Nevada Life Insurance Exam Actual
Exam Study Questions with Verified
Answers Already Graded A+
1. Which rule would apply if an agent knows an applicant is going to cash in an
old policy and use the funds to purchase new insurance? - ANSWER
Replacement rule
2. An organization that operates on a lodge system and provides a formal life
insurance plan to its members is classified as a - ANSWER Fraternal insurer
3. Within how many months must a person be expected to die from a sickness
in order to be classified as terminally ill? - ANSWER 24 months
4. A mutual insurance company and a stock insurance company have one main
difference between them. What is the major contrast? - ANSWER Stock
company is owned by its shareholders. Mutual company is owned by its
policyholders
5. In order for a domestic, foreign, or alien insurance company to conduct
business, it must be authorized by whom? - ANSWER The state where they
are conducting business
6. A foreign insurance company doing business in Nevada: - ANSWER is a
company that was formed under the laws of another state
7. If, at the time of an insured's death, the insurance company discovers that the
insured's age was misstated on the application for the life insurance, the
, company will most likely: - ANSWER pay the policy proceeds in the
amount the premiums would have purchased at the insured's actual age
8. The funds used by the Life and Health Insurance Guaranty Association to
carry out its purpose are obtained from the: - ANSWER insurance
companies
9. All of the following actions are considered rebating, EXCEPT: - ANSWER
sharing commissions with other licensed and appointed agents
10.The commissioner must examine each domestic insurance company at
LEAST every: - ANSWER 5 years
11.Every insurance producer/broker MUST maintain all records, books, and
documents for insurance transactions for a period of not less than: -
ANSWER 3 years
12.Which of the following is required for insurance producer applicants who
are required to pass a written examination? - ANSWER fingerprint-based
criminal background check
13.In Nevada, an element of an insurance transaction would be: - ANSWER
issuing an insurance contract
14.Insurance agents MUST obtain a license from Nevada's: - ANSWER
Commissioner of Insurance
15.An insurance company can contest a life insurance contract due to
application fraud within: - ANSWER 2 years
,16.A newly licensed agent must complete 30 hours of continuing education
every years? - ANSWER 3 years
17.Under which circumstance can a group life insurance policy be converted to
an individual policy? - ANSWER Termination of employment
18.An insurance broker in Nevada is a representative of the: - ANSWER
insured
19.A life insurance company may make policy rate discriminations against: -
ANSWER People that smoke
20.What type of insurance company is domiciled in England, but conducts
business in Nevada? - ANSWER alien
21.A viatical settlement is arranged between a viatical company and a/an -
ANSWER Terminally ill insured
22.For how long must agents retain copies of notices and sales proposals for life
insurance applications? - ANSWER 3 years
23.The owner of a viatical settlement contract rescinds the contract 5 days after
receiving the payment, and then unexpectedly dies 2 days later. This life
settlement contract is considered to be - ANSWER Rescinded, subject to
repayment of the life settlement proceeds.
24.Which of the following documents must be provided to the policyowner or
applicant during policy replacement? - ANSWER Notice Regarding
Replacement
, 25.Which of the following terms is used to describe a person, other than a
viator, that enters into or effectuates a viatical settlement contract? -
ANSWER Viatical settlement provider ("Viatical settlement provider"
means a person, other than a viator, that enters into or effectuates (makes
effective) a viatical settlement contract.)
26.What describes the specific information about a policy? - ANSWER Policy
summary (A policy summary describes the features and elements of the
specific policy for which a person is applying.)
27.What is the name for the owner of a life insurance policy who enters into a
viatical settlement contract? - ANSWER Viator
28.A life producer applying for a viatical settlement broker license may be
exempt from the prelicensing education and examination requirement if the
producer has held an active life license for at least how many years? -
ANSWER 1 year
29.Each insurer must maintain a complete file containing a copy of each
document used in solicitation and sale of life insurance products for how
long following the date of its last authorized use? - ANSWER 3 years
30.Which of the following will be included in a policy summary? - ANSWER
Premium amounts and surrender values
31.Who is a person, other than a viator, that enters into a viatical settlement
contract? - ANSWER provider
Exam Study Questions with Verified
Answers Already Graded A+
1. Which rule would apply if an agent knows an applicant is going to cash in an
old policy and use the funds to purchase new insurance? - ANSWER
Replacement rule
2. An organization that operates on a lodge system and provides a formal life
insurance plan to its members is classified as a - ANSWER Fraternal insurer
3. Within how many months must a person be expected to die from a sickness
in order to be classified as terminally ill? - ANSWER 24 months
4. A mutual insurance company and a stock insurance company have one main
difference between them. What is the major contrast? - ANSWER Stock
company is owned by its shareholders. Mutual company is owned by its
policyholders
5. In order for a domestic, foreign, or alien insurance company to conduct
business, it must be authorized by whom? - ANSWER The state where they
are conducting business
6. A foreign insurance company doing business in Nevada: - ANSWER is a
company that was formed under the laws of another state
7. If, at the time of an insured's death, the insurance company discovers that the
insured's age was misstated on the application for the life insurance, the
, company will most likely: - ANSWER pay the policy proceeds in the
amount the premiums would have purchased at the insured's actual age
8. The funds used by the Life and Health Insurance Guaranty Association to
carry out its purpose are obtained from the: - ANSWER insurance
companies
9. All of the following actions are considered rebating, EXCEPT: - ANSWER
sharing commissions with other licensed and appointed agents
10.The commissioner must examine each domestic insurance company at
LEAST every: - ANSWER 5 years
11.Every insurance producer/broker MUST maintain all records, books, and
documents for insurance transactions for a period of not less than: -
ANSWER 3 years
12.Which of the following is required for insurance producer applicants who
are required to pass a written examination? - ANSWER fingerprint-based
criminal background check
13.In Nevada, an element of an insurance transaction would be: - ANSWER
issuing an insurance contract
14.Insurance agents MUST obtain a license from Nevada's: - ANSWER
Commissioner of Insurance
15.An insurance company can contest a life insurance contract due to
application fraud within: - ANSWER 2 years
,16.A newly licensed agent must complete 30 hours of continuing education
every years? - ANSWER 3 years
17.Under which circumstance can a group life insurance policy be converted to
an individual policy? - ANSWER Termination of employment
18.An insurance broker in Nevada is a representative of the: - ANSWER
insured
19.A life insurance company may make policy rate discriminations against: -
ANSWER People that smoke
20.What type of insurance company is domiciled in England, but conducts
business in Nevada? - ANSWER alien
21.A viatical settlement is arranged between a viatical company and a/an -
ANSWER Terminally ill insured
22.For how long must agents retain copies of notices and sales proposals for life
insurance applications? - ANSWER 3 years
23.The owner of a viatical settlement contract rescinds the contract 5 days after
receiving the payment, and then unexpectedly dies 2 days later. This life
settlement contract is considered to be - ANSWER Rescinded, subject to
repayment of the life settlement proceeds.
24.Which of the following documents must be provided to the policyowner or
applicant during policy replacement? - ANSWER Notice Regarding
Replacement
, 25.Which of the following terms is used to describe a person, other than a
viator, that enters into or effectuates a viatical settlement contract? -
ANSWER Viatical settlement provider ("Viatical settlement provider"
means a person, other than a viator, that enters into or effectuates (makes
effective) a viatical settlement contract.)
26.What describes the specific information about a policy? - ANSWER Policy
summary (A policy summary describes the features and elements of the
specific policy for which a person is applying.)
27.What is the name for the owner of a life insurance policy who enters into a
viatical settlement contract? - ANSWER Viator
28.A life producer applying for a viatical settlement broker license may be
exempt from the prelicensing education and examination requirement if the
producer has held an active life license for at least how many years? -
ANSWER 1 year
29.Each insurer must maintain a complete file containing a copy of each
document used in solicitation and sale of life insurance products for how
long following the date of its last authorized use? - ANSWER 3 years
30.Which of the following will be included in a policy summary? - ANSWER
Premium amounts and surrender values
31.Who is a person, other than a viator, that enters into a viatical settlement
contract? - ANSWER provider
