Life Insurance Exam Questions and
Answers- Nevada
Changing a beneficiary is a right reserved for the:
A. contract owner
B. insured who is other than the owner
C. owner's spouse
D. estate - Answer-contact owner
An Immediate annuity can be recognized by which of the following features?
A. Payout begins one payment period after purchase.
B. Payout begins several years later.
C. Only an annual payout period will apply.
D. The annuitant must be in good health. - Answer-Payout begins one payment period after purchase
If an initial premium is not collected when a life insurance application is written, the insurance becomes
effective:
,A. after the medical examination is completed
B. after it is approved by the insurer's underwriters
C. on delivery of the policy to the insured and payment of the initial premium to the producer
D. on delivery of the policy to the insured and receipt of the initial premium in the home office -
Answer-on delivery of the policy to the insured and payment of the initial premium to the producer
An insurer accepting an incomplete application and issuing a policy is obligated to:
A. Honor the contract
B. complete the application within the Contestable Period
C. return only the premiums paid, with interest, on the insured's death
D. charge a lower premium for the initial period of coverage - Answer-Honor the contract
Which of the following statements is CORRECT about a Limited-Pay Whole Life policy?
A. The policyholder has the right to adjust the premium.
B. Premium payments must be made for a specified number of years, after which the policy lapses.
C. The premium payment period is shorter than for a Straight Life policy, and more of each premium
payment is credited to the policy's cash value.
D. The policy provides insurance protection for a shorter period of time than a Straight Life policy. -
Answer-The premium payment period is shorter than for a Straight Life policy, and more of each
premium payment is credited to the policy's cash value.
The USA PATRIOT Act is primarily designed to:
A. detect criminal activity
B. encourage patriotism among producers
C. require a licensed producer to swear to uphold the Constitution
D. authorize insurance companies to order credit checks on their producers - Answer-detect criminal
activity
, What is TRUE about life settlements?
A. They are the same as Accelerated Death Benefits.
B. Any insured is eligible to enter into one.
C. They involve a change of owner and beneficiary.
D. Only terminally ill insureds can consider one. - Answer-They involve a change of owner and
beneficiary.
Which of the following items requires that an insurance application state that an investigative consumer
report may be obtained on a prospective insured?
A. Fair Credit Reporting Act
B. Entire Contract provision
C. Individual Standard Provision law
D. Medical Information Bureau (MIB) authorization - Answer-Fair Credit Reporting Act
Two equal partners in a business worth $100,000 enter into a Buy and Sell Agreement. The BEST funding
arrangement is:
A. The partnership purchases a $100,000 policy on each partner.
B. Both partners purchase $50,000 policies on each partner.
C. Each partner purchases a $50,000 policy on themselves.
D. Each partner purchases a $100,000 policy on the other. - Answer-Each partner purchases a $100,000
policy on the other.
Which of the following is TRUE of conversion of group Term Life insurance on termination of
employment?
A. Evidence of insurability is required.
B. Premiums on a new policy must be paid within a maximum of ten days.
Answers- Nevada
Changing a beneficiary is a right reserved for the:
A. contract owner
B. insured who is other than the owner
C. owner's spouse
D. estate - Answer-contact owner
An Immediate annuity can be recognized by which of the following features?
A. Payout begins one payment period after purchase.
B. Payout begins several years later.
C. Only an annual payout period will apply.
D. The annuitant must be in good health. - Answer-Payout begins one payment period after purchase
If an initial premium is not collected when a life insurance application is written, the insurance becomes
effective:
,A. after the medical examination is completed
B. after it is approved by the insurer's underwriters
C. on delivery of the policy to the insured and payment of the initial premium to the producer
D. on delivery of the policy to the insured and receipt of the initial premium in the home office -
Answer-on delivery of the policy to the insured and payment of the initial premium to the producer
An insurer accepting an incomplete application and issuing a policy is obligated to:
A. Honor the contract
B. complete the application within the Contestable Period
C. return only the premiums paid, with interest, on the insured's death
D. charge a lower premium for the initial period of coverage - Answer-Honor the contract
Which of the following statements is CORRECT about a Limited-Pay Whole Life policy?
A. The policyholder has the right to adjust the premium.
B. Premium payments must be made for a specified number of years, after which the policy lapses.
C. The premium payment period is shorter than for a Straight Life policy, and more of each premium
payment is credited to the policy's cash value.
D. The policy provides insurance protection for a shorter period of time than a Straight Life policy. -
Answer-The premium payment period is shorter than for a Straight Life policy, and more of each
premium payment is credited to the policy's cash value.
The USA PATRIOT Act is primarily designed to:
A. detect criminal activity
B. encourage patriotism among producers
C. require a licensed producer to swear to uphold the Constitution
D. authorize insurance companies to order credit checks on their producers - Answer-detect criminal
activity
, What is TRUE about life settlements?
A. They are the same as Accelerated Death Benefits.
B. Any insured is eligible to enter into one.
C. They involve a change of owner and beneficiary.
D. Only terminally ill insureds can consider one. - Answer-They involve a change of owner and
beneficiary.
Which of the following items requires that an insurance application state that an investigative consumer
report may be obtained on a prospective insured?
A. Fair Credit Reporting Act
B. Entire Contract provision
C. Individual Standard Provision law
D. Medical Information Bureau (MIB) authorization - Answer-Fair Credit Reporting Act
Two equal partners in a business worth $100,000 enter into a Buy and Sell Agreement. The BEST funding
arrangement is:
A. The partnership purchases a $100,000 policy on each partner.
B. Both partners purchase $50,000 policies on each partner.
C. Each partner purchases a $50,000 policy on themselves.
D. Each partner purchases a $100,000 policy on the other. - Answer-Each partner purchases a $100,000
policy on the other.
Which of the following is TRUE of conversion of group Term Life insurance on termination of
employment?
A. Evidence of insurability is required.
B. Premiums on a new policy must be paid within a maximum of ten days.
