Nevada Life and Health License
Nevada Life and Health License Exam
Prep Questions with Correct Detailed
Answers 2025
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
Nevada Life and Health License
,Nevada Life and Health License
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
Nevada Life and Health License
, Nevada Life and Health License
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.
Nevada Life and Health License
Nevada Life and Health License Exam
Prep Questions with Correct Detailed
Answers 2025
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
Nevada Life and Health License
,Nevada Life and Health License
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
Nevada Life and Health License
, Nevada Life and Health License
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.
Nevada Life and Health License
