Nevada Life and Health License Exam Prep Questions verified with correct
answers 2026/2027 pdf
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.
When would a whole life insurance policy mature? -correct answer >>>The whole life
insurance policy matures when the insured dies or turns 100.
Who is an annuitant? -correct answer >>>The annuitant is the person on whose life
expectancy the annuity is written and who receives benefits from the annuity.
What constitutes the entire contract? -correct answer >>>The entire contract constitutes
the policy, a copy of application, and any riders or amendments.
Which rider allows an insured to purchase additional coverage without evidence of
insurability? -correct answer >>>The Guaranteed Insurability Rider allows an insured to
purchase additional coverage without evidence of insurability.
What are the three nonforfeiture options? -correct answer >>>The three nonforfeiture
options are reduced paid-up, extended term, and cash surrender value.
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
In group life insurance, who receives the master contract? -correct answer >>>The
employer receives the master contract in group life insurance.
answers 2026/2027 pdf
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.
When would a whole life insurance policy mature? -correct answer >>>The whole life
insurance policy matures when the insured dies or turns 100.
Who is an annuitant? -correct answer >>>The annuitant is the person on whose life
expectancy the annuity is written and who receives benefits from the annuity.
What constitutes the entire contract? -correct answer >>>The entire contract constitutes
the policy, a copy of application, and any riders or amendments.
Which rider allows an insured to purchase additional coverage without evidence of
insurability? -correct answer >>>The Guaranteed Insurability Rider allows an insured to
purchase additional coverage without evidence of insurability.
What are the three nonforfeiture options? -correct answer >>>The three nonforfeiture
options are reduced paid-up, extended term, and cash surrender value.
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
In group life insurance, who receives the master contract? -correct answer >>>The
employer receives the master contract in group life insurance.
