For a District life policy issued before the standard nonforfeiture law became operative, the paid-up insurance granted after a premium default is computed from the reserve less certain deductions. Which deduction from the reserve may the company write into the policy?

No more than 2 1/2% of the amount insured, or alternatively one fifth of the reserve

Under District law, how are statements made by a group life policyholder or by persons insured under the group policy treated?

As representations, not warranties, under a provision the policy must contain

An insurer in the District wants a proposed insured to take the certified AIDS testing protocol. Before it may request or require the test, what must the insurer obtain?

A signature on the standard informed consent statement furnished by the Commissioner

Under the District's required life policy provisions, on what day does the grace period for a renewal premium begin to run?

On the premium-paying date that the policy itself states for that premium

An applicant for coverage in the District takes HIV prevention treatment under a valid prescriber's order. The insurer is deciding whether to issue the policy. How may the insurer treat that use of prevention treatment in its decision?

It may not take the treatment into account when deciding whether to issue the policy

The Board of Directors of the District Association has authorized an assessment of member insurers, and the Association mails the notice calling it. Under D.C. law, when may the assessment be made due, and what happens if a member insurer pays late?

It cannot fall due sooner than 30 days after written notice, and interest accrues monthly until paid

Marcus bought a policy on his own life naming his sister as beneficiary. After his death, one of his creditors asserts that some premiums were paid with intent to defraud creditors. Under D.C. law, when does the insurer's payment of the proceeds to the sister, according to the policy's terms, discharge the insurer of all liability on the policy?

Unless, before paying, it received written notice of the creditor's claim stating the amount

A District annuity contract was issued only after the annuitant answered health questions beyond age and identity. The contract has now been in force for 4 years during the annuitant's lifetime. On which ground may the company still contest it?

Stipulated payments owed to the company under the contract were never made

The District has a chapter of its insurance code whose short title identifies it as an act regulating credit insurance. According to that short-title provision, which two coverages does the chapter regulate?

Credit life insurance and credit accident and health insurance

Free District of Columbia Life practice questions

10 questions · no signup
Nothing is saved.

Real questions with the answer, the reasoning and the source.

1.For a District life policy issued before the standard nonforfeiture law became operative, the paid-up insurance granted after a premium default is computed from the reserve less certain deductions. Which deduction from the reserve may the company write into the policy?
Answer: A. No more than 2 1/2% of the amount insured, or alternatively one fifth of the reserve
D.C. Code Sec. 31-4705.01(b) lets the reserve be reduced by a specified percentage of not more than 2 1/2% of the amount insured (and of any dividend additions), and lets the company instead provide for deducting one fifth of the reserve, or for either deduction at its option. The 3 1/2%, 1 1/2% and 10% figures, and the one quarter, one tenth and one half shares, do not appear in that provision.
Source
D.C. Code Sec. 31-4705.01(b)
Choose an answer to see the explanation.
2.Under District law, how are statements made by a group life policyholder or by persons insured under the group policy treated?
Answer: D. As representations, not warranties, under a provision the policy must contain
D.C. Code Sec. 31-4711(3) requires a group life policy to say that every statement by the policyholder or an insured person is deemed a representation, not a warranty. The same paragraph requires a copy of the policyholder's application, if any, to be attached to the policy when issued, and bars use of an insured person's statement in a contest unless a copy of the instrument containing it has been furnished to that person or the beneficiary. Treating the statements as warranties or as conditions precedent contradicts that provision, and nothing in it makes their effect depend on review by the Commissioner.
Source
D.C. Code Sec. 31-4711(3)
Choose an answer to see the explanation.
3.An insurer in the District wants a proposed insured to take the certified AIDS testing protocol. Before it may request or require the test, what must the insurer obtain?
Answer: D. A signature on the standard informed consent statement furnished by the Commissioner
D.C. Code Sec. 31-1606(a) bars an insurer from requesting or requiring the certified test until it has the signature of the proposed insured, or the legal guardian, on a standard informed consent statement that the Commissioner prepares and furnishes. A form the insurer writes itself is not that statement. A physician's approval is not the signature of the proposed insured or guardian. Oral consent is not a signature at all.
Source
D.C. Code Sec. 31-1606(a)
Choose an answer to see the explanation.
4.Under the District's required life policy provisions, on what day does the grace period for a renewal premium begin to run?
Answer: D. On the premium-paying date that the policy itself states for that premium
District law requires a life policy to provide that grace begins on the premium-paying date stated in the policy. The start of grace is therefore fixed by the policy's own due date, not by when the insurer mails a reminder or a lapse notice. Starting grace thirty days after the due date confuses the length of the grace period, which is at least 30 days or one month, with the day it begins.
Source
D.C. Code Sec. 31-4703(a)(2)(C)
Choose an answer to see the explanation.
5.An applicant for coverage in the District takes HIV prevention treatment under a valid prescriber's order. The insurer is deciding whether to issue the policy. How may the insurer treat that use of prevention treatment in its decision?
Answer: A. It may not take the treatment into account when deciding whether to issue the policy
D.C. Code Sec. 31-1603(b)(1)(B) bars an insurer, when deciding whether to issue, cancel, or renew coverage, from taking into consideration a person's use of HIV prevention treatment taken under a valid prescriber's order. The bar contains no exception tied to what the application disclosed. Pairing the treatment with age or occupation does not help, because subsection (b)(1)(A) separately forbids using age, occupation, and similar factors to try to predict whether someone will develop AIDS or ARC. The same rule governs issuing, canceling, and renewing, so it is not confined to renewal.
Source
D.C. Code Sec. 31-1603(b)(1)(B)
Choose an answer to see the explanation.
6.The Board of Directors of the District Association has authorized an assessment of member insurers, and the Association mails the notice calling it. Under D.C. law, when may the assessment be made due, and what happens if a member insurer pays late?
Answer: D. It cannot fall due sooner than 30 days after written notice, and interest accrues monthly until paid
An assessment may not fall due earlier than 30 days after the member insurers are given written notice, and any unpaid amount accrues interest each month until it is paid. Passing the Board's resolution only authorizes an assessment; mailing the notice is what calls it, so it is not due on the resolution date, and there is no 10-day deadline or approval by the Mayor in this rule. Shifting an amount to the other members is a separate tool for an assessment the Board abates or defers because paying it would endanger an insurer, not a consequence of paying late.
Source
D.C. Code Sec. 31-5406(a)
Choose an answer to see the explanation.
7.Marcus bought a policy on his own life naming his sister as beneficiary. After his death, one of his creditors asserts that some premiums were paid with intent to defraud creditors. Under D.C. law, when does the insurer's payment of the proceeds to the sister, according to the policy's terms, discharge the insurer of all liability on the policy?
Answer: D. Unless, before paying, it received written notice of the creditor's claim stating the amount
Under D.C. Code Sec. 31-4716(a), an insurer that pays the proceeds according to the policy's terms is discharged of all liability on it, unless before paying it received written notice, from or on behalf of a creditor, of a claim to recover premiums paid or a transfer made with intent to defraud creditors, specifying the amount claimed. The statute does not make the insurer's discharge wait for a court ruling, a bond from the beneficiary, or the executor's consent.
Source
D.C. Code Sec. 31-4716(a)
Choose an answer to see the explanation.
8.After a member insurer's insolvency, the Guaranty Association assumes a policy, and the policyholder later misses a premium. Under D.C. law, nonpayment for how long after the due date ends the Association's obligations under that coverage?
Answer: C. 31 days
D.C. Code Sec. 31-5405(j) provides that nonpayment of premiums within 31 days after the date required under a guaranteed, assumed, alternative, or reissued policy or substitute coverage ends the Association's obligations, except for claims already incurred and any net cash surrender value due under the chapter. Thirty days, 45 days, and 60 days are not the period this subsection sets.
Source
D.C. Code Sec. 31-5405(j)
Choose an answer to see the explanation.
9.A District annuity contract was issued only after the annuitant answered health questions beyond age and identity. The contract has now been in force for 4 years during the annuitant's lifetime. On which ground may the company still contest it?
Answer: B. Stipulated payments owed to the company under the contract were never made
Where a District annuity requires statements other than age and identity as a condition of issue, it must provide that the contract becomes incontestable once it has been in force for 2 years from issue during the life of the person who made the statements. The statutory exceptions include failure to make stipulated payments to the company, so nonpayment remains a ground for contest after 4 years. An inaccurate health answer and a wrongly described occupation are statements of the kind the incontestable provision shuts off after 2 years. A pricing error by the company is not among the listed exceptions, so it gives no ground to contest.
Source
D.C. Code Sec. 31-4705(b)(2)
Choose an answer to see the explanation.
10.The District has a chapter of its insurance code whose short title identifies it as an act regulating credit insurance. According to that short-title provision, which two coverages does the chapter regulate?
Answer: B. Credit life insurance and credit accident and health insurance
D.C. Code Sec. 31-5101(a) describes the chapter as regulating credit life insurance and credit accident and health insurance, and its short title names those same two coverages. Credit property, credit unemployment and mortgage guaranty insurance are not named in that provision. The provision names credit coverages, not group life or group accident and health insurance.
Source
D.C. Code Sec. 31-5101(a)
Choose an answer to see the explanation.

The other 281 questions are $29.

Lifetime access, the full timed simulator, drills on the areas that cost you marks, and a readiness score that tells you when to book. One payment, nothing recurring, nothing else to buy.

Take the free scored exam See what access includes

The scored exam is free, 20 questions in 30 minutes, and needs an account. These 10 do not.

1.For a District life policy issued before the standard nonforfeiture law became operative, the paid-up insurance granted after a premium default is computed from the reserve less certain deductions. Which deduction from the reserve may the company write into the policy?

2.Under District law, how are statements made by a group life policyholder or by persons insured under the group policy treated?

3.An insurer in the District wants a proposed insured to take the certified AIDS testing protocol. Before it may request or require the test, what must the insurer obtain?

4.Under the District's required life policy provisions, on what day does the grace period for a renewal premium begin to run?

5.An applicant for coverage in the District takes HIV prevention treatment under a valid prescriber's order. The insurer is deciding whether to issue the policy. How may the insurer treat that use of prevention treatment in its decision?

6.The Board of Directors of the District Association has authorized an assessment of member insurers, and the Association mails the notice calling it. Under D.C. law, when may the assessment be made due, and what happens if a member insurer pays late?

8.After a member insurer's insolvency, the Guaranty Association assumes a policy, and the policyholder later misses a premium. Under D.C. law, nonpayment for how long after the due date ends the Association's obligations under that coverage?

9.A District annuity contract was issued only after the annuitant answered health questions beyond age and identity. The contract has now been in force for 4 years during the annuitant's lifetime. On which ground may the company still contest it?

10.The District has a chapter of its insurance code whose short title identifies it as an act regulating credit insurance. According to that short-title provision, which two coverages does the chapter regulate?

The other 281 questions are $29.