NEVADA LIFE AND HEALTH INSURANCE EXAM QUESTIONS WITH CERTIFIED SOLUTIONS A VERIFIED A+ PASS.

NEVADA LIFE AND HEALTH INSURANCE EXAM QUESTIONS WITH CERTIFIED SOLUTIONS A VERIFIED A+ PASS. “Nevada requires that coverage for newborns begins "from the moment of birth" and a premium must be paid within: - CORRECT ANSWER 31 Days" "Which parts of a life insurance policy are guaranteed to bear true? - CORRECT ANSWER Warranty" "P, age 50, purchased an annuity that P will fund with $500/month for 25 years. The annuity will then pay P retirement payments after the 15 years. Which type of of annuity did P purchase? - CORRECT ANSWER Deferred" "B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's beneficiary? - CORRECT ANSWER $300,000" "M purchased an Accidental Death and Dismemberment (AD&D) policy and names his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? - CORRECT ANSWER Revocable" "What is the underlying concept regarding level premiums? - CORRECT ANSWER The early years are charged more than what is needed" "Which of the following is NOT an example of a producer's breach of fiduciary duty? - CORRECT ANSWER Allowing premiums to be submitted electronically" "How long can pre-existing conditions be excluded for in long-term care policies? - CORRECT ANSWER 6 months" "Who is a mutual insurance company owned by> A. Its board of directors B. Its policyholders C. The State of Florida D. Its employees - CORRECT ANSWER B. Its Policyholders" "The USA PATRIOT ACT was enacted in: A. 2001 B. 2002 C. 2003 D. 2004 - CORRECT ANSWER A. 2001" "P is self-employed and owns an Individual Disability Income Policy. He becomes totally disables on June 1 and receives a $2,000 a month for the next 10 months. How much of this income is subject to federal income tax? A. $20,000 B. $14,000 C. $6,000 D. $0 - CORRECT ANSWER D. $0" "What is the elimination period of an individual disability policy? A. Time period an insured must wait before coverage begins B. Time period a disabled person must wait before benefits are paid C. Time of period after the policy issue date in which the provisions are still contestable D. The point in time when benefits are no longer payable - CORRECT ANSWER B. Time period a disabled person must wait before benefits are paid" "A Disability Income Policy-owner suffers a disability which was due to the same cause as a previous disability. Both disabilities occurred within a five-month period. The insurer may cover the second disability without a new elimination period under the: A. Residual Disability Provision B. Presumptive Disability Provision C. Recurrent Disability Provision D. Partial Disability Provision - CORRECT ANSWER C. Recurrent Disability Provision" "Which of these is NOT relevant when determining the amount of personal life insurance needed? A. Existing life insurance coverage B. Local unemployment rate C. Household Income D. Household Debt - CORRECT ANSWER B. Local unemployment rate" "A 55 year old recently received a $30,000 distribution from a previous employer's 401K plan, minus $6,000 withholding. Which federal taxes apply if non of the funds were rolled over? A. Only income taxes on $30,000 B. Only income taxed on $20,000 C. Income taxes plus a 10% penalty tax on $30,000 D. Income taxes plus a 10% penalty tax on $24,000 - CORRECT ANSWER C. Income taxes plus a 10% penalty tax on $30,000 (all withdrawals from a qualified retirement plan are taxable as current income. In addition, any withdrawals made before the age of 59 1/2 is subject to an additional tax penalty of 10% of the amount withdrawn.)" "C is a key employee at ABC Incorporated. If a Key Employee Life Policy is purchased on her life, which of these statements would be true? A. ABC is the policy-owner, C is the insured, and her husband is the beneficiary. B. ABC is the policy-owner, C is the insured, and ABC is the beneficiary. C. C is the policy-owner and the insured, and ABC is the beneficiary. D. C is the policy-owner, the insured, and the beneficiary. - CORRECT ANSWER B. ABC is the policy-owner, C is the insured, and ABC is the beneficiary." "Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death? A. Survivorship Life B. Family Plan C. Joint Life D. Whole Life - CORRECT ANSWER C. Joint Life (A joint life policy covers two or more people. Using some type of permanent insurance (as apposed to term), it pays the death benefit at the first insured's death)" "The Consideration Clause of an insurance contract includes: A. The Buyer's Guide B. A summary of the coverage provided C. The named beneficiaries D. The schedule and amount of premium payments - CORRECT ANSWER D. The schedule and amount of premium payments" "Term insurance has which of the following characteristics? A. Expires at the end of the policy period B. Builds cash value C. has Nonforfeiture options D. Endows at the end of the policy period - CORRECT ANSWER A. Expires at the end of the policy period" "A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life insurance, would require how many policies? A. 3 B. 6. C. 9 D. 12 - CORRECT ANSWER B. 6 (each partner owns, is the beneficiary of and pays the premiums for life insurance on the other partners equal to his or her share of the purchase price)" "Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - CORRECT ANSWER Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company." "This type of deductible provision states that should more than one family member be involved in a common accident, or suffer the same illness, only one individual deductible amount shall be applied. - Individual Deductible - Corridor Deductible - Family Maximum Deductible - Common Accident Deductible - CORRECT ANSWER Common Accident Deductible (a common accident deductible provision states that should more than one family member be involved in a common accident, or suffer the same illness, only one individual deductible amount shall be applied." "An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that results from an automobile accident. Assuming the plan had a $1000 deductible and an 80/20 Coinsurance Clause, how much will the insured be responsible to pay with $11,000 in covered medical expenses? - $0 - $3,000 - $8,000 - $11,000 - CORRECT ANSWER $3,000 ($1,000 deductible + 20% of the remaining bill = $3000)" "Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policy-owner? - Irrevocable Beneficiary - Tertiary Beneficiary - Primary Beneficiary - Revocable Beneficiary - CORRECT ANSWER Irrevocable Beneficiary" "What is Nevada's definition of Life Insurance replacement? - A transaction in which coverage on an existing policy is increased - A transaction in which group life coverage is converted to an individual policy - A transaction in which a new policy is bought and an old policy is terminated - A transaction in which a policy-owner reinstates a lapsed policy - CORRECT ANSWER - A transaction in which a new policy is bought and an old policy is terminated" "What type of policy would only provide for specific types of illnesses (cancer, stroke, etc)? - MEWA - Blanket Insurance - Dread Disease Insurance - Disability Insurance - CORRECT ANSWER - Dread Disease Insurance" "An employee of 2p years recently retired at age 59 1/2. This employee's group life contract can be: - Converted to an individual permanent policy at an individual rate - Converted to an individual policy at a group rate - Continued at an individual rate - Continued at a group rate - CORRECT ANSWER Converted to an individual permanent policy at an individual rate" "Which provision allows the policy-owner to change a term life policy to a permanent one without providing proof of good health? - Modifications - Conversion - Exchange - Adjustable - CORRECT ANSWER Conversion" "Which of the following terms is defined as any transaction in which new life insurance or a new annuity is to be purchased and existing life insurance or annuity is to be terminated or discontinued? - Rebating - Replacement - Conservation - Solicitation - CORRECT ANSWER Replacement" "The Accelerated Death Benefit provision in a life insurance policy is also known as a(n): - 1035 exchange - Inter vivos gift - Nonforfeiture option - Living Benefit - CORRECT ANSWER Living Benefit" "Which provision is NOT a requirement in a group life policy? - Conversion - Grace Period - Incontestable period - Accidental - CORRECT ANSWER Accidental (AD&D is not required in a group life policy)" "A CORRECT statement about the regulatory authority of the Commissioner with respect to insurance producers is that the Commissioner may: - mandate the financial restructuring of insolvent insurers - levy fees on policy applications to defray operating costs - establish guidelines for continuing education as a part of the producer lives renewal procedure - require adjacent states to adopt reciprocal agreements for nonresident producer licenses - CORRECT ANSWER Establish guidelines for continuing education as a part of the producer license renewal procedure" "A Disability Income policy-owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The next injury was never disclosed to the insurer at the time of the application. How will the insurer handle this claim? - Claim will be paid and coverage will remain in force - Claim will be denied and coverage will remain in force - Claim will be denied and coverage will be cancelled - CORRECT ANSWER Claim will be paid and coverage will remain in force (after a policy has been in force for 2 (sometimes 3) years, it enters the incontestable period, in which the insurers may not deny a claim based on information not disclosed at the time of the application)" "S is employees by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months after COBRA regulations? - 36 months - 18 months - 15 months - 6 months - CORRECT ANSWER 36 months" "G purchased a $50,000 single premium, Straight Life Annuity 2 years ago. G has been receiving monthly payments from the annuity. When G dies, the insurer: - Does not have to make any further payments - Must continue to make monthly payments to G's beneficiary for the rest of the beneficiary's life - Must pay G's beneficiary the difference between the amount paid to F and $50,000 in a lump sum - CORRECT ANSWER Does not have to make any further payments (With a Straight Life Annuity, the insurer does not have to make further payments after the annuitant dies)" "Which tax would an IRA participant be subjected to a distributions received prior to age 59 1/2? - 10% tax penalty for early withdrawal - Capital gains tax - Ordinary income tax and a 10% tax penalty for early withdrawal - Ordinary income tax - CORRECT ANSWER Ordinary income tax and a 10% tax penalty for early withdrawal" "Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine: - driving history - probability of making timely premium payments - if applicant is a tobacco user - overall health of the applicant - CORRECT ANSWER Probability of making timely premium payments (The purpose of these reports is to provide a picture of an applicant's general character and reputation, mode of living, finances, and any exposure to abnormal hazards.)" "Which of these actions should a producer take when submitting an insurance application to an insurer? - Issue a binding receipt to an applicant if no initial premium is submitted - Disclose to the applicant the amount of commissions to be earned on this transaction - Inform insurer of relevant information not included on the application - Arrange for a copy of the Attending Physician Statement (APS) to be sent to the producer - CORRECT ANSWER Inform insurer of relevant information not included on the application (one of the actions a producer should take when submitting an application is to advise the insurer of any other relevant information not contained the application.)" "Which type of plan normally includes hospice benefits? - Short-term disability plans - Group life plans - Workers' Compensation - Managed care plans - CORRECT ANSWER Managed care plans" "In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom? - The National Association of Insurance Commissioners (NAIC) - The state where they are conducting business - The attorney general in the state where they are domiciled - Homeland Security - CORRECT ANSWER The state where they are conducting business" "Nevada's 10-day free-look period for life insurance policies begins at the: - date of delivery - date of approval - date of application - date of physical exam - CORRECT ANSWER Date of delivery" "A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wasn't the ability to increase his policy benefits as his practice and income grow? - Extended Term rider - Cost of Living Adjustment rider - Guaranteed Insurability Option rider - - CORRECT ANSWER Guaranteed Insurability Option rider" "A written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is a: - Variable Life Policy - Viatical Settlement - Equity Index Annuity - Health Care Savings Account - CORRECT ANSWER Viatical Settlement" "A policy of adhesion can only be modified by whom? - The agent - The applicant - The primary beneficiary - The insurance company - CORRECT ANSWER The insurance company" "Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures? - Administrative-services-only plan - Commercial insurer - Preferred provider organization - Health maintenance organization - CORRECT ANSWER Commercial insurer" "A producer MUST deliver a Notice to Applicant Regarding Replacement of Accident & Sickness insurance of which of the following times? - Before the application is taken and underwritten - Within five days after the application is made - When the application is taken - After the policy has been in effect for ten days - CORRECT ANSWER When the application is taken" "According to the Mandatory Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even thought the premium has not been paid? - 7 days - 10 days - 31 days - 60 days - CORRECT ANSWER 31 days" "An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim? - $500 - $1,000 - $1,250 - $1750 - CORRECT ANSWER $1,250" "S wanted to open a tax-exempt Health Savings Account. To qualify for this type of account, Federal law dictates that S must be enrolled in a: - Low-deductible health plan - Medicare Supplement - High-deductible health plan - Flexible savings plan - CORRECT ANSWER High-deductible health plan (to be eligible for Health Savings Account, an individual must be covered by a high-deductible health plan (HDHP), must not be covered by other health insurance (does not apply to accident insurance, disability, dental care, vision care, long-term care), must not be eligible for Medicare, and can't be claimed as a dependent on someone else's tax return.)" "What form must an applicant be provided with prior to policy delivery if it's replacing an existing health policy? - Notice Regarding Nonrenewal - Notice Regarding Cancellation - Notice Regarding Replacement - Notice Regarding Coverage - CORRECT ANSWER Notice Regarding Replacement" "An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to: - issue the policy only when the initial premium check has cleared - determine if the applicant is incurable by investigating family health history - issue the policy on a standard basis - determine if the applicant is an acceptable risk by completing standard underwriting procedures - CORRECT ANSWER Determine if the applicant is an acceptable risk by completing standard underwriting procedures" "A Business Overhead Expense policy would cover which of the following if the a business owner becomes disabled? - Contributions to employee retirement plans - Utilities and office rent - Owner's salary - Meals and entertainment - CORRECT ANSWER Utilities and office rent" "Which of the following consists of an offer, acceptance, and consideration? - Warranty - Estoppel - Contract - Representation - CORRECT ANSWER Contract" "The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond: - 1 month - 3 months - 6 months - 12 months - CORRECT ANSWER 6 months" "What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence for insurability? - Entire contract - Owner's rights - Nonforfeiture options - Conversion - CORRECT ANSWER Conversion" "On delivery of a policy, a signed statement of good health is typically requested if: - A conditional receipt was given to the applicant - The quarterly premium payment mode was selected - The policy contacting a guaranteed insurability rider - The application was submitted without the initial premium - CORRECT ANSWER The application was submitted without the initial premium" "Every insurance producer/broker MUST maintain all records, books, and documents for insurance transactions for a period of not less than: - 5 years - 3 years - 2 years - 1 year - CORRECT ANSWER 3 years" "A mutual insurance company and a stock insurance company have one main different between them. What is this major contrast? - CORRECT ANSWER A stock company is owned by its shareholders and a mutual company is owned by its policy-holders" "The underwriting process involves all of these, EXCEPT for: - Credit report - Policy loan - Risk classification - Application - CORRECT ANSWER Policy loan" "T is an employe covered under a Group Life policy. It T's employment is terminated, the conversion privilege gives T the right to convert: - to an individual policy only by providing evidence of insurability - to an individual policy, only if the employer pays the premiums - to an individual policy upon employment termination - to an individual policy with a higher amount of coverage - CORRECT ANSWER To an individual policy upon employment termination" "A non-contributory group term life plan is characterized by: - the entire cost of the plan is paid for by the employer - the entire cost of the plan is paid for by the employee - the cost of the plan is shred by both employer and employee - both employer and employee must provide evidence of insurability - CORRECT ANSWER The entire cost of the pan is paid for by the employer" "With Disability income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's: - CORRECT ANSWER Gross income at the time of purchase" "Which of the following health insurance coverages is BEST suited for meeting the expenses of a catastrophic illness? - CORRECT ANSWER Major Medical" "Pre-existing conditions may be excluded on a medicare supplement policy for up to - CORRECT ANSWER 6 Months" Health care accounts and Dependent care accounts - CORRECT ANSWER What are the 2 types of Flexible Spending Accounts?" "Cash value is guaranteed - CORRECT ANSWER Concerning a Whole Life Policy, which of the following statements is correct?" "Unearned premiums are retained by the insurance company - CORRECT ANSWER According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT" "Assets - CORRECT ANSWER In a replacement situation, all of the following must be considered EXCEPT" "Be licensed as a life insurance producer - CORRECT ANSWER For an agent to sell continuous care coverage, the agent must meet all of the following requirements EXCEPT" "Insurance consultant - CORRECT ANSWER Which of the following licensees are not compensated directly related to the amount of insurance sold?" "3 Hours - CORRECT ANSWER Producers must complete how many hours of continuing education on the subject of ethics every licensing period?" "The more liberal "own occupation" - CORRECT ANSWER Which of the following definitions would make it easier to qualify for total disability benefits?" "Plan A - CORRECT ANSWER Which of the following must be present in all Medicare supplement plans?" "Premium receipt - CORRECT ANSWER Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a" "Renewal provision - CORRECT ANSWER Which health insurance provision describes the insured's right to cancel coverage?" "Increasing Term - CORRECT ANSWER What type of insurance would be used for a Return of Premium rider?" "Recurrent disability - CORRECT ANSWER When an insurer combines two periods of disability into one, the insured must have suffered a" "It is designed to pay on a first dollar of expense basis - CORRECT ANSWER Which of the following is NOT true of a major-medical health insurance policy?" "They earn lower interest rates than fixed annuities - CORRECT ANSWER Which of the following is NOT true regarding Equity Indexed Annuities?" "Individual members of the group may select the level of benefits for their own coverage - CORRECT ANSWER Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT" "High-deductible health plan - CORRECT ANSWER To be eligible for a Health Savings Account, an individual must be covered by a" "Face amount - CORRECT ANSWER Which policy component decreases in decreasing term insurance?" "Acute care in a hospital - CORRECT ANSWER Which of the following is NOT covered under a long-term care policy?" "Term rider - CORRECT ANSWER Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?" "Deferred - CORRECT ANSWER An individual has been making periodic premium payments on an annuity. The annuity income payments are schedules to begin after 1 year since the annuity was purchased what type of annuity is it?" "Daily care by medical personnel - CORRECT ANSWER What amount of care is provided in LTC's intermediate care?" "$500,000 - CORRECT ANSWER What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay with respect to major medical insurance for one life?" "1 year - CORRECT ANSWER A life producer applying for a viatical settlement broker license may be exempt from the prelicensing education and examination requirement if the producer has held an active life license for at least how many years?" "The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive - CORRECT ANSWER An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?" "Increasing term - CORRECT ANSWER What type of insurance would be used for a Return of Premium rider?" "Survivor protection - CORRECT ANSWER A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely" "The benefit received is tax free - CORRECT ANSWER A corporation is the owner of the beneficiary of the key persion life policy. If the corporation collect the policy benefit, then" "Attained age - CORRECT ANSWER The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's" "renewal provision - CORRECT ANSWER Which health insurance provision describes the insured's right to cancel coverage?" "Impairment rider - CORRECT ANSWER Which of the following riders would NOT increase the premium for a policyowner?" "Brokers do not need to be appointed - CORRECT ANSWER Which of the following is true regarding insurance company appointment for a broker?" "Provider - CORRECT ANSWER Who is a person, other than a viator, that enters into a viatical settlement contract?" "FINRA - CORRECT ANSWER An agent selling variable annuities must be registered with" "Whole life - CORRECT ANSWER An insured bought a policy 20 years ago. The policy stated that 20 years later the cash value would be $480 per $1,000 of coverage. What type of policy does the insured have?" "Loan values and retirement income - CORRECT ANSWER What are the "living benefits" of whole life insurance?" "The premiums are invested in the insurer's general account - CORRECT ANSWER All of the following are true about variable products EXCEPT" "Annuitization period - CORRECT ANSWER In an annuity, the accumulated money is converted into a stream of income during which time period?" "It is designed to pay on a first dollar expense basis - CORRECT ANSWER Which of the following is NOT true of a major-medical health insurance policy?" "Relative value - CORRECT ANSWER Todd has been informed that he has a hernia which requires repair. When Todd researches the cost, he learns that his insurance plan will cover 200 points worth of surgical expenses. Each point represents $10, which means that $2000 of his surgery will be covered by his insurance plan. What system is Todd's insurance company using?" "The attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount. - CORRECT ANSWER What happens if a non-member physician is utilized under the Point-Of-Service plan?" "20% - CORRECT ANSWER What is a penalty tax for nonqualified distributions from a health savings account?" "A retired person age 50 - CORRECT ANSWER All of the following individuals may qualify for Medicare health insurance benefits EXCEPT" "Are made by the business and are not tax-deductible - CORRECT ANSWER Under a Key Person disability income policy, premium payments" "An agent misrepresents policy benefits to convince a policyowner to replace policies - CORRECT ANSWER Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT" "reduced paid up - CORRECT ANSWER Which nonforfeiture option provides coverage for the longest period of time" "The more liberal "any occupation" - CORRECT ANSWER Which of the following definitions would make it easier to qualify for total disability benefits?" "Collateral assignment - CORRECT ANSWER A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?" "He will have to pay a penalty if he is younger than 59 1/2 - CORRECT ANSWER An insured has a Modified Endowment Contract. He wants to withdraw some money in order to pay medical bills. Which of the following is true?" "An individual not covered by an employer-sponsored plan who has earned income. - CORRECT ANSWER Who can make a fully deductible contribution to a traditional IRA" "Within 90 days or as soon as reasonably possible but not to exceed one year - CORRECT ANSWER How soon following the occurrence of a covered loss, or after the insurer becomes liable for periodic payments for income benefits, must an insured submit written proof of such loss to the insurance company" "Disability income - CORRECT ANSWER A waiver of premium provision may be included with which kind of health insurance policy" "Annuitant - CORRECT ANSWER When an annuity is written, whose life expectancy is taken into account?" "It will pay double or triple the face amount - CORRECT ANSWER Which of the following statements is true concerning the accidental death rider" "income for 2 or more recipients until they die - CORRECT ANSWER Life income joint and survivor settlement option guarantees" "level or flexible - CORRECT ANSWER Which two terms are associated directly with the premium?" "$50,000 - CORRECT ANSWER An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?" "It requires all employers, regardless of the number or age of employees, to provide extended group health coverage - CORRECT ANSWER Which of the following statements is NOT correct concerning the COBRA Act of 1985?" "Insurer - CORRECT ANSWER Which of the following entities can legally bind coverage?" "Insuring clause - CORRECT ANSWER Which provision of a life insurance policy states the insurers duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?" "Annuity - CORRECT ANSWER Which of the following products will protect an individual from outliving his or her money?" "Common disaster - CORRECT ANSWER An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?" "Cash value in excess of the premiums paid is taxed upon policy surrender - CORRECT ANSWER Which of the following is true regarding taxation of cash value in a life insurance policy?" "90 days of a loss - CORRECT ANSWER Under the uniform required provision proof of loss under a health insurance policy should normally be filed within how many days?" "the commissioner - CORRECT ANSWER Which of the following entities ultimately determines if an advertisement is deceptive or confusing?" "A mutual insurer - CORRECT ANSWER Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is" "Defamation - CORRECT ANSWER Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?" "Which of the following statements if CORRECT about an agent who is taking an insurance application? - CORRECT ANSWER The agent should have the applicant initial any changes made on the application." "Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements? - CORRECT ANSWER Legal Purpose (Insurable Interest)" "A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies? - CORRECT ANSWER Proceeds will go to the contingent beneficiary." "Health coverage provided under the Affordable Care Act (ACA) shall be made available for dependents until the child attains the age of: - CORRECT ANSWER 26" "An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - CORRECT ANSWER Full face amount minus any past due premiums." "The phrase "This policy will only pay for a semi-private room" is an example of a(n): - CORRECT ANSWER Internal Limit" "Which of the following types of policies pays a benefit if the insured goes blind? - CORRECT ANSWER Accidental Death and Dismemberment (AD&D)" "Which of these types of life insurance allows the policy owners to have level premiums and to also choose from a selection of investment options? - CORRECT ANSWER Variable Life" "Taking receipt of premiums and holding them for the insurance company is an example of: - CORRECT ANSWER Fiduciary responsibility" "The individual who provides general medical care for a patient as well as the referral for specialized care is known as a: - CORRECT ANSWER Primary Care Physician" "Which of the following annuities pays benefits based on units rather than specific dollar amounts? - CORRECT ANSWER Variable Annuity" "The policyholder has how many days to return an Accident/Health insurance policy and receive a full refund on premiums? - CORRECT ANSWER 10 days" "Which of the following individual health insurance policies will provide the broadest protection? - CORRECT ANSWER Major Medical" "Which of the following unfair trade practices involves an agent who makes malicious statements about another person's financial condition? - CORRECT ANSWER Defamation" "Which mode of payment is NOT used by health insurance policies? - CORRECT ANSWER Single Premium" "An insurance company can contest a life insurance contract due to application fraud within: - CORRECT ANSWER 2 years" "A person is required to be AT LEAST how old before he or she is licensed as an agent in Nevada. - CORRECT ANSWER 18 years old" "The Commissioner must examine each domestic insurance company AT LEAST every day; - CORRECT ANSWER 5 years" "In regards to representations or warranties, which of these statements is TRUE? - CORRECT ANSWER If material to the risk, false representations will void the policy." "Common exclusions to continuation of group coverage include: - CORRECT ANSWER All of the above; dental care, other prescription drugs" "All of the following actions are considered rebating, EXCEPT: - CORRECT ANSWER Sharing commissions with other licensed and appointed agents" "An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? - CORRECT ANSWER Long term care" "Which juvenile following provisions guarantees that premiums will be waived if a Juvenile Life policy owner becomes disables? - CORRECT ANSWER Payor Clause" "Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - CORRECT ANSWER Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company." "Which of the following circumstances would cause a Medicare Supplement policy to be cancelled? - CORRECT ANSWER The insured fails to pay the premium" "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. Cash Value plus interest C. 20,000 death benefit D. Face amount plus interest? - CORRECT ANSWER C. $20,000 death benefit" "The Misstatement of Age Provisions requires that if the age of the insured is misstated, then any amount payable is: A. Forfeited B. An amount that the premiums paid would have purchased at the current age or ages C. An amount consists of the premiums paid for the policy if the policy was issued for over three years D. Reduced by a specified percentage of the face amount - CORRECT ANSWER B. An amount that the premiums paid would have purchased at the current age or ages" "When is the face amount paid under a Joint Life and Survivorship policy? A. When policy reaches maturation B. Upon death of the first insured C. Upon death of the last insured D. When one of the insureds becomes disables and no longer able to make premium payments - CORRECT ANSWER C. Upon the death of the last insured" "Which of the following is a characteristic of variable annuity? A. Underlying equity investments B. Does not have surrender charges C. Does not provide a transfer of ownership D. Selling this product requires only a life license - CORRECT ANSWER A. Underlying equity investments" "Which of the following BEST describes Credit Life Insurance? A. Insurance purchased on a mandatory basis with money bowled from a bank of credit institution. B. Insurance issued on a debtor to cover outstanding balances on installment loans C. Insurance that allows an insured to use a policy's cash value to pay outstanding debts D. Low-cost insurance issued through the mail by credit card companies - CORRECT ANSWER B. Insurance issued on a debtor to cover outstanding balances on installment loans" "When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans? A. Joint B. Noncontributory C. Contributory D. Participating - CORRECT ANSWER C. Contributory" "N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is: A. $2,000 B. $1,750 C. $1,500 D. $1,250 - CORRECT ANSWER D. $1,250 (waited for 3.5 months, so the math would be $500+$500+$250)." "Which of the following is required for an insurance producer applicants who are required to pass a written examination? A. Fingerprint-based criminal background check B. Credit report C. High school diploma D. Sponsoring insurance company - CORRECT ANSWER A. Fingerprint-based criminal background check" "A local care provider which typically delivers health services as its own local medical facility is known as a: A. Health Maintenance Organization B. Regional Provider C. Multiple Employer Trust D. Preferred Provider Organization - CORRECT ANSWER A. Health Maintenance Organization (HMO) - traditionally provide services to its members at its own local health care facilities." "The Commissioner does NOT have the power to: A. Subpoena documents B. Examine witnesses under oath C. Incarcerate a producer D. Inquire about violations of the insurance laws - CORRECT ANSWER C. Incarcerate a producer" "An insurance broker in Nevada is a representative of the: A. Insurance company B. Insured C. Insurance agency D. Underwriting association - CORRECT ANSWER B. Insured" "In Nevada, a Long-Term Care Policy must be renewable in which of the following ways? A. Conditionally Renewable B. Optionally Renewable C. Guaranteed Renewable D. Noncancellable - CORRECT ANSWER C. Guaranteed Renewable" "Post-tax dollar contributions are found in: A. 401K B. Traditional IRA investments C. SIMPLE investments D. Roth IRA investments - CORRECT ANSWER D. Roth IRA investments" "Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy? A. Waiver B. Exceptions and Reductions C. Incontestable D. Entire Contract - CORRECT ANSWER D. Entire Contract" "What type of life insurance gives the greatest amount of coverage for a limited period of time? A. Term Life B. Graded Premium Whole Life C. Whole Life D. Endowment Policy - CORRECT ANSWER A. Term life" "Which of the following services is NOT covered under a hospitalization expense police? A. Daily Room and Board B. Surgeon's Fees C. Intensive Care D. Miscellaneous Expenses - CORRECT ANSWER B. Surgeons Fees" "Which of the following is a standard provision of the conversion privileges in a Group Life Policy? A. Group Life coverage can only be converted is the employer pays for the individual policy B. Group Life coverage can normally be converted to an individual policy within 6 months C. Group Life coverage can only be converted by providing evidence if insurability D. Group Life coverage can be converted to an individual policy without providing evidence of insurability. - CORRECT ANSWER D. Group Life coverage can be converted to an individual policy without providing evidence of insurability." "All of these are considered to be a benefit under Social Security, EXCEPT for: A. Survivorship B. Unemployment C. Disability D. Retirement - CORRECT ANSWER B. Unemployment" "What kind of life insurance policy pars a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? A. Family Lump Sum Policy B. Family Maintenance Policy C. Family Survivorship Policy D. Family Income Policy - CORRECT ANSWER B. Family Maintenance Policy (pays a monthly income from the date of death of the insured to the end of the preselected period. The payment of the face amount of the policy is payable at the end of such preselected period)" "J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? A. Irrevocable B. Contingent C. Primary D. Revocable - CORRECT ANSWER D. Revocable (policy-owner may change the beneficiary at any time without notifying or getting permission from the beneficiary)" "An employer that offers a qualified plan to its employees is eligible to: A. Avoid ERISA regulations B. Make tax-deductible contributions to the plan C. Make tax-deductible contributions to key employees only D. Make partial tax-deductible contributions to the plan - CORRECT ANSWER B. Make tax-deductible contributions to the plan" "At what point does an informal contract become binding? A. When one party makes an invitation and the other makes an offer. B. When an offer is made by one party and the other party rejects the offer and makes a counteroffer C. When one party makes an offer and the other party accepts that offer D. When one party makes the required payment - CORRECT ANSWER C. When one party makes an offer and the other party excepts that offer." "Equity indexed annuities are invested in which of the following: A. Insurer's general account B. Savings Bonds C. Insured's general account D. S&P 500 - CORRECT ANSWER D. S&P 500 (an indexed annuity is a type of tax-deferred annuity whose credited interest is linked to an equity index-typically the S&P 500)" "Life and Health insurance policies are: A. Multi-lateral contracts B. Bi-lateral contracts C. Uni-lateral contracts D. Non-lateral contract - CORRECT ANSWER C. Uni-lateral contracts (Life and Health insurance policies are considered unilateral contracts because one party makes a promise, and the other party can only accept by performance)" "A person who is insured within a group contract will be given a: A. Certificate B. Master Policy C. Participation Agreement D. Individual Policy - CORRECT ANSWER A. Certificate" "What describes the four tiers of qualifying health plans that can be purchased on the exchange? A. Qualifying Levels B. Higher Levels C. Healthcare Levels D. Metal Levels - CORRECT ANSWER D. Metal Levels (metal levels describe the four tiers of "qualifying health plans" you or your employer can purchase on the exchange)" "A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for: A. Hospital Charges B. Physician Fees C. Experimental and Investigative Services D. Nursing Services - CORRECT ANSWER C. Experimental and Investigative Services" "Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? A. Interest Only B. Fixed Period C. Fixed Amount D. Life Income - CORRECT ANSWER D. Life Income" "Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called: A. Fraternal Life Insurance Organization B. Domestic Life Insurance Organization C. Unauthorized Insurers D. Mutual Life Insurers - CORRECT ANSWER A. Fraternal Life Insurance Organization" "B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have? A. Major Medical B. Blanket C. Disability Income D. Indemnity - CORRECT ANSWER c. Disability Income" "The type of annuity that can be purchased with one monetary deposit is called a(n): A. Single Deposit Annuity B. Single Premium Annuity C. Fixed Annuity - CORRECT ANSWER D. Immediate Annuity" "On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? - CORRECT ANSWER B. Collect initial premium along with a signed health statement" "An Accident &Health policy must provide Essential Benefits when purchased: A. As individual from commercial providers B. Through Medicare C. In a group plan from commercial providers D. Individually or with group coverage through the Federal Marketplace - CORRECT ANSWER D. Individually or with group coverage through the Federal Marketplace" "In Nevada, an element of an insurance transaction would be: A. Ordering an MIB report B. Setting up the sales appointment C. Issuing an insurance contract D. Determining how much coverage is needed - CORRECT ANSWER C. Issuing an insurance contract" "An insurance company that promises lower insurance rates than any other company in the country may be charged with: A. Coercion B. Defamation C. Boycotting D. False Advertising - CORRECT ANSWER D. False Advertising" "If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be performed in all these situations, EXCEPT: A. When the cause of death is unknown B. When the state prohibits this by law C. When consent for the autopsy is not obtained D. When foul play was a contributing factor - CORRECT ANSWER B. When the state prohibits this by law" "Which of the following factors affects the amount of monthly disability benefits payable under Social Security? A. The cause of the disability B. The amount of the benefits available from other sources C. The number of children dependent on the recipient D. The state in which the recipient lives - CORRECT ANSWER B. The amount of benefits available from other sources" "A life insurance policy-owner may sell their policy to a(n) ______ in order to receive a percentage of the policy's face value. A. Vatical Settlement Provider B. Broker C. Insurer D. Viator Agent - CORRECT ANSWER A. Viatical Settlement Provider (to receive a percentage of the policy face value, an owner of a life policy may sell the policy to a viatical settlement provider)" "Which type of contract liquidated an estate through recurrent payments? A. Universal Life Insurance B. Whole Life Insurance C. Annuity D. 401K - CORRECT ANSWER C. Annuity" "Which of the following does Social Security NOT provide benefits for? A. Survivorship B. Dismemberment C. Disability D. Retirement - CORRECT ANSWER B. Dismemberment" "The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the: A. Entire Contract Provision B. Consideration Clause C. Benefit Clause D. Insuring Clause - CORRECT ANSWER D. Insuring Clause" "When a policy-owner cash surrenders a Universal Life Insurance policy in it's early years, this may considered a red flag for a(n): A. Federal Fair Credit Act Violation B. Title 18 Fraud Violation C. Anti-Money Laundering Violation D. Unfair-Trade Practice Violation - CORRECT ANSWER C. Anti-Money Laundering Violation" "M purchases a $70,000 Life Insurance policy with premium payments of $550 a year for the first 5 years. At the beginning of the 6th year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is: A. Adjustable Life B. Indeterminate Premium Life C. Grader Premium Life D. Modified Premium Life - CORRECT ANSWER D. Modified Premium Life (Modified Whole Life policies are distinguished by premiums that are lower than typical whole life premiums during the first few years (usually 5) and then higher than typical thereafter)" "M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M/s policy goes in to effect, EXCEPT: - Policy is delivered - Free-look has expired - Insurance company issues policy - Initial premium is collected - CORRECT ANSWER Free-look has expired" "What type of life policy covers 2 lives and pays the face amount after the first one dies? - Group Life - Joint Life Policy - Family Income Policy - Last Survivor Police - CORRECT ANSWER Joint Life Policy" "According to Nevada's rules on disclosure, a life insurance applicant is expected to be provided with: - a Certificate of Coverage and Buyer's Guide - a Summary Statement and Buyer's Guide - a Buyer's Guide and Policy Summary - a Written Comparison and Policy Summary - CORRECT ANSWER A Buyer's Guide and Policy Summary" "Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? - Indemnity - Subrogation - Legal Action - Consideration - CORRECT ANSWER Subjugation (this is done as a means of recovering the amount of the claim paid to the insured for the loss)" "What is the purpose of a Policy Summary? - It details the commissions earned by the agent - It guarantees a policy will be issued - It allows the consumer to compare the costs of different policies - It highlights the critical parts of the policy issued - CORRECT ANSWER It highlights the critical parts of the policy issued" "Medicare Part A and Part B do NOT pay for: - Dental Work - Hospitalization - Skilled Nursing Case - Physical Therapy - CORRECT ANSWER Dental Work" "How does an indexed annuity differ from a fixed annuity? - Fixed annuity owners receive credited interest tied to the fluctuations of the linked index - Indexed annuity owners receive credited interest tied to the fluctuations of the linked index - Fixed annuity owners have a separate investment account - Indexed annuity owners receive annual dividends - CORRECT ANSWER Indexed annuity owners receive credited interest tied to the fluctuations of the linked index" "Renewable Term Policy is renewable at the option of the: - Owner - Company - Insured - Assignee - CORRECT ANSWER Insured" "Which statement if TRUE regarding a Variable Whole Life Policy? - A minimum guaranteed Death Benefit is provided - It is a combination of an Endowment and Increasing Term Policy - Its premiums and benefits are variable - It has guaranteed dividends - CORRECT ANSWER A minimum guaranteed Death Benefit is provided" "An agent MUST do which of the following during a sales presentation for a participating life insurance policy? - Include a statement that dividends are not guaranteed - Include a statement that dividends are not guaranteed - Explain the applicable Nonforfeiture Values - Explain the surrender cost indexed for 5 and 10 years - CORRECT ANSWER Include a statement that dividends are not guaranteed" "What is the purpose of the U.S.A. Patriot Act? - detect and deter fraud - detect and deter alien insurance companies - detect and deter terrorism - detect and deter misprepesentatiom - CORRECT ANSWER Detect and deter terrorism" "According to Nevada insurance law, while transacting business, producers act as a representative of; - Their own financial interests - There own finial interest - The applicant o insured - The insurer - CORRECT ANSWER The insurer" "A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant? - Disability Income - Major Medical - Key Employee - Business Overhead Expense - CORRECT ANSWER Disability Income" "Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? - Premiums are normally not tax deductible - Cash dividends are normally not taxed - Entire cash surrender value is taxable - Proceeds are received tax-free if there is a named beneficiary - CORRECT ANSWER Entire Cash Surrender value is taxable (it is NOT taxable. The interest gained is taxable)" "Which of the is NOT an unfair claim settlement practice? - Failing to acknowledge and act promptly with respect to an insurance claim - Compelling an insured to initiate a lawsuit by offering g less on an insurance claim - Failing to accept or deny a claim within reasonable time after proof of loss is submitted - Needing written documentation - Needing written documentation of claim details - CORRECT ANSWER Needing written documentation of claim details" "From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? - Fair Credit Reporting Act - Medical Information Bureau - Part III of the application - Life Insurance Buyer's Guide - CORRECT ANSWER Fair Credit Reporting Act" "The Consideration clause in a life insurance contract contains what pertinent information? - Summer of Benefits - Offer and Acceptance - Entire Contract - Amount of premium payments and when they are due - CORRECT ANSWER Amount of premium payments and when they are due" "Under which circumstance can a group life insurance policy be converted to an individual policy? - Termination of Employment - Reinstatement of Policy - Amendment of Certificate - Elimination of Premiums - CORRECT ANSWER Termination of Employment" "When an individual is planning to protect his family with life insurance, one method of doing so called needs analysis. What exactly does needs analysis involve? - Establishes the needs of the individual and his dependents - Takes into account the present value of future income earned by the breadwinner - Places a dollar value on the life of the individual - Establishes the investment risk level acceptable to the individual - CORRECT ANSWER Establishes the needs of the individual and his dependents" "Which of the following phrases refers to the fees charged by a healthcare professional? - Deductible - Coinsurance - Usual, customary, and reasonable expenses - Hospital expense - CORRECT ANSWER Usual, customary, and reasonable expense" "Disclosure standards require that which of the following be delivered with a Medicare Supplement policy? - Proof of Loss forms - The Outline of Coverage - Medicare contact information - The insurance company's policy loss ratios - CORRECT ANSWER The Outline Coverage" "K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective? - The date the application was submitted to the insurance company - The date of application - The date the agent delivered the policy, collected initial premium, and obtained a good health statement fro the insure - CORRECT ANSWER The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured" "Which of the following provisions specifies how long a policy-owner's health coverage will remain in effect if the policy-owners does not the premium when it is due? - Grace Period - Consideration - Waiver of Premium - Reinstatement - CORRECT ANSWER Grace Period" "What is the consideration given by an insurer in the Consideration Clause of a life policy? - Promise to never cancel coverage - Promise to pay a death benefit to a named beneficiary - Promise to not raise premiums - Promise to accept an insured's assignment of benefits - CORRECT ANSWER Promise to pay a death benefit to a named beneficiary" "What is the primary purpose of ERISA (Employment Retirement Income Security Act)? - ERISA sets rates for retirement and group health plans - ERISA approves all retirement and group health plan contracts - ERISA governs all insurance commissioners - ERISA regulates and protects those enrolled in retirement and group health plans - CORRECT ANSWER ERISA regulates and protects those enrolled in group health plans" "A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as: - Adjustable Life - Graded-Premium Life - Variable Life - Modified Whole Life - CORRECT ANSWER Variable Life (The cash value and death benefits of a Variable Life Policy can fluctuate according to the performance of its underlying investment portfolio)" "An individual who purchases a Life annuity is given protection against: - Inflation - the risk of dying prematurely - the risk of living longer than expected - the risk of not having enough retirement income - CORRECT ANSWER the risk of living longer than expected" "J chooses a monthly premium payment mode on his Whole Life Insurance policy. Which of these statements is correct? - The gross premium is higher on a monthly payment mode as compared to being paid annually - The gross premium is lower on a monthly payment mode as compared to being paid annually - The cash value from a live policy paid on monthly builds quicker than one paid on annual basis - The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis - CORRECT ANSWER The gross premium is higher on a monthly payment mode as compared to being paid annually" "Which of the following individuals MUST be licensed as a producer? - A salaried officer of an insurer - A person who provides information or advice for the purpose of reducing loss - A person who places insurance on behalf of anyone seeking insurance - A person who gives incidental insurance advice in the normal course of business - CORRECT ANSWER A person who places insurance on behalf of anyone seeking insurance" "One becomes eligible for Social Security disability benefits after having been disabled for: - 3 months - 5 months - 6 months - 12 months - CORRECT ANSWER 5 months (Disability income benefits are paid to the covered worker in the amount of the PIA after a 5-month waiting period.)" "T is covered by an Accidental Death and Dismemberment (AD&D) policy that has irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary? - Request will be accepted only if in writing by the insured - Change will be made only if premiums are paid current - Change will be made immediately - Request of change will be refused - CORRECT ANSWER Request of change will be refused" "How long is the free-look period for Long-Term Care policies sold in Nevada? - 10 days - 15 days - 20 days - 30 days - CORRECT ANSWER 30 days (after purchasing a long-term care insurance contract, policy-owners have 30 days from the date of receiving the policy to return it for a full refund for any reason.)" "Insurers organized under the laws of Nevada are called: - guarantee associations - domestic companies - state carriers - admitted companies - CORRECT ANSWER Domestic companies" "Which of the following does Social Security NOT provide benefits for? - Survivorship - Dismemberment - Disability - Retirement - CORRECT ANSWER Dismemberment" "Group Life policies in Nevada are required to contain conversion privilege that allows for conversion: - with evidence of insurability - to an individual policy for stated period of time - only if the premiums are paid by the employer - to an individual policy at anytime - CORRECT ANSWER To an individual policy for a stated period of time (In Nevada, group Life policies must contain a conversion privilege that allows for conversion to an individual policy fo