Washington Life Insurance Policy Requirements

Washington law imposes specific requirements on life insurance policies sold in the state. These requirements protect consumers and ensure policy standardization.

Free Look Period

Washington provides a free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Exam Tip: Washington provides 20 days for seniors age 60 and older. This extended period helps protect vulnerable consumers.

Incontestability Clause

Washington requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements in the application
• Exceptions: Fraud, non-payment of premiums, or violation of policy conditions
• The clause protects beneficiaries from having claims denied due to application errors

Washington Specific Rules

• Incontestability period begins from the policy issue date
• If policy lapses and is reinstated, a new 2-year period begins from reinstatement
• Does not protect against intentional fraud

Suicide Clause

Washington limits the suicide exclusion:

• Suicide exclusion cannot exceed 2 years from policy issue
• After 2 years, death by suicide is covered
• If policy is reinstated, new 2-year period applies from reinstatement date
• Accidental death benefits may have different exclusions

Unfair Discrimination Prohibitions

Washington has anti-discrimination laws for insurance under RCW 48.30.300:

Protected Classes in Washington Insurance

What IS Permitted

Insurers can consider:

• Age
• Health conditions and medical history
• Smoking status
• Occupation
• Lifestyle factors related to mortality risk

Washington Specific: Washington has strong protections against discrimination based on HIV/AIDS status in insurance underwriting.

Policy Delivery Requirements

Washington requires:

• Policy delivered within 60 days of issue
• Delivery must include policy summary
• Electronic delivery permitted with consent
• Receipt must be obtained or attempted

Annual Statement Requirement

For permanent life insurance policies, Washington requires:

• Annual statement of policy values
• Cash surrender value disclosure
• Death benefit information
• Loan balance if applicable

Grace Period

Washington requires a minimum grace period:

• 31 days for annual premium policies
• 10 days for monthly premium policies
• Policy remains in force during grace period
• Claims paid during grace period (less unpaid premium)