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NEVADA LIFE
NEVADA LIFE AND HEALTH INSURANCE PRACTICE EXAM
(NEW 2025/ 2026 U PDATE) QUESTIONS & ANSWERS|
GRADE A| 100% CORRECT (VERIFIED SOLUTION)
A viatical settlement is arranged between a viatical company and a/an
A Beneficiary.
B Lender.
C Terminally ill insured.
D Insurance producer. - ANS ✓C
Which rule would apply if an agent knows an applicant is going to cash in an old
policy and use the funds to purchase new insurance?
A Disclosure rule
B Replacement rule
C Reinstatement rule
D Conversion rule - ANS ✓B
When a viator sells a life insurance policy,
AAbsolute assignment is given to the insurance company.
BCollateral assignment is given to the insurance company.
CAbsolute assignment is given to the viatical settlement company.
DCollateral assignment is given to the viatical settlement company. - ANS ✓C
Within how many months must a person be expected to die from a sickness in order
to be classified as terminally ill?
A3
B6
C 12
D 24 - ANS ✓D
What is the purpose of the buyer's guide?
A To provide the name and address of the agent/producer issuing the policy
B To list all policy riders
C To provide information about the issued policy
D To allow the consumer to compare the costs of different policies - ANS ✓D
To which of the following would the rule prohibiting a viatical settlement contract
within 5 years of a policy issue date apply?
AThe owner is getting a divorce
BThe owner's spouse dies
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CThe owner needs money for downpayment on the first home
DThe owner files for bankruptcy - ANS ✓C
Which of the following will be included in a policy summary?
AComparisons with similar policies
BPrimary and secondary beneficiary designations
CPremium amounts and surrender values
DCopies of illustrations and application - ANS ✓C
An organization that operates on a lodge system and provides a formal life insurance
plan to its members is classified as a
AReciprocal association.
BFraternal insurer.
CMutual company.
DStock company. - ANS ✓B
An insured with a life insurance policy is diagnosed with a terminal illness. Which of
the following could be a suitable option for this insured?
APolicy replacement
BChange of beneficiary
CViatical settlement
DPolicy loan - ANS ✓C
A viatical settlement is arranged between a viatical company and a/an
ALender.
BTerminally ill insured.
CInsurance producer.
DBeneficiary. - ANS ✓B
Which of the following documents delivered to the policyowner includes information
about premium amounts, cash values, surrender values and death benefits for
specific policy years?
AA privacy notice
BA buyer's guide
CA policy summary
DA notice regarding replacement - ANS ✓C
How must a replacing producer respond to an applicant wishing to replace existing
life insurance?
AThe producer must request the permission of the existing insurer.
BThe producer has no specific duties.
CThe producer must provide the applicant with a Notice Regarding Replacement.
DThe producer must collect the existing policies and turn them over to the replacing
insurer. - ANS ✓C
NEVADA LIFE
NEVADA LIFE
NEVADA LIFE AND HEALTH INSURANCE PRACTICE EXAM
(NEW 2025/ 2026 U PDATE) QUESTIONS & ANSWERS|
GRADE A| 100% CORRECT (VERIFIED SOLUTION)
A viatical settlement is arranged between a viatical company and a/an
A Beneficiary.
B Lender.
C Terminally ill insured.
D Insurance producer. - ANS ✓C
Which rule would apply if an agent knows an applicant is going to cash in an old
policy and use the funds to purchase new insurance?
A Disclosure rule
B Replacement rule
C Reinstatement rule
D Conversion rule - ANS ✓B
When a viator sells a life insurance policy,
AAbsolute assignment is given to the insurance company.
BCollateral assignment is given to the insurance company.
CAbsolute assignment is given to the viatical settlement company.
DCollateral assignment is given to the viatical settlement company. - ANS ✓C
Within how many months must a person be expected to die from a sickness in order
to be classified as terminally ill?
A3
B6
C 12
D 24 - ANS ✓D
What is the purpose of the buyer's guide?
A To provide the name and address of the agent/producer issuing the policy
B To list all policy riders
C To provide information about the issued policy
D To allow the consumer to compare the costs of different policies - ANS ✓D
To which of the following would the rule prohibiting a viatical settlement contract
within 5 years of a policy issue date apply?
AThe owner is getting a divorce
BThe owner's spouse dies
NEVADA LIFE
, 2
NEVADA LIFE
CThe owner needs money for downpayment on the first home
DThe owner files for bankruptcy - ANS ✓C
Which of the following will be included in a policy summary?
AComparisons with similar policies
BPrimary and secondary beneficiary designations
CPremium amounts and surrender values
DCopies of illustrations and application - ANS ✓C
An organization that operates on a lodge system and provides a formal life insurance
plan to its members is classified as a
AReciprocal association.
BFraternal insurer.
CMutual company.
DStock company. - ANS ✓B
An insured with a life insurance policy is diagnosed with a terminal illness. Which of
the following could be a suitable option for this insured?
APolicy replacement
BChange of beneficiary
CViatical settlement
DPolicy loan - ANS ✓C
A viatical settlement is arranged between a viatical company and a/an
ALender.
BTerminally ill insured.
CInsurance producer.
DBeneficiary. - ANS ✓B
Which of the following documents delivered to the policyowner includes information
about premium amounts, cash values, surrender values and death benefits for
specific policy years?
AA privacy notice
BA buyer's guide
CA policy summary
DA notice regarding replacement - ANS ✓C
How must a replacing producer respond to an applicant wishing to replace existing
life insurance?
AThe producer must request the permission of the existing insurer.
BThe producer has no specific duties.
CThe producer must provide the applicant with a Notice Regarding Replacement.
DThe producer must collect the existing policies and turn them over to the replacing
insurer. - ANS ✓C
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