Nevada Life and Health License Exam Prep Questions 100%
CORRECT AND VERIFIED VERSION
What are the four required elements of an insurance contract? -(ANSWER) Agreement,
consideration, competent parties, and legal purpose.
What two parts make up a life insurance application? -(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? -(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? -(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?
-(ANSWER) The applicant.
Insurers may change what on a guaranteed renewable health insurance policy? -(ANSWER) The
rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes without
being penalized? -(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? -(ANSWER) Recurrent Disability
Provision
In forming an insurance contract, when does acceptance occur? -(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? -(ANSWER) Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance? -
(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? -(ANSWER) Attending physicians
Can an individual who belongs to a POS plan use an out-of-network physician? -(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? -(ANSWER)
The original age is used for premium determination
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,What would basic medical expense coverage not cover? -(ANSWER) Surgeon's services
What is not provided by an HMO? -(ANSWER) Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance policy on a
child where the parent is the policy owner? -(ANSWER) Third-party ownership
What is not true about dividends? -(ANSWER) Dividend amounts are guaranteed in the policy
What is not true about Accidental Death and Dismemberment? -(ANSWER) Death benefits are
paid only if death occurs within 24 hours of an accident
When would a 20-pay whole life policy endow? -(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? -(ANSWER) Insuring Clause
The insurance clause of a disability policy usually states what except? -(ANSWER) The method
of premium payment
What best describes annually renewable term insurance? -(ANSWER) It is level term insurance
What best describes an annuity period? -(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? -
(ANSWER) Have attained fully insured status
What protects the insured from unintentional policy lapse due to a nonpayment of premium? -
(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? -(ANSWER) $300,000
What is the penalty for transacting insurance without a proper license? -(ANSWER) $1,000 for
each violation
What type of misrepresentation persuades an insured to cancel, lapse, or switch policies from one
to another? -(ANSWER) Twisting
The patient protection and affordable care act includes what except? -(ANSWER) Individual tax
deduction for premiums paid
What entity determines if an advertisement is deceptive of confusing? -(ANSWER) The
Commissioner
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, How many days does a nonresident procedure have to file a change of address when the agent
moves to Nevada from another state? -(ANSWER) 30 days
What is not considered a misrepresentation? -(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? -(ANSWER) 12 months or 1 year
Who is a person, other than a viator, that enters into a viatical settlement? -(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? -(ANSWER) 90 days
What are the three basic types of term life insurance? -(ANSWER) The three basic types of term
life insurance are level, increasing, and decreasing.
When would a whole life insurance policy mature? -(ANSWER) The whole life insurance policy
matures when the insured dies or turns 100.
Who is an annuitant? -(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? -(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?
-(ANSWER) The Guaranteed Insurability Rider allows an insured to purchase additional
coverage without evidence of insurability.
What are the three nonforfeiture options? -(ANSWER) The three nonforfeiture options are
reduced paid-up, extended term, and cash surrender value.
In group life insurance, who receives the master contract? -(ANSWER) The employer receives
the master contract in group life insurance.
What are some examples of qualified retirement plans? -(ANSWER) Traditional IRA, Roth IRA,
SIMPLE, SEP, and 401(k)
When would life insurance death benefits be tax free? -(ANSWER) If paid as a lump sum to the
beneficiary
What do individuals use to transfer their risk of loss to a larger group? -(ANSWER) Insurance
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CORRECT AND VERIFIED VERSION
What are the four required elements of an insurance contract? -(ANSWER) Agreement,
consideration, competent parties, and legal purpose.
What two parts make up a life insurance application? -(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? -(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? -(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?
-(ANSWER) The applicant.
Insurers may change what on a guaranteed renewable health insurance policy? -(ANSWER) The
rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes without
being penalized? -(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? -(ANSWER) Recurrent Disability
Provision
In forming an insurance contract, when does acceptance occur? -(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? -(ANSWER) Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance? -
(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? -(ANSWER) Attending physicians
Can an individual who belongs to a POS plan use an out-of-network physician? -(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? -(ANSWER)
The original age is used for premium determination
Page | 1
,What would basic medical expense coverage not cover? -(ANSWER) Surgeon's services
What is not provided by an HMO? -(ANSWER) Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance policy on a
child where the parent is the policy owner? -(ANSWER) Third-party ownership
What is not true about dividends? -(ANSWER) Dividend amounts are guaranteed in the policy
What is not true about Accidental Death and Dismemberment? -(ANSWER) Death benefits are
paid only if death occurs within 24 hours of an accident
When would a 20-pay whole life policy endow? -(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? -(ANSWER) Insuring Clause
The insurance clause of a disability policy usually states what except? -(ANSWER) The method
of premium payment
What best describes annually renewable term insurance? -(ANSWER) It is level term insurance
What best describes an annuity period? -(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? -
(ANSWER) Have attained fully insured status
What protects the insured from unintentional policy lapse due to a nonpayment of premium? -
(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? -(ANSWER) $300,000
What is the penalty for transacting insurance without a proper license? -(ANSWER) $1,000 for
each violation
What type of misrepresentation persuades an insured to cancel, lapse, or switch policies from one
to another? -(ANSWER) Twisting
The patient protection and affordable care act includes what except? -(ANSWER) Individual tax
deduction for premiums paid
What entity determines if an advertisement is deceptive of confusing? -(ANSWER) The
Commissioner
Page | 2
, How many days does a nonresident procedure have to file a change of address when the agent
moves to Nevada from another state? -(ANSWER) 30 days
What is not considered a misrepresentation? -(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? -(ANSWER) 12 months or 1 year
Who is a person, other than a viator, that enters into a viatical settlement? -(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? -(ANSWER) 90 days
What are the three basic types of term life insurance? -(ANSWER) The three basic types of term
life insurance are level, increasing, and decreasing.
When would a whole life insurance policy mature? -(ANSWER) The whole life insurance policy
matures when the insured dies or turns 100.
Who is an annuitant? -(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? -(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?
-(ANSWER) The Guaranteed Insurability Rider allows an insured to purchase additional
coverage without evidence of insurability.
What are the three nonforfeiture options? -(ANSWER) The three nonforfeiture options are
reduced paid-up, extended term, and cash surrender value.
In group life insurance, who receives the master contract? -(ANSWER) The employer receives
the master contract in group life insurance.
What are some examples of qualified retirement plans? -(ANSWER) Traditional IRA, Roth IRA,
SIMPLE, SEP, and 401(k)
When would life insurance death benefits be tax free? -(ANSWER) If paid as a lump sum to the
beneficiary
What do individuals use to transfer their risk of loss to a larger group? -(ANSWER) Insurance
Page | 3
