Nevada Life and Health License Exam Prep Questions ACCURATE TESTED VERSIONS OF THE EXAM FROM 2025 TO 2025 | ACCURATE AND VERIFIED ANSWERS | NEXT GEN FORMAT | GUARANTEED PASS

1. At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized? o A) At age 55 o B) At age 60 o C) At age 65 o D) At age 70 o Correct answer: C) At age 65 Rationale: Withdrawals from a Health Savings Account (HSA) for non-health purposes are penalty-free once the account holder reaches age 65, though they may still be subject to income tax. 2. 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? o A) Recurrent Disability Provision o B) Pre-existing Conditions Clause o C) Elimination Period o D) Renewal Clause o Correct answer: A) Recurrent Disability Provision Rationale: The Recurrent Disability Provision defines the amount of time that must pass between similar disabilities for a new set of benefits to apply. 3. In forming an insurance contract, when does acceptance occur? o A) When the policyholder signs the application o B) When the insurer's underwriter approves coverage o C) When the premium is paid o D) When the agent collects the first premium o Correct answer: B) When the insurer's underwriter approves coverage Rationale: Acceptance of an insurance contract occurs when the insurer's underwriter approves the coverage, not when the application is signed. 4. What is an important feature of a dental expense insurance plan that is not found in a medical expense insurance plan? o A) Hospitalization coverage o B) Diagnostic and preventive care o C) Coverage for prescription drugs o D) Emergency care coverage o Correct answer: B) Diagnostic and preventive care Rationale: Dental expense insurance plans typically include coverage for diagnostic and preventive care, such as cleanings and exams, which is not typically covered by medical insurance. 5. What best describes the "first-dollar coverage" principle in basic medical insurance? o A) The insured is not required to pay a deductible o B) The insured must meet a high deductible before benefits begin o C) The insured must pay a portion of the costs up to a set limit o D) Benefits begin after the policy’s maximum limit is reached o Correct answer: A) The insured is not required to pay a deductible Rationale: "First-dollar coverage" means that the insured does not have to pay a deductible before the insurance benefits begin. 6. Occasional visits by what medical professionals will not be covered under Long-Term Care's home health care? o A) Attending physicians o B) Nurses o C) Physical therapists o D) Social workers o Correct answer: A) Attending physicians Rationale: Long-term care home health care typically does not cover visits from attending physicians, but it may cover nurses and other healthcare professionals. 7. Can an individual who belongs to a POS plan use an out-of-network physician? o A) No, they must use only in-network physicians o B) Yes, but it will be more expensive o C) Yes, they can use any physician even if not part of the HMO o D) No, the plan only covers in-network services o Correct answer: B) Yes, but it will be more expensive Rationale: In a Point-of-Service (POS) plan, the insured can use an out-of-network physician, but they will generally face higher out-of-pocket costs. 8. What is the advantage of reinstating a policy instead of applying for a new one? o A) The new policy will have lower premiums o B) The original age is used for premium determination o C) The policyholder does not need to go through underwriting again o D) The reinstated policy has a longer grace period o Correct answer: B) The original age is used for premium determination Rationale: Reinstating a policy uses the original age to determine premiums, which can be advantageous as premiums are often higher for older individuals. 9. What would basic medical expense coverage not cover? o A) Surgeon's services o B) Hospital charges o C) Diagnostic tests o D) Prescription drugs o Correct answer: A) Surgeon's services Rationale: Basic medical expense coverage generally does not cover the surgeon's fees, as they may be included under separate or more comprehensive medical plans. 10. What is not provided by an HMO? • A) Reimbursement • B) Preventive care • C) Emergency services • D) Specialist referrals • Correct answer: A) Reimbursement Rationale: Health Maintenance Organizations (HMOs) provide services directly rather than reimbursing for care, which distinguishes them from traditional insurance plans. 11. What insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? • A) Third-party ownership • B) Joint ownership • C) Community property • D) Family coverage • Correct answer: A) Third-party ownership Rationale: In cases where a parent buys life insurance on a child, the parent is considered the third-party policyowner. 12. What is not true about dividends? • A) Dividend amounts are guaranteed in the policy • B) Dividends are typically paid out to policyholders of participating policies • C) Dividends may be used to purchase additional insurance • D) Dividends are not guaranteed but are based on the insurer’s financial performance • Correct answer: A) Dividend amounts are guaranteed in the policy Rationale: Dividends are not guaranteed in life insurance policies; they depend on the insurer’s financial performance. 13. What is not true about Accidental Death and Dismemberment? • A) Death benefits are paid only if death occurs within 24 hours of an accident • B) It provides coverage for accidental deaths and dismemberment • C) It may include a benefit for loss of sight or limb • D) It is often an additional rider to a life insurance policy • Correct answer: A) Death benefits are paid only if death occurs within 24 hours of an accident Rationale: Death benefits for accidental deaths under Accidental Death and Dismemberment policies are typically paid if death occurs within a reasonable period (often longer than 24 hours) after the accident. 14. When would a 20-pay whole life policy endow? • A) When the insured turns age 65 • B) When the insured reaches age 100 • C) When the insured turns 120 • D) When the policyholder dies • Correct answer: B) When the insured reaches age 100 Rationale: A 20-pay whole life policy is designed to be paid up after 20 years, and it typically endows (pays out the face value) when the insured reaches age 100. 15. What section of a health policy states the causes of eligible loss under which an insured is assumed to be disabled? • A) Exclusions Clause • B) Insuring Clause • C) Conditions Clause • D) Benefits Clause • Correct answer: B) Insuring Clause Rationale: The Insuring Clause in a health policy outlines the specific conditions or causes under which an insured is covered for disability benefits