Evergreen Insurance Prep

Washington Life & Health Insurance License, Practice Exams

Washington Life and Disability (Accident & Health) producer licensing (PSI). General insurance knowledge plus Washington insurance law (RCW Title 48), authored from public-domain statutes.
Content last updated 3 August 2026

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Frequently asked questions

How is the Washington producer licensing exam structured?

Washington licenses Life and Disability (Accident & Health) producers through PSI as separate 100-question exams (150 minutes, 70% to pass), with a combined Life & Disability exam also offered. Each exam combines general insurance knowledge with Washington insurance law (RCW Title 48). This bank covers the Washington law for both lines plus the general insurance content.

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You need 70%. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

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No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Washington Insurance Code (RCW Title 48) for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Washington bank contains 954 questions (general insurance plus Washington law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

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$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

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Sample Washington Life & Health Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

Naming a qualified charity as the owner and beneficiary of a life insurance policy may allow the donor to:

  1. Take an income-tax deduction for the gift of the policy and premiums ✓
  2. Continue to control and borrow against the policy's full cash value
  3. Exclude the policy's eventual proceeds from the charity's own income
  4. Avoid ever paying any premiums on the donated policy at all

Why: Donating ownership of a policy to a charity can produce an income-tax deduction; the donor gives up control of the policy.

Under RCW 48.83.020, "long-term care insurance" is coverage advertised or designed to provide benefits for at least:

  1. 6 consecutive months
  2. 12 consecutive months ✓
  3. 24 consecutive months
  4. 36 consecutive months

Why: RCW 48.83.020(5) defines long-term care insurance as coverage for at least twelve consecutive months for a covered person, provided outside an acute care hospital unit.

A 60-year-old annuity owner withdraws $5,000 of gain. Because the owner is past 59½, the withdrawal is:

  1. Ordinary income, with no 10% penalty ✓
  2. Tax-free as a return of premium
  3. Subject to the 10% penalty anyway
  4. Taxed at capital-gains rates

Why: After 59½ the 10% premature-distribution penalty no longer applies; the gain is still ordinary income.

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All of the following are true of the physical examination and autopsy provision EXCEPT:

  1. The insurer pays the expense of exams it requires
  2. The insurer may examine the insured as reasonably needed
  3. The insurer may make an autopsy where not forbidden
  4. The insured must pay for any autopsy ordered ✓

Why: RCW 48.20.132 (Physical examinations and autopsy) gives the insurer the right at its own expense to examine and to make an autopsy; the insured does not pay for it.

Under RCW 48.17.490, renewal or other deferred commissions may be paid to a person no longer licensed if:

  1. The person was licensed when the sale was made ✓
  2. The person passes a new licensing examination
  3. The person reapplies within one hundred eighty days
  4. The insurer obtains the commissioner's approval

Why: RCW 48.17.490(3) allows renewal or deferred commissions to be paid if the person was required to be licensed and was so licensed at the time of the sale, solicitation, or negotiation.

Under RCW 48.24.150, when the age of a person insured under a group life policy is misstated, the policy must provide for:

  1. A flat penalty deducted from the death benefit
  2. Automatic voiding of the entire group contract
  3. An equitable adjustment of premiums or benefits ✓
  4. Denial of the claim without any refund of premium

Why: RCW 48.24.150 requires a provision specifying an equitable adjustment of premiums or benefits (or both) in the event the age or sex of an insured has been misstated.

An insurer organized under the laws of Germany seeks to do business in Washington. Under RCW 48.05.010, it is classified as:

  1. An alien insurer ✓
  2. A foreign insurer
  3. A domestic insurer
  4. A reciprocal insurer

Why: RCW 48.05.010 defines an alien insurer as one formed under the laws of a nation other than the United States.

A retiree takes a distribution from a traditional (qualified) 401(k). The distribution is:

  1. Fully taxable as ordinary income ✓
  2. Completely income-tax-free
  3. Taxed only on the growth portion
  4. Subject to capital-gains rates only

Why: Pre-tax qualified plan distributions are fully taxable as ordinary income when received.

A 'corridor deductible' appears in supplementary major medical plans and is the amount:

  1. Between where basic coverage ends and major medical begins ✓
  2. Charged each time the insured visits an in-network specialist
  3. Deducted from the death benefit before any claim is paid
  4. Refunded to the insured at the end of a claim-free year

Why: In a supplementary major medical plan, the corridor deductible is the gap the insured pays after basic benefits are exhausted and before major medical starts.

A modern whole life policy 'matures' (endows) when the:

  1. Insured reaches the maturity age and the cash value equals the face amount ✓
  2. The policy has been continuously in force for a period of exactly twenty full years
  3. Insured makes the final scheduled premium payment
  4. Policyowner first takes a loan against the cash value

Why: At the maturity age (commonly 121, formerly 100), the cash value equals the face amount and the policy endows, paying the face to a living insured.

RCW 48.23A.040 requires the numeric summary of a basic illustration to be shown for at least policy years:

  1. 1, 5, and 10, and at age 65
  2. 5, 10, and 20, and at age 70 ✓
  3. 3, 6, and 9, and at age 60
  4. 10, 20, and 30, and at age 80

Why: RCW 48.23A.040(3)(a) requires the numeric summary to be shown for at least policy years five, ten, and twenty and at age seventy, if applicable.

The minimum loss ratio required for group medicare supplement policies is:

  1. 60 percent
  2. 65 percent
  3. 70 percent
  4. 75 percent ✓

Why: RCW 48.66.100 (Loss ratio requirements) sets a minimum loss ratio of 75 percent for group medicare supplement policies.

A fraternal society operates on the lodge system when it has a supreme governing body and subordinate lodges required to hold regular meetings at least:

  1. Once each week
  2. Once each quarter
  3. Once each month ✓
  4. Once each year

Why: RCW 48.36A.020 requires subordinate lodges to hold regular meetings at least once each month in furtherance of the society's purposes.

Under RCW 48.43.035, a carrier may cancel or nonrenew a group health plan for all of the following EXCEPT:

  1. A covered person materially breaching the health plan
  2. The enrollee developing a costly medical condition ✓
  3. Fraud committed by covered persons against the carrier
  4. Nonpayment of premium by the group

Why: RCW 48.43.035(3) permits cancellation or nonrenewal only for specified reasons such as nonpayment, fraud, or material breach; a member's development of a costly health condition is not a permitted ground.

The standard notice of claim provision requires written notice of claim to be given to the insurer within how many days after the occurrence or commencement of a covered loss (or as soon as reasonably possible thereafter)?

  1. 10 days
  2. 20 days ✓
  3. 30 days
  4. 60 days

Why: RCW 48.20.082 (Notice of claim) requires written notice within twenty days after the occurrence or commencement of loss, or as soon thereafter as reasonably possible.

Which annuity payout option pays the highest monthly income but stops at the annuitant's death with nothing to beneficiaries?

  1. Life with a fixed period certain
  2. Life only (straight life) ✓
  3. Joint and survivor
  4. Installment refund

Why: Life-only (straight life) pays the most because payments cease at death with no survivor or refund feature.

A graded-premium whole life policy charges premiums that:

  1. Start low and increase for a period, then level off ✓
  2. Stay exactly the same for the entire life of the policy
  3. Are invested in equity sub-accounts chosen by the policyowner each year
  4. Decrease every year until the coverage is fully paid up

Why: Graded-premium whole life begins with low premiums that rise over an initial period before leveling, easing early affordability.

In a whole life policy, the 'net amount at risk' is the:

  1. Difference between the death benefit and the cash value ✓
  2. Total of all premiums the policyowner has paid to date
  3. Portion of the premium used to cover the insurer's expenses
  4. Cash value remaining after a policy loan is repaid

Why: The net amount at risk is the death benefit minus the accumulated cash value; it shrinks over time as the cash value grows toward the face amount.

All of the following are true of the individual policy available on conversion after termination of eligibility under RCW 48.24.180 EXCEPT:

  1. It is issued without evidence of insurability
  2. It may be on any form the insurer then issues
  3. Its premium reflects the insured's attained age
  4. It must be written on a term insurance plan ✓

Why: RCW 48.24.180 lets the individual choose any customary form EXCEPT term insurance, issued without evidence of insurability at the insurer's rate for the attained age.

Under RCW 48.84.060, prohibited practices for LTC producers include each of the following EXCEPT:

  1. completing the medical history portion of the application
  2. knowingly selling an LTC policy to a medicaid recipient
  3. using deceptive acts in the marketing of LTC contracts
  4. recommending an inflation protection rider to the buyer ✓

Why: RCW 48.84.060 bars completing the application's medical history, knowingly selling to a medicaid recipient, and unfair or deceptive marketing; recommending a rider is not prohibited.

Kevin is injured on March 3 under his individual disability policy. Setting aside the 'as soon as reasonably possible' allowance, by what date does the standard provision call for written notice of claim?

  1. March 13
  2. April 2
  3. March 23 ✓
  4. June 1

Why: RCW 48.20.082 (Notice of claim) sets a 20-day period; 20 days after March 3 is March 23.

Under RCW 48.44.370, a contractor need NOT offer a conversion contract to any of the following EXCEPT one who:

  1. Is covered under another group hospital or medical plan
  2. Is eligible for federal medicare coverage
  3. Simply retired from the employer group voluntarily ✓
  4. Was terminated from employment for misconduct

Why: RCW 48.44.370(2) lets a contractor decline to offer conversion to a person eligible for medicare, covered under another group plan, or terminated for misconduct; voluntary retirement is not an enumerated exception.

After Nadia's individual disability policy is reinstated, she develops an illness. Under the reinstatement provision, the reinstated policy covers loss from sickness only if the sickness begins:

  1. More than 10 days after reinstatement ✓
  2. On or after the reinstatement date itself
  3. More than 30 days after reinstatement
  4. More than 45 days after reinstatement

Why: RCW 48.20.072 (Reinstatement) covers sickness only if it begins more than ten days after the date of reinstatement.

A temporary insurance license is most commonly issued to:

  1. Continue the business of a producer who died or became disabled ✓
  2. Anyone who has not yet taken the licensing exam in most situations
  3. Replace continuing-education requirements
  4. Allow unlimited sales for one year

Why: Temporary licenses (no exam) let someone service an existing book when a producer dies, becomes disabled, or enters military service.

The Medicare Supplement (Medigap) open enrollment period:

  1. Lasts six months, starting when the person is 65 and enrolled in Part B ✓
  2. Is a one-time 30-day window that opens at the person's 70th birthday
  3. Occurs every fall and lets enrollees switch among all Medigap plans
  4. Is available only to people who also qualify for full Medicaid benefits

Why: During the 6-month Medigap open enrollment (beginning at 65 and enrolled in Part B), insurers must issue any plan regardless of health (guaranteed issue).

A survivorship (second-to-die) life policy pays the death benefit when:

  1. The first insured dies
  2. The second insured dies ✓
  3. Either insured becomes disabled
  4. The policy is surrendered

Why: Survivorship pays at the second death; it is common in estate planning to fund estate taxes.

A policy has a 60-day elimination period and a $4,500 monthly benefit. If the insured is disabled for 10 months, the approximate total paid is:

  1. $36,000 ✓
  2. $45,000
  3. $27,000
  4. $40,500

Why: The first ~2 months (60-day elimination) pay nothing; 8 months × $4,500 = $36,000.

A producer wants to thank clients who refer new business by giving each a $75 restaurant gift card, not conditioned on anyone buying insurance. Under RCW 48.30.133, this is:

  1. prohibited, because any referral gift is an unlawful rebate
  2. prohibited, because referral gifts must be paid only in cash
  3. permitted, since it is a noncash gift under $100 per person ✓
  4. permitted only if each referred person actually buys a policy

Why: RCW 48.30.133 lets a producer give noncash gifts up to $100 in value per person in a 12-month period for referrals, provided the gift is not conditioned on applying for or obtaining insurance.

Under a Section 162 executive bonus plan, the employer:

  1. Pays a bonus equal to the premium, which the employee owns and is taxed on ✓
  2. Owns the policy and keeps all of the cash value for corporate purposes
  3. Borrows against the executive's personal policy to fund operations
  4. Defers the executive's salary into a nonqualified retirement account

Why: The employer pays a deductible bonus equal to the premium; the employee owns the policy and reports the bonus as taxable income.

An insurer files a producer appointment, but the commissioner finds the producer ineligible. Under RCW 48.17.160, the commissioner must notify the insurer within:

  1. thirty days of the determination
  2. twenty days of the determination
  3. ten days of the determination ✓
  4. five days of the determination

Why: RCW 48.17.160 provides that if the producer is determined ineligible for appointment, the commissioner shall notify the insurer within ten days of the determination.