Nevada Life and Health Exam Simulator | Latest 2025/ 2026 Update | Questions and Verified Answers | 100% Correct (GRADED A)

Nevada Life and Health Exam Simulator | Latest 2025/ 2026 Update | Questions and Verified Answers | 100% Correct (GRADED A) Question: Z owns a disability income policy with a 30 day elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. He then becomes disabled from an accident on February 1 and the disability last until July 1 the same year. She will become eligible to receive benefits starting on? Answer: March 1. The elimination period is the period of time between the onset of a disability, and the time you're eligible for benefits. It is best thought of as a deductible. For your policy. After a 30 day elimination. Z will become eligible for receiving benefits on March 1. Question: Which of the following best describes how pre-administration certifications are used? Answer: Used to prevent nonessential medical costs. Pre-administration certification is used to prevent unnecessary medical costs Question: When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called: Answer: Entire Contract provision Question: At the age of 45, an individual with draws $50,000 from his qualified profit-sharing plan and then deposit this amount into a personal savings account. This action would result in: Answer: Income tax and a 10% penalty assessed upon funds withdrawn from the qualified plan. The IRS says that withdraws of funds from a profit sharing plan may be subject to a 10% tax penalty in addition to income taxes if they are made before the age of 59 1/2. This same early withdrawal penalty applies to funds taken out of for 401(k) plans and traditional individual retirement accounts. If, at a time of an insured's death, the insurance company discovers that the insured's age was missed stated on the application for life insurance, the company will most likely: Answer: Pay the policy proceeds in the amount the premiums would have purchased at the intrudes actual age Question: An insurance company must clearly specify questions design to obtain information solely for marketing research: Answer: In any insurance transaction. An insurance company must clearly specify questions designed to obtain information for marketing research in any insurance transaction. Question: What foremost an applicant be provided with prior to policy delivery if it's replacing an existing health policy? Answer: Notice regarding replacement. Health insurance application forms must contain a question asking the applicant whether the policy being applied for is intended to replace a health policy currently in force. If so the agent must provide the applicant with a notice regarding replacement prior to delivering the policy. Question: A variable insurance policy: Answer: Does not guarantee a return of its investment accounts. In contrast variable insurance products do not guarantee contract cash values, and it is the policy owner who assumes the investment risk. Variable life insurance contracts do not make any promises as to either interest rates or minimum cash values. Question: An individual disability income insurance applicant may be required to submit all the following except: Answer: Spouses occupation. In this situation, a spouse is occupation is not necessary for the application Question: Which of the following statements about health reimbursement arrangements (HRA) is correct? Answer: If the employee paid for qualified medical expenses, the reimbursement may be tax-free. Under a health reimbursement arrangement, reimbursements may be tax-free if the employee paid for qualified medical expenses Question: What is considered to be a characteristic of conditionally Renewable Health insurance policy? Answer: Premiums may increase at time of renewal. A conditionally Renewable Health entrance Paul's he can increase premiums at the time of renewal. Question: What action can policyholder take if an application for a bank loan requires collateral? Answer: Assign policy ownership to the bank. A policy owner may assign ownership of a policy to a bank as collateral. Question: One of the stated purposes of the life and health insurance guaranty association is to: Answer: Assist in the prevention of insurer insolvencies. One of the stated purposes of the life and health insurance guaranty association is to assist in the prevention of insure insolvencies Question: K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the common disaster clause if K and her husband were both killed in an automotive accident, where would the death proceeds be directed? Answer: The daughter. With a common disaster Provision a policy owner can be sure that is both insured and the primary beneficiary die within a short period of time the death benefits will be paid to contingent beneficiary Question: Which of the following types of policies pays a benefit if the insured goes blind? Answer: AD&D. An accidental death and dismemberment policy can provide financial benefits if an insured is killed loses limb suffers blindness or is paralyzed in a covered accident. Basic Medical Expense Insurance Answer: has lower benefit limits than Major Medical insurance. Basic medical expense insurance typically has lower benefit limits than major medical insurance. Question: The amount of coverage on a group credit life policy is limited to: Answer: the insured's total loan value. With a group credit life policy, the amount of insurance on the life of a debtor is limited to the total amount of the insured loan Question: What is a warranty? A warranty is a statement guaranteed to be true Answer: Question: Which of the following types of organizations are pre-paid group health plans, we are members paying advance for the services of participating physicians and hospitals that have agreements? Answer: HMO A health maintenance organization or HMO is a prepaid group health plan where members paying advance for the services of participating positions and hospitals that have agreements. Question: A characteristic of preferred provider organizations would be: Answer: Discounted fees for the patient. Under preferred provider organizations patient fees are discounted in return for using listed providers. Question: The policy owner does not pay the premium by the due date the Answer: The policy owner can make a premium payment during the grace period. Question: If the insurance must provide a prospective buyer with a(n): Answer: Buyers guide and policy summary Question: S filed a written proof of loss for a disability income claim on September 1. The insurance company did not respond to the claims S can take a legal action against the true beginning: Answer: November 1. The insured must wait 60 days after written proof of loss before legal action can be brought against the company Question: The USA patriot act was in acted in Answer: 2001 Question: How long is the free look. For long-term care policy sold in Nevada? Answer: 30 days after purchasing a long term care insurance contract policy owners have 30 days from the day of receiving the policy to return it for a full refund for any reason Question: What type of insurance company is domiciled in England, but Conducts business in Nevada? Answer: Alien. An insurance company that is domiciled in any other country other than the United States is known as an alien insurance company Question: Group life insurance policies are generally written as Answer: Annually renewable term. Group life insurance policies are generally written as annually renewable term Question: Which of all these life products is not considered to be intra-sensitive? Answer: Modified whole life. Question: T plays for a life insurance policy and as told by the producer that the insurer is bond to the coverage as the day of the application or medical examination whichever is later. Assuming T is an acceptable risk one item is given to T? Answer: Conditional receipt conditional receipt find venture to coverage as of the date of the application or medical exam, provided the proposed insured is determined to be an acceptable risk. Question: Under which circumstance can a group life insurance policy be converted to an individual policy? Answer: Termination of employment As an applicant's medical information received from the medical information bureau or am I be may be furnished to the Answer: Applicants physician information received from the medical information bureau about a proposed insured may be released to the proposed insureds physician Question: A level premium indicates Answer: the premium is fixed for the entire duration of the contract Question: A whole life insurance policy owner does not wish to continue making premium payments. Which of the following enables the policy owner to sell the policy for more than it's cash value Answer: Life settlement contract a life settlement contract allows a policy owner to sell a life insurance policy for more than it's cash value Question: Insurance policies are offered on a take it or leave it basis which makes them Answer: Contracts of adhesion because insurance policies are offered on a take it or leave it bases they are referred to as contracts of adhesion Question: Which of the following best describes the particular items of the policy being applied for Answer: Policy summary Question: Within how many days after policy delivery can a Medicare supplement policy be returned for a 100% premium refund Answer: 30 days Question: Which of the following best describes credit life insurance Answer: Insurance issued on a debtors to cover outstanding balances on installment loans. Credit life insurance can be best described as insurance issued to a debtor to cover outstanding balances on installment loans. Question: A return of premium life insurance policy is Answer: Whole life and increasing term. A return of premium life insurance policy is whole life insurance with a death benefit rider of increasing terminal current equal to the amount of premiums paid. If the insured dies within the period of term, then the beneficiary will receive face amount plus the value of all paid premiums Question: Which of the following is an important underwriting principle of group life insurance? Answer: Everyone must be covered in the group An important underwriting principle of group life is that all or a large percentage of persons in the group must be covered by the insurance Question: In order for coverage of a non-medical insurance application to take affect on the same day, the producer must collect a slight application and Answer: The initial premium Question: Which provision is not a requirement in a group life policy Answer: Accidental. On an AD&D provision is not required in a group life policy Question: A policy owners rights are limited under which beneficiary designation? Answer: Irrevocable. An irrevocable beneficiary designation requires the consent and signature of that named beneficiary before change of beneficiary occurs. Question: An individual life insurance policy issued in Texas must have a grace period for premium payment of how many days? Answer: 31. An individual life insurance policy issued in Texas must have a grace period for premium payment of 31 days Question: Insurance producer may sell solicit or negotiate a contract of insurance Answer: Upon insurance of license. An insurance producer may sell solicit or negotiate a contract of insurance upon insurance of his/her license Question: L takes out a life insurance policy and dies 10 years later. During the claim process, they ensure discovers that L had understated her age on the application. Under the mission statement of H Provision The insure will Answer: Adjust the death benefit to a reduced amount Question: An agent must do which of the following during sales presentation for a participating life insurance policy Answer: Include a statement that dividends are not guaranteed. During the sales of presentation for a participating life insurance policy, an agent must include a statement that dividends are not guaranteed Question: Which of the following is a characteristic to a variable annuity Answer: Underlying equity investments Variable Annuities involve underlying equity investments in a separate account Question: Which premium schedule results in the lowest cost to the policy owner? Answer: annual Question: The underwriting process involves all of the following except for Answer: Policy loan A policy loan is not a factor in the underwriting process Question: K is the insured and P is the sole beneficiary on an accidental death and dismemberment insurance policy both are involved in a fatal accident work he dies before P. Under the common disaster Provision which of the statements is true? Answer: Proceeds will be paid to P's estate. Because the sole beneficiary outlived and insured, the proceeds will be payable to the state of the deceased beneficiary Question: All of the following statements about her additional individual retirement accounts or false except Answer: 10% penalty is applied for withdraws before age of 59 1/2 Question: Why is an applicant signature required on a life insurance application Answer: To test of the statements on the application or accurate to the best of the applicants knowledge Question: Which of the following is considered a mandatory provision Answer: Payment of claims. Payment of claims can sitter and a mandatory Provision and directs where the claim benefits will go. The others are considered optional provisions Question: According to the affordable care act or ACA a dependent child Ellaville ability status is determined by Answer: Age. Under the affordable care act dependent children or covered up until the age of 26. Question: In a qualified retirement plan, the yearly contributions to an employee's account: Answer: Are restricted to maximum level set by the IRS. Annual limits to an employee is qualified retirement plan are based on maximum limited by the IRS Question: What group term feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? Answer: Conversion. The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability Question: Premature IRA distributions are assessed a penalty of Answer: 10%. Premature distributions from an IRA are subject to a 10% penalty Accidental death and dismemberment insurance policy who is qualified to change the beneficiary designation designation Answer: Policy owner. Policy owner has the right to change the beneficiary designation. However consent may be needed by the current beneficiary if designated as irrevocable Question: What is Nevada's definition of life insurance replacement? Answer: A transaction in which a new policy is bought and an old policy is terminated Question: Which mode of payment is not used by health insurance policies? Answer: Single premium. Question: Nonprofit life insurance providers that are covered by a special section in the Florida insurance code or called Answer: Fraternal life Insurance organizations. For ternal life insurance organization is a nonprofit provider of life insurance that is covered by a special section of the Florida insurance code. Question: K is looking to purchase renewable term insurance which of these types of insurance may be renewable? Answer: Level. A level term policy pays the same benefit amount if death occurs at any point during the term. •Level term policies may be renewable• Question: Tennis or named Cole primary beneficiaries on a $50,000 accidental death and dismemberment policy ensuring their father. Their mother was named contingent beneficiary five years later as dies of natural causes in the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? Answer: $0. The mother received zero dollars because he is still alive and the sole primary beneficiary while her mother is still the contingent beneficiary Question: How long can pre-existing conditions be excluded for in long-term care policies? Answer: Six months. Pre-existing conditions may be excluded for a •maximum of six months• Question: Which of these is not considered to be an element of an insurance contract Answer: Negotiating. The elements of an insurance contract •do not include negotiating• Uninsured receives proof of loss for unacceptable medical expense claim under an individual health insurance policy. Under the time of payment of claims provision the insurer may pay the benefits Answer: Immediately. Under the time of payment of claims Provision Of claims must pay the benefits immediately after receiving proof of loss. To be eligible for Social Security disability benefits an employee must be able to perform Any occupation. To be eligible for Social Security disability benefits and employee must be unable to perform any occupation. Question: V is insured under an individual disability income policy with a 30 day illumination. On July 1 he is involved in an accident and temporarily disabled he returns to work on December for how many months of benefit or payable Answer: Four months. After the 30 day elimination period has been satisfied there will be four months of benefit payments Question: Yes, while the process of converting her group life insurance policy to an individual policy, dies what happens to claim her beneficiary submits?? Answer: Full benefits are payable under the master contract. An individual is covered under the group policy during the conversion. Question: A prospective insured complete and signs an application for health insurance but intentionally conceals information about a pre-existing heart condition. The company issues the palsy. Two months later than shirt suffers a heart attack and submit a claim. While processing the claim, the company discovers the pre-existing condition. In the situation the company will Answer: Continue coverage but exclude the heart condition. If the insured did not cite the condition on the application and the insured did not exclude the condition the pre-existing condition provision still applies. Exclusions are subject to the "time limit on certain defenses" provision however. Question: Wanna policy owner exchange is a term policy for a whole life policy without providing proof of good health which of these apply Answer: Conversion probation. The option to convert gives then sure the right to convert or exchange the term policy for a whole life or permanent plan without evidence of insurability Question: OK is the insured and P is the sole beneficiary on the life insurance policy. Both are involved in a fatal accident or K days before P under the common disaster Provision which is the statements is true? Answer: Proceeds will be paid to Pisa state. Proceeds will be payable to Keith's estate if he dies within a specified tear. Under the •common disaster provision• proceeds will be payable to Kay's estate if P dies within a specified. Question: Which of the following actions will An insurance company most likely not take if the applicant who has diabetes supplies for a disability income policy? Answer: Issue the policy with an alter time of payment of claims provision. The insurance company may take all these actions except issue the policy with an altered time of payment claims provision Question: What type of life policy has a death benefit that adjusts periodically and his reinforce Pacific period of time? Answer: Decreasing term. A decreasing term palsy has a death benefit that are just periodically and it's written for a specified period of time Question: From what authority derives the requirement than an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an application? Answer: Fair credit reporting act. The fair credit reporting act requires that an insurance application state that an investigative consumer report may be obtained on an applicant Question: A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage at his/her needs change which of the following policies or Best me this need? Answer: Universal life. Universal life is characterized by •flexible premiums• and adjustable death benefit Question: Physician opens up a new practice and qualifies for 7000 a month for disability income policy. What rider with the physician want to add if he wants the ability to increase his policy benefit as his practice in Ankrum grow? Answer: Guaranteed insurability option rider. If a physician wants to ensure he can increase the benefit for his disability policy as his practice and income grow he would want to include a guaranteed insurability option rider. Under a trustee group life policy, who would be a legible for a certificate of coverage Answer: Employee. An employee would be a certificate holder under a trustee group life policy Question: M purchased an accidental death and dismemberment policy and name to sign beneficiary. M has the right to change the beneficiary designated and anytime what type of beneficiary is his son Answer: Revocable Question: G is involved in an automotive accident as a result of driving while intoxicated and suffers numerous injuries. According to the intoxicants and Narcotics exclusion in G's policy, who is responsible for paying the medical bills? Answer: The insured. In this situation the insured is liable for the medical bills Question: The situation in which a group of physicians are salaried employees and conduct businesses in an HMO facility is called a(n) Answer: Closed panel. A close panel is when an HMO is represented by a group of physicians who are salaried employees and work out of the HMOs facility Question: P self-employed and owns an individual disability income policy. He becomes totally disabled June 1 and receives 2000 a month for the next 10 months how much is his income subject to federal income tax? Answer: $0 Disability income benefits that derive from an individual policy which was paid entirely by the policy owner is not subject to federal income tax. Question: The type of annuity that can be purchased with one monetary deposit is called Answer: Immediate annuity. •An immediate annuity is purchased with one monetary deposit• Question: A correct statement about the regulatory authority of the commissioner with respect to insurance producers is that the commissioner may Answer: establish guidelines for continuing education as a part of the producer license renewal procedure Question: T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if he dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of 20 years. What type of annuity is this? Answer: Life annuity with period Certain. This situation involves a life annuity with period certain If a producer determined that the sale of a Medicare supplement policy involves replacement, the producer must take all of the following actions, except Answer: Notify the replaced insurance company. The replacing insure must submit a written replacement notice to the replacing insurance company Question: Can you please for a life insurance policy on herself and submits the initial premium with the application. She is giving a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used Answer: Conditional. a conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into affect Question: Companies in North Carolina may transact solicitations for insurance ONLY through Answer: License producers. Companies in North Carolina may transact solicitations for insurance only through license producers Question: As an assignment of benefits of a health policy Answer: Transfer his payments to someone other than the policy owner. An assignment of benefits of a health policy transfers payments to someone other than the policy owner Question: Under the ACA or affordable care act which of the following is not considered an essential health benefit Answer: Cosmetic surgery. Question: What is the underlying concept regarding level premiums? Answer: The early years are charged more than what is needed Question: An individual has a major medical policy with a $5000 deductible and an 8020 coinsurance clause. How much will the insured have to pay for total of $15,000 in covered medical expenses is incurred? Answer: $7000. $500 deductible +20% (2000) equals 7K Question: Tía is receiving $3000 a month from a disability income policy and wished his employer had paid the premiums. How are the $3000 benefit payments taxable Answer: Benefits are taxable to T. When a disability income insurance plan is paid for entirely by an employer the premiums are deductible to the employer. The benefits in turn are taxable to the recipient Question: Bryce purchased a disability income policy with a writer that guarantees him the option of purchasing additional amount of coverage at predetermined times without required to provide evidence of insurability what kind of riders this? Answer: Guaranteed insurability writer. A guaranteed insurability writer guarantees the insure the option of purchasing additional amounts of disability income coverage a predetermined times without requiring the insured to provide evidence of insurability. Question: An agent who sells an individual life insurance policy in Nevada must deliver to the policy owner Answer: A policy summary and buyers guide. An agent who sells an individual life insurance policy in Nevada must deliver to the policy owner a policy summary and buyers guide. Question: If it's employees share the cost of insurance, what type of group life insurance plan with a corporation have? Answer: Contributory. Employees share the premium cost with contributory plans. Question: The following actions are considered rebating except Answer: Sharing commissions with other license and appointed agents Question: In Nevada most insurance policies have a contestability period of Answer: Two years. The maximum contestability. For most insurance policies is two years. Question: What is the elimination period of an individual disability policy? Answer: Time period •a disabled person must wait before benefits are paid•. The elimination period of an individual disability insurance policy refers to the amount of time a disabled person must wait before benefits are paid.