WASHINGTON LIFE/HEALTH INSURANCE EXAMS SCRIPT
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Currently Insured - ✔✔Worked less than ten years. Only eligeable for Survivor
Benefits
✔✔Average Indexed Monthly
Earnings - ✔✔Averages earnings over time period. Either way, the more a worker
has paid into Social Security, the more the worker (or dependents)
will get out of it. (What you get at age 65)
✔✔Primary Insurance Amount (PIA). - ✔✔Full retirement benefit someone is entitled to
at age 65 (some cases, 66-67)
✔✔elimination period (Disability) - ✔✔the person must be
disabled for 5 months before starting to receive Disability
Benefits
✔✔underwriting - ✔✔the selection and classification of risks.
✔✔actuary - ✔✔A person who tracks the lifespan and chance of illness or accident
based on specific factors
✔✔Mortality table - ✔✔predict the age at which
people in a given group are likely to die (Used by life insurers)
✔✔Morbidity table - ✔✔predict how often
people in a given group are likely to get sick or have an
accident. (Used by health insurers)
✔✔field underwriters - ✔✔Insurance agents
✔✔declined risks - ✔✔Applicants who are too risky are declined
✔✔Adverse selection - ✔✔the tendency for high
risk people to be more likely to apply for insurance than low risk
people.
✔✔Premium = - ✔✔Risk + Expenses - Interest
✔✔Premium mode - ✔✔how frequently an Insured will pay the premium
✔✔Accelerated Death Benefit Rider - ✔✔requires the Insurer to pay out part of the
death benefit
,(usually 50%) if the Insured has a diagnosis of a particular illness
likely to cause death within 12 months
✔✔Viatical Settlements - ✔✔sell the policy to an investment company that will continue
to make the premium payments and collect the death benefit when the Insured dies.
The Insured will sell only if an investment company will pay more than the current cash
surrender value.
✔✔Group Policies share
these three characteristics - ✔✔Reduced Cost;
Reduced Adverse Selection; and
Fixed Benefits.
✔✔Adverse selection - ✔✔people who need
insurance the most are the ones most likely to buy it - and buy
more of it causing more loss claims
✔✔experience rating - ✔✔looks at the claims
history for this particular group.
Experience rating puts the burden for
high premiums (and the credit for low
ones) squarely on the shoulders of
the group, because of the particular
group's past claims history
✔✔community rating - ✔✔combines claims history over a class of groups that are
similar in nature and
may even be in a similar geographic area
✔✔Master Contract - ✔✔The one overriding contract that can affect the lives of
hundreds
or thousands
✔✔Certificate of Insurance - ✔✔a booklet explaining the coverage and
an identification card
✔✔Single Employer Group - ✔✔an
insurance plan administered by an employer to cover employees,
officers, and even the board of directors (but not shareholders
because they aren't employees).
✔✔Multiple Employer Group - ✔✔When two or more employers join forces to meet
minimum member requirements and in other ways jointly provide insurance for their
employees
, ✔✔non-contributory plan - ✔✔a Group Insurance plan in which
the entire cost of coverage for all eligible group members is
covered by the organizing entity, usually the employer
✔✔contributory plan - ✔✔all or part of the costs of
coverage must be paid by individual group members
✔✔eligibility period - ✔✔after the probationary period when an employee is eligible to
receive health insurance
✔✔open enrollment
period - ✔✔a month in which all employees who have become eligible to enroll can
✔✔voluntary plans - ✔✔"add on" programs
that are reasonably priced because of volume discounts
✔✔Voluntary Employer-Sponsored (Worksite)
Plans - ✔✔Optional plans offered to the employees that they pay for out of pocket
(Aflac)
✔✔Supplemental Accident Benefit policies - ✔✔pay a specified dollar
over and above any other insurance a worker already has - and
there is no deductible involved
✔✔Hospital Indemnity Policies - ✔✔pay a predetermined benefit
(for example, $500) for each day spent in the hospital.
✔✔legal purpose - ✔✔a contract is to be
valid, its purpose must be legal
✔✔a contract is to be
valid, its purpose must be legal - ✔✔only people who
are capable of understanding the terms of a contract and who are
not under duress may become parties to a contract
✔✔mutual consideration - ✔✔For
a contract to be valid, the parties must exchange something of
value.
✔✔Agreement = - ✔✔offer + acceptance
✔✔Statement of Continued Good Health - ✔✔assures the company that
no material changes have occurred since the time the application
was completed several weeks earlier.
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Currently Insured - ✔✔Worked less than ten years. Only eligeable for Survivor
Benefits
✔✔Average Indexed Monthly
Earnings - ✔✔Averages earnings over time period. Either way, the more a worker
has paid into Social Security, the more the worker (or dependents)
will get out of it. (What you get at age 65)
✔✔Primary Insurance Amount (PIA). - ✔✔Full retirement benefit someone is entitled to
at age 65 (some cases, 66-67)
✔✔elimination period (Disability) - ✔✔the person must be
disabled for 5 months before starting to receive Disability
Benefits
✔✔underwriting - ✔✔the selection and classification of risks.
✔✔actuary - ✔✔A person who tracks the lifespan and chance of illness or accident
based on specific factors
✔✔Mortality table - ✔✔predict the age at which
people in a given group are likely to die (Used by life insurers)
✔✔Morbidity table - ✔✔predict how often
people in a given group are likely to get sick or have an
accident. (Used by health insurers)
✔✔field underwriters - ✔✔Insurance agents
✔✔declined risks - ✔✔Applicants who are too risky are declined
✔✔Adverse selection - ✔✔the tendency for high
risk people to be more likely to apply for insurance than low risk
people.
✔✔Premium = - ✔✔Risk + Expenses - Interest
✔✔Premium mode - ✔✔how frequently an Insured will pay the premium
✔✔Accelerated Death Benefit Rider - ✔✔requires the Insurer to pay out part of the
death benefit
,(usually 50%) if the Insured has a diagnosis of a particular illness
likely to cause death within 12 months
✔✔Viatical Settlements - ✔✔sell the policy to an investment company that will continue
to make the premium payments and collect the death benefit when the Insured dies.
The Insured will sell only if an investment company will pay more than the current cash
surrender value.
✔✔Group Policies share
these three characteristics - ✔✔Reduced Cost;
Reduced Adverse Selection; and
Fixed Benefits.
✔✔Adverse selection - ✔✔people who need
insurance the most are the ones most likely to buy it - and buy
more of it causing more loss claims
✔✔experience rating - ✔✔looks at the claims
history for this particular group.
Experience rating puts the burden for
high premiums (and the credit for low
ones) squarely on the shoulders of
the group, because of the particular
group's past claims history
✔✔community rating - ✔✔combines claims history over a class of groups that are
similar in nature and
may even be in a similar geographic area
✔✔Master Contract - ✔✔The one overriding contract that can affect the lives of
hundreds
or thousands
✔✔Certificate of Insurance - ✔✔a booklet explaining the coverage and
an identification card
✔✔Single Employer Group - ✔✔an
insurance plan administered by an employer to cover employees,
officers, and even the board of directors (but not shareholders
because they aren't employees).
✔✔Multiple Employer Group - ✔✔When two or more employers join forces to meet
minimum member requirements and in other ways jointly provide insurance for their
employees
, ✔✔non-contributory plan - ✔✔a Group Insurance plan in which
the entire cost of coverage for all eligible group members is
covered by the organizing entity, usually the employer
✔✔contributory plan - ✔✔all or part of the costs of
coverage must be paid by individual group members
✔✔eligibility period - ✔✔after the probationary period when an employee is eligible to
receive health insurance
✔✔open enrollment
period - ✔✔a month in which all employees who have become eligible to enroll can
✔✔voluntary plans - ✔✔"add on" programs
that are reasonably priced because of volume discounts
✔✔Voluntary Employer-Sponsored (Worksite)
Plans - ✔✔Optional plans offered to the employees that they pay for out of pocket
(Aflac)
✔✔Supplemental Accident Benefit policies - ✔✔pay a specified dollar
over and above any other insurance a worker already has - and
there is no deductible involved
✔✔Hospital Indemnity Policies - ✔✔pay a predetermined benefit
(for example, $500) for each day spent in the hospital.
✔✔legal purpose - ✔✔a contract is to be
valid, its purpose must be legal
✔✔a contract is to be
valid, its purpose must be legal - ✔✔only people who
are capable of understanding the terms of a contract and who are
not under duress may become parties to a contract
✔✔mutual consideration - ✔✔For
a contract to be valid, the parties must exchange something of
value.
✔✔Agreement = - ✔✔offer + acceptance
✔✔Statement of Continued Good Health - ✔✔assures the company that
no material changes have occurred since the time the application
was completed several weeks earlier.
