©EVERLY 2024/2025 ALL RIGHTS RESERVED.
NV XCEL Exam Questions And Answers
(Guaranteed A+)
An incomplete life insurance app submitted to an insurer will result in which of these actions? -
Answer✔App will be returned to the writing agent
Which of the following is an ex of defamation?
(A) Circulating brochures falsely denouncing financial condition of an insurer
(B) Making statements that encourage purchase of term life insurance over whole life
(C) Issuing pamphlets containing false info about term life
(D) Publishing a newsletter that makes reference to reputable brokers in area -
Answer✔Circulating brochures falsely denouncing financial condition of an insurer
Which statement about a whole life policy is correct?
(A) Bene may be changed only w/consent of premium payor
(B) Premiums are flexible
(C) Cash value may be borrowed against
(D) Death benefit can usually be adjusted - Answer✔Cash value may be borrowed against
Who signs a "Notice Regarding Replacement" form when an application is taken for a new life
insurance policy that replaces an existing one?
(A) Beneficiary
(B) Applicant only
(C) Producer only
(D) Producer and applicant - Answer✔Producer and applicant
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees?
(A) Portion of death proceeds are taxable to bene
(B) Portion of premiums paid for by employer may be a tax deduction
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(C) Portion of death proceeds are taxable to estate
(D) Portion of premiums paid for by employee may be a tax deduction - Answer✔Portion of
premiums paid by employer may be a tax deduction (In a contributory plan for its share of
premium costs)
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term
coverage on himself under the same policy. What kind of policy should Q purchase?
(A) Joint policy
(B) Joint survivor policy
(C) Whole life policy with a guaranteed insurab9ility option
(D) Whole life policy with other insured rider - Answer✔Whole life policy with other insured
rider
All of the following are examples of insurance advertisement EXCEPT
(A) A newspaper notice announcing free insurance advice
(B) An employer newsletter announcing the availability of coverage for employees
(C) A direct mail brochure announcing specific insurance plans
(D) A tv spot announcing an insurance company's new product - Answer✔An employer
newsletter announcing the availability of coverage for employees
Which of these provisions is NOT required in life insurance policies?
(A) Grace period
(B) Free look
(C) Entire contract
(D) Extended term - Answer✔Extended term
Which of the following annuities pay benefits based on units rather than specific dollar amounts?
(A) Flexible annuity
(B) Single premium annuity
(C) Variable annuity
(D) Deferred annuity - Answer✔Variable annuity
NV's 10-day free-look period for life insurance policies begins at the
(A) date of delivery
(B) date of application
(C) date of approval
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, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
(D) date of physical exam - Answer✔date of delivery
Which of following is a req to attain a nonres producer license?
(A) Pass special exam for nonres producers
(B) Be licensed as producer in producer's state of domicile
(C) Own real estate in NV
(D) Maintain a specific sales quota in res state - Answer✔Be licensed as producer in producer's
state of domicile
NV Life & Health insurance guaranty association
(A) Assists in underwriting large policies
(B) is funded by producers through their commissions
(C) is financed by US treasury
(D) is funded by insurance companies through assessments - Answer✔Is funded by insurance
companies through assessments
An individual who has a contract w/an insurance company to represent it is called a
(A) producer
(B) director
(C) administrator
(D) representative - Answer✔Producer
Which action will a life insurance company most likely take if an insured dies & it is discovered
that insured's age was misstated on the app? - Answer✔Pay an amount premiums would have
purchased at insured's actual age
In a qualified retirement plan, the yearly contributions to an employee's account
(A) are restricted to maximum levels set by IRS
(B) are not tax-deductible
(C) are restricted to minimum levels set by IRS
(D) must be matched dollar-for-dollar by the employer - Answer✔are restricted to maximum
levels set by IRS
What is a warranty? - Answer✔Statement guaranteed to be true
Which of these are NOT an example of a Nonforfeiture option?
(A) Life income
(B) Extended Term
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(C) Cash Surrender
(D) Reduced Paid-up - Answer✔Life income
Which of these is NOT considered to be a right given to a policyowner?
(A) Modify a provision in insurance contract
(B) Assignment of ownership
(C) Surrendering policy's cash value
(D) Change beneficiary, if revocable - Answer✔Modify a provision in insurance contract
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance
may be renewable?
(A) Adjustable
(B) Level
(C) Decreasing
(D) Increasing - Answer✔Level (Pays same benefit amount if death occurs at any point during
term)
Credit life insurance is - Answer✔Issued on a debtor to cover outstanding balances on
installment loans
What determines the full amount of Social Security retirement benefits a qualified individual is
entitled to receive?
(A) Number of dependents
(B) Primary Insurance Amount
(C) State of residence
(D) Total taxes paid into FICA - Answer✔Primary insurance amount (PIA)
Which of these types of policies may NOT have the Automatic Premium Loan provision
attached to it?
(A) Endowment
(B) Modified Whole Life
(C) Decreasing Term
(D) 20-Pay Life - Answer✔Decreasing Term
Which type of life insurance beneficiary requires their consent when a change of beneficiary is
attempted by policyowner? - Answer✔Irrevocable beneficiary
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NV XCEL Exam Questions And Answers
(Guaranteed A+)
An incomplete life insurance app submitted to an insurer will result in which of these actions? -
Answer✔App will be returned to the writing agent
Which of the following is an ex of defamation?
(A) Circulating brochures falsely denouncing financial condition of an insurer
(B) Making statements that encourage purchase of term life insurance over whole life
(C) Issuing pamphlets containing false info about term life
(D) Publishing a newsletter that makes reference to reputable brokers in area -
Answer✔Circulating brochures falsely denouncing financial condition of an insurer
Which statement about a whole life policy is correct?
(A) Bene may be changed only w/consent of premium payor
(B) Premiums are flexible
(C) Cash value may be borrowed against
(D) Death benefit can usually be adjusted - Answer✔Cash value may be borrowed against
Who signs a "Notice Regarding Replacement" form when an application is taken for a new life
insurance policy that replaces an existing one?
(A) Beneficiary
(B) Applicant only
(C) Producer only
(D) Producer and applicant - Answer✔Producer and applicant
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees?
(A) Portion of death proceeds are taxable to bene
(B) Portion of premiums paid for by employer may be a tax deduction
1|Page
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
(C) Portion of death proceeds are taxable to estate
(D) Portion of premiums paid for by employee may be a tax deduction - Answer✔Portion of
premiums paid by employer may be a tax deduction (In a contributory plan for its share of
premium costs)
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term
coverage on himself under the same policy. What kind of policy should Q purchase?
(A) Joint policy
(B) Joint survivor policy
(C) Whole life policy with a guaranteed insurab9ility option
(D) Whole life policy with other insured rider - Answer✔Whole life policy with other insured
rider
All of the following are examples of insurance advertisement EXCEPT
(A) A newspaper notice announcing free insurance advice
(B) An employer newsletter announcing the availability of coverage for employees
(C) A direct mail brochure announcing specific insurance plans
(D) A tv spot announcing an insurance company's new product - Answer✔An employer
newsletter announcing the availability of coverage for employees
Which of these provisions is NOT required in life insurance policies?
(A) Grace period
(B) Free look
(C) Entire contract
(D) Extended term - Answer✔Extended term
Which of the following annuities pay benefits based on units rather than specific dollar amounts?
(A) Flexible annuity
(B) Single premium annuity
(C) Variable annuity
(D) Deferred annuity - Answer✔Variable annuity
NV's 10-day free-look period for life insurance policies begins at the
(A) date of delivery
(B) date of application
(C) date of approval
2|Page
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
(D) date of physical exam - Answer✔date of delivery
Which of following is a req to attain a nonres producer license?
(A) Pass special exam for nonres producers
(B) Be licensed as producer in producer's state of domicile
(C) Own real estate in NV
(D) Maintain a specific sales quota in res state - Answer✔Be licensed as producer in producer's
state of domicile
NV Life & Health insurance guaranty association
(A) Assists in underwriting large policies
(B) is funded by producers through their commissions
(C) is financed by US treasury
(D) is funded by insurance companies through assessments - Answer✔Is funded by insurance
companies through assessments
An individual who has a contract w/an insurance company to represent it is called a
(A) producer
(B) director
(C) administrator
(D) representative - Answer✔Producer
Which action will a life insurance company most likely take if an insured dies & it is discovered
that insured's age was misstated on the app? - Answer✔Pay an amount premiums would have
purchased at insured's actual age
In a qualified retirement plan, the yearly contributions to an employee's account
(A) are restricted to maximum levels set by IRS
(B) are not tax-deductible
(C) are restricted to minimum levels set by IRS
(D) must be matched dollar-for-dollar by the employer - Answer✔are restricted to maximum
levels set by IRS
What is a warranty? - Answer✔Statement guaranteed to be true
Which of these are NOT an example of a Nonforfeiture option?
(A) Life income
(B) Extended Term
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, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
(C) Cash Surrender
(D) Reduced Paid-up - Answer✔Life income
Which of these is NOT considered to be a right given to a policyowner?
(A) Modify a provision in insurance contract
(B) Assignment of ownership
(C) Surrendering policy's cash value
(D) Change beneficiary, if revocable - Answer✔Modify a provision in insurance contract
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance
may be renewable?
(A) Adjustable
(B) Level
(C) Decreasing
(D) Increasing - Answer✔Level (Pays same benefit amount if death occurs at any point during
term)
Credit life insurance is - Answer✔Issued on a debtor to cover outstanding balances on
installment loans
What determines the full amount of Social Security retirement benefits a qualified individual is
entitled to receive?
(A) Number of dependents
(B) Primary Insurance Amount
(C) State of residence
(D) Total taxes paid into FICA - Answer✔Primary insurance amount (PIA)
Which of these types of policies may NOT have the Automatic Premium Loan provision
attached to it?
(A) Endowment
(B) Modified Whole Life
(C) Decreasing Term
(D) 20-Pay Life - Answer✔Decreasing Term
Which type of life insurance beneficiary requires their consent when a change of beneficiary is
attempted by policyowner? - Answer✔Irrevocable beneficiary
4|Page
