NEVADA LIFE AND HEALTH LICENSE EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS|LATEST 2025
What are the four required elements of an insurance contract? -CORRECT ANSWER-
Agreement, consideration, competent parties, and legal purpose.
What two parts make up a life insurance application? -CORRECT ANSWER-General
Information and the Medical Information. An agent's report can go in a life insurance
application but is not included in the life insurance policy.
When must insurable interest exist in life insurance? -CORRECT ANSWER-At the time of
application.
When does coverage begin, if the premium was submitted with the application, and the
policy was issued two weeks later? -CORRECT ANSWER-At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial that
change? -CORRECT ANSWER-The applicant.
Insurers may change what on a guaranteed renewable health insurance polity? -CORRECT
ANSWER-The rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes
without being penalized? -CORRECT ANSWER-At age 65.
,Which provision states how much time must pass between two like illnesses in order for the
second one to be covered under a new set of benefits? -CORRECT ANSWER-Recurrent
Disability Provision
In forming an insurance contract, when does acceptance occur? -CORRECT ANSWER-When
an insurer's underwriter approves coverage
What is an important feature of a dental expense insurance plan that is not found in a
medical expense insurance plan? -CORRECT ANSWER-Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance? -
CORRECT ANSWER-The insured is not required to pay a deductible
Occasional visits by what medical professionals will not be covered under Long-Term Care's
home health care? -CORRECT ANSWER-Attending physicians
Can an individual who belongs to a POS plan use an out-of-network physician? -CORRECT
ANSWER-Yes, they can use any physician even if not part of the HMO
What is the advantage of reinstating a policy instead of applying for a new one? -CORRECT
ANSWER-The original age is used for premium determination
What would basic medical expense coverage not cover? -CORRECT ANSWER-Surgeon's
services
What is not provided by an HMO? -CORRECT ANSWER-Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance policy
on a child where the parent is the policyowner? -CORRECT ANSWER-Third-party ownership
,What is not true about dividends? -CORRECT ANSWER-Dividend amounts are guaranteed in
the policy
What is not true about Accidental Death and Dismemberment? -CORRECT ANSWER-Death
benefits are paid only if death occurs within 24 hours of an accident
When would a 20-pay whole life policy endow? -CORRECT ANSWER-When the insured
reaches age 100
What section of a health policy that states the causes of eligible loss under which an
insurance is assumed to be disabled? -CORRECT ANSWER-Insuring Clause
The insurance clause of a disability policy usually states what except? -CORRECT ANSWER-
The method of premium payment
What best describes annually renewable term insurance? -CORRECT ANSWER-It is level term
insurance
What best describes an annuity period? -CORRECT ANSWER-Period of time during which
accumulated money is converted into income payments
What is an eligibility requirement for all Social Security Disability Income benefits? -CORRECT
ANSWER-Have attained fully insured status
What protects the insured from unintentional policy lapse due to a nonpayment of
premium? -CORRECT ANSWER-Automatic premium loan
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association
be obligated to pay with respect to life insurance death benefits for one life? -CORRECT
ANSWER-$300,000
, What is the penalty for transacting insurance without a proper license? -CORRECT ANSWER-
$1,000 for each violation
What type of misrepresentation persuades an insured to cancel, lapse, or switch policies
from one to another? -CORRECT ANSWER-Twisting
The patient protection and affordable care act includes what except? -CORRECT ANSWER-
Individual tax deduction for premiums paid
What entity determines if an advertisement is deceptive of confusing? -CORRECT ANSWER-
The Commissioner
How many days does a nonresident procedure have to file a change of address when the
agent moves to Nevada from another state? -CORRECT ANSWER-30 days
What is not considered a misrepresentation? -CORRECT ANSWER-Making comparisons
between different policies
A producer who has allowed their license to lapse may reinstate the license without retaking
the examination within what maximum time period? -CORRECT ANSWER-12 months or 1
year
Who is a person, other than a viator, that enters into a viatical settlement? -CORRECT
ANSWER-Viatical Settlement Provider
How many days after cancellation of a license in another state does a new resident agent
have to apply for Nevada producer license without having to fulfill licensing examination and
education requirements? -CORRECT ANSWER-90 days
What are the three basic types of term life insurance? -CORRECT ANSWER-The three basic
types of term life insurance are level, increasing, and decreasing.
ANSWERS|LATEST 2025
What are the four required elements of an insurance contract? -CORRECT ANSWER-
Agreement, consideration, competent parties, and legal purpose.
What two parts make up a life insurance application? -CORRECT ANSWER-General
Information and the Medical Information. An agent's report can go in a life insurance
application but is not included in the life insurance policy.
When must insurable interest exist in life insurance? -CORRECT ANSWER-At the time of
application.
When does coverage begin, if the premium was submitted with the application, and the
policy was issued two weeks later? -CORRECT ANSWER-At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial that
change? -CORRECT ANSWER-The applicant.
Insurers may change what on a guaranteed renewable health insurance polity? -CORRECT
ANSWER-The rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes
without being penalized? -CORRECT ANSWER-At age 65.
,Which provision states how much time must pass between two like illnesses in order for the
second one to be covered under a new set of benefits? -CORRECT ANSWER-Recurrent
Disability Provision
In forming an insurance contract, when does acceptance occur? -CORRECT ANSWER-When
an insurer's underwriter approves coverage
What is an important feature of a dental expense insurance plan that is not found in a
medical expense insurance plan? -CORRECT ANSWER-Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance? -
CORRECT ANSWER-The insured is not required to pay a deductible
Occasional visits by what medical professionals will not be covered under Long-Term Care's
home health care? -CORRECT ANSWER-Attending physicians
Can an individual who belongs to a POS plan use an out-of-network physician? -CORRECT
ANSWER-Yes, they can use any physician even if not part of the HMO
What is the advantage of reinstating a policy instead of applying for a new one? -CORRECT
ANSWER-The original age is used for premium determination
What would basic medical expense coverage not cover? -CORRECT ANSWER-Surgeon's
services
What is not provided by an HMO? -CORRECT ANSWER-Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance policy
on a child where the parent is the policyowner? -CORRECT ANSWER-Third-party ownership
,What is not true about dividends? -CORRECT ANSWER-Dividend amounts are guaranteed in
the policy
What is not true about Accidental Death and Dismemberment? -CORRECT ANSWER-Death
benefits are paid only if death occurs within 24 hours of an accident
When would a 20-pay whole life policy endow? -CORRECT ANSWER-When the insured
reaches age 100
What section of a health policy that states the causes of eligible loss under which an
insurance is assumed to be disabled? -CORRECT ANSWER-Insuring Clause
The insurance clause of a disability policy usually states what except? -CORRECT ANSWER-
The method of premium payment
What best describes annually renewable term insurance? -CORRECT ANSWER-It is level term
insurance
What best describes an annuity period? -CORRECT ANSWER-Period of time during which
accumulated money is converted into income payments
What is an eligibility requirement for all Social Security Disability Income benefits? -CORRECT
ANSWER-Have attained fully insured status
What protects the insured from unintentional policy lapse due to a nonpayment of
premium? -CORRECT ANSWER-Automatic premium loan
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association
be obligated to pay with respect to life insurance death benefits for one life? -CORRECT
ANSWER-$300,000
, What is the penalty for transacting insurance without a proper license? -CORRECT ANSWER-
$1,000 for each violation
What type of misrepresentation persuades an insured to cancel, lapse, or switch policies
from one to another? -CORRECT ANSWER-Twisting
The patient protection and affordable care act includes what except? -CORRECT ANSWER-
Individual tax deduction for premiums paid
What entity determines if an advertisement is deceptive of confusing? -CORRECT ANSWER-
The Commissioner
How many days does a nonresident procedure have to file a change of address when the
agent moves to Nevada from another state? -CORRECT ANSWER-30 days
What is not considered a misrepresentation? -CORRECT ANSWER-Making comparisons
between different policies
A producer who has allowed their license to lapse may reinstate the license without retaking
the examination within what maximum time period? -CORRECT ANSWER-12 months or 1
year
Who is a person, other than a viator, that enters into a viatical settlement? -CORRECT
ANSWER-Viatical Settlement Provider
How many days after cancellation of a license in another state does a new resident agent
have to apply for Nevada producer license without having to fulfill licensing examination and
education requirements? -CORRECT ANSWER-90 days
What are the three basic types of term life insurance? -CORRECT ANSWER-The three basic
types of term life insurance are level, increasing, and decreasing.
