums or return premium received by an insurance producer in the?

Separate account which may be interest bearing.

An insurance company may delay the payment of the cash value of a surrendered whole life insurance policy for up to?

Six months

In contracts, which of the following describes the term consideration?

Something bargained for an d received by a promiser from a promisee.

Which annuity benefit payment option is characterized as providing lifetime income onto the annuitant, ceasing all payments upon the death of the annuitant and paying largest monthly income of options?

Straight Life

Every advertisement by or on behalf of, a domestic insurer must have which of the following?

Sufficient liquid assets to meet loss obligations.

The person who receives annuity assets (either the amount paid into the annuity or the cash value whichever is greater) if the annuitant dies?

The Beneficiary

Which rider allows the policyowner to fight inflation?

The COST-OF-LIVING RIDER lets the policyowner increase the face amount on the persons policy. It is tied to an INFLATION INDEX. without prove of instability

An insured added a cost-of-living rider to his insurance policy to ensure his death benefit increases in accordance with?

The accelerated benefit rider.

In order to transact the business of insurance a producer needs to be able to carry out activities not stipulated in the agency contract this type for an insurer is referred to as?

The appointing insurer shall file in a format approved the insurance commissioner.

Under provision of a life insurance policy suicide clause, if an insured commit suicide within the specific period from the inception (start) of the policy, the insurers liability will be limited to the return of the premiums paid?

The company will only return to the policyholder beneficiaries any premiums that have been paid.

Which rider allows the policyowner to increase the face amount to adjust for inflation?

The cost of living rider.

Who assumes the investment risk with a fixed annuity contract?

The insurer

Under traditional fixed annuity contracts, the party who assumes the investment risk is the?

The insurer because they guarantee the annuitant's principal as well as a guaranteed minimum rate of return, even if the underlying assets underperform the guaranteed rate.

Fixed annuities are characterized by all of the following except?

The interest rate at which premium payments grow interest during the accumulation phase is not fixed.

Which method for assessing a consumer's need for life insurance involves a predicting the future earnings of potential?

The needs approach.

A whole life insurance policy accumulates cash value that becomes?

The policy loan value upon which the insured may borrow.

Pat owns a 20-pay life policy with a paid-up dividend option. which of the following statement is true?

The policy may be paid up early by using policy dividends.

The statement which best describes the relationship between the premiums of a whole life policy and the premium...?

The shorter the payment period the higher the premium.

What is the advantage of a children term rider added to the primary insureds coverage?

This rider allows for conversion to permanent cash value insurance.

An example of naming a beneficiary by class would be?

To the child born of my union with Ned Jackson

Who makes the legally enforceable promises in a unilateral insurance policy?

Under a unilateral insurance policy, the insurance company makes the legally enforceable promises.

A contract in which only one party makes an enforceable promise:

Unilateral contracts. Most insurance policies are unilateral contracts in that only the insurer makes a legally enforceable promise to pay covered claims

A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called?

Universal Life

Which of the following policies has a guaranteed interest rate with the possibility to earn an interest rate high than the guaranteed rate?

Universal Life

In which type of annuity are the funds invested in a separate account?

Variable Annuity

Which of these would limit (aka exclude) a company's liability to provide insurance coverage?

Waiver Exclusion Rider Provision

Settlement options become available when the policy endows?

When the cash value equals the death benefit.

The principal use of an annuity is to provide?

income for retirement

U.S. Code § 1033 - Crimes by or affecting persons engaged in the business of:

insurance whose activities affect interstate commerce. for the purpose of influencing the actions of such official or agency or such an appointed agent or examiner shall be punshed.