Nevada Life and Health Insurance Exam Review (Latest 2025/ 2026 Update) Questions & Answers| Grade A| 100% Correct (Verified Solution)

Nevada Life and Health Insurance Exam Review (Latest 2025/ 2026 Update) Questions & Answers| Grade A| 100% Correct (Verified Solution) QUESTION When an employee is terminated, how long does this employee have to convert group life coverage to an individual plan? (A) 30 days (B) 60 days (C) 31 days (D) 90 days Answer: 31 days QUESTION K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary? (A) Return of premiums paid (B) Face amount plus interest (C) $20,000 death benefit (D) Cash value plus interest Answer: $20,000 death benefit QUESTION Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against? Answer: People that smoke QUESTION Which plan is intended to be used by a sole proprietor and the employees of that business? (A) Individual Retirement Account (B) Keogh Plan (C) SEP Plan (D) SIMPLE Plan Answer: Keogh Plan QUESTION A life insurance policyowner may sell their policy to a ___ in order to receive a percentage of the policy's face value Answer: Viatical settlement provider QUESTION A noncontributory group term life plan is characterized by (A) cost of plan is shared by both employer & employee (B) both employer and employee must provide evidence of insurability (C) the entire cost of the plan is paid for by the employer (D) the entire cost of the plan is paid for by the employee Answer: the entire cost of the plan is paid for by the employer QUESTION A family income policy is a combo of Whole Life and (A) Increasing Term (B) Level Term (C) Decreasing Term (D) Deposit Term Answer: Decreasing Term QUESTION A Whole Life Insurance Policy endows when the (A) Premium paid equals the death benefit (B) Cash value plus dividends equal the death benefit (C) Death proceeds are paid (D) Cash value equals the death benefit Answer: Cash value equals the death benefit QUESTION A ___ is a person/company that underwrites an insurance risk and issues an insurance contract Answer: Insurer QUESTION In NV, a ___ insurance company is one formed under the laws of a state outside of NV Answer: Foreign QUESTION All of these are considered sources of underwriting information about an applicant EXCEPT (A) Inspection report (B) Rating services (C) Credit Report (D) Medical Information Bureau Answer: Rating services QUESTION J is an insurance agent who maintains premiums in a fiduciary account. Which of the following expenses may NOT be paid using funds withdrawn from this account? (A) Premiums due to insurers (B) Return premiums due to insureds (C) Personal medical expenses (D) Commissions due to other licensees Answer: Personal medical expenses QUESTION Which of the following features of a group term life policy enables an individual to leave the group and continue their insurance w/o providing evidence of insurability? Answer: Conversion privilege QUESTION traditional individual retirement annuity (IRA) distributions must start by Answer: April 1st of the year following the year the participant attains age 70 1/2 QUESTION When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? Answer: at future dates specified in the contract with no evidence of insurability required QUESTION If an annuity is terminated prior to beginning of the income payment period, the contract owner receives (A) the contract surrender value at that time (B) no refund of money (C) reimbursement of all expenses deducted from the contract value (D) all premiums paid up to the date of termination Answer: the contract surrender value at that time QUESTION Which of these is an element of a Variable Life policy? (A) No investment risk to the policyowner (B) A fixed, level premium (C) Insurer assumes the investment risk (D) Rate of returns are guaranteed Answer: A fixed, level premium QUESTION How long must every insurance producer maintain all records, books, and documents related to each insurance transaction? Answer: 3 years QUESTION In a Key Employee life insurance policy, the third-party owner can be all of the following EXCEPT (A) Insured (B) Owner (C) Payor (D) Applicant Answer: Insured QUESTION S is a life insurance policyowner and enters into a written agreement to receive immediate cash in exchange for the sale and transfer of her life insurance policy. This agreement is referred to as a(n) (A) Cash conversion (B) 1035 exchange (C) Viatical Settlement (D) Equity Cash Arrangement Answer: Viatical Settlement QUESTION When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? (A) Incontestable period (B) Conversion provision (C) Extended term option (D) 1035 Exchange Answer: Conversion provision QUESTION When an individual is planning to protect their family w/life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve? (A) Establishes investment risk level acceptable to individual (B) Takes into account present value of future income earned by breadwinner (C) Places a dollar value on life of individual (D) Establishes needs of individual & d