WASHINGTON LIFEHEALTH INSURANCE EXAM

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WASHINGTON LIFE/HEALTH INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: policy owner

Answer:

usually, but not always the person covered by the policy

Question 2: Insurable losses are...

Answer:

Economic, Predictable, Accidental, Measurable, Non-Catastrophic

Question 3: Aleatory

Answer:

When one party or another has the potential to recieve dramatically different level of benefits relative to the cost of receiving those benifits

Question 4: Adverse selection

Answer:

the tendency for high risk people to be more likely to apply for insurance than low risk people.

Question 5: non-participating companies

Answer:

Stock companies that exist for the sole purpose of generating profits for their stockholders

Question 6: agent/producer

Answer:

acts as a legal representative of the insurance company

Question 7: Misstatement of age or gender

Answer:

Policy can only be adjusted, not voided

Question 8: Indemnification

Answer:

an insurance concept that states that some portions of the insurance industry prefer that we be made only whole after a loss rather than coming out ahead (Only getting back what you are owed, not getting more than what you had to start with)

Question 9: Fully Disabled

Answer:

Unable to engage in any gainful activity due to physical or mental impairments (Minimum 12 month span).

Question 10: Speculative risk

Answer:

s the chance of loss one accepts in the hope of realizing a gain

Question 11: FICA Fully Insured

Answer:

(Worked for 10 years) payroll taxes levied on employees, employers, and the self-employed.Retirement Benefits; Disability Income Benefits; and Survivor Benefits.

Question 12: FICA

Answer:

Federal Insurance Contributions Act or FICA, payroll taxes levied on employees, employers, and the self-employed.

Question 13: Contestable clause

Answer:

• after the first 2 years,
• an honest mistake is incontestable by the Insurer;
• fraud is incontestable by Life Insurers and

Group Health Insurers; but

• fraud remains contestable forever by Individual Health

Insurers

Question 14: Misrepresentation

Answer:

a lie about a material fact

Question 15: Average Indexed Monthly

Earnings

Answer:

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)

Question 16: Currently Insured

Answer:

Worked less than ten years. Only eligeable for Survivor Benefits

Question 17: Spendthrift Trust

Answer:

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

Question 18: Multiple Employer Group

Answer:

When two or more employers join forces to meet minimum member requirements and in other ways jointly provide insurance for their employees

Question 19: Physical Exam and Autopsy Clause

Answer:

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.

Question 20: Premium mode

Answer:

how frequently an Insured will pay the premium

Question 21: Ownership Clause

Answer:

specifies the policy owners rights (Transfer ownership, borrow against the policy etc.)

Question 22: OASDI (Social Security)

Answer:

Old Age, Survivors, and Disability Insurance...Federal Government law

Question 23: Buying insurance

Answer:

transfer a portion of your risk to the Insurer

Question 24: Riders

Answer:

optional provisions not included in the original policy but which are added at a later time (Aka extension or an endorsement)

Question 25: Contingent Secondary Beneficiary

Answer:

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