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Exam (elaborations)

Washington State Insurance Exam Study Guide 2025 Questions And Answers

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Is the appearance or assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created. - ans apparent owned by the policyowner and issue participating policies. policy owners are entitled to dividends, which are a return of excess premiums and are therefore non-taxable. dividends are not guaranteed. - ans mutual company a method of dealing with risk for a group of individual persons or businesses with the same or similar exposure to loss to share the losses that occur within that group. a reciprocal insurance exchange is a form of risk-sharing arrangement. - ans sharing is the planned assumption of risk by the insured through the use of deductibles, co-payments, or self-insurance. it is also known as self-insurance when the insured accepts the responsibility for the loss before the insurance company pays. - ans retention is the authority a principal intends to grant to an agent by means of the agent's contract. it is the authority that is written in the contract. - ans express authority @COPYRIGHT BRAINBARTER 2025/2026 PAGE2 in order to be characterized as a pure risk, the loss must be due to chance, definite, measurable, and predictable, but not catastrophic. - ans insurable risk section of an insurance policy that indicates the general rules or procedures that the insurer and insured agree to follow under the terms of the policy. examples: inspection may be made as needed/ changes to the policy must be made by insurer and be in writing/ liberalization clause/ return of premiums, which dictates methods used. - ans insurance policy conditions type of rating: method developed by the insurance services office inc. (iso) that provides an insurer with that portion of a rate that does not include provisions of expenses or profit and are based on historical aggregate loss and loss adjustment expenses projected through development to their ultimate value and through trending to a future point in time. - ans loss costs rating is commonly applied in product liability cases. the business is then liable for defective products, regardless of fault or negligence. - ans strict liability the part of the policy structure that describes the insured perils and the method of indemnification. - ans insuring agreement states the legal obligations and duties of the parties to the contract. - ans conditions provides for payment of the full policy amount in the event of a total loss without regard to actual value or depreciation. - ans valued policy in states that have this, the d

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WASHINGTON LIFE AND HEALTH
(DISABILITY) EXAM 2025 QUESTIONS
AND ANSWERS




An insurer authorized to do business within this state is considered what type of insurer?


a
alien
b
domestic
c
foreign
d

admitted - ans d-admitted


an insurer authorized to do business in this state is referred to as admitted, and could be either
domestic, foreign, or alien domiciled.


a long-term care policy can exclude from coverage all of the following, except:
1




hospitalization (acute care)
PAGE




@COPYRIGHT BRAINBARTER 2025/2026

, b
intentionally self-inflicted injuries
c
rest cures
d

alzheimer's disease - ans d- alzheimer's disease


alzheimer's disease cannot be excluded from long-term care coverage.


which is not correct concerning a blue cross and blue shield plan?


a
in most states, they are considered not-for-profit organizations
b
benefits are paid directly to the insured individual
c
they are fee for service plans
d

they offer both individual and group coverage - ans b-benefits are paid directly to the
insured individual


as both blue cross and blue shield plans are fee for service programs, they pay the service
provider, not the covered individual (i.e. subscriber). they are typically not-for-profit and
provide both group and individual coverage.


universal life and variable universal life share all of the following characteristics, except:
2
PAGE




a


@COPYRIGHT BRAINBARTER 2025/2026

, policy loans, surrenders, and partial withdrawals are permitted
b
flexible premiums
c
adjustable death benefit options
d

the investment risk - ans b- flexible premiums


but like variable life, a vul has a separate account that is maintained and the investment return
fluctuates based on the performance of the separate account. since there is no guaranteed
return on the separate account, the owner bears all investment risk.


all of the following are life insurance disability riders, except:


a
disability income benefit
b
payor benefit
c
waiver of premium
d

jumping juvenile - ans d- jumping juvenile


a payor benefit can be added to a jumping juvenile policy.


each major line of insurance requires at least _____ credit hours of prelicensure instruction.
a
3
PAGE




12


@COPYRIGHT BRAINBARTER 2025/2026

, b
20
c
16
d

18 - ans b- 20


each major line of insurance requires at least 20 credit hours of prelicensure instruction and the
license examination must be taken within 12 months of completion.


fred owns a 40-pay life policy. he designated his wife, ethel, as primary beneficiary. upon fred's
death, ethel receives a set amount for life. fred chose which settlement option?


a
extended term
b
fixed period
c
life income only
d

joint life - ans c- life income only


life income only guarantees payment for the lifetime of the recipient. extended term is a
nonforfeiture option.


the insurance industry is primarily regulated at the _________ level.
a
4
PAGE




state


@COPYRIGHT BRAINBARTER 2025/2026

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