Nevada Life and Health
Nevada Life and Health Exam Study Guide
Questions with Correct Answers 2025
Which of the following information will be stated in the consideration clause of a life
insurance policy? -Correct Answer ✔The amount of premium payment
Which of the following is TRUE of a qualified plan? -Correct Answer ✔It has a tax
benefit for both employer and employee
An insured is covered by a partially contributory group disability income plan that pays
benefits of $4,000 a month. How much of the monthly benefit would be taxable? -
Correct Answer ✔$3,000.
on a partially contributory group disability income insurance, only that portion of the
benefits that are related to the employee. In this case, because the employer pays 75%
of the premium the employee will be taxed on 75%
Which of the following is NOT a term for the period of time during which an annuitant or
beneficiary receives the money? -Correct Answer ✔Depreciation period
Larry has a major medical policy with a $500 deductible and 80/20 coinsurance. Larry is
hospitalized and sustains $2,500 in medical bills. How much is Larry responsible to
pay? -Correct Answer ✔$900 (Deductible + 20% of the bill after the deductible {20% of
$2,000})
Which provision states that the insurance company must pay Medical Expense claims
immediately? -Correct Answer ✔Time of Payment of Claims
In reference to the standard Medicare Supplement benefits plans, what does the term
standard mean? -Correct Answer ✔All providers will have the same coverage options
and conditions for each plan.
Which of the following is TRUE regarding impatient hospital care for HMO members? -
Correct Answer ✔Care can be provided outside of the service area.
What is the maximum period of time during which an insurer may contest fraudulent
misstatements made in a health insurance application? -Correct Answer ✔As long as
the policy is in force
All of the following would be different between qualified and non qualified retirement
plans EXCEPT -Correct Answer ✔Taxation on accumulation
Nevada Life and Health
, Nevada Life and Health
Under the mandatory uniform provision Notice of Claim, the first notice of injury or
sickness covered under an accidental policy should include: -Correct Answer ✔A
statement that is sufficiently clear to identify the insured and the nature of the claim.
Which of the following is true about the requirements regarding HIV exams? -Correct
Answer ✔The applicant must give prior informed WRITTEN consent.
Employer contributions made to a qualified plan: -Correct Answer ✔Are subject to
vesting requirements
Insurers may change which of the following on a guaranteed renewable health
insurance policy? -Correct Answer ✔Rates by Class
What happens when a policy is surrendered for its cash value? -Correct Answer
✔Coverage ends and the policy CANNOT be reinstated.
Which of the following is NOT true regarding Equity Indexed Annuities? -Correct Answer
✔They earn lower interest than fixed annuities.
In a replacement situation, all of the following must be considered EXCEPT -Correct
Answer ✔Assets
Which of the following is NOT required on an illustration used in the sale of a life
insurance policy? -Correct Answer ✔The name of the primary and secondary
beneficiaries
A medical expense policy that establishes the amount of benefit paid based upon the
prevailing charges which fall within the standard rates for a specific procedure by a
doctor of similar training and experience in that geographic are is known as: -Correct
Answer ✔Usual, customary and reasonable
which of the following would be deducted from the death benefit paid to a beneficiary, if
partial accelerated death benefit had been paid out while the insured was still alive? -
Correct Answer ✔Amount paid with the accelerated benefit, plus the earnings lost by
the insurance company in interest income from the accelerated benefit.
What is the purpose of a fixed-period settlement option -Correct Answer ✔To provide a
guaranteed income for a certain amount of time.
Which entity has the authority to make changes to an insurance policy? -Correct
Answer ✔Insurer's executive officer
How is the length of time that benefits will be received under the Fixed-amount
settlement option determined? -Correct Answer ✔The size of each installment
Nevada Life and Health
Nevada Life and Health Exam Study Guide
Questions with Correct Answers 2025
Which of the following information will be stated in the consideration clause of a life
insurance policy? -Correct Answer ✔The amount of premium payment
Which of the following is TRUE of a qualified plan? -Correct Answer ✔It has a tax
benefit for both employer and employee
An insured is covered by a partially contributory group disability income plan that pays
benefits of $4,000 a month. How much of the monthly benefit would be taxable? -
Correct Answer ✔$3,000.
on a partially contributory group disability income insurance, only that portion of the
benefits that are related to the employee. In this case, because the employer pays 75%
of the premium the employee will be taxed on 75%
Which of the following is NOT a term for the period of time during which an annuitant or
beneficiary receives the money? -Correct Answer ✔Depreciation period
Larry has a major medical policy with a $500 deductible and 80/20 coinsurance. Larry is
hospitalized and sustains $2,500 in medical bills. How much is Larry responsible to
pay? -Correct Answer ✔$900 (Deductible + 20% of the bill after the deductible {20% of
$2,000})
Which provision states that the insurance company must pay Medical Expense claims
immediately? -Correct Answer ✔Time of Payment of Claims
In reference to the standard Medicare Supplement benefits plans, what does the term
standard mean? -Correct Answer ✔All providers will have the same coverage options
and conditions for each plan.
Which of the following is TRUE regarding impatient hospital care for HMO members? -
Correct Answer ✔Care can be provided outside of the service area.
What is the maximum period of time during which an insurer may contest fraudulent
misstatements made in a health insurance application? -Correct Answer ✔As long as
the policy is in force
All of the following would be different between qualified and non qualified retirement
plans EXCEPT -Correct Answer ✔Taxation on accumulation
Nevada Life and Health
, Nevada Life and Health
Under the mandatory uniform provision Notice of Claim, the first notice of injury or
sickness covered under an accidental policy should include: -Correct Answer ✔A
statement that is sufficiently clear to identify the insured and the nature of the claim.
Which of the following is true about the requirements regarding HIV exams? -Correct
Answer ✔The applicant must give prior informed WRITTEN consent.
Employer contributions made to a qualified plan: -Correct Answer ✔Are subject to
vesting requirements
Insurers may change which of the following on a guaranteed renewable health
insurance policy? -Correct Answer ✔Rates by Class
What happens when a policy is surrendered for its cash value? -Correct Answer
✔Coverage ends and the policy CANNOT be reinstated.
Which of the following is NOT true regarding Equity Indexed Annuities? -Correct Answer
✔They earn lower interest than fixed annuities.
In a replacement situation, all of the following must be considered EXCEPT -Correct
Answer ✔Assets
Which of the following is NOT required on an illustration used in the sale of a life
insurance policy? -Correct Answer ✔The name of the primary and secondary
beneficiaries
A medical expense policy that establishes the amount of benefit paid based upon the
prevailing charges which fall within the standard rates for a specific procedure by a
doctor of similar training and experience in that geographic are is known as: -Correct
Answer ✔Usual, customary and reasonable
which of the following would be deducted from the death benefit paid to a beneficiary, if
partial accelerated death benefit had been paid out while the insured was still alive? -
Correct Answer ✔Amount paid with the accelerated benefit, plus the earnings lost by
the insurance company in interest income from the accelerated benefit.
What is the purpose of a fixed-period settlement option -Correct Answer ✔To provide a
guaranteed income for a certain amount of time.
Which entity has the authority to make changes to an insurance policy? -Correct
Answer ✔Insurer's executive officer
How is the length of time that benefits will be received under the Fixed-amount
settlement option determined? -Correct Answer ✔The size of each installment
Nevada Life and Health
