/Nevada Life Insurance Exam | Latest 2025/ 2026 Update | Questions and Answers (100% Correct) GRADED A.

/Nevada Life Insurance Exam | Latest 2025/ 2026 Update | Questions and Answers (100% Correct) GRADED A. During replacement of life insurance, a replacing insurer must do which of the following? A Send a copy of the Notice Regarding Replacement to the Department of Insurance B Obtain a list of all life insurance policies that will be replaced C Guarantee a replacement for each existing policy D Designate a new producer for a replaced policy B Which of the following documents must be provided to the policyowner or applicant during policy replacement? A Buyer's Guide and Policy Summary B Policy illustrations C Notice Regarding Replacement D Disclosure Authorization Form C Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract? A Viatical settlement purchaser B Viatical settlement broker C Viatical settlement effectuator D Viatical settlement provider D Within how many months must a person be expected to die from a sickness in order to be classified as terminally ill? A 3 B 6 C 12 D 24 D For how long must agents retain copies of notices and sales proposals for life insurance applications? A 1 year B 5 years C 10 years D 3 years D What is the purpose of a disclosure statement in life insurance policies? A To protect agents and insurers against lawsuits B To explain features and benefits of a proposed policy to the consumer C To obtain important underwriting information from the applicant D To help consumers compare policy prices B Which of the following statements would best describe the difference between viatical settlements and accelerated death benefits? A Viaticals require higher premiums. B Viaticals use mortality tables; accelerated death benefits are determined by morbidity. C Viaticals are funded by a third party; accelerated death benefits are provided by the insurer that issued the original policy. D Viaticals are used to fund retirement; accelerated death benefits fund medical expenses. C Which of the following means having an illness or sickness that can reasonably be expected to result in death in 24 months or less? A Chronic illness B Fatal illness C Malignant illness D Terminal illness D Which of the following insurers must be nonprofit and sell insurance only to its members? A Reciprocal B Fraternal C Service D Mutual B When a viator sells a life insurance policy, A Collateral assignment is given to the insurance company. B Absolute assignment is given to the viatical settlement company. C Collateral assignment is given to the viatical settlement company. D Absolute assignment is given to the insurance company. B Who is a person, other than a viator, that enters into a viatical settlement contract? A Provider B Purchaser C Effectuator D Broker A Each insurer must maintain a complete file containing a copy of each document used in solicitation and sale of life insurance products for how long following the date of its last authorized use? A 3 years B 5 years C 10 years D As long as the insurer remains in business A Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process? A Insurance Index B Policy Summary C Illustrations D Buyer's Guide D A viatical settlement is arranged between a viatical company and a/an A Beneficiary. B Lender. C Terminally ill insured. D Insurance producer. 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 B We have an expert-written solution to this problem! 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. C Within how many months must a person be expected to die from a sickness in order to be classified as terminally ill? A 3 B 6 C 12 D 24 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 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 CThe owner needs money for downpayment on the first home DThe owner files for bankruptcy 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 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. 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 C A viatical settlement is arranged between a viatical company and a/an ALender. BTerminally ill insured. CInsurance producer. DBeneficiary. 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 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. C A life producer applying for a viatical settlement broker license may be exempt from the prelicensing education and examination requirement if the producer has held an active life license for at least how many years? A1 year B2 years C5 years D10 years A What is the name for the owner of a life insurance policy who enters into a viatical settlement contract? AViatical settlement purchaser BViator CPolicyowner DViatical settlement provider B Fred and Jody are covered under a group health insurance plan at his place of employment. When Jody gave birth to their first child, what must he do in order to have coverage for their child? ANotify the insurer on the anniversary date of the plan BNotify the employer within 10 days CNotify the insurer immediately and provide proof of insurability DNotify the insurer within 31 days in order for coverage to continue without any evidence of insurability D For an agent to sell continuous care coverage, the agent must meet all of the following requirements EXCEPT A Be licensed as a casualty insurance producer. B Receive approval from the Commissioner. C Be licensed as an accident and health insurance producer. D Be licensed as a life insurance producer. D According to the PPACA rules, what percentage of health care costs will be covered under a bronze plan? A10% B30% C40% D60% D In all health care plans under the Affordable Care Act (ACA), how many essential benefit categories are there? A5 B10 C12 D15 B Which of the following is NOT a metal level of coverage offered under the Patient Protection and Affordable Care Act? AIron BGold CSilver DBronze A The following are allowable exclusions of Medicare supplement insurance EXCEPT ADental treatment. BHearing aids. CEmotional disorders. DAll of the above are allowable exclusions. D Which of the following individuals will be eligible for coverage on the Health Insurance Marketplace? AA U.S. citizen living abroad BA permanent resident lawfully present in the U.S. CSomeone who has Medicare coverage DA U.S. citizen who is incarcerated B Under the Affordable Care Act, which classification applies to health plans based on the amount of covered costs? AGrandfathered and nongrandfathered BRisk classification CMetal level classification DGuaranteed and nonguaranteed C What are the most common variations in a Long-term care policy? ANumber of days of confinement covered BNumber of home health visits covered CThe amount paid for nursing home care DAll of the above D Bob purchased a policy to provide coverage on himself, his wife Linda, and their two children, John and Kristen. All of them would need to prove insurability EXCEPT AJohn and Kristen. BAny children born to them after the inception of the contract. CBob. DLinda. B The Patient Protection and Affordable Care Act includes all of the following provisions EXCEPT AIndividual tax deduction for premiums paid. BRight to appeal. CNo lifetime dollar limits. DCoverage for preventive benefits. A In individual health insurance coverage, the insurer must cover a newborn from the moment of birth, and if additional premium payment is required, allow how many days for payment? AWithin 10 calendar days BWithin 15 working days CWithin 31 days of birth DWithin a reasonable period of time C Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing? A25% B50% C80% D100% D What is the maximum age for qualifying for a catastrophic plan? A26 B30 C45 D62 B What is continuous care coverage in this state? ALimited benefit coverage BLong-term care coverage CDisability income coverage DWorkers compensation coverage D For what time period can coverage be excluded on permissible pre-existing conditions applicable to a Medicare supplement insurance policy? A3 months after the effective date of the policy B6 months after the effective date of the policy C30 days after the effective date of the policy D2 months after the effective date of the policy B What is the maximum age for qualifying for a catastrophic plan? A26 B30 C45 D62 B How soon from the delivery of a Medicare Supplement policy may the insured return it for a full refund? A10 days B20 days C30 days DAny time C Long term care insurance policies can ALimit coverage for the treatment of Alzheimer's disease. BBe cancelled due to the deterioration of the insured's mental health. CLimit coverage for the treatment of alcoholism. DBe cancelled due to the age of the insured. C According to the PPACA metal levels classification, if a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%, what type of plan is that? AGold BPlatinum CBronze DSilver B A woman obtains health coverage through the Marketplace on October 1. Two weeks later she finds out that she is 3 months pregnant. Which of the following is true about coverage for pregnancy? APregnancy may be covered with the insurer's special approval. BPregnancy will be covered immediately. CPregnancy will only be covered if additional premium is paid. DPregnancy will not be covered as a pre-existing condition. B The Patient Protection and Affordable Care Act mandates that insurers provide coverage for adult children of the insured up to the age of A19. B21. C26. D30. C What amount of care is provided in LTC's intermediate care? A24-hour care BNon-medical daily care CDaily care, but not nursing care DDaily care by medical personnel D How many consecutive months of coverage (other than in an acute care unit of a hospital) does LTC insurance cover in Nevada? A12 B24 C36 D6 B Which of the following is correct about a group health insurance policy? AIt can exclude newborn children from coverage. BIt cannot exclude coverage for VA hospital treatment. CIt can provide coverage for handicapped children. DIt cannot exclude coverage from an occupational accident. C Under the Affordable Care Act, what percentage of preventive care must be covered without cost sharing? A25% B50% C80% D100% D A Medicare supplement policy can exclude coverage based on AMedical conditions. BTreatment for illnesses. CBoth medical conditions and treatment for illness. DNone of the above D Who can provide skilled nursing care? ACommunity volunteer BDoctor CSpouse DNone of the above B Accident and health producers may qualify to sell continuous care coverage if they complete a minimum of how many hours of approved instruction in workers compensation and employer liability insurance? A5 hours B8 hours C12 hours D20 hours B