WA Life & Health study guide
WA Life & Health · Work through your exam, one topic at a time.
The Washington Life & Health producer license is the credential the Washington State Office of the Insurance Commissioner (OIC) issues to individuals who sell or solicit life insurance, annuities, and health-related coverages in the state. Candidates typically pursue it to work as an agent or broker for a carrier, an agency, or as an independent producer, and many earn it as a first step before adding lines such as property and casualty. The WA Life & Health study guide has 10 sections and about 3,063 words.
01Washington Insurance Regulation and Licensing
Washington insurance is regulated by the Office of the Insurance Commissioner (OIC). The Commissioner is elected statewide to a four-year term, not appointed.
331 words, about 2 min02General Insurance Concepts
Risk is uncertainty about loss. Pure risk (loss or no loss) is insurable; speculative risk (gain or loss, such as gambling or investing) is not.
334 words, about 2 min03Life Insurance Basics
Producers size a need two ways: human life value (present value of future earnings) and the needs approach (income replacement, mortgage, education, final expenses, emergency fund, minus existing resources). Business uses include key person coverage, buy-sell funding, deferred compensation, and executive bonus plans.
321 words, about 2 min04Life Insurance Policies
Term is pure protection with no cash value: level, decreasing, increasing, annually renewable, convertible (to permanent within a stated window, typically without new evidence of insurability), and return of premium. Renewable term guarantees the right to renew at a higher premium.
305 words, about 2 min05Life Insurance Policy Provisions, Options, and Riders
Entire contract; free look (10 days in Washington for life policies); grace period (30 or 31 days, with coverage continuing); incontestability (the insurer cannot contest the policy after it has been in force two years from issue, except for nonpayment of premium); suicide clause (two years, after which only premiums are refunded); misstatement of age or sex (benefit adjusted to what the premium would have purchased); reinstatement (within three years with evidence of insurability and payment of overdue premiums with interest). Policy loans (interest charged, reduces proceeds), automatic premium loan, surrender, assignment (absolute or collateral), dividend options, and nonforfeiture options.
301 words, about 2 min06Annuities
An annuity liquidates an accumulated sum over time. Two phases: accumulation, then annuitization (payout).
306 words, about 2 min07Health Insurance Basics
Indemnity (fee-for-service) plans pay a percentage of usual, customary, and reasonable charges and allow any provider. Managed care controls cost and use: HMO (closed network, primary care gatekeeper, referrals required, often capitated), PPO (network discounts, no referrals, higher cost out of network), POS (a hybrid HMO/PPO), and EPO (network only, no out-of-network benefits).
283 words, about 1 min08Health Insurance Policy Provisions and Benefits
The uniform provisions set the policy skeleton: entire contract and changes; time limit on certain defenses (two years); grace period (7 days if premiums are weekly, 10 if monthly, 31 otherwise); reinstatement; notice of claim (20 days); proof of loss (90 days); time of payment of claims (immediately or within 15 days); payment of claims; physical examination; legal actions (three years); change of occupation; misstatement of age; other insurance with the same insurer; illegal occupation; unpaid premium; cancellation. Coordination of benefits, subrogation, conversion, the consideration clause, and benefit provisions for hospital, surgical, maternity, mental health, prescription drug, and preventive care.
278 words, about 1 min09Disability Income and Long-Term Care Insurance
DI replaces part of earned income, typically 60 to 70 percent. Key definitions: own occupation (paid if unable to perform your own job) versus any occupation (paid only if unable to perform any job for which you are reasonably suited).
304 words, about 2 min10Group Health, Medicare, and Other Health Coverages
One master contract is issued to the employer and employees receive certificates. Underwriting looks at the group rather than the individual.
300 words, about 2 min