Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

WA Life Insurance Producer Exam > Chapter 12 - WA > Flashcards

Chapter 12 - WA Flashcards

1
Q

WA Insurance Commissioner

A

Chief officer of WA insurance department

Elected position, 4 year term

Makes rules and regulations to help carry out provisions of the WA insurance code

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

WA Commissioner Hearing

A

Commissioner can hold hearing whenever deemed necessary.

All hearings must be held or refused within 30 days after commissioner receives demand.

Must give notice of time and place at least 10 days ahead of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Penalties

A

After commissioner hearing, Commissioner can impose fine of up to $1,000 for each violation upon any person who violates WA insurance code

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Cease and Desist

A

Commissioner can issue a cease and desist order to anyone violating WA insurance code

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Rates and Forms

A

All insurance policy forms, applications, riders, or endorsements must be filed with and approved by Commissioner before they can be used.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Insurance - WA Definition

A

A contract in which one party (the insurer) agrees, for a consideration (premiums + application), to pay the other (insured) a specific amount upon determinable contingencies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Insurer (WA Definition)

A

Anyone in the business of making insurance contracts other than a fraternal benefit society

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Premium

A

Payment (or consideration) for insurance coverage. Sometimes called assessments, policy fees, or service fees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Policy (WA Definition)

A

A written contract for insurance, including all clauses, riders, endorsements, and attached papers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Insurance Producer (WA Definition)

A

An individual who in any manner sells, solicits, or negotiates insurance on behalf of insurance companies for compensation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Assumed Names

A

An insurance producer doing business under any name other than the producer’s legal name. Must notify the Commissioner before using the assumed name

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Commissions

A

Compensation as a percentage for selling insurance. No person shall pay or accept them to/from an unlicensed individual for the purpose of selling or negotiating insurance business.

Deferred ones can be paid as long as the person was licensed at the time of sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Shared Commissions

A

May only be shared with another producer who is licensed in the same line of insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Protection of Public Interest

A

Insurers and agents are required to act in good faith, abstain from deception, and practice honesty and equity in all insurance matters.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Premium Accountability

A

An insurance producer must report to the insurer the exact amount of consideration charged as premium and the amount shall be shown in the contract and in the records of the producer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Fiduciary Responsibility

A

Someone in a position of trust. Any person who is a producer for an insurance company has this responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Separate Account Requirement

A

All funds representing premiums or return premiums received by a producer shall be accounted for an maintained in a separate account from all other business and personal funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Co-mingling

A

Premiums that have been combined with personal funds. A prohibited act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Policy Delivery

A

Policies must be delivered within a reasonable period after they have been issued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

NAIC Buyers Guide and Policy Summary

A

Producers must provide these as a part of solicitation and sales presentations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Policy Summary

A

Contains specific information on the provisions, benefits, and coverage of the policy applied for

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Misrepresentation

A

Illegal to misrepresents any fact about an insurance policy, such as:
Terms
Benefits
Value
Cost
Effective Date
Existence of contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

False advertising

A

An illegal practice. Stating or publishing misleading in formation about insurance coverage. Includes making false statements about the financial condition of an insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Defamation

A

An illegal practice. Any public statement or advertisement that contains false information or unsubstantiated criticisms about an insurance company that are intended to harm or malign

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
False Financial Statements
An illegal practice. Stating or publishing and false financial information regarding a person or entity
26
Unfair Discrimination
An illegal practice. Discriminating against a person in any way on an insurance-related matter.
27
Fair discrimination
Necessary for the issuance of life insurance policies, which is based on mortality
28
Reebating
An illegal practice. Offering a prospective client something of value that is not specified in a contract in order to induce the purchase of an insurance policy
29
Twisting
Inducing or attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance. Usually to sell an insurance policy with another insurer
30
Free Look (Right to Return)
All individual life insurance policies must include this. A notice permitting the policyholder to return the policy for a full refund within 10 days of receipt for any reason
31
Policy Summary
Contains specific information on provisions, benefits, and and coverage of the policy applied for
32
Illustrations
A presentation, graph, or chart that includes non-guaranteed elements of a policy of life insurance over a period of years.
33
Grace Period
30 day period in which the policy remains in force after a premium is due if it hasn't been paid. If insured dies during this time the death proceeds will still be paid minus the premium due
34
Entire Contract
The policy plus the application. All statements made by policyholder are considered representations
35
Conversion
Upon termination of group plan or termination of an employee, a person covered has the right to convert to an individual policy
36
Insurability
A provision setting forth the conditions under which insurer reserves the right to require a person eligible for insurance to furnish evidence of their insurability
37
Repreesentations
All statements by policy holder. These are not warranties.
38
Group Life Certificate
Under a group life policy each insured will receive this stating the insurance protection provided, to whom the benefits are payable, and the policy rights and conditions
39
Contract Premium (illustration)
Required gross minimum for a fixed premium policy
40
Currently Payable Scale (illustration)
A scale of nonguaranteed elements in effect for a policy
41
Generic name (illustration)
Short title descriptive of the illustrated policy, such as whole life, term life, flexible premium adjustable life
42
Guaranteed elements (illustration)
Life policy values or charges guaranteed and determined at issue
43
Nonguaranteed elements (illustration)
Life policy values or charges neither guaranteed nor determined when the policy was issued
44
Illustrated scale
A scale on nonguaranteed elements currently being illustrated
45
Illustration
A presentation or depiction that includes nonguaranteed elements of a life insurance policy over time
46
Self-supporting illustration
One for which it can be demonstrated that when illustrating points in time FIFTEEN YEARS OR MORE in the future, accumulated values being shown will equal or exceed the values available when using the experience assumptions underlying the disciplined current scale
47
Lapse-supported illustration
An illustration of a policy form that fails the test of being self-supporting
48
Annuities Suitability
Data useful for determining whether the purchase of an annuity is appropriate for consumers and in their best interest
49
Required suitability data
Financial time horizon Annual income Existing assets Financial situation and needs Liquidity needs Financial experience Liquid net worth Financial objectives Risk tolerance Intended use of annuity
50
Annuity suitability education
A person may not sell, solicit, or negotiate the sale of an annuity product without an appropriate license and without successfully completing required 4-hour annuity suitability training. Must be commissioner approved, and qualify for 4 continuing education credits
51
Maximum fixed interest rate for policy LOANS
8% in Washington
52
Policy loan availability
Policy loans must be made available on life insurance policies with cash value after the policy has been in force for 3 years
53
Policy loan adjustable interest rates
Based on Moody's Corporate Bond Yield Average. May not exceed the higher of: 1) the published monthly rate, or 2) 1% higher than the rate used to compute policy's cash surrender values
54
Policy settlement interest rate
Insurer must pay interest at rate of at least 8% on benefits due for the time between death of insured and when benefits are paid. If benefits nor paid within 90 days, additional 3% fee is added
55
Incontestability
Provision stating that a life policy's terms shall be incontestable after it has been in force for two years from date of issue
56
Limitation of liability
An insurer may reduce the limit of its liability (payout) in a life insurance or annuity contract to the reserve value of policy. This can be as little as the paid premiums plus interest. May occur when death from: War Military service Suicide within 2 years of issue Aviation under conditions specified in policy
57
Minimum nonforfeiture amounts
Interest rate used to determine minimum nonforfeiture values of an annuity is the LESSER of 1) 3% a year, or 2) The interest rate on 5 US Treasury Bills minus 1.25%. Absolute initial minimum of 1%
58
Groups eligible for Group Life in WA
Must insure the lives of more than 1 person that are NOT related by blood, marriage, or legal adoption. Business partner relationships are not eligible.
59
Grace period - GROUP life policies
31 days
60

WA Life Insurance Producer Exam (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions