Nevada Life and Health License Exam Prep 329 Questions
with Verified Answers
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
with Verified Answers
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
