WA life and health State Insurance Laws
Each of the following would be a valid Insurer explanation for terminating a policy:
"The roof of your house is in such disrepair that it will leak every time it rains." "You failed to pay the policy premium due last December 15." "You have had 43 speeding tickets in the last six weeks."
Molly has a $1 million life policy and a $500,000 Accidental Death and Dismemberment policy. She is injured in a serious motorcycle accident on January 1 and dies 7 months later from the injuries. Her Insurer will pay a total of:
$1,000,000 Although the death was triggered by an accident, the death did not occur within the AD&D policy's 90 day limit.
A Bonded Producer must post a bond in the amount of:
$2,500
The maximum amount of a Commissioner fine is:
$25,000
Assume that a Life or Disability Insurer is unable to pay a claim due to insolvency. The beneficiary knows that the Guaranty Fund has a $500,000 maximum. If the beneficiary was named a primary beneficiary by an Insured who had three $1,000,000 policies from the insolvent Insurer, the Guaranty Fund will pay:
$500,000 because the $500,000 maximum is a maximum per person.
Q has given a cash premium to a Producer. How long does the Producer have to provide a signed premium receipt?
1 business day
A Washington Disability policy with premiums paid on a monthly basis must provide for a Grace Period of at least:
10 days
The Insurer must acknowledge the receipt of a claim within:
10 days for an individual policy and 15 days for a group policy
An Insured notified the Insurer that the Insured wanted to cancel under the 10 Day Free Look provision. The notice was given within 10 days of policy delivery. The Insurer failed to return the premium for 62 days. How much of a penalty does the Insurer owe?
10% A 10% penalty is assessed if the premium is not refunded within 30 days.
If a Washington Producer violates state law, the Commissioner may, after a hearing, suspend the Producer's license for a maximum of:
12 months
If an Insurer decides to terminate an Independent Producer for failure to meet sales quotas, the Independent Producer must be given how much advance notice of the termination?
120 days
Under Washington law, a Producer is required to respond to a Commissioner inquiry within:
15 days
When an Insurer appoints a Producer, the Insurer must notify the Commissioner of the appointment within:
15 days
If a life Insurer sells an applicant a replacement policy, the Insurer must provide a Free Look provision for the replacement policy that lasts for:
20 days
Jasmine knows that she must complete 24 hours of continuing education every two years to renew her life license. However, if she also obtains a casualty license, her total continuing education requirement every two years will be:
24 hours
Every 2 year renewal period, a Producer must complete:
24 hrs of continuing education
As part of the Continuing Education requirements, Producers must complete:
3 hours of ethics training every renewal period.
If a death benefit is not paid within the required 90 days, the Insurer must pay 8% interest plus a penalty of:
3%
A group life policy will not have to pay interest on a death claim if the claim is paid within:
30 days
Mr. Shakespeare recently died. Mrs. Shakespeare files a death claim with the group life insurer. The insurer must pay the death claim within what time period after the claim was submitted?
30 days
The Medicare Supplement free look provision is how long?
30 days
Upon termination of a group health policy, an Insured has how many days under Washington law to convert to an individual policy?
31 days
A Producer must keep transaction records for:
5 years
A Washington Producer must keep records of premium trust accounts for:
5 years
A local insurance firm has just terminated one of its most active Producers. The firm must keep copies of the Producer's records for:
5 years
The Insurance Commissioner must examine company records every:
5 years
Except for loans to make policy premium payments, a life insurer may defer an Insured's request for a loan for a maximum of:
6 months
An HMO must cover a couple's newborn if the HMO receives payment of the premium and notification within:
60 days
A Washington whole life policy must provide for policy loans at an interest rate no greater than?
8%
Unless a whole life policy's loan interest rate is determined by Moody's Corporate Bond Yield Average as approved by the Commissioner, the maximum loan interest rate will be:
8%
Under Washington law, an individual life policy must pay 8% interest from the date of Insured's death. A group policy must pay 8% interest from the date of death only if the claim isn't paid in the first 30 days. However, for both individual and group policies, an additional 3% interest is owed if the death benefit is not paid within which day following the Insurer's receipt of the proof of claim?
91st
An applicant for a Nonresident License must have:
A corresponding license from the other state.
Each of the following is true about the Producer's office:
A full fee must be paid for each additional office license. Except for life or disability producers, all resident producers must maintain an office. A separate license must be purchased for each place of business.
Which Producer must be bonded?
A producer who is not appointed by an Insurer.
The Disability Income or Health policy's definition of chemical dependency includes which of the following?
Alcohol, legal prescription drug, or illegal drugs
A Washington Producer may hold a policy without delivering the policy to the Insured when holding the policy:
As a guardian...they may hold the policy if the Producer has been named as the representative (guardian) for the incompetent Insured or as the executor of the Insured's estate.
Each of the following is an example of one of the three types of policy illustrations:
Basic, In-Force, & Supplemental
Under Washington laws, the required chemical dependency coverage applies to:
Both physiological and psychological dependency issues.
Selling insurance in Washington without an insurance Producer license is a:
Class B felony
Each of the following activities requiring a Washington insurance license is considered an illegal "unlicensed activity"
Determining the appropriate policy to cover the applicant's risk Acting as an independent adjuster Explaining policy provision
The State of Washington utilizes a "Standard Health Questionnaire." The questionnaire must be used when applying for which type of insurance?
Every 2 years
The Commissioner may suspend or revoke a Producer's license for any of the following:
Guaranteeing dividends Rebating Twisting
An unlicensed person selling insurance in the State of Washington:
Has committed a felony
Which of the following would most likely have authority under Washington law to make adjustments to the minimal amounts required to be refunded to the Insured under a nonforfeiture provision?
Insurance Commissioner
The purpose of the life insurance replacement rules is to protect the:
Insured
Every 5 years, the Washington Insurance Commissioner is required to examine the financial records of:
Insurers
Jabin is an independent Producer representing a number of Insurers, including the Mean Insurance Company. For no reason at all, Mean decides to terminate Jabin's appointment. Mean is required to offer to renew any of the policies in Jabin's book of business for 1 year. What does Washington law say about commissions on those renewed policies?
Jabin is entitled to a commission on the renewed policies for 1 year.
Under Washington law, the Disability Producer is required to determine the appropriateness of the policy when selling:
Medicare supplement policy
Which Insurer is a "participating" Insurer because it pays dividends to its members who are policyholders?
Mutual
A life policy illustration should include each of the following:
Numbered Pages A list of items that are NOT guaranteed A statement regarding guaranteed items
The license of a Temporary Agent is effective for:
Only 180 days
An unlicensed office person working in a Washington insurance office may:
Perform normal duties NOT involving selling insurance
The Commissioner is LEAST LIKELY to have authority to examine the financial records of which of the following?
Policy Holders
If an Insurer's proposed premium rates are too low, the Commissioner will:
Reject the proposed rates
A couple insured by an HMO has a baby and notifies the Insurer within the required 60 days and pays the additional premium. The baby is covered:
Retroactively to the date of birth
Who is responsible for determining whether a policy sold in Washington is issued by a company authorized to do business in the state?
The Producer
Who must make a good faith effort to determine whether the insurance company is authorized to transact business in Washington?
The Producer
Which of the following may obtain a temporary producer license?
The producer's next of kin.
In the event of a life insurance replacement, who notifies the Existing Insurer that a replacement is being considered?
The replacing insurer
How frequently may the Commissioner examine the records of an insurance company?
There is no statutory limitation, thus, as often as the Commissioner deems appropriate.
A Washington Producer has been given an issued policy. The Producer must deliver the policy:
Within a reasonable time.
Each of the following must be included in the premium receipt EXCEPT:
a brief description of the procedures for filing a claim.
An Insurer formed in Wyoming is referred to as?
a foreign Insurer
The Commissioner may do each of the following:
a. Fine Producers up to $1,000 b. Suspend Producer licensers for up to 12 months c. Set and collect Producer license fees
If a Producer receives an excess fee paid by the Insured, the Producer must disclose each of the following to the Insured:
a. Whether the Producer may receive any additional commission from the Insurer in the future. b. The full amount of the fee paid by the Insured. c. The full amount of any commission paid to the Producer by the Insurer.
Which is the appropriate term to describe what happens when an Insurer discovers that an Insured intentionally lied about age or gender when applying for an individual life policy?
adjust
The Commissioner has notified a Producer of a hearing regarding a licensing violation. The Producer is concerned that the Commissioner may be biased against her. She may choose to in effect disqualify the Commissioner and demand a hearing before:
an administrative law judge
The Commissioner has scheduled a hearing regarding the suspension of Q's Producer license. Q prefers not to have the hearing with the Commissioner. Washington law permits Q to request a hearing with:
an administrative law judge
The Commissioner may:
approve premium rates
Bonded Producers must post a bond of:
at least $2,500 but not more than 5% of the premiums brokered in the previous year.
For each long-time Producer, a Washington Insurer must pay an appointment fee to the Commissioner and provide notice of the Producer's appointment at which time?
at the producer's renewal date every two years.
A Washington Insurer may discriminate against an applicant due to:
bona fide statistical differences in risk based on sex, marital status, mental handicap, or physical handicap
An alien insurer is formed in another:
country
Offering different premium rates or policy terms to applicants of substantially the same risk and hazard classification is an illegal activity known as:
discrimination
A foreign or alien Insurer may only be sued in Washington by:
filing the service of process with the Insurance Commissioner
When determining the suitability of an annuity, the Producer should take into account the applicant's:
financial status
A Disability Insurer may terminate a policy even after the 2 year contestable period due to:
fraudulent statements
Rebating includes each of the following:
giving the applicant all of the commission giving an applicant a gift valued at over $100 giving the applicant part of the commission
All funds representing premiums or return premiums received by a Washington Producer must be held:
in a fiduciary capacity in a separate trust account that is in a federally insured financial institution.
The State of Washington utilizes a "Standard Health Questionnaire." The questionnaire must be used when applying for which type of insurance?
individual health insurance only.
A foreign insurer is:
is formed in another state within the U.S.
Under Washington law, a health insurer must cover prescription drugs. The coverage for prescription drugs:
may be limited by the insurer.
If an Insured's check is made payable to the Insurer, the funds:
may be sent to the insurer without first depositing the check in the premium trust account.
An unlicensed person working in a Washington insurance office may:
perform bookkeeper duties
The Health Insurance Coverage Access Act (WSHIP) is designed to cover:
persons in counties where insurance is unavailable.
If an Insurer cancels a dwelling policy, the refund of unearned premium is calculated by which method?
pro rata
An appointment letter gives the Producer expressed authority to:
represent the Insurer
When the policy is issued to the Producer, Washington law:
requires the producer to deliver the policy to the insured.
Molly decided to drop the coverage under her policy partway through the policy period. She has notified the Insurer and has returned the policy. The Insurer must send Molly a:
short rate refund of unearned premium.
A Producer must complete the 8-hour Long Term Care course prior to:
soliciting applicants for LTCi policies
A life policy illustration must include each of the following:
the Insured's name, age, and gender the generic name of the policy (such as universal life) the amount of the death benefit
A Producer may receive compensation directly from:
the Insurer, the Insured, or both
If an elderly Medicare Supplement Insurer requires a medical history from the applicant, which of the following could complete the medical history for the applicant?
the applicant's spouse
Every Insurer ad must state which of the following:
the full name of the insurer
A mutual Insurer is owned by:
the mutual's policyholders
The Premium Receipt must be delivered within 1 business day and must contain each of the following EXCEPT
the policies deductible, exclusions, & producer's commission
The Commissioner may order the immediate cancellation of a policy if:
the policy violates any WA law.
A Producer must give the Applicant notice of the Insurer's practices regarding the collection of personal financial information no later than:
when delivering the policy to the applicant
When an Insured dies the Insurer will owe interest on the death benefit. When does the interest begin to accrue?
when the Insured dies
When is the earliest that a Producer can lawfully inform an applicant that the Life or Disability policy is covered by the Guaranty Association?
when the policy is delivered
