17 Free Washington Life & Health Practice Questions: Washington Insurance Law (2026)
How to Use This Washington Insurance Law Set
This set covers the Washington Laws, Rules, and Regulations section of the PSI outline, and it is the one general national material covers worst. On the combined Life and Disability exam it is 45 of the 150 items, which is 30% of the whole test. The outline cites specific RCW Title 48 and WAC Title 284 provisions and splits the material between life and disability, accident and health.
Contract theory travels between states. Statute numbers, producer duties and the rules for Washington's own plans and associations do not, so the way to study this section is to meet the rules in question form until each one is familiar. Work through the questions below, open the answer only after you have committed, and note which cites you could not place.
Washington Laws, Rules, and Regulations is the largest section of the PSI Life and Disability outline: 45 of the 150 items on the combined exam, which is 30% of the test.
Practice Questions 1-6: Disclosure, Grace Periods, Group Life and Health Plans
Disclosure at application, the premium grace period, group life conversion and contract basis, the long-term care definition and enrollment rules for health plans.
Question 1 (Chapter 2)
A Washington resident purchases a variable life insurance policy. At the time of application, the producer provides a buyer's guide and policy summary. According to Washington disclosure requirements (WAC 284-23-230 and .240), when must these documents be provided to the applicant?
- A) After the policy is issued but before the free-look period ends
- B) At or before the time of application
- C) Within 30 days after the first premium is paid
- D) Only if the applicant requests them in writing
Show answer & explanation
Answer: B
B is correct because WAC 284-23-230 and .240 require producers to provide a buyer's guide and policy summary to the applicant at or before the time of application for life insurance policies. A is incorrect because providing documents after issue but before free-look ends does not meet the 'at or before application' timing requirement. C is incorrect because 30 days after the first premium is paid is too late; disclosure must occur earlier in the process. D is incorrect because the requirement is not contingent on a written request; it is mandatory for all applicants.
Question 2 (Chapter 2)
A Washington life insurance policy includes a grace period provision. According to RCW 48.23.030, how long is the grace period for payment of premiums under a life insurance policy in Washington?
- A) 15 days
- B) 30 days
- C) 31 days
- D) 60 days
Show answer & explanation
Answer: C
C is correct because RCW 48.23.030 mandates a minimum grace period of 31 days for life insurance policies in Washington. A and B are incorrect because 15 and 30 days are shorter than the required minimum. D is incorrect because while insurers may offer longer periods, the statutory minimum is 31 days, not 60 days.
Question 3 (Chapter 2)
A Washington resident holds a group life insurance policy through their employer. If the employee terminates employment, what right does RCW 48.24.180 provide regarding conversion to an individual policy?
- A) The employee may convert to an individual policy without evidence of insurability.
- B) The employee must provide evidence of insurability to convert.
- C) Conversion is only available if the employee has been covered for at least five years.
- D) The employee can convert only to a term policy, not a permanent policy.
Show answer & explanation
Answer: A
A is correct because RCW 48.24.180 allows an employee to convert group life coverage to an individual policy without providing evidence of insurability upon termination of employment or loss of eligibility. B is incorrect because evidence of insurability is specifically not required for conversion under this statute. C is incorrect because there is no minimum coverage duration requirement for conversion rights. D is incorrect because the statute does not restrict conversion to term policies; permanent policies are typically available for conversion.
Question 4 (Chapter 2)
A Washington resident is considering purchasing a long-term care insurance policy. According to RCW 48.83.020, which of the following best describes the definition of long-term care insurance?
- A) Insurance that provides coverage for not less than 12 months for services needed due to a chronic illness, disability, or cognitive impairment.
- B) Insurance that covers only acute medical care in a hospital setting.
- C) Insurance that covers the cost of routine physical exams and preventive care.
- D) Insurance that pays a lump sum upon diagnosis of a specified critical illness like cancer or stroke.
Show answer & explanation
Answer: A
A is correct because RCW 48.83.020 defines long-term care insurance as a policy that provides coverage for not less than 12 months for services needed due to a chronic illness, disability, or cognitive impairment. B is incorrect because it describes acute hospital care, not long-term care. C is incorrect because routine exams and preventive care are not the focus of long-term care insurance. D is incorrect because it describes critical illness insurance, which pays a lump sum upon diagnosis, not ongoing services for chronic conditions.
Question 5 (Chapter 2)
Under Washington law (RCW 48.44.220), which of the following practices is prohibited by health care service contractors and health maintenance organizations?
- A) Denying enrollment based on a member's health status.
- B) Offering wellness programs to members.
- C) Charging higher premiums for members who use tobacco.
- D) Requiring copayments for office visits.
Show answer & explanation
Answer: A
A is correct because RCW 48.44.220 prohibits discrimination against any individual in enrollment or eligibility for coverage based on health status, claims experience, receipt of healthcare, medical history, genetic information, evidence of insurability, or disability. B is incorrect because offering wellness programs is permitted and often encouraged. C is incorrect because while federal law may restrict tobacco rating in some contexts, Washington's RCW 48.44.220 does not prohibit premium variations based on tobacco use; it focuses on health status-based discrimination. D is incorrect because requiring copayments is a standard cost-sharing practice and not prohibited by this statute.
Question 6 (Chapter 2)
Under Washington's group life insurance law (RCW 48.24.130), what is the basis of the group life insurance contract between the employer and the insurer?
- A) The master policy held by the employer, which relies on the representations made in the employer's application.
- B) The individual applications completed by each employee.
- C) The collective bargaining agreement between the employer and the union.
- D) The insurance declarations page sent to each employee.
Show answer & explanation
Answer: A
A is correct because RCW 48.24.130 states that the group life insurance contract is based on the master policy applied for by the employer (or other group sponsor), and the insurer relies on the representations made in that application, not on individual employee applications. B is incorrect because individual employee applications are not the basis of the contract; certificates are issued to individuals under the master policy. C is incorrect because while collective bargaining may influence group formation, the contract is not based on the bargaining agreement itself. D is incorrect because the declarations page is a summary document, not the foundation of the contractual relationship between employer and insurer.
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Practice Questions 7-12: Disability Limits, the Commissioner, Illustrations and the Guaranty Association
Limitation of liability in disability policies, what the Commissioner may do about an HMO in hazardous condition, illustration rules and what happens when an insurer fails.
Question 7 (Chapter 2)
Under Washington's Life and Disability Insurance Guaranty Association (RCW 48.32A.050), what is the maximum amount of death benefit protection provided for a life insurance policy if the insurer becomes insolvent?
- A) $100,000
- B) $300,000
- C) $200,000
- D) $500,000
Show answer & explanation
Answer: B
B is correct because RCW 48.32A.050(1)(a) specifies that the Guaranty Association provides up to $300,000 in death benefit protection per life insurance policy. A is incorrect because $100,000 applies to cash surrender value, not death benefit. C is incorrect as $200,000 is not a specified limit for any Guaranty Association benefit in Washington. D is incorrect because $500,000 exceeds the statutory limit; the maximum death benefit protection is $300,000.
Question 8 (Chapter 2)
Under Washington's Health Care Service Contractor and HMO laws, what authority does the Commissioner have over HMOs according to RCW 48.46.060(3) and (4)?
- A) The Commissioner can set premium rates for all HMO plans sold in Washington.
- B) The Commissioner can require HMOs to cover experimental treatments upon request.
- C) The Commissioner can appoint the HMO's board of directors if membership falls below 10,000.
- D) The Commissioner can examine the HMO's books and records and order corrective actions if the HMO is operating in a hazardous financial condition.
Show answer & explanation
Answer: D
RCW 48.46.060(3) grants the Commissioner the authority to examine an HMO's books and records, and subsection (4) allows the Commissioner to order corrective actions if the HMO is found to be operating in a hazardous financial condition. Option A is incorrect because the Commissioner does not set HMO premium rates in Washington. Option B is incorrect because there is no statutory authority to mandate coverage of experimental treatments. Option C is incorrect because the Commissioner has no power to appoint an HMO's board of directors based on membership size.
Question 9 (Chapter 2)
A Washington resident buys a variable life insurance policy. The producer provides an illustration showing projected cash value and death benefit. According to RCW 48.23A.015, what must accompany this illustration to comply with Washington law?
- A) A signed waiver from the applicant acknowledging the illustration is not a guarantee.
- B) Approval from the insurer's compliance department before delivery.
- C) A narrative summary and a disclaimer stating the illustration is not a guarantee.
- D) A comparison to at least two similar policies from other insurers.
Show answer & explanation
Answer: C
RCW 48.23A.015 requires that life insurance policy illustrations be accompanied by a narrative summary and a clear disclaimer stating that the illustration is not a guarantee. This ensures the illustration is not misleading. A signed waiver, compliance approval, or policy comparison is not required by statute for the illustration to be valid.
Question 10 (Chapter 2)
A Washington resident applies for an individual disability income policy. The policy includes a provision that limits the insurer's liability for disabilities resulting from war or service in the armed forces. According to RCW 48.23.260, what is the effect of such a limitation of liability provision?
- A) The insurer must pay the full disability benefit but may increase the premium upon renewal.
- B) The insurer must pay 50% of the disability benefit for disabilities resulting from war or armed service.
- C) The provision is prohibited under Washington law as it unfairly discriminates against veterans.
- D) The insurer may deny the disability claim if the disability results from war or armed service, as specified in the policy.
Show answer & explanation
Answer: D
D is correct because RCW 48.23.260 permits insurers to include limitation of liability provisions that exclude or limit coverage for disabilities resulting from specified hazards, including war or service in the armed forces, allowing denial of claims arising from such causes. A is incorrect because the provision does not require payment of full benefits with premium increases. B is incorrect because the statute does not mandate a 50% payment; it allows full exclusion. C is incorrect because such provisions are permitted and not considered unfair discrimination under Washington law when applied uniformly and disclosed.
Question 11 (Chapter 2)
A Washington resident holds a life insurance policy with an insurer that has recently been declared insolvent. The policyholder is concerned about the future of their coverage and claims. What is the primary purpose of the Washington Life and Disability Insurance Guaranty Association (RCW 48.32A.015) in this scenario?
- A) To provide legal counsel to policyholders affected by insurer insolvency.
- B) To regulate the financial solvency of insurance companies to prevent insolvencies.
- C) To facilitate the merger and acquisition of insolvent insurance companies by solvent ones.
- D) To ensure that covered policyholders receive benefits up to statutory limits, even if their insurer becomes insolvent.
Show answer & explanation
Answer: D
The primary purpose of the Washington Life and Disability Insurance Guaranty Association, as stated in RCW 48.32A.015, is to protect policyholders by continuing coverage and paying claims up to certain statutory limits in the event an insurer becomes insolvent. It acts as a safety net, funded by assessments on solvent insurers, not as a legal counsel provider (A), a financial regulator (B), or an M&A facilitator (C).
Question 12 (Chapter 2)
A Washington producer is presenting a life insurance policy illustration to a prospective client. The illustration includes various financial projections. According to RCW 48.23A.020, what must this illustration clearly distinguish?
- A) The guaranteed elements of the policy from the non-guaranteed elements.
- B) The producer's commission from the insurer's administrative fees.
- C) The policy's cash value from its death benefit in all scenarios.
- D) The policy's effective date from the application date.
Show answer & explanation
Answer: A
RCW 48.23A.020 mandates that a life insurance policy illustration must clearly distinguish between guaranteed and non-guaranteed elements. This ensures that consumers understand which values are certain and which are projections based on assumptions that may change. Options B, C, and D are not the primary distinctions required by this specific statute for illustrations.
Practice Questions 13-17: Free Look, Certificates, Maternity Cover and Producer Duties
The free look right, what a group member receives, a required health plan benefit and what a producer owes the applicant on an application.
Question 13 (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 14 (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 15 (Chapter 2)
A Washington health plan provides coverage for its members. A female member becomes pregnant and seeks maternity services. According to RCW 48.43.115(3)(a), what must this health plan provide regarding maternity services?
- A) Coverage for maternity services only if the pregnancy results from accidental injury.
- B) Coverage for maternity services, including prenatal care, childbirth, and postnatal care, without additional cost-sharing beyond standard plan deductibles and copayments.
- C) Coverage for maternity services, but with a waiting period of at least 12 months before benefits are available.
- D) Coverage for maternity services, but only if the member has been enrolled in the plan for at least 36 months.
Show answer & explanation
Answer: B
RCW 48.43.115(3)(a) requires health plans to provide coverage for maternity services, which includes prenatal care, childbirth, and postnatal care. The statute generally aims to ensure comprehensive coverage without undue barriers or discriminatory cost-sharing. Options A, C, and D describe limitations or conditions that are not consistent with the mandate for maternity services coverage.
Question 16 (Chapter 2)
A Washington producer is assisting a client with completing an application for a disability insurance policy. According to WAC 284-30-630, what is the producer's responsibility regarding the accuracy and completeness of this application?
- A) The producer is only responsible for ensuring their own sections of the application are complete.
- B) The producer must ensure that all questions in the application are answered truthfully and completely to the best of their knowledge and the applicant's information.
- C) The producer should advise the applicant to leave sensitive questions blank if they are unsure of the answer.
- D) The producer is not responsible for the accuracy of the applicant's responses, only for submitting the form.
Show answer & explanation
Answer: B
WAC 284-30-630 outlines a producer's responsibility regarding applications. It states that a producer must ensure that all questions in an application are answered truthfully and completely to the best of their knowledge and the applicant's information. This is a critical ethical and legal duty to prevent misrepresentation and ensure proper underwriting. Options A, C, and D describe irresponsible or unethical practices.
Question 17 (Chapter 2)
A Washington resident is applying for an individual disability income policy. The policy includes a provision that states the insurer's liability is limited if the disability results from the insured's participation in an illegal occupation. According to RCW 48.23.260, what is the effect of such a limitation of liability provision?
- A) The insurer can deny the claim and refund all premiums paid.
- B) The insurer's liability for the disability claim is reduced or eliminated, as specified in the policy.
- C) The provision is void as against public policy and cannot be enforced.
- D) The insurer must pay the claim but can increase the premium retroactively.
Show answer & explanation
Answer: B
RCW 48.23.260 permits insurers to include provisions that limit liability for losses resulting from certain hazards, including illegal occupations. Such provisions are valid and enforceable if clearly stated in the policy, reducing or eliminating the insurer's liability for claims arising from the specified hazard. Option A is incorrect because the insurer does not automatically refund premiums; the limitation affects claim liability. Option C is incorrect because these provisions are not void as against public policy in Washington when properly included. Option D is incorrect as retroactive premium increases are not permitted and are unrelated to the limitation of liability provision's function.
The Mistakes That Cost Marks
Memorising the topic and not the trigger. Several questions turn on when something must happen, such as disclosure at or before application. Learn the moment, not only the document.
Mixing up the group contract and the certificate. The employer holds the master policy, the insured person holds a certificate, and the questions on group life test which of the two carries which right.
Treating a limitation of liability as a cap. Read the three disability-policy questions side by side: they ask what such a provision does, not how much it pays.
Confusing the regulator with the guaranty association. One supervises insurers, the other pays covered claims when an insurer fails.
Skipping illustrations. Guaranteed against non-guaranteed elements and the required disclaimer are easy marks once you have seen them.
Your Next Step
You have worked through 17 questions on this part of the exam. Check the ones you missed against the explanations, then try the same topic again after a day. When you are ready for the full picture, start with the LanePrep course preview for audio lessons and quizzes, or return to the free Washington Life & Health practice question hub to choose your next topic.
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