NEVADA LIFE AND HEALTH INSURANCE EXAM
2026 QUESTION COLLECTION RISK
MANAGEMENT AND UNDERWRITING MODULE
SOLVED ITEMS AND RESPONSE KEY
◉ In Nevada, a Long-Term Care Policy must be renewable in which
of the following ways?
A. Conditionally Renewable
B. Optionally Renewable
C. Guaranteed Renewable
D. Noncancellable Answer: C. Guaranteed Renewable
◉ Post-tax dollar contributions are found in:
A. 401K
B. Traditional IRA investments
C. SIMPLE investments
D. Roth IRA investments Answer: D. Roth IRA investments
◉ Which of the following policy provisions prohibits an insurance
company from incorporating external documents into an insurance
policy?
A. Waiver
,B. Exceptions and Reductions
C. Incontestable
D. Entire Contract Answer: D. Entire Contract
◉ What type of life insurance gives the greatest amount of coverage
for a limited period of time?
A. Term Life
B. Graded Premium Whole Life
C. Whole Life
D. Endowment Policy Answer: A. Term life
◉ Which of the following services is NOT covered under a
hospitalization expense police?
A. Daily Room and Board
B. Surgeon's Fees
C. Intensive Care
D. Miscellaneous Expenses Answer: B. Surgeons Fees
◉ Which of the following is a standard provision of the conversion
privileges in a Group Life Policy?
A. Group Life coverage can only be converted is the employer pays
for the individual policy
,B. Group Life coverage can normally be converted to an individual
policy within 6 months
C. Group Life coverage can only be converted by providing evidence
if insurability
D. Group Life coverage can be converted to an individual policy
without providing evidence of insurability. Answer: D. Group Life
coverage can be converted to an individual policy without providing
evidence of insurability.
◉ A Disability Income Policy-owner suffers a disability which was
due to the same cause as a previous disability. Both disabilities
occurred within a five-month period. The insurer may cover the
second disability without a new elimination period under the:
A. Residual Disability Provision
B. Presumptive Disability Provision
C. Recurrent Disability Provision
D. Partial Disability Provision Answer: C. Recurrent Disability
Provision
◉ Which of these is NOT relevant when determining the amount of
personal life insurance needed?
A. Existing life insurance coverage
B. Local unemployment rate
C. Household Income
, D. Household Debt Answer: B. Local unemployment rate
◉ A 55 year old recently received a $30,000 distribution from a
previous employer's 401K plan, minus $6,000 withholding. Which
federal taxes apply if non of the funds were rolled over?
A. Only income taxes on $30,000
B. Only income taxed on $20,000
C. Income taxes plus a 10% penalty tax on $30,000
D. Income taxes plus a 10% penalty tax on $24,000 Answer: C.
Income taxes plus a 10% penalty tax on $30,000 (all withdrawals
from a qualified retirement plan are taxable as current income. In
addition, any withdrawals made before the age of 59 1/2 is subject
to an additional tax penalty of 10% of the amount withdrawn.)
◉ C is a key employee at ABC Incorporated. If a Key Employee Life
Policy is purchased on her life, which of these statements would be
true?
A. ABC is the policy-owner, C is the insured, and her husband is the
beneficiary.
B. ABC is the policy-owner, C is the insured, and ABC is the
beneficiary.
C. C is the policy-owner and the insured, and ABC is the beneficiary.
D. C is the policy-owner, the insured, and the beneficiary. Answer: B.
ABC is the policy-owner, C is the insured, and ABC is the beneficiary.
2026 QUESTION COLLECTION RISK
MANAGEMENT AND UNDERWRITING MODULE
SOLVED ITEMS AND RESPONSE KEY
◉ In Nevada, a Long-Term Care Policy must be renewable in which
of the following ways?
A. Conditionally Renewable
B. Optionally Renewable
C. Guaranteed Renewable
D. Noncancellable Answer: C. Guaranteed Renewable
◉ Post-tax dollar contributions are found in:
A. 401K
B. Traditional IRA investments
C. SIMPLE investments
D. Roth IRA investments Answer: D. Roth IRA investments
◉ Which of the following policy provisions prohibits an insurance
company from incorporating external documents into an insurance
policy?
A. Waiver
,B. Exceptions and Reductions
C. Incontestable
D. Entire Contract Answer: D. Entire Contract
◉ What type of life insurance gives the greatest amount of coverage
for a limited period of time?
A. Term Life
B. Graded Premium Whole Life
C. Whole Life
D. Endowment Policy Answer: A. Term life
◉ Which of the following services is NOT covered under a
hospitalization expense police?
A. Daily Room and Board
B. Surgeon's Fees
C. Intensive Care
D. Miscellaneous Expenses Answer: B. Surgeons Fees
◉ Which of the following is a standard provision of the conversion
privileges in a Group Life Policy?
A. Group Life coverage can only be converted is the employer pays
for the individual policy
,B. Group Life coverage can normally be converted to an individual
policy within 6 months
C. Group Life coverage can only be converted by providing evidence
if insurability
D. Group Life coverage can be converted to an individual policy
without providing evidence of insurability. Answer: D. Group Life
coverage can be converted to an individual policy without providing
evidence of insurability.
◉ A Disability Income Policy-owner suffers a disability which was
due to the same cause as a previous disability. Both disabilities
occurred within a five-month period. The insurer may cover the
second disability without a new elimination period under the:
A. Residual Disability Provision
B. Presumptive Disability Provision
C. Recurrent Disability Provision
D. Partial Disability Provision Answer: C. Recurrent Disability
Provision
◉ Which of these is NOT relevant when determining the amount of
personal life insurance needed?
A. Existing life insurance coverage
B. Local unemployment rate
C. Household Income
, D. Household Debt Answer: B. Local unemployment rate
◉ A 55 year old recently received a $30,000 distribution from a
previous employer's 401K plan, minus $6,000 withholding. Which
federal taxes apply if non of the funds were rolled over?
A. Only income taxes on $30,000
B. Only income taxed on $20,000
C. Income taxes plus a 10% penalty tax on $30,000
D. Income taxes plus a 10% penalty tax on $24,000 Answer: C.
Income taxes plus a 10% penalty tax on $30,000 (all withdrawals
from a qualified retirement plan are taxable as current income. In
addition, any withdrawals made before the age of 59 1/2 is subject
to an additional tax penalty of 10% of the amount withdrawn.)
◉ C is a key employee at ABC Incorporated. If a Key Employee Life
Policy is purchased on her life, which of these statements would be
true?
A. ABC is the policy-owner, C is the insured, and her husband is the
beneficiary.
B. ABC is the policy-owner, C is the insured, and ABC is the
beneficiary.
C. C is the policy-owner and the insured, and ABC is the beneficiary.
D. C is the policy-owner, the insured, and the beneficiary. Answer: B.
ABC is the policy-owner, C is the insured, and ABC is the beneficiary.
