Washington state license 1

An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in

• Risk reduction

• Risk retention

• Risk avoidance

• Risk transference

Which of these factors is NOT taken into consideration when determining the cost of a long-term care policy?

• Health of applicant

• Personal income

• Amount of benefits provided

• Age of applicant

When does a life insurance policy typically become effective?

• When the policy is issued

• When the completed application is signed and initial premium is collected

• When initial premium is collected and policy is issued

• When the application is completed and signed

Which of the following pertains to the analysis of an applicant's personal information and determining whether insurance should be issued or declined?

• Adverse calculation

• Underwriting

• Risk classification

• Actuarial determination

A closed network plan offers a primary physician copay of $25. If a subscriber chooses a primary care physician outside of the network, the subscriber will likely pay

• 100% of the allowed amount

• $0

• $25

• 100% of the billed amount

What is the elimination period of an individual disability policy?

• Time period an insured must wait before coverage begins

• Time period a disabled person must wait before benefits are paid

• Time period after the policy issue date in which the provisions are still contestable

• The point in time when benefits are no longer payable

An indemnity plan limitation that will pay the dental bills after a small amount is paid by the insured is called

• a managed plan

• stop loss

• coinsurance

• a deductible

No legal action can be initiated after years from the initial time written proof of loss has been provided.

• 3

• 5

• 4

• 2

The waiver of premium does NOT include which provision?

• All future premiums are waived if the insured recovers from the disability

• If the insured qualifies, the premiums are waived retroactively to the beginning of the disability

• The waiver of premium generally does not extend past the insured's age 60 or 65

• The insured must be disabled for a set period of time before benefits begin

Which of these is considered to be a document that describes the critical segments of a life insurance policy?

• Buyer's guide

• Policy summary

• Consumer report

• Buyer's summary