WASHINGTON LIFE HEALTH INSURANCE FINAL EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Reinstatement Clause - ✔✔prohibits the Insurer from charging a reinstatement fee
Within the time limits provided by state law, I may reinstate if I:
• submit a reinstatement application within three years (which triggers a new
incontestable period on statements in the new application);
• pay any outstanding policy loans (if the Life policy
permitted policy loans);
• pay missed premiums plus interest; and
• provide proof of insurability
✔✔Time Limit on Lawsuits Clause - ✔✔After submitting the claim, the Insured must wait
60 days prior
to filing any lawsuit. And any lawsuit must be filed within 3 years
- this time limit is also referred to as a Statute of Limitations
✔✔Principal sum - ✔✔policy will pay
as a lump sum the face value of the policy
✔✔Multiple Indemnity Rider - ✔✔provides for a Life policy to
pay a specified multiple of the face value if the Insured dies as a
result of an accident
the death cannot be
attributed to a sickness and the death must occur within 90 days
✔✔Primary
Beneficiary - ✔✔The primary beneficiary is first in line. If
the primary beneficiary is alive at the time the Insured dies, the
primary beneficiary will receive the entire death benefit. But, if
the primary beneficiary dies before the Insured, the death benefit is paid to the
Insured's estate.
✔✔Contingent Secondary Beneficiary - ✔✔A Contingent (second or
tertiary) Beneficiary is an individual who will receive the death
benefit if the primary beneficiary is no longer living at the time
of the Insured's death
✔✔Minor beneficiaries - ✔✔Insurance companies will not pay death benefits directly to
a
minor under age 18 because the minor is not of sufficient legal
age to release the insurance company from liability. Insurance
companies recommend that the policy owner set up a trust for
,the benefit of the minor and name the trust as the beneficiary.
✔✔Uniform Simultaneous Death
Act - ✔✔if an Insured and Primary Beneficiary
appear to have died simultaneously, it shall be presumed that
the Primary Beneficiary died first unless there is proof otherwise.
✔✔Common Disaster Clause - ✔✔if both the Insured and Primary Beneficiary
die as the result of the same accident, the Primary Beneficiary
shall be considered to have died first (and get nothing) unless the
Primary Beneficiary outlives the Insured by 60 days
✔✔Spendthrift Trust - ✔✔trustee is instructed to provide money to the trust beneficiary
(big spender) only under specific circumstances
(such as no more than $500 per week), cannot be seized by creditors
✔✔Misstatement of age or gender - ✔✔Policy can only be adjusted, not voided
✔✔Physical Exam and Autopsy Clause - ✔✔At its own expense, the Insurer has the
right to conduct as many
physical exams upon the Insured as are reasonable. The Insurer
may perform one autopsy unless prohibited by state law.
✔✔Medicare - ✔✔Healthcare for the elderly (Also will help disabled people after they
have collected disability for 24 months)
✔✔Medicade - ✔✔Healthcare for the poor
✔✔Fully Disabled - ✔✔Unable to engage in any gainful activity due to physical or
mental impairments (Minimum 12 month span).
✔✔Survivor benefits - ✔✔$255 funeral help
% of PIA paid to survivor (After 10 years)
✔✔Workers Comp - ✔✔(State to state program)
Injured on the Job, covers med expenses
Die on the job Benefit paid to spouse
Disabled on job, disabilities income payment
✔✔Sole remedy for hurt on the job - ✔✔Work comp (Can't sue employer). Amount
controlled by state law
Can get all medical expenses and get SOME of their wages back but not all (2/3
usually)
Disability only paid until retirement, then Social security takes over
Employer pays the premium
, ✔✔MIB - ✔✔Medical information bureau, private non-profit company created by
insurance companies to share information between insurers, pre-notice for report
required for insured
Any information on application may be shared with MIB
MIB report may be requested by insurance company
IF a claim is filed later on, updated MIB report may be sent to insurance company
Records cannot include a company's underwriting decision
Can't report amount of insurance
Issuance cannot be reported
✔✔National Association of Insurance Commissioners - ✔✔Collect dues to fund
politicians and consumers and recommend laws to legislature
✔✔FCRA - ✔✔Fair Credit Reporting Act - Consumer reports
Consumer credit reports
Consumer investigative report
✔✔Consumer investigative report (Inspection report) - ✔✔Background report, notified in
advance, in writing, right to contact consumer reporting company, cannot ask insurance
company about the report, only disclose nature and scope of questions - not specifics,
Client can contact company and make corrections themselves or request another
corrective investigation, request for report must be sent to investigative company - not
insurance company
✔✔Consumer credit report - ✔✔Without knowledge or consent of the insured, 7 year
time limit on financial report (10 year limit on bankruptcy)
✔✔HIPAA - ✔✔Established April 14, 2003. The Health Insurance Portability and
Accountability Act, a federal law protecting the privacy of patient-specific health care
information and providing the patient with control over how this information is used and
distributed
✔✔AD&D Rider - ✔✔Accidental death and dismemberment (Add-ons), Accidental loss
of life, limb or vision, pays benefits in a lump sum only when medical problems are
direct result of an accident (not sickness), death within 90 days of accident or policy
won't pay, if accident is triggered by illness - no payout, value policy not indemnity
policy, at least one hand, one foot or vision in one eye will pay capital sum (100%), if
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Reinstatement Clause - ✔✔prohibits the Insurer from charging a reinstatement fee
Within the time limits provided by state law, I may reinstate if I:
• submit a reinstatement application within three years (which triggers a new
incontestable period on statements in the new application);
• pay any outstanding policy loans (if the Life policy
permitted policy loans);
• pay missed premiums plus interest; and
• provide proof of insurability
✔✔Time Limit on Lawsuits Clause - ✔✔After submitting the claim, the Insured must wait
60 days prior
to filing any lawsuit. And any lawsuit must be filed within 3 years
- this time limit is also referred to as a Statute of Limitations
✔✔Principal sum - ✔✔policy will pay
as a lump sum the face value of the policy
✔✔Multiple Indemnity Rider - ✔✔provides for a Life policy to
pay a specified multiple of the face value if the Insured dies as a
result of an accident
the death cannot be
attributed to a sickness and the death must occur within 90 days
✔✔Primary
Beneficiary - ✔✔The primary beneficiary is first in line. If
the primary beneficiary is alive at the time the Insured dies, the
primary beneficiary will receive the entire death benefit. But, if
the primary beneficiary dies before the Insured, the death benefit is paid to the
Insured's estate.
✔✔Contingent Secondary Beneficiary - ✔✔A Contingent (second or
tertiary) Beneficiary is an individual who will receive the death
benefit if the primary beneficiary is no longer living at the time
of the Insured's death
✔✔Minor beneficiaries - ✔✔Insurance companies will not pay death benefits directly to
a
minor under age 18 because the minor is not of sufficient legal
age to release the insurance company from liability. Insurance
companies recommend that the policy owner set up a trust for
,the benefit of the minor and name the trust as the beneficiary.
✔✔Uniform Simultaneous Death
Act - ✔✔if an Insured and Primary Beneficiary
appear to have died simultaneously, it shall be presumed that
the Primary Beneficiary died first unless there is proof otherwise.
✔✔Common Disaster Clause - ✔✔if both the Insured and Primary Beneficiary
die as the result of the same accident, the Primary Beneficiary
shall be considered to have died first (and get nothing) unless the
Primary Beneficiary outlives the Insured by 60 days
✔✔Spendthrift Trust - ✔✔trustee is instructed to provide money to the trust beneficiary
(big spender) only under specific circumstances
(such as no more than $500 per week), cannot be seized by creditors
✔✔Misstatement of age or gender - ✔✔Policy can only be adjusted, not voided
✔✔Physical Exam and Autopsy Clause - ✔✔At its own expense, the Insurer has the
right to conduct as many
physical exams upon the Insured as are reasonable. The Insurer
may perform one autopsy unless prohibited by state law.
✔✔Medicare - ✔✔Healthcare for the elderly (Also will help disabled people after they
have collected disability for 24 months)
✔✔Medicade - ✔✔Healthcare for the poor
✔✔Fully Disabled - ✔✔Unable to engage in any gainful activity due to physical or
mental impairments (Minimum 12 month span).
✔✔Survivor benefits - ✔✔$255 funeral help
% of PIA paid to survivor (After 10 years)
✔✔Workers Comp - ✔✔(State to state program)
Injured on the Job, covers med expenses
Die on the job Benefit paid to spouse
Disabled on job, disabilities income payment
✔✔Sole remedy for hurt on the job - ✔✔Work comp (Can't sue employer). Amount
controlled by state law
Can get all medical expenses and get SOME of their wages back but not all (2/3
usually)
Disability only paid until retirement, then Social security takes over
Employer pays the premium
, ✔✔MIB - ✔✔Medical information bureau, private non-profit company created by
insurance companies to share information between insurers, pre-notice for report
required for insured
Any information on application may be shared with MIB
MIB report may be requested by insurance company
IF a claim is filed later on, updated MIB report may be sent to insurance company
Records cannot include a company's underwriting decision
Can't report amount of insurance
Issuance cannot be reported
✔✔National Association of Insurance Commissioners - ✔✔Collect dues to fund
politicians and consumers and recommend laws to legislature
✔✔FCRA - ✔✔Fair Credit Reporting Act - Consumer reports
Consumer credit reports
Consumer investigative report
✔✔Consumer investigative report (Inspection report) - ✔✔Background report, notified in
advance, in writing, right to contact consumer reporting company, cannot ask insurance
company about the report, only disclose nature and scope of questions - not specifics,
Client can contact company and make corrections themselves or request another
corrective investigation, request for report must be sent to investigative company - not
insurance company
✔✔Consumer credit report - ✔✔Without knowledge or consent of the insured, 7 year
time limit on financial report (10 year limit on bankruptcy)
✔✔HIPAA - ✔✔Established April 14, 2003. The Health Insurance Portability and
Accountability Act, a federal law protecting the privacy of patient-specific health care
information and providing the patient with control over how this information is used and
distributed
✔✔AD&D Rider - ✔✔Accidental death and dismemberment (Add-ons), Accidental loss
of life, limb or vision, pays benefits in a lump sum only when medical problems are
direct result of an accident (not sickness), death within 90 days of accident or policy
won't pay, if accident is triggered by illness - no payout, value policy not indemnity
policy, at least one hand, one foot or vision in one eye will pay capital sum (100%), if
