NEVADA LIFE AND HEALTH INSURANCE EXAM
2026 FINAL ASSESSMENT PAPER INSURANCE
LAW AND ETHICS COMPREHENSIVE
QUESTIONS AND ANSWERS VERIFIED A+
◉ Who is the policyowner? Answer: The person who buys and
controls the life insurance policy.
◉ Who is the insured? Answer: The person whose life is covered by
the policy.
◉ What is third-party ownership? Answer: What is third-party
ownership?
◉ What is insurable interest? Answer: A financial or emotional loss
that the policyowner would suffer if the insured dies.
◉ When must insurable interest exist? Answer: At the time the
policy is issued.
◉ Who receives the death benefit? Answer: The beneficiary, named
by the policyowner.
,◉ Can the insured name themselves as beneficiary? Answer: No
◉ What is a producer's job before taking an application? Answer:
Assess the client's goals and recommend the right policy.
◉ What are the 4 phases of transacting insurance? Answer:
Solicitation, negotiation, contract execution, and post-contract
service.
◉ What is the Buyer's Guide? Answer: A brochure explaining life
insurance types and costs.
◉ What is a Policy Summary? Answer: A detailed illustration of the
policy's terms, premiums, and values.
◉ What does the FCRA require during underwriting? Answer:
Applicant consent for third-party reports and disclosures.
◉ What does HIPAA protect? Answer: The privacy of personal
medical information.
◉ What is needed before HIV testing? Answer: Written consent and
explanation of purpose and confidentiality.
,◉ What is replacement in life insurance? Answer: Buying a new
policy that causes an existing one to change or end.
◉ What is conservation? Answer: Attempt to keep the existing policy
instead of replacing it.
◉ Who is the replacing insurer? Answer: The one issuing the new
policy.
◉ What must the producer do during replacement? Answer: Provide
a Notice Regarding Replacement, gather policy info, and give
disclosures.
◉ What is the purpose of the application? Answer: It's a formal offer
from the applicant to the insurer.
◉ Who must sign the application? Answer: The producer and
applicant (and the insured if different).
◉ Can the producer change the application after it's signed? Answer:
No. Only the applicant can make changes and must initial them.
, ◉ What happens if an application is incomplete? Answer: It will be
returned for completion. If a policy is issued anyway, the insurer
may waive certain rights.
◉ When is coverage effective for a life insurance policy? Answer:
Only after the first premium is paid and accepted by the insurer.
◉ What happens if the initial premium check doesn't clear? Answer:
It is not considered valid payment; coverage is not in effect.
◉ What is a conditional receipt? Answer: A receipt given when
premium is paid at application; coverage begins on the later of the
application date or medical exam, if the applicant qualifies as
applied for.
◉ What happens if death occurs before the policy is issued but after
a conditional receipt is given? Answer: The insurer must prove the
policy would not have been issued to avoid paying the claim.
◉ When is the effective date if a medical exam is required? Answer:
The later of the application date or the date of the medical exam.
◉ What is a binding (unconditional) receipt? Answer: Provides
immediate coverage at the time of application, usually not used in
life insurance.
2026 FINAL ASSESSMENT PAPER INSURANCE
LAW AND ETHICS COMPREHENSIVE
QUESTIONS AND ANSWERS VERIFIED A+
◉ Who is the policyowner? Answer: The person who buys and
controls the life insurance policy.
◉ Who is the insured? Answer: The person whose life is covered by
the policy.
◉ What is third-party ownership? Answer: What is third-party
ownership?
◉ What is insurable interest? Answer: A financial or emotional loss
that the policyowner would suffer if the insured dies.
◉ When must insurable interest exist? Answer: At the time the
policy is issued.
◉ Who receives the death benefit? Answer: The beneficiary, named
by the policyowner.
,◉ Can the insured name themselves as beneficiary? Answer: No
◉ What is a producer's job before taking an application? Answer:
Assess the client's goals and recommend the right policy.
◉ What are the 4 phases of transacting insurance? Answer:
Solicitation, negotiation, contract execution, and post-contract
service.
◉ What is the Buyer's Guide? Answer: A brochure explaining life
insurance types and costs.
◉ What is a Policy Summary? Answer: A detailed illustration of the
policy's terms, premiums, and values.
◉ What does the FCRA require during underwriting? Answer:
Applicant consent for third-party reports and disclosures.
◉ What does HIPAA protect? Answer: The privacy of personal
medical information.
◉ What is needed before HIV testing? Answer: Written consent and
explanation of purpose and confidentiality.
,◉ What is replacement in life insurance? Answer: Buying a new
policy that causes an existing one to change or end.
◉ What is conservation? Answer: Attempt to keep the existing policy
instead of replacing it.
◉ Who is the replacing insurer? Answer: The one issuing the new
policy.
◉ What must the producer do during replacement? Answer: Provide
a Notice Regarding Replacement, gather policy info, and give
disclosures.
◉ What is the purpose of the application? Answer: It's a formal offer
from the applicant to the insurer.
◉ Who must sign the application? Answer: The producer and
applicant (and the insured if different).
◉ Can the producer change the application after it's signed? Answer:
No. Only the applicant can make changes and must initial them.
, ◉ What happens if an application is incomplete? Answer: It will be
returned for completion. If a policy is issued anyway, the insurer
may waive certain rights.
◉ When is coverage effective for a life insurance policy? Answer:
Only after the first premium is paid and accepted by the insurer.
◉ What happens if the initial premium check doesn't clear? Answer:
It is not considered valid payment; coverage is not in effect.
◉ What is a conditional receipt? Answer: A receipt given when
premium is paid at application; coverage begins on the later of the
application date or medical exam, if the applicant qualifies as
applied for.
◉ What happens if death occurs before the policy is issued but after
a conditional receipt is given? Answer: The insurer must prove the
policy would not have been issued to avoid paying the claim.
◉ When is the effective date if a medical exam is required? Answer:
The later of the application date or the date of the medical exam.
◉ What is a binding (unconditional) receipt? Answer: Provides
immediate coverage at the time of application, usually not used in
life insurance.
