Nevada Life and Health License Exam
Prep Questions & Answers(RATED A+)
What are the four required elements of an insurance contract? - ANSWER Agreement,
consideration, competent parties, and legal purpose.
What two parts make up a life insurance application? - ANSWER General Information
and the Medical Information. An agent's report can go in a life insurance application but
is not included in the life insurance policy.
When must insurable interest exist in life insurance? - ANSWER At the time of
application.
When does coverage begin, if the premium was submitted with the application, and the
policy was issued two weeks later? - ANSWER At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial that
change? - ANSWER The applicant.
Insurers may change what on a guaranteed renewable health insurance polity? -
ANSWER The rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes
without being penalized? - ANSWER At age 65.
Which provision states how much time must pass between two like illnesses in order for
the second one to be covered under a new set of benefits? - ANSWER Recurrent
Disability Provision
In forming an insurance contract, when does acceptance occur? - ANSWER When an
insurer's underwriter approves coverage
What is an important feature of a dental expense insurance plan that is not found in a
medical expense insurance plan? - ANSWER Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance? -
ANSWER The insured is not required to pay a deductible
Occasional visits by what medical professionals will not be covered under Long-Term
Care's home health care? - ANSWER Attending physicians
Can an individual who belongs to a POS plan use an out-of-network physician? -
ANSWER Yes, they can use any physician even if not part of the HMO
,What is the advantage of reinstating a policy instead of applying for a new one? -
ANSWER The original age is used for premium determination
What would basic medical expense coverage not cover? - ANSWER Surgeon's services
What is not provided by an HMO? - ANSWER Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance
policy on a child where the parent is the policyowner? - ANSWER Third-party ownership
What is not true about dividends? - ANSWER Dividend amounts are guaranteed in the
policy
What is not true about Accidental Death and Dismemberment? - ANSWER Death
benefits are paid only if death occurs within 24 hours of an accident
When would a 20-pay whole life policy endow? - ANSWER When the insured reaches
age 100
What section of a health policy that states the causes of eligible loss under which an
insurance is assumed to be disabled? - ANSWER Insuring Clause
The insurance clause of a disability policy usually states what except? - ANSWER The
method of premium payment
What best describes annually renewable term insurance? - ANSWER It is level term
insurance
What best describes an annuity period? - ANSWER Period of time during which
accumulated money is converted into income payments
What is an eligibility requirement for all Social Security Disability Income benefits? -
ANSWER Have attained fully insured status
What protects the insured from unintentional policy lapse due to a nonpayment of
premium? - ANSWER Automatic premium loan
What is the maximum amount that the Nevada Life & Health Insurance Guaranty
Association be obligated to pay with respect to life insurance death benefits for one life?
- ANSWER $300,000
What is the penalty for transacting insurance without a proper license? - ANSWER
$1,000 for each violation
What type of misrepresentation persuades an insured to cancel, lapse, or switch
policies from one to another? - ANSWER Twisting
, The patient protection and affordable care act includes what except? - ANSWER
Individual tax deduction for premiums paid
When would life insurance death benefits be tax free? - ANSWER If paid as a lump sum
to the beneficiary
What do individuals use to transfer their risk of loss to a larger group? - ANSWER
Insurance
What is insurance the transfer of? - ANSWER Risk
Insurance is a contract by which one seeks to protect another from - ANSWER Loss
What type of report provides information about the applicant's hobbies, habits, and
financial status? - ANSWER Inspection Report
What law protects consumers from the circulation of inaccurate or obsolete information -
ANSWER The Fair Credit Reporting Act
What term describes the fee a person pays an insurance company to receive coverage?
- ANSWER Premium
What is the purpose of the agent's report during the application process? - ANSWER
The agent's report discusses the agent's personal observations about the proposed
insured that may help in the underwriting process.
What two elements are necessary for a life insurance contract to have a legal purpose?
- ANSWER Insurable interest and consent
What does it mean when health insurance contracts are unilateral? - ANSWER Only
one party makes a legally enforceable promise
How is the information obtained for an investigative consumer report? - ANSWER
Through interviews with the applicant's associates, friends, and neighbors
What is the name of the process that insurance companies use to determine whether or
not an applicant is insurable? - ANSWER Underwriting
What are the three types of risk rating classifications in life insurance? - ANSWER
Standard, substandard, and preferred
When would a misrepresentation on an insurance application be considered fraud? -
ANSWER When it is intentional and material
What entities make up the Medical Information Bureau? - ANSWER Insurers
Prep Questions & Answers(RATED A+)
What are the four required elements of an insurance contract? - ANSWER Agreement,
consideration, competent parties, and legal purpose.
What two parts make up a life insurance application? - ANSWER General Information
and the Medical Information. An agent's report can go in a life insurance application but
is not included in the life insurance policy.
When must insurable interest exist in life insurance? - ANSWER At the time of
application.
When does coverage begin, if the premium was submitted with the application, and the
policy was issued two weeks later? - ANSWER At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial that
change? - ANSWER The applicant.
Insurers may change what on a guaranteed renewable health insurance polity? -
ANSWER The rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes
without being penalized? - ANSWER At age 65.
Which provision states how much time must pass between two like illnesses in order for
the second one to be covered under a new set of benefits? - ANSWER Recurrent
Disability Provision
In forming an insurance contract, when does acceptance occur? - ANSWER When an
insurer's underwriter approves coverage
What is an important feature of a dental expense insurance plan that is not found in a
medical expense insurance plan? - ANSWER Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance? -
ANSWER The insured is not required to pay a deductible
Occasional visits by what medical professionals will not be covered under Long-Term
Care's home health care? - ANSWER Attending physicians
Can an individual who belongs to a POS plan use an out-of-network physician? -
ANSWER Yes, they can use any physician even if not part of the HMO
,What is the advantage of reinstating a policy instead of applying for a new one? -
ANSWER The original age is used for premium determination
What would basic medical expense coverage not cover? - ANSWER Surgeon's services
What is not provided by an HMO? - ANSWER Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance
policy on a child where the parent is the policyowner? - ANSWER Third-party ownership
What is not true about dividends? - ANSWER Dividend amounts are guaranteed in the
policy
What is not true about Accidental Death and Dismemberment? - ANSWER Death
benefits are paid only if death occurs within 24 hours of an accident
When would a 20-pay whole life policy endow? - ANSWER When the insured reaches
age 100
What section of a health policy that states the causes of eligible loss under which an
insurance is assumed to be disabled? - ANSWER Insuring Clause
The insurance clause of a disability policy usually states what except? - ANSWER The
method of premium payment
What best describes annually renewable term insurance? - ANSWER It is level term
insurance
What best describes an annuity period? - ANSWER Period of time during which
accumulated money is converted into income payments
What is an eligibility requirement for all Social Security Disability Income benefits? -
ANSWER Have attained fully insured status
What protects the insured from unintentional policy lapse due to a nonpayment of
premium? - ANSWER Automatic premium loan
What is the maximum amount that the Nevada Life & Health Insurance Guaranty
Association be obligated to pay with respect to life insurance death benefits for one life?
- ANSWER $300,000
What is the penalty for transacting insurance without a proper license? - ANSWER
$1,000 for each violation
What type of misrepresentation persuades an insured to cancel, lapse, or switch
policies from one to another? - ANSWER Twisting
, The patient protection and affordable care act includes what except? - ANSWER
Individual tax deduction for premiums paid
When would life insurance death benefits be tax free? - ANSWER If paid as a lump sum
to the beneficiary
What do individuals use to transfer their risk of loss to a larger group? - ANSWER
Insurance
What is insurance the transfer of? - ANSWER Risk
Insurance is a contract by which one seeks to protect another from - ANSWER Loss
What type of report provides information about the applicant's hobbies, habits, and
financial status? - ANSWER Inspection Report
What law protects consumers from the circulation of inaccurate or obsolete information -
ANSWER The Fair Credit Reporting Act
What term describes the fee a person pays an insurance company to receive coverage?
- ANSWER Premium
What is the purpose of the agent's report during the application process? - ANSWER
The agent's report discusses the agent's personal observations about the proposed
insured that may help in the underwriting process.
What two elements are necessary for a life insurance contract to have a legal purpose?
- ANSWER Insurable interest and consent
What does it mean when health insurance contracts are unilateral? - ANSWER Only
one party makes a legally enforceable promise
How is the information obtained for an investigative consumer report? - ANSWER
Through interviews with the applicant's associates, friends, and neighbors
What is the name of the process that insurance companies use to determine whether or
not an applicant is insurable? - ANSWER Underwriting
What are the three types of risk rating classifications in life insurance? - ANSWER
Standard, substandard, and preferred
When would a misrepresentation on an insurance application be considered fraud? -
ANSWER When it is intentional and material
What entities make up the Medical Information Bureau? - ANSWER Insurers
