Nevada Life and Health
Nevada Life and Health Exam Study
Guide Questions and Answers Top
Graded 2025
in forming an insurance contract, when does acceptance usually occurs ? -Correct
Answer ✔when insurer approves a prepaid application
benefits periods for individually short-term disability policies will usually continue from...
-Correct Answer ✔six months to two years
when an employee covered under a health reimbursment account changes employer,
the HRA ? -Correct Answer ✔stays with the employer
most policies will pay the accident death benefits as long is caused by the accident that
occurs within -Correct Answer ✔90 days
which report will provide the underwriter with the information about a consumer's credit
? -Correct Answer ✔consumers report
what's the initial period of time specified in a disability income policy that must pass after
the policy is in force before a loss can be covered ? -Correct Answer ✔probationary
period
todd has been informed that he has an hernia which requires repair. he researches the
cost and learns his insurance will cover 200 points worth of surgical expenses. each
point represents $10, which it means $2,000 of his surgery be covered by his plan. what
system is todd insurance company is using ? -Correct Answer ✔relative value
a participating insurance policy may.... -Correct Answer ✔pay dividends to policyowners
an agent makes a mistake on the application and then corrects his mistake by
physically entering the necessary information, who must then initial the change ? -
Correct Answer ✔the applicant
HIPPAA or health unsurance portability and accountability act, applies to groups of -
Correct Answer ✔2 or more
which statement is correct concerning the COBRA act of 1985 -Correct Answer ✔it
covers terminated employee's and dependants for up to 36 months after a qualifying
event
Nevada Life and Health
,Nevada Life and Health
a man decides to purchase a $100,000 annually renewable term insurance life policy to
provide additional protection until his children finished college, he discovered that this
policy -Correct Answer ✔required a premium increase at each renewal
when a life insurance policy is cancelled and the insured selected the extended term
nonforfeiture option, the cash value will be used to purchase term insurance that has
the face amount of ? -Correct Answer ✔equal to the original policy, for as long of a
period of time that the cash value will purchase
ron joins the PPO that is provided by his employer. if ron decides to go to a physician
who is not a PPO provider, what would happens ? -Correct Answer ✔the PPO will pay
reduced benefits
if a life insurance develops cash value faster than a seven-paywhole life contract, it's a -
Correct Answer ✔modified endowment contract
an adjustable life policyowner can.... -Correct Answer ✔change the coverage period
what's the purpose of the buyer's guide ? -Correct Answer ✔to allow the consumer to
compare the costs of differents policies
what's the purpose of a disclosure statement in life insurance policies ? -Correct Answer
✔help consumers make more informed decisions
a married couple owns a permanent policy which covers both of their lives and pays the
face amount of the policy upon the death of the first. wich policy is that ? -Correct
Answer ✔joint life policy
the provisions which prevents the insured, from bringing any legal action against the
company for the last 60 days after proof of loss, is known as -Correct Answer ✔legal
actions
regarding the concept of creditable coverage, the number of days of coverage spent
under the group plan, will be used to reduce the 12-month waiting period for pre-existing
conditions coverage, if the employee does not have a break in coverage of more than....
-Correct Answer ✔63 days
which of the following provisions would prevent an insurance company from paying a
reimbursement claim to someone other than the policyowner ? -Correct Answer
✔payment of claims
what is "not" correct about the required provisions of a health insurance policy ? -
Correct Answer ✔that a reinstated policy provides immediate coverage for an illness
Nevada Life and Health
,Nevada Life and Health
the limits of a health reimbursement account are set by.... -Correct Answer ✔the
employer
when a replecement is involved, a replacing insurance company is "not" reponsible
for.... -Correct Answer ✔providing a copy of the important notice regarding replacement
of life insurance to the applicant
an individual has just been diagnosed with a quickly-spreading fatal form of cancer, his
oncologist predicts that he will live for 5 months. he applies for individual life insurance.
what risk classification will he most likely receive ? -Correct Answer ✔declined
a statements concerning Medicare part B says.. -Correct Answer ✔it pays for physician
services, diagnostic test and physical therapy
is a false statement that in a modified endowment contract (MEC).... -Correct Answer
✔the policyowner can receive contributions at any time without been penalized
which rider would not increase the premium for a policyowner ? -Correct Answer
✔impairment rider
what entity has the authority to make changes to an insurance policy ? -Correct Answer
✔insurer's executive officer
is incorrect regarding whole life insurance ... -Correct Answer ✔that the policy loans are
tax-deductible
which rider available in disability income insurance, will provide benefits above the base
policy amount ? -Correct Answer ✔multiple indemnity rider
julie pays for her life insurance annually. until now she has collected an non-taxable
dividend check each year. julie has decided that she would rather use the dividends to
help pay for her next premium, what option would allow her to do this ? -Correct Answer
✔reduction of premium option
an agent tries to sell insurance to an applicant who appears to be confused but is
eventually able to give enough info for the applicationto be completed. after the policy
was issued the agent talked to the insured's family and they explained that the insured
was recovering from a surgery and might have been under the influence of meds at the
time of application. what happen then ? -Correct Answer ✔the policy may be voided if it
can be proven that the applicant was not capable of making a buying decision at the
time of the application
donald purchase a life insurance from company. the agent told him that depending upon
the company's investements and expense factor the cash value could be more or less
Nevada Life and Health
, Nevada Life and Health
than those show in the policy at issue time. donald policy is.. -Correct Answer ✔interest-
sensitive whole life
how long does an insurer have to contest fraudulent misstatements made in a health
insurance application ? -Correct Answer ✔as long as the policy is in force
what is "not" a feature of a non-cancelable policy ? -Correct Answer ✔that the insurer
may terminate the contract only at renewal for certain conditions
what best defines target premium in a universal policy ? -Correct Answer ✔the
recommended amount to keep the policy en force throughout it's lifetime
a license agent in utha want to become a nonresident agent in nevada in the same line
of insurance, considering that all requirements are met, what is more likely to happen ?
-Correct Answer ✔the division will waive education and examination requirements
after a person's employment is terminated, it's possible to obtain individual health
insurance, after loosing the group health coverage provided by the employer, which of
the following is "not" true ? -Correct Answer ✔A) the employee can convert from group
to individual withing 31 days of termination
B)the premium of the individual health policy can be higher than the original policy
*C)by law, the new individual policy must provide the same benefits as the group
insurance policy, that is not true.
what type of individual may act as a producer without a license? -Correct Answer ✔an
insurer company president who is solely responsible for the administration of the
company
on it's advertisement, a company claims that it has funds in its possession that are, in
fact, no available for the payment of losses of claims. the company is guilty of... -Correct
Answer ✔misrepresentation
for the purpose of determining its financial condition, fulfillment of its contractual
obligations and compliance with nevada law, the commissioner will examine affairs of
each insurer as often as deemed necessary. each domestic insurer must be examined
at least -Correct Answer ✔every 5 years
what provides specific information about the products that an insurer is offering and
must be left with a prospective insured at the time of the application ? -Correct Answer
✔policy summary
what type of insurance company is an incorporated insurer without capital stock or
shares ? -Correct Answer ✔mutual insurer
Nevada Life and Health
Nevada Life and Health Exam Study
Guide Questions and Answers Top
Graded 2025
in forming an insurance contract, when does acceptance usually occurs ? -Correct
Answer ✔when insurer approves a prepaid application
benefits periods for individually short-term disability policies will usually continue from...
-Correct Answer ✔six months to two years
when an employee covered under a health reimbursment account changes employer,
the HRA ? -Correct Answer ✔stays with the employer
most policies will pay the accident death benefits as long is caused by the accident that
occurs within -Correct Answer ✔90 days
which report will provide the underwriter with the information about a consumer's credit
? -Correct Answer ✔consumers report
what's the initial period of time specified in a disability income policy that must pass after
the policy is in force before a loss can be covered ? -Correct Answer ✔probationary
period
todd has been informed that he has an hernia which requires repair. he researches the
cost and learns his insurance will cover 200 points worth of surgical expenses. each
point represents $10, which it means $2,000 of his surgery be covered by his plan. what
system is todd insurance company is using ? -Correct Answer ✔relative value
a participating insurance policy may.... -Correct Answer ✔pay dividends to policyowners
an agent makes a mistake on the application and then corrects his mistake by
physically entering the necessary information, who must then initial the change ? -
Correct Answer ✔the applicant
HIPPAA or health unsurance portability and accountability act, applies to groups of -
Correct Answer ✔2 or more
which statement is correct concerning the COBRA act of 1985 -Correct Answer ✔it
covers terminated employee's and dependants for up to 36 months after a qualifying
event
Nevada Life and Health
,Nevada Life and Health
a man decides to purchase a $100,000 annually renewable term insurance life policy to
provide additional protection until his children finished college, he discovered that this
policy -Correct Answer ✔required a premium increase at each renewal
when a life insurance policy is cancelled and the insured selected the extended term
nonforfeiture option, the cash value will be used to purchase term insurance that has
the face amount of ? -Correct Answer ✔equal to the original policy, for as long of a
period of time that the cash value will purchase
ron joins the PPO that is provided by his employer. if ron decides to go to a physician
who is not a PPO provider, what would happens ? -Correct Answer ✔the PPO will pay
reduced benefits
if a life insurance develops cash value faster than a seven-paywhole life contract, it's a -
Correct Answer ✔modified endowment contract
an adjustable life policyowner can.... -Correct Answer ✔change the coverage period
what's the purpose of the buyer's guide ? -Correct Answer ✔to allow the consumer to
compare the costs of differents policies
what's the purpose of a disclosure statement in life insurance policies ? -Correct Answer
✔help consumers make more informed decisions
a married couple owns a permanent policy which covers both of their lives and pays the
face amount of the policy upon the death of the first. wich policy is that ? -Correct
Answer ✔joint life policy
the provisions which prevents the insured, from bringing any legal action against the
company for the last 60 days after proof of loss, is known as -Correct Answer ✔legal
actions
regarding the concept of creditable coverage, the number of days of coverage spent
under the group plan, will be used to reduce the 12-month waiting period for pre-existing
conditions coverage, if the employee does not have a break in coverage of more than....
-Correct Answer ✔63 days
which of the following provisions would prevent an insurance company from paying a
reimbursement claim to someone other than the policyowner ? -Correct Answer
✔payment of claims
what is "not" correct about the required provisions of a health insurance policy ? -
Correct Answer ✔that a reinstated policy provides immediate coverage for an illness
Nevada Life and Health
,Nevada Life and Health
the limits of a health reimbursement account are set by.... -Correct Answer ✔the
employer
when a replecement is involved, a replacing insurance company is "not" reponsible
for.... -Correct Answer ✔providing a copy of the important notice regarding replacement
of life insurance to the applicant
an individual has just been diagnosed with a quickly-spreading fatal form of cancer, his
oncologist predicts that he will live for 5 months. he applies for individual life insurance.
what risk classification will he most likely receive ? -Correct Answer ✔declined
a statements concerning Medicare part B says.. -Correct Answer ✔it pays for physician
services, diagnostic test and physical therapy
is a false statement that in a modified endowment contract (MEC).... -Correct Answer
✔the policyowner can receive contributions at any time without been penalized
which rider would not increase the premium for a policyowner ? -Correct Answer
✔impairment rider
what entity has the authority to make changes to an insurance policy ? -Correct Answer
✔insurer's executive officer
is incorrect regarding whole life insurance ... -Correct Answer ✔that the policy loans are
tax-deductible
which rider available in disability income insurance, will provide benefits above the base
policy amount ? -Correct Answer ✔multiple indemnity rider
julie pays for her life insurance annually. until now she has collected an non-taxable
dividend check each year. julie has decided that she would rather use the dividends to
help pay for her next premium, what option would allow her to do this ? -Correct Answer
✔reduction of premium option
an agent tries to sell insurance to an applicant who appears to be confused but is
eventually able to give enough info for the applicationto be completed. after the policy
was issued the agent talked to the insured's family and they explained that the insured
was recovering from a surgery and might have been under the influence of meds at the
time of application. what happen then ? -Correct Answer ✔the policy may be voided if it
can be proven that the applicant was not capable of making a buying decision at the
time of the application
donald purchase a life insurance from company. the agent told him that depending upon
the company's investements and expense factor the cash value could be more or less
Nevada Life and Health
, Nevada Life and Health
than those show in the policy at issue time. donald policy is.. -Correct Answer ✔interest-
sensitive whole life
how long does an insurer have to contest fraudulent misstatements made in a health
insurance application ? -Correct Answer ✔as long as the policy is in force
what is "not" a feature of a non-cancelable policy ? -Correct Answer ✔that the insurer
may terminate the contract only at renewal for certain conditions
what best defines target premium in a universal policy ? -Correct Answer ✔the
recommended amount to keep the policy en force throughout it's lifetime
a license agent in utha want to become a nonresident agent in nevada in the same line
of insurance, considering that all requirements are met, what is more likely to happen ?
-Correct Answer ✔the division will waive education and examination requirements
after a person's employment is terminated, it's possible to obtain individual health
insurance, after loosing the group health coverage provided by the employer, which of
the following is "not" true ? -Correct Answer ✔A) the employee can convert from group
to individual withing 31 days of termination
B)the premium of the individual health policy can be higher than the original policy
*C)by law, the new individual policy must provide the same benefits as the group
insurance policy, that is not true.
what type of individual may act as a producer without a license? -Correct Answer ✔an
insurer company president who is solely responsible for the administration of the
company
on it's advertisement, a company claims that it has funds in its possession that are, in
fact, no available for the payment of losses of claims. the company is guilty of... -Correct
Answer ✔misrepresentation
for the purpose of determining its financial condition, fulfillment of its contractual
obligations and compliance with nevada law, the commissioner will examine affairs of
each insurer as often as deemed necessary. each domestic insurer must be examined
at least -Correct Answer ✔every 5 years
what provides specific information about the products that an insurer is offering and
must be left with a prospective insured at the time of the application ? -Correct Answer
✔policy summary
what type of insurance company is an incorporated insurer without capital stock or
shares ? -Correct Answer ✔mutual insurer
Nevada Life and Health
