Nevada Life and Health License Exam What is the advantage of reinstating a policy instead of applying for a new one? - The
II II II
original age is used for premium determination
II II
II
II II II
II
II
II
II
II II II II II II II II II II II II II
Prep Questions and answers | 2024/25 II What would basic medical expense coverage not cover? - Surgeon's services
II II II II II II II II II II II II
II What is not provided by an HMO? - Reimbursement
II II II II II II II II II II
What are the four required elements of an insurance contract? - Agreement,
II II II II II II II II II II II II II
consideration, competent parties, and legal purpose.
II II II II II II What insurance arrangements will be appropriate for a parent buying a life insurance
II II II II II II II II II II II II II
policy on a child where the parent is the policyowner? - Third-party ownership
II II II II II II II II II II II II II II II
What two parts make up a life insurance application? - General Information and the
II II II II II II II II II II II II II II II II
Medical Information. An agent's report can go in a life insurance application but is not
II II II II II II II II II II II II II II II II What is not true about dividends? - Dividend amounts are guaranteed in the policy
II II II II II II II II II II II II II II II
included in the life insurance policy.
II II II II II II
What is not true about Accidental Death and Dismemberment? - Death benefits are paid
II II II II II II II II II II II II II II II II
II When must insurable interest exist in life insurance? - At the time of application.
II II II II II II II II II II II II II II II only if death occurs within 24 hours of an accident
II II II II II II II II II II
When does coverage begin, if the premium was submitted with the application, and the
II II II II II II II II II II II II II II II When would a 20-pay whole life policy endow? - When the insured reaches age 100
II II II II II II II II II II II II II II II II
policy was issued two weeks later? - At the time of the application.
II II II II II II II II II II II II II II II
What section of a health policy that states the causes of eligible loss under which an
II II II II II II II II II II II II II II II II
If an agent makes a mistake on the application and then corrects it, who must initial that
II II II II II II II II II II II II II II II II II insurance is assumed to be disabled? - Insuring Clause
II II II II II II II II II II II
change? - The applicant.
II II II II II II
The insurance clause of a disability policy usually states what except? - The method of
II II II II II II II II II II II II II II II II II
Insurers may change what on a guaranteed renewable health insurance polity? - The
II II II II II II II II II II II II II II II premium payment
II II
rates by class.
II II II
II What best describes annually renewable term insurance? - It is level term insurance
II II II II II II II II II II II II II II
At what age may an individual make withdrawals from an HSA for nonhealth purposes
II II II II II II II II II II II II II II
without being penalized? - At age 65.
II II II II II II II II II What best describes an annuity period? - Period of time during which accumulated
II II II II II II II II II II II II II II II
money is converted into income payments
II II II II II II
Which provision states how much time must pass between two like illnesses in order for
II II II II II II II II II II II II II II II
the second one to be covered under a new set of benefits? - Recurrent Disability
II II II II II II II II II II II II II II II II II What is an eligibility requirement for all Social Security Disability Income benefits? -
II II II II II II II II II II II II II II II
Provision
II Have attained fully insured status
II II II II II
In forming an insurance contract, when does acceptance occur? - When an insurer's
II II II II II II II II II II II II II II II What protects the insured from unintentional policy lapse due to a nonpayment of
II II II II II II II II II II II II II
underwriter approves coverage
II II II premium? - Automatic premium loan
II II II II II II II
What is an important feature of a dental expense insurance plan that is not found in a
II II II II II II II II II II II II II II II II II What is the maximum amount that the Nevada Life & Health Insurance Guaranty
II II II II II II II II II II II II II
medical expense insurance plan? - Diagnostic and preventive care
II II II II II II II II II II II Association be obligated to pay with respect to life insurance death benefits for one life? -
II II II II II II II II II II II II II II II II II II
$300,000
II
What best describes the "first-dollar coverage" principle in basic medical insurance? -
II II II II II II II II II II II II II II
The insured is not required to pay a deductible
II II II II II II II II II What is the penalty for transacting insurance without a proper license? - $1,000 for each
II II II II II II II II II II II II II II II II II
violation
II
Occasional visits by what medical professionals will not be covered under Long-Term
II II II II II II II II II II II II
Care's home health care? - Attending physicians
II II II II II II II II II What type of misrepresentation persuades an insured to cancel, lapse, or switch policies
II II II II II II II II II II II II II
from one to another? - Twisting
II II II II II II II II
Can an individual who belongs to a POS plan use an out-of-network physician? - Yes,
II II II II II II II II II II II II II II II II II
they can use any physician even if not part of the HMO
II II II II II II II II II II II II The patient protection and affordable care act includes what except? - Individual tax
II II II II II II II II II II II II II II II
deduction for premiums paid
II II II II
, When would life insurance death benefits be tax free? - If paid as a lump sum to the
II II II II II II II II II II II II II II II II II II II II
What entity determines if an advertisement is deceptive of confusing? - The
II II II II II II II II II II II II II II beneficiary
II
Commissioner
II
II What do individuals use to transfer their risk of loss to a larger group? - Insurance
II II II II II II II II II II II II II II II II II
How many days does a nonresident procedure have to file a change of address when the
II II II II II II II II II II II II II II II II
agent moves to Nevada from another state? - 30 days
II II II II II II II II II II II II II What is insurance the transfer of? - Risk
II II II II II II II II II
What is not considered a misrepresentation? - Making comparisons between different
II II II II II II II II II II II II II II Insurance is a contract by which one seeks to protect another from - Loss
II II II II II II II II II II II II II II II
policies
II
What type of report provides information about the applicant's hobbies, habits, and
II II II II II II II II II II II II
A producer who has allowed their license to lapse may reinstate the license without
II II II II II II II II II II II II II II financial status? - Inspection Report
II II II II II II II
retaking the examination within what maximum time period? - 12 months or 1 year
II II II II II II II II II II II II II II II II
What law protects consumers from the circulation of inaccurate or obsolete information -
II II II II II II II II II II II II II II II
Who is a person, other than a viator, that enters into a viatical settlement? - Viatical
II II II II II II II II II II II II II II II II II II The Fair Credit Reporting Act
II II II II II
Settlement Provider
II II
II What term describes the fee a person pays an insurance company to receive coverage? -
II II II II II II II II II II II II II II
How many days after cancellation of a license in another state does a new resident agent
II II II II II II II II II II II II II II II II Premium
II II II
have to apply for Nevada producer license without having to fulfill licensing examination
II II II II II II II II II II II II II
and education requirements? - 90 days
II II II II II II II II What is the purpose of the agent's report during the application process? - The agent's
II II II II II II II II II II II II II II II II II
report discusses the agent's personal observations about the proposed insured that may
II II II II II II II II II II II II
What are the three basic types of term life insurance? - The three basic types of term life
II II II II II II II II II II II II II II II II II II II II help in the underwriting process.
II II II II II
insurance are level, increasing, and decreasing.
II II II II II II
What two elements are necessary for a life insurance contract to have a legal purpose? -
II II II II II II II II II II II II II II II II II II
When would a whole life insurance policy mature? - The whole life insurance policy
II II II II II II II II II II II II II II II II Insurable interest and consent
II II II II
matures when the insured dies or turns 100.
II II II II II II II II
What does it mean when health insurance contracts are unilateral? - Only one party
II II II II II II II II II II II II II II II II
Who is an annuitant? - The annuitant is the person on whose life expectancy the annuity
II II II II II II II II II II II II II II II II II II makes a legally enforceable promise
II II II II II
is written and who receives benefits from the annuity.
II II II II II II II II II
How is the information obtained for an investigative consumer report? - Through
II II II II II II II II II II II II II II
What constitutes the entire contract? - The entire contract constitutes the policy, a copy
II II II II II II II II II II II II II II II II interviews with the applicant's associates, friends, and neighbors
II II II II II II II II
of application, and any riders or amendments.
II II II II II II II
What is the name of the process that insurance companies use to determine whether or
II II II II II II II II II II II II II II II
Which rider allows an insured to purchase additional coverage without evidence of
II II II II II II II II II II II II not an applicant is insurable? - Underwriting
II II II II II II II II II
insurability? - The Guaranteed Insurability Rider allows an insured to purchase
II II II II II II II II II II II II II
additional coverage without evidence of insurability.
II II II II II II What are the three types of risk rating classifications in life insurance? - Standard,
II II II II II II II II II II II II II II II II
substandard, and preferred
II II II
What are the three nonforfeiture options? - The three nonforfeiture options are reduced
II II II II II II II II II II II II II II II
paid-up, extended term, and cash surrender value.
II II II II II II II When would a misrepresentation on an insurance application be considered fraud? -
II II II II II II II II II II II II II II
When it is intentional and material
II II II II II II
In group life insurance, who receives the master contract? - The employer receives the
II II II II II II II II II II II II II II II II
master contract in group life insurance.
II II II II II II II What entities make up the Medical Information Bureau? - Insurers
II II II II II II II II II II II
What are some examples of qualified retirement plans? - Traditional IRA, Roth IRA,
II II II II II II II II II II II II II II II II What risk classification would typically qualify for lower premiums? - Preferred Risk
II II II II II II II II II II II II II
SIMPLE, SEP, and 401(k)
II II II II
What is policy replacement? - A new policy is issued while an existing policy is
II II II II II II II II II II II II II II II II II
terminated or reissued with a reduction in cash value
II II II II II II II II II
II II II
original age is used for premium determination
II II
II
II II II
II
II
II
II
II II II II II II II II II II II II II
Prep Questions and answers | 2024/25 II What would basic medical expense coverage not cover? - Surgeon's services
II II II II II II II II II II II II
II What is not provided by an HMO? - Reimbursement
II II II II II II II II II II
What are the four required elements of an insurance contract? - Agreement,
II II II II II II II II II II II II II
consideration, competent parties, and legal purpose.
II II II II II II What insurance arrangements will be appropriate for a parent buying a life insurance
II II II II II II II II II II II II II
policy on a child where the parent is the policyowner? - Third-party ownership
II II II II II II II II II II II II II II II
What two parts make up a life insurance application? - General Information and the
II II II II II II II II II II II II II II II II
Medical Information. An agent's report can go in a life insurance application but is not
II II II II II II II II II II II II II II II II What is not true about dividends? - Dividend amounts are guaranteed in the policy
II II II II II II II II II II II II II II II
included in the life insurance policy.
II II II II II II
What is not true about Accidental Death and Dismemberment? - Death benefits are paid
II II II II II II II II II II II II II II II II
II When must insurable interest exist in life insurance? - At the time of application.
II II II II II II II II II II II II II II II only if death occurs within 24 hours of an accident
II II II II II II II II II II
When does coverage begin, if the premium was submitted with the application, and the
II II II II II II II II II II II II II II II When would a 20-pay whole life policy endow? - When the insured reaches age 100
II II II II II II II II II II II II II II II II
policy was issued two weeks later? - At the time of the application.
II II II II II II II II II II II II II II II
What section of a health policy that states the causes of eligible loss under which an
II II II II II II II II II II II II II II II II
If an agent makes a mistake on the application and then corrects it, who must initial that
II II II II II II II II II II II II II II II II II insurance is assumed to be disabled? - Insuring Clause
II II II II II II II II II II II
change? - The applicant.
II II II II II II
The insurance clause of a disability policy usually states what except? - The method of
II II II II II II II II II II II II II II II II II
Insurers may change what on a guaranteed renewable health insurance polity? - The
II II II II II II II II II II II II II II II premium payment
II II
rates by class.
II II II
II What best describes annually renewable term insurance? - It is level term insurance
II II II II II II II II II II II II II II
At what age may an individual make withdrawals from an HSA for nonhealth purposes
II II II II II II II II II II II II II II
without being penalized? - At age 65.
II II II II II II II II II What best describes an annuity period? - Period of time during which accumulated
II II II II II II II II II II II II II II II
money is converted into income payments
II II II II II II
Which provision states how much time must pass between two like illnesses in order for
II II II II II II II II II II II II II II II
the second one to be covered under a new set of benefits? - Recurrent Disability
II II II II II II II II II II II II II II II II II What is an eligibility requirement for all Social Security Disability Income benefits? -
II II II II II II II II II II II II II II II
Provision
II Have attained fully insured status
II II II II II
In forming an insurance contract, when does acceptance occur? - When an insurer's
II II II II II II II II II II II II II II II What protects the insured from unintentional policy lapse due to a nonpayment of
II II II II II II II II II II II II II
underwriter approves coverage
II II II premium? - Automatic premium loan
II II II II II II II
What is an important feature of a dental expense insurance plan that is not found in a
II II II II II II II II II II II II II II II II II What is the maximum amount that the Nevada Life & Health Insurance Guaranty
II II II II II II II II II II II II II
medical expense insurance plan? - Diagnostic and preventive care
II II II II II II II II II II II Association be obligated to pay with respect to life insurance death benefits for one life? -
II II II II II II II II II II II II II II II II II II
$300,000
II
What best describes the "first-dollar coverage" principle in basic medical insurance? -
II II II II II II II II II II II II II II
The insured is not required to pay a deductible
II II II II II II II II II What is the penalty for transacting insurance without a proper license? - $1,000 for each
II II II II II II II II II II II II II II II II II
violation
II
Occasional visits by what medical professionals will not be covered under Long-Term
II II II II II II II II II II II II
Care's home health care? - Attending physicians
II II II II II II II II II What type of misrepresentation persuades an insured to cancel, lapse, or switch policies
II II II II II II II II II II II II II
from one to another? - Twisting
II II II II II II II II
Can an individual who belongs to a POS plan use an out-of-network physician? - Yes,
II II II II II II II II II II II II II II II II II
they can use any physician even if not part of the HMO
II II II II II II II II II II II II The patient protection and affordable care act includes what except? - Individual tax
II II II II II II II II II II II II II II II
deduction for premiums paid
II II II II
, When would life insurance death benefits be tax free? - If paid as a lump sum to the
II II II II II II II II II II II II II II II II II II II II
What entity determines if an advertisement is deceptive of confusing? - The
II II II II II II II II II II II II II II beneficiary
II
Commissioner
II
II What do individuals use to transfer their risk of loss to a larger group? - Insurance
II II II II II II II II II II II II II II II II II
How many days does a nonresident procedure have to file a change of address when the
II II II II II II II II II II II II II II II II
agent moves to Nevada from another state? - 30 days
II II II II II II II II II II II II II What is insurance the transfer of? - Risk
II II II II II II II II II
What is not considered a misrepresentation? - Making comparisons between different
II II II II II II II II II II II II II II Insurance is a contract by which one seeks to protect another from - Loss
II II II II II II II II II II II II II II II
policies
II
What type of report provides information about the applicant's hobbies, habits, and
II II II II II II II II II II II II
A producer who has allowed their license to lapse may reinstate the license without
II II II II II II II II II II II II II II financial status? - Inspection Report
II II II II II II II
retaking the examination within what maximum time period? - 12 months or 1 year
II II II II II II II II II II II II II II II II
What law protects consumers from the circulation of inaccurate or obsolete information -
II II II II II II II II II II II II II II II
Who is a person, other than a viator, that enters into a viatical settlement? - Viatical
II II II II II II II II II II II II II II II II II II The Fair Credit Reporting Act
II II II II II
Settlement Provider
II II
II What term describes the fee a person pays an insurance company to receive coverage? -
II II II II II II II II II II II II II II
How many days after cancellation of a license in another state does a new resident agent
II II II II II II II II II II II II II II II II Premium
II II II
have to apply for Nevada producer license without having to fulfill licensing examination
II II II II II II II II II II II II II
and education requirements? - 90 days
II II II II II II II II What is the purpose of the agent's report during the application process? - The agent's
II II II II II II II II II II II II II II II II II
report discusses the agent's personal observations about the proposed insured that may
II II II II II II II II II II II II
What are the three basic types of term life insurance? - The three basic types of term life
II II II II II II II II II II II II II II II II II II II II help in the underwriting process.
II II II II II
insurance are level, increasing, and decreasing.
II II II II II II
What two elements are necessary for a life insurance contract to have a legal purpose? -
II II II II II II II II II II II II II II II II II II
When would a whole life insurance policy mature? - The whole life insurance policy
II II II II II II II II II II II II II II II II Insurable interest and consent
II II II II
matures when the insured dies or turns 100.
II II II II II II II II
What does it mean when health insurance contracts are unilateral? - Only one party
II II II II II II II II II II II II II II II II
Who is an annuitant? - The annuitant is the person on whose life expectancy the annuity
II II II II II II II II II II II II II II II II II II makes a legally enforceable promise
II II II II II
is written and who receives benefits from the annuity.
II II II II II II II II II
How is the information obtained for an investigative consumer report? - Through
II II II II II II II II II II II II II II
What constitutes the entire contract? - The entire contract constitutes the policy, a copy
II II II II II II II II II II II II II II II II interviews with the applicant's associates, friends, and neighbors
II II II II II II II II
of application, and any riders or amendments.
II II II II II II II
What is the name of the process that insurance companies use to determine whether or
II II II II II II II II II II II II II II II
Which rider allows an insured to purchase additional coverage without evidence of
II II II II II II II II II II II II not an applicant is insurable? - Underwriting
II II II II II II II II II
insurability? - The Guaranteed Insurability Rider allows an insured to purchase
II II II II II II II II II II II II II
additional coverage without evidence of insurability.
II II II II II II What are the three types of risk rating classifications in life insurance? - Standard,
II II II II II II II II II II II II II II II II
substandard, and preferred
II II II
What are the three nonforfeiture options? - The three nonforfeiture options are reduced
II II II II II II II II II II II II II II II
paid-up, extended term, and cash surrender value.
II II II II II II II When would a misrepresentation on an insurance application be considered fraud? -
II II II II II II II II II II II II II II
When it is intentional and material
II II II II II II
In group life insurance, who receives the master contract? - The employer receives the
II II II II II II II II II II II II II II II II
master contract in group life insurance.
II II II II II II II What entities make up the Medical Information Bureau? - Insurers
II II II II II II II II II II II
What are some examples of qualified retirement plans? - Traditional IRA, Roth IRA,
II II II II II II II II II II II II II II II II What risk classification would typically qualify for lower premiums? - Preferred Risk
II II II II II II II II II II II II II
SIMPLE, SEP, and 401(k)
II II II II
What is policy replacement? - A new policy is issued while an existing policy is
II II II II II II II II II II II II II II II II II
terminated or reissued with a reduction in cash value
II II II II II II II II II
