NEVADA LIFE AND HEALTH LICENSE
EXAM PREP QUESTIONS AND
CORRECT ANSWERS
What are the four required elements of an insurance contract? - ans-
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Agreement, consideration, competent parties, and legal purpose. rr rr rr rr rr rr
What two parts make up a life insurance application? - ans-
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General Information and the Medical Information. An agent's report can go in a life insura
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nce application but is not included in the life insurance policy.
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When must insurable interest exist in life insurance? - ans-At the time of application.
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When does coverage begin, if the premium was submitted with the application, and the p
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olicy was issued two weeks later? - ans-At the time of the application.
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If an agent makes a mistake on the application and then corrects it, who must initial that c
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hange? - ans-The applicant. rr rr rr
Insurers may change what on a guaranteed renewable health insurance polity? - ans-
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The rates by class. rr rr rr
At what age may an individual make withdrawals from an HSA for nonhealth purposes wit
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hout being penalized? - ans-At age 65.
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Which provision states how much time must pass between two like illnesses in order for t
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he second one to be covered under a new set of benefits? - ans-
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Recurrent Disability Provision rr rr
In forming an insurance contract, when does acceptance occur? - ans-
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When an insurer's underwriter approves coverage
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What is an important feature of a dental expense insurance plan that is not found in a med
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ical expense insurance plan? - ans-Diagnostic and preventive care
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What best describes the "first-dollar coverage" principle in basic medical insurance? -
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ans-The insured is not required to pay a deductible
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,Occasional visits by what medical professionals will not be covered under Long-
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Term Care's home health care? - ans-Attending physicians
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Can an individual who belongs to a POS plan use an out-of-network physician? - ans-
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Yes, they can use any physician even if not part of the HMO
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What is the advantage of reinstating a policy instead of applying for a new one? - ans-
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The original age is used for premium determination
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What would basic medical expense coverage not cover? - ans-Surgeon's services
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What is not provided by an HMO? - ans-Reimbursement
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What insurance arrangements will be appropriate for a parent buying a life insurance poli
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cy on a child where the parent is the policyowner? - ans-Third-party ownership
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What is not true about dividends? - ans-Dividend amounts are guaranteed in the policy
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What is not true about Accidental Death and Dismemberment? - ans-
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Death benefits are paid only if death occurs within 24 hours of an accident
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When would a 20-pay whole life policy endow? - ans-When the insured reaches age 100
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What section of a health policy that states the causes of eligible loss under which an insur
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ance is assumed to be disabled? - ans-Insuring Clause
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The insurance clause of a disability policy usually states what except? - ans-
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The method of premium payment
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What best describes annually renewable term insurance? - ans-It is level term insurance
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What best describes an annuity period? - ans-
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Period of time during which accumulated money is converted into income payments
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What is an eligibility requirement for all Social Security Disability Income benefits? - ans-
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Have attained fully insured status
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What protects the insured from unintentional policy lapse due to a nonpayment of premiu
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m? - ans-Automatic premium loan
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What is the maximum amount that the Nevada Life & Health Insurance Guaranty Associat
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ion be obligated to pay with respect to life insurance death benefits for one life? - ans-
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$300,000
What is the penalty for transacting insurance without a proper license? - ans-
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$1,000 for each violation rr rr rr
, What type of misrepresentation persuades an insured to cancel, lapse, or switch policies f
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rom one to another? - ans-Twisting
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The patient protection and affordable care act includes what except? - ans-
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Individual tax deduction for premiums paid rr rr rr rr rr
What entity determines if an advertisement is deceptive of confusing? - ans-
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The Commissionerrr
How many days does a nonresident procedure have to file a change of address when the
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agent moves to Nevada from another state? - ans-30 days
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What is not considered a misrepresentation? - ans-
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Making comparisons between different policies
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A producer who has allowed their license to lapse may reinstate the license without retaki
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ng the examination within what maximum time period? - ans-12 months or 1 year
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Who is a person, other than a viator, that enters into a viatical settlement? - ans-
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Viatical Settlement Provider rr rr
How many days after cancellation of a license in another state does a new resident agent
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have to apply for Nevada producer license without having to fulfill licensing examination a
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nd education requirements? - ans-90 days
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What are the three basic types of term life insurance? - ans-
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The three basic types of term life insurance are level, increasing, and decreasing.
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When would a whole life insurance policy mature? - ans-
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The whole life insurance policy matures when the insured dies or turns 100.
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Who is an annuitant? - ans-
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The annuitant is the person on whose life expectancy the annuity is written and who recei
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ves benefits from the annuity.
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What constitutes the entire contract? - ans-
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The entire contract constitutes the policy, a copy of application, and any riders or amend
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ments.
Which rider allows an insured to purchase additional coverage without evidence of insura
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bility? - ans- rr rr
The Guaranteed Insurability Rider allows an insured to purchase additional coverage with
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out evidence of insurability.
rr rr rr
EXAM PREP QUESTIONS AND
CORRECT ANSWERS
What are the four required elements of an insurance contract? - ans-
rr rr rr rr rr rr rr rr rr rr rr
Agreement, consideration, competent parties, and legal purpose. rr rr rr rr rr rr
What two parts make up a life insurance application? - ans-
rr rr rr rr rr rr rr rr rr rr
General Information and the Medical Information. An agent's report can go in a life insura
rr rr rr rr rr rr rr rr rr rr rr rr rr rr
nce application but is not included in the life insurance policy.
rr rr rr rr rr rr rr rr rr rr
When must insurable interest exist in life insurance? - ans-At the time of application.
rr rr rr rr rr rr rr rr rr rr rr rr rr
When does coverage begin, if the premium was submitted with the application, and the p
rr rr rr rr rr rr rr rr rr rr rr rr rr rr
olicy was issued two weeks later? - ans-At the time of the application.
rr rr rr rr rr rr rr rr rr rr rr rr
If an agent makes a mistake on the application and then corrects it, who must initial that c
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
hange? - ans-The applicant. rr rr rr
Insurers may change what on a guaranteed renewable health insurance polity? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr
The rates by class. rr rr rr
At what age may an individual make withdrawals from an HSA for nonhealth purposes wit
rr rr rr rr rr rr rr rr rr rr rr rr rr rr
hout being penalized? - ans-At age 65.
rr rr rr rr rr rr
Which provision states how much time must pass between two like illnesses in order for t
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
he second one to be covered under a new set of benefits? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr rr
Recurrent Disability Provision rr rr
In forming an insurance contract, when does acceptance occur? - ans-
rr rr rr rr rr rr rr rr rr rr
When an insurer's underwriter approves coverage
rr rr rr rr rr
What is an important feature of a dental expense insurance plan that is not found in a med
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
ical expense insurance plan? - ans-Diagnostic and preventive care
rr rr rr rr rr rr rr rr
What best describes the "first-dollar coverage" principle in basic medical insurance? -
rr rr rr rr rr rr rr rr rr rr rr
ans-The insured is not required to pay a deductible
rr rr rr rr rr rr rr rr rr
,Occasional visits by what medical professionals will not be covered under Long-
rr rr rr rr rr rr rr rr rr rr rr
Term Care's home health care? - ans-Attending physicians
rr rr rr rr rr rr rr
Can an individual who belongs to a POS plan use an out-of-network physician? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr rr rr
Yes, they can use any physician even if not part of the HMO
rr rr rr rr rr rr rr rr rr rr rr rr
What is the advantage of reinstating a policy instead of applying for a new one? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
The original age is used for premium determination
rr rr rr rr rr rr rr
What would basic medical expense coverage not cover? - ans-Surgeon's services
rr rr rr rr rr rr rr rr rr rr
What is not provided by an HMO? - ans-Reimbursement
rr rr rr rr rr rr rr rr
What insurance arrangements will be appropriate for a parent buying a life insurance poli
rr rr rr rr rr rr rr rr rr rr rr rr rr
cy on a child where the parent is the policyowner? - ans-Third-party ownership
rr rr rr rr rr rr rr rr rr rr rr rr
What is not true about dividends? - ans-Dividend amounts are guaranteed in the policy
rr rr rr rr rr rr rr rr rr rr rr rr rr
What is not true about Accidental Death and Dismemberment? - ans-
rr rr rr rr rr rr rr rr rr rr
Death benefits are paid only if death occurs within 24 hours of an accident
rr rr rr rr rr rr rr rr rr rr rr rr rr
When would a 20-pay whole life policy endow? - ans-When the insured reaches age 100
rr rr rr rr rr rr rr rr rr rr rr rr rr rr
What section of a health policy that states the causes of eligible loss under which an insur
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
ance is assumed to be disabled? - ans-Insuring Clause
rr rr rr rr rr rr rr rr
The insurance clause of a disability policy usually states what except? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr
The method of premium payment
rr rr rr rr
What best describes annually renewable term insurance? - ans-It is level term insurance
rr rr rr rr rr rr rr rr rr rr rr rr
What best describes an annuity period? - ans-
rr rr rr rr rr rr rr
Period of time during which accumulated money is converted into income payments
rr rr rr rr rr rr rr rr rr rr rr
What is an eligibility requirement for all Social Security Disability Income benefits? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr rr
Have attained fully insured status
rr rr rr rr
What protects the insured from unintentional policy lapse due to a nonpayment of premiu
rr rr rr rr rr rr rr rr rr rr rr rr rr
m? - ans-Automatic premium loan
rr rr rr rr
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Associat
rr rr rr rr rr rr rr rr rr rr rr rr rr
ion be obligated to pay with respect to life insurance death benefits for one life? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
$300,000
What is the penalty for transacting insurance without a proper license? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr
$1,000 for each violation rr rr rr
, What type of misrepresentation persuades an insured to cancel, lapse, or switch policies f
rr rr rr rr rr rr rr rr rr rr rr rr rr
rom one to another? - ans-Twisting
rr rr rr rr rr
The patient protection and affordable care act includes what except? - ans-
rr rr rr rr rr rr rr rr rr rr rr
Individual tax deduction for premiums paid rr rr rr rr rr
What entity determines if an advertisement is deceptive of confusing? - ans-
rr rr rr rr rr rr rr rr rr rr rr
The Commissionerrr
How many days does a nonresident procedure have to file a change of address when the
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
agent moves to Nevada from another state? - ans-30 days
rr rr rr rr rr rr rr rr rr
What is not considered a misrepresentation? - ans-
rr rr rr rr rr rr rr
Making comparisons between different policies
rr rr rr rr
A producer who has allowed their license to lapse may reinstate the license without retaki
rr rr rr rr rr rr rr rr rr rr rr rr rr rr
ng the examination within what maximum time period? - ans-12 months or 1 year
rr rr rr rr rr rr rr rr rr rr rr rr rr
Who is a person, other than a viator, that enters into a viatical settlement? - ans-
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
Viatical Settlement Provider rr rr
How many days after cancellation of a license in another state does a new resident agent
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
have to apply for Nevada producer license without having to fulfill licensing examination a
rr rr rr rr rr rr rr rr rr rr rr rr rr
nd education requirements? - ans-90 days
rr rr rr rr rr
What are the three basic types of term life insurance? - ans-
rr rr rr rr rr rr rr rr rr rr rr
The three basic types of term life insurance are level, increasing, and decreasing.
rr rr rr rr rr rr rr rr rr rr rr rr
When would a whole life insurance policy mature? - ans-
rr rr rr rr rr rr rr rr rr
The whole life insurance policy matures when the insured dies or turns 100.
rr rr rr rr rr rr rr rr rr rr rr rr
Who is an annuitant? - ans-
rr rr rr rr rr
The annuitant is the person on whose life expectancy the annuity is written and who recei
rr rr rr rr rr rr rr rr rr rr rr rr rr rr rr
ves benefits from the annuity.
rr rr rr rr
What constitutes the entire contract? - ans-
rr rr rr rr rr rr
The entire contract constitutes the policy, a copy of application, and any riders or amend
rr rr rr rr rr rr rr rr rr rr rr rr rr rr
ments.
Which rider allows an insured to purchase additional coverage without evidence of insura
rr rr rr rr rr rr rr rr rr rr rr rr
bility? - ans- rr rr
The Guaranteed Insurability Rider allows an insured to purchase additional coverage with
rr rr rr rr rr rr rr rr rr rr rr
out evidence of insurability.
rr rr rr
