17 Free Washington Life Producer Exam Practice Questions (2026)

17 min read|Updated 2026-10-20

How to Use This Life Question Set

Washington tests life insurance either inside the combined Life and Disability Producer exam alongside disability material, or on its own in the single-line Life Producer exam. The Life Producer exam on its own carries 100 items in 150 minutes for $38 per attempt; the combined exam runs 150 items in 195 minutes for $55. Either way, there's no pre-licensing course standing between you and the exam — Washington dropped that requirement on July 23, 2023, and RCW 48.17.090(2) now lists four conditions for license approval (age, no disqualifying acts, paid fees, passed exam), none of them a completed course. The passing score on every version is a flat 70% correct, and PSI Services LLC delivers all three exam versions, at a test center or through its remote online proctored option.

PSI's Life and Disability Producer outline gives life material four sections of its own, plus a share of a fifth: Types of Life Insurance Policies (12 items), Life Insurance Policy Provisions, Options, and Riders (17 items), Annuities (9 items), a share of Federal Tax Considerations for Life and Health Insurance (6 items total), and a share of Life, Accident and Health Insurance Basics (16 items total, split between life and health content). Washington's own single-line Life Producer outline sums these sections, plus Washington law, federal law and general concepts, to its own 100-item total, with no rounding ambiguity.

These 17 questions come from Chapter 2 and Chapters 4 through 6 of LanePrep's Washington Life and Disability quiz bank, none of them repeated from the free 25-question sample across the whole exam: 3 on the life-specific Washington law in Chapter 2 (policy clauses and group life), 3 on life, accident and health basics (Chapter 4), 7 on life policy types, provisions, options and riders (Chapter 5, the heaviest single chapter in the course), and 4 on annuities and federal tax (Chapter 6). Each question shows its chapter, so a miss tells you exactly which audio lesson to replay.

Work them before you read the answer. Every question has the explanation folded underneath it. Guessing and then reading is worth more than reading and then agreeing.

Practice Questions 1-7: Washington Life Law, Basics and Premiums

Chapter 2 opens with the life-specific rules inside Washington's law section: how long an insurer has before a life policy becomes incontestable, the free look period that lets a new policyholder return a policy for a full refund, and the certificate of insurance a group life insurer must deliver for each covered employee. Chapter 4 then covers premium factors and business uses of life insurance, before Chapter 5 opens with the policy loan that lets a policyholder borrow against cash value without ending the contract. These seven move through all of it.

Question 1 (Chapter 2)

Under Washington's incontestability provision for life insurance policies (RCW 48.23.050), after how many years from the policy's date of issue does the insurer lose the right to contest the policy based on misrepresentations in the application, except for nonpayment of premiums?

A) One year
B) Two years
C) Three years
D) Five years

Show answer & explanation

Answer: B

B is correct because RCW 48.23.050 states that a life insurance policy becomes incontestable after it has been in force for two years from its date of issue, except for nonpayment of premiums. A is incorrect because one year is insufficient; the period is two years. C and D are incorrect because they exceed the two-year period specified in the statute.

Question 2 (Chapter 2)

A Washington resident purchases a new individual life insurance policy. Upon receiving the policy, they review it and decide it does not meet their needs. According to RCW 48.23.380, what is the minimum 'free look' period during which the policyholder can return the policy for a full refund of premium?

A) 10 days
B) 20 days
C) 30 days
D) 60 days

Show answer & explanation

Answer: A

RCW 48.23.380 specifies that a life insurance policy must contain a provision granting the policyholder a minimum of 10 days after receiving the policy to examine it and return it to the insurer for a full refund of any premiums paid, if they are not satisfied for any reason. This is commonly known as the 'free look' period.

Question 3 (Chapter 2)

An employer in Washington provides a group life insurance policy to its employees. What must the insurer deliver to the employer (the policyholder) for distribution to each insured employee, according to RCW 48.24.170?

A) A copy of the master policy document.
B) An individual certificate of insurance summarizing the essential features of coverage.
C) A detailed financial statement of the group policy's performance.
D) A waiver of premium form for each employee.

Show answer & explanation

Answer: B

RCW 48.24.170 requires that the insurer issue to the policyholder (the employer) for delivery to each person insured under the group policy an individual certificate setting forth the insurance protection to which the person is entitled, to whom payable, and the rights and conditions of conversion. The master policy (A) is held by the employer, not distributed to each employee. Options C and D are not required by this statute.

Question 4 (Chapter 4)

A Washington resident is reviewing their life insurance policy and wants to understand how the insurer determines the base premium. Which of the following factors is NOT one of the three core elements used in premium calculation?

A) Persistency
B) Mortality
C) Interest
D) Expense

Show answer & explanation

Answer: A

Premiums are based on mortality (likelihood of death), interest (expected investment returns), and expense (company costs). Persistency, while important for profitability, is not a core factor in determining the base premium rate.

Question 5 (Chapter 4)

During the delivery of a life insurance policy in Washington, the producer collects the initial premium and has the applicant sign a statement of good health. What is the primary purpose of this statement?

A) To confirm the applicant has paid the first premium in full.
B) To declare that the applicant's health has not changed adversely since the application was signed.
C) To waive the applicant's right to a free-look period.
D) To authorize the insurer to share medical information with the MIB.

Show answer & explanation

Answer: B

The statement of good health is a declaration by the applicant that their health status has not materially changed since the application date and that all information in the application remains true. It is a standard part of policy delivery to ensure no new adverse health developments affect the risk assumed by the insurer. It does not confirm premium payment (that is separate), waive the free-look period, or authorize MIB reporting.

Question 6 (Chapter 4)

A business owner wants to provide life insurance benefits to key employees as a retention tool. The business pays the premiums on policies owned by the employees, who can name their own beneficiaries and access the cash value. This arrangement is best described as:

A) Executive bonus plan
B) Key person insurance
C) Buy-sell funding
D) Split-dollar arrangement

Show answer & explanation

Answer: A

An executive bonus plan involves the employer paying premiums on a life insurance policy owned by the employee, who retains ownership rights including naming beneficiaries and accessing cash value. Key person insurance is owned and beneficiaried by the business, buy-sell funds ownership transfers, and split-dollar involves shared ownership and benefits between employer and employee.

Question 7 (Chapter 5)

An insured owns a whole life insurance policy with a cash value that has grown significantly. The insured wishes to access the cash value without terminating the policy or triggering a taxable event. Which option allows the insured to borrow against the cash value while the policy remains in force?

A) Surrender the policy for its cash value
B) Take a policy loan
C) Exercise the extended term nonforfeiture option
D) Convert to a reduced paid-up policy

Show answer & explanation

Answer: B

A policy loan allows the insured to borrow against the cash value while keeping the policy in force. The loan is not considered taxable income as long as the policy remains in force. Option A would terminate the policy and may trigger taxes if cash value exceeds premiums paid. Options C and D are nonforfeiture options that also terminate the original policy in exchange for other benefits.

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Practice Questions 8-13: Life Policy Riders and Provisions

Chapter 5 is the standard-provisions and riders chapter: the cost of living rider that raises a death benefit each year to offset inflation, the accelerated (living) benefit rider that pays out early on a terminal diagnosis, who owns and who benefits under an individual credit life policy, what reinstating a lapsed policy actually requires, how the floor on an indexed universal life policy protects cash value in a down market, and what a juvenile life policy is built to do. These six move through all of it.

Question 8 (Chapter 5)

A policyholder wants to ensure that the death benefit of their life insurance policy increases each year to keep pace with inflation. Which rider would best accomplish this goal?

A) Waiver of premium rider
B) Accidental death benefit rider
C) Guaranteed insurability rider
D) Cost of living (COL) rider

Show answer & explanation

Answer: D

A cost of living (COL) rider increases the death benefit annually, typically tied to an inflation index, to help the benefit keep pace with inflation. Option A waives premiums if the insured becomes disabled but does not increase the death benefit. Option B provides an additional death benefit only if death is due to an accident. Option C allows the insured to purchase additional coverage without evidence of insurability but does not automatically increase the existing death benefit.

Question 9 (Chapter 5)

A life insurance policy includes an accelerated death benefit (living benefit) rider. Under what circumstance can the insured typically access this benefit?

A) When the insured reaches age 65
B) When the insured is diagnosed with a terminal illness
C) When the insured surrenders the policy for cash value
D) When the insured wants to purchase additional coverage

Show answer & explanation

Answer: B

An accelerated death benefit (living benefit) rider allows the insured to receive a portion of the death benefit while still alive if diagnosed with a terminal illness (or sometimes a specified chronic illness), helping to cover medical or living expenses. Option A is incorrect as age alone does not trigger the benefit. Option C describes a surrender, not an accelerated benefit. Option D refers to purchasing additional coverage, which is not the purpose of this rider.

Question 10 (Chapter 5)

Which of the following is true about credit life insurance?

A) The policyholder is the debtor, and the beneficiary is the creditor
B) The policyholder is the creditor, and the beneficiary is the debtor
C) The death benefit is paid to the debtor's estate
D) It is primarily used to fund retirement income

Show answer & explanation

Answer: A

In credit life insurance, the debtor is the policyholder (or insured), and the creditor is the beneficiary. The death benefit pays off the outstanding loan balance directly to the creditor. Option B reverses the roles. Option C is incorrect because the benefit goes to the creditor, not the estate. Option D describes an annuity or retirement product, not credit life insurance.

Question 11 (Chapter 5)

Under a life insurance policy's reinstatement provision, which of the following is typically required to reinstate a lapsed policy?

A) Payment of all overdue premiums plus interest, and satisfactory evidence of insurability.
B) Payment of all overdue premiums only, with no interest or proof of insurability.
C) Payment of the current premium only, as the policy is automatically reinstated after a grace period.
D) Signing a new application and paying the full premium for a new policy term.

Show answer & explanation

Answer: A

To reinstate a lapsed life insurance policy, the insured must typically pay all overdue premiums plus interest and provide satisfactory evidence of insurability (often a medical exam or health questionnaire). The insurer is not obligated to reinstate the policy and may deny reinstatement based on health changes. Option B is incorrect because interest and proof of insurability are usually required. Option C is incorrect because the grace period only prevents lapse; after lapse, reinstatement requires formal action. Option D is incorrect because reinstatement does not require a new application or full premium for a new term.

Question 12 (Chapter 5)

A 50-year-old buys an indexed universal life (IUL) insurance policy. The cash value earns interest based on the performance of a stock market index, subject to a cap and a floor. Which statement correctly describes how the floor provision works in this context?

A) The floor guarantees a minimum death benefit regardless of index performance.
B) The floor requires the policyholder to pay a minimum premium to keep the policy in force.
C) The floor ensures the cash value earns at least a minimum interest rate (often 0%) even if the index declines.
D) The floor sets a maximum limit on the amount of cash value that can be withdrawn each year.

Show answer & explanation

Answer: C

In an indexed universal life policy, the floor is a protective feature that guarantees a minimum interest rate (often 0%) on the cash value if the linked index performs negatively. This prevents the cash value from decreasing due to market downturns. It does not guarantee a death benefit (A is incorrect), it is not related to premium payments (B is incorrect), and it does not limit withdrawals (D is incorrect).

Question 13 (Chapter 5)

A 35-year-old purchases a juvenile life insurance policy on their newborn child. The policy is a whole life policy with a face amount of $50,000. Which statement is true regarding this type of policy?

A) The policy is a term policy that expires when the child reaches age 18.
B) The policy primarily provides death protection for the child and builds cash value that can be used for future expenses like college.
C) The premiums are typically higher than adult whole life policies due to the child's age.
D) The policy cannot be transferred to the child's ownership upon reaching adulthood.

Show answer & explanation

Answer: B

Juvenile life insurance is typically a whole life policy purchased on a minor, providing lifelong death benefit protection and building cash value over time. The cash value can be accessed later for purposes such as education or a down payment on a home. Option A is incorrect because juvenile policies are usually permanent, not term. Option C is incorrect; premiums are often lower due to the young age and lower risk. Option D is incorrect; ownership can typically be transferred to the child upon reaching adulthood.

Practice Questions 14-17: Annuities

Chapter 6 closes the life portion of the outline with annuity mechanics: what happens to a period-certain payout when the annuitant dies partway through the guaranteed period, how a pure life-only payout option treats the annuitant's death, how dividends from a participating life insurance policy are taxed, and who holds the right to change an annuity contract's beneficiary designation after the owner dies. These four move through all of it.

Question 14 (Chapter 6)

A Washington resident purchases a deferred fixed annuity with a 10-year period certain payout option. The annuitant dies 5 years into the payout period. What happens to the remaining annuity payments?

A) Payments cease immediately upon the annuitant's death.
B) The annuity contract is surrendered, and the cash value is paid to the beneficiary.
C) Payments continue to the beneficiary for the remaining 5 years of the period certain.
D) Payments increase for the beneficiary to compensate for the early death.

Show answer & explanation

Answer: C

C is correct because a period certain option guarantees payments for a minimum number of years regardless of the annuitant's survival. If the annuitant dies during the guaranteed period, payments continue to the beneficiary for the balance of that period. A is incorrect because payments do not cease; they continue to the beneficiary. B is incorrect because the contract is not surrendered; it continues to pay out. D is incorrect because payment amounts do not increase; they remain level as specified in the contract.

Question 15 (Chapter 6)

A Washington resident purchases a single premium immediate annuity (SPIA) with a life only payout option at age 65. The annuitant dies 3 years after payments begin. What happens to the annuity payments?

A) Payments stop immediately upon the annuitant's death, with no further benefits.
B) Payments continue to the beneficiary for the remainder of a 10-year period certain.
C) The beneficiary receives a lump-sum refund of the purchase price minus payments already made.
D) Payments continue to the beneficiary until the annuitant would have reached life expectancy.

Show answer & explanation

Answer: A

A life only (pure life) annuity pays for the lifetime of the annuitant only, with no death benefit or guaranteed period. Upon the annuitant's death, all payments cease, regardless of how long payments have been received. Options B, C, and D incorrectly describe features of life with period certain, refund annuities, or life expectancy-based continuation, which do not apply to a pure life option.

Question 16 (Chapter 6)

Which statement accurately describes the federal income tax treatment of dividends received from a participating life insurance policy?

A) Dividends are considered a return of premium and are not taxable as long as the total dividends received do not exceed the total premiums paid into the policy.
B) Dividends are taxable as ordinary income when received.
C) Dividends are tax-free only if used to purchase paid-up additions.
D) Dividends are always tax-exempt regardless of amount or use.

Show answer & explanation

Answer: A

Dividends from participating life insurance policies are generally treated as a return of excess premiums and are not taxable as long as the aggregate dividends received do not exceed the total premiums paid into the policy (the policy's basis). Once dividends exceed basis, the excess is taxable as ordinary income. Option B is incorrect because dividends are not automatically taxable. Option C is incorrect because the tax-free status does not depend on use for paid-up additions. Option D is incorrect because dividends can become taxable if they exceed basis.

Question 17 (Chapter 6)

A Washington resident purchases a deferred fixed annuity and names their spouse as the annuitant and their child as the beneficiary. The owner dies during the accumulation period. Who has the right to surrender the contract or change the beneficiary designation?

A) The spouse, as the annuitant, has all contractual rights.
B) The child, as the beneficiary, inherits the contract upon the owner's death.
C) The owner's estate, as the owner's rights transfer to the estate upon death.
D) A successor owner, if one was named in the contract; otherwise, the contract terms dictate the next steps.

Show answer & explanation

Answer: D

The owner holds all contractual rights in an annuity, including the right to surrender, change beneficiaries, and select payout options. Upon the owner's death, these rights do not automatically transfer to the annuitant or beneficiary. If a successor owner was named in the contract, that person assumes the owner's rights. If not, the contract's terms and the insurance company's rules determine how the contract is handled, which may involve the estate or a designated successor. The annuitant's life only determines the payout amount; the beneficiary only receives proceeds upon the annuitant's death.

The Life Insurance Mistakes That Cost Marks

Assuming a Life and Disability producer must sit the combined exam. Washington lets a candidate choose either the combined Life and Disability Producer exam or the single-line Life Producer exam — the single-line exam costs less per attempt and tests only the life-specific content.

Confusing a period-certain payout with a life-only payout. A period-certain annuity keeps paying a beneficiary for the rest of the guaranteed period if the annuitant dies early; a life-only (pure life) annuity stops paying the moment the annuitant dies, with nothing left over for anyone.

Treating reinstatement and a policy loan as related options. A policy loan borrows against an in-force policy's cash value; reinstatement is the opposite situation entirely — bringing a lapsed policy back to life, which requires evidence of insurability and payment of overdue premiums.

Reading an indexed universal life floor as a death-benefit guarantee. The floor protects the cash value's credited interest rate from a negative index year; it says nothing about the death benefit itself, which is a separate guarantee built into the policy's design.

Assuming group life and credit life insurance name the same kind of beneficiary. A converted group life certificate still lets the insured name whoever they choose; an individual credit life policy names the creditor as beneficiary by design, regardless of what the debtor would otherwise prefer.

Your Next Step

How did you score?

13 or more correct: Washington's passing score is a flat 70% correct, not a scaled score, so 13 of 17 (76%) is a reasonable proxy — but clearing most of them across Washington life law, policy types, riders and annuities is the real signal. Book the Life Producer exam on its own, or the combined Life and Disability Producer exam if you're also sitting for Disability, then read how to pass the Washington Life & Disability exam on the first try for the full study plan.

9-12 correct: You're in reasonable shape but not comfortable. Note which chapter your misses fell in and re-listen to that chapter's audio lesson before retesting.

Under 9 correct: The Life Producer exam's first-time pass rate ran 42.9% in 2024 and 46.0% in 2025 (NAIC compiled) — more than half of first-time candidates do not pass. Start with Chapter 2 of the course and work forward rather than testing yourself again right away.

For a 25-question sample across the whole exam, see the free practice set; for the disability side, see the Disability question set. Chapters 1 and 9 of the LanePrep Washington course are free at /wa/l-and-h/preview — full audio and the chapter quiz, no signup. For the full cost picture, see how much a Washington Life & Disability license costs.

Exam structure and fees from PSI's current Washington Candidate Information Bulletin. Content outline weights from PSI's Washington Life Producer and Life and Disability Producer content outlines (effective April 1, 2026), for the life sections. Pass rates from the NAIC 2024 and 2025 compiled pass-rate reports. Read October 2026.

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