NV XCEL EXAM QUESTIONS AND ANSWERS
1. An incomplete life insurance app submitted to an insurer will result in which
of these actions?: App will be returned to the writing agent 2. Which of the
following is an ex of defamation?
(A) Circulating brochures falsely denouncing financial condition of an insurer
(B) Making statements that encourage purchase of term life insurance over
whole life
(C) Issuing pamphlets containing false info about term life
(D) Publishing a newsletter that makes reference to reputable brokers in
area: Circulating brochures falsely denouncing financial condition of an
insurer 3. Which statement about a whole life policy is correct?
(A) Bene may be changed only w/consent of premium payor
(B) Premiums are flexible
(C) Cash value may be borrowed against
(D) Death benefit can usually be adjusted: Cash value may be borrowed
against 4. Who signs a "Notice Regarding Replacement" form when an
application is taken for a new life insurance policy that replaces an
existing one? (A) Beneficiary
(B) Applicant only
(C) Producer only
(D) Producer and applicant: Producer and applicant
5. Under federal tax laws, what is the tax treatment for an employer
providing $50,000 of a contributory group Term Life plan to all its eligible
employees?
(A) Portion of death proceeds are taxable to bene
(B) Portion of premiums paid for by employer may be a tax deduction
(C) Portion of death proceeds are taxable to estate
(D) Portion of premiums paid for by employee may be a tax deduction:
Portion of premiums paid by employer may be a tax deduction (In a
contributory plan for its share of premium costs)
6. Q would like to purchase $100,000 of permanent protection on his wife
and $50,000 of Term coverage on himself under the same policy. What kind
of policy should Q purchase? (A) Joint policy
(B) Joint survivor policy
(C) Whole life policy with a guaranteed insurab9ility option
,NV XCEL EXAM
(D) Whole life policy with other insured rider: Whole life policy with other
insured rider
7. All of the following are examples of insurance advertisement EXCEPT
(A) A newspaper notice announcing free insurance advice
(B) An employer newsletter announcing the availability of coverage for em-
ployees
(C) A direct mail brochure announcing specific insurance plans
(D) A tv spot announcing an insurance company's new product: An employer
newsletter announcing the availability of coverage for employees
8. Which of these provisions is NOT required in life insurance policies?
(A) Grace period
(B) Free look
(C) Entire contract
(D) Extended term: Extended term
9. Which of the following annuities pay benefits based on units rather
than specific dollar amounts? (A) Flexible annuity
(B) Single premium annuity
(C) Variable annuity
(D) Deferred annuity: Variable annuity
10. NV's 10-day free-look period for life insurance policies begins at the
(A) date of delivery
(B) date of application
(C) date of approval
(D) date of physical exam: date of delivery
11. Which of following is a req to attain a nonres producer license?
(A) Pass special exam for nonres producers
(B) Be licensed as producer in producer's state of domicile
(C) Own real estate in NV
(D) Maintain a specific sales quota in res state: Be licensed as producer in
producer's state of domicile
12. NV Life & Health insurance guaranty association
(A) Assists in underwriting large policies
(B) is funded by producers through their commissions
(
,NV XCEL EXAM QUESTIONS AND ANSWERS
(C) is financed by US treasury
(D) is funded by insurance companies through assessments: Is funded by
insurance companies through assessments
13. An individual who has a contract w/an insurance company to represent it
is called a (A) producer
(B) director
(C) administrator
D) representative: Producer
14. Which action will a life insurance company most likely take if an
insured dies & it is discovered that insured's age was misstated on the
app?: Pay an amount premiums would have purchased at insured's actual age
15. In a qualified retirement plan, the yearly contributions to an employee's
account
(A) are restricted to maximum levels set by IRS
(B) are not tax-deductible
(C) are restricted to minimum levels set by IRS
(D) must be matched dollar-for-dollar by the employer: are restricted to
maximum levels set by IRS
16. What is a warranty?: Statement guaranteed to be true
17. Which of these are NOT an example of a Nonforfeiture option? (A)
Life income
(B) Extended Term
(C) Cash Surrender
(D) Reduced Paid-up: Life income
18. Which of these is NOT considered to be a right given to a policyowner?
(A) Modify a provision in insurance contract
(B) Assignment of ownership
(C) Surrendering policy's cash value
(D) Change beneficiary, if revocable: Modify a provision in insurance contract
19. K is looking to purchase Renewable Term insurance. Which of these
types of Term insurance may be renewable?
(A) Adjustable
(B) Level
(C) Decreasing
, NV XCEL EXAM
(D) Increasing: Level (Pays same benefit amount if death occurs at any point
during term)
20. Credit life insurance is: Issued on a debtor to cover outstanding balances
on installment loans
21. What determines the full amount of Social Security retirement benefits
a qualified individual is entitled to receive?
(A) Number of dependents
(B) Primary Insurance Amount
(C) State of residence
(D) Total taxes paid into FICA: Primary insurance amount (PIA)
22. Which of these types of policies may NOT have the Automatic
Premium Loan provision attached to it? (A) Endowment
(B) Modified Whole Life
(C) Decreasing Term
(D) 20-Pay Life: Decreasing Term
23. Which type of life insurance beneficiary requires their consent when a
change of beneficiary is attempted by policyowner?: Irrevocable beneficiary
24. The most important factor to consider when determining whether to
convert term insurance at insured's attained age or insured's original age is
(A) amount of coverage being converted
(B) Who will be beneficiary
(C) health of the insured
(D) cost: cost
25. K applies for a life insurance policy on herself and submits the initial
premium with the application. She is given a receipt by the agent stating
that coverage begins immediately if the application is approved. What kind
of receipt was used? (A) Conditional
(B) Contingent
(C) Initial premium
(D) Binding: Conditional
26. When an employee is terminated, how long does this employee have to
convert group life coverage to an individual plan?
(A) 30 days
(
1. An incomplete life insurance app submitted to an insurer will result in which
of these actions?: App will be returned to the writing agent 2. Which of the
following is an ex of defamation?
(A) Circulating brochures falsely denouncing financial condition of an insurer
(B) Making statements that encourage purchase of term life insurance over
whole life
(C) Issuing pamphlets containing false info about term life
(D) Publishing a newsletter that makes reference to reputable brokers in
area: Circulating brochures falsely denouncing financial condition of an
insurer 3. Which statement about a whole life policy is correct?
(A) Bene may be changed only w/consent of premium payor
(B) Premiums are flexible
(C) Cash value may be borrowed against
(D) Death benefit can usually be adjusted: Cash value may be borrowed
against 4. Who signs a "Notice Regarding Replacement" form when an
application is taken for a new life insurance policy that replaces an
existing one? (A) Beneficiary
(B) Applicant only
(C) Producer only
(D) Producer and applicant: Producer and applicant
5. Under federal tax laws, what is the tax treatment for an employer
providing $50,000 of a contributory group Term Life plan to all its eligible
employees?
(A) Portion of death proceeds are taxable to bene
(B) Portion of premiums paid for by employer may be a tax deduction
(C) Portion of death proceeds are taxable to estate
(D) Portion of premiums paid for by employee may be a tax deduction:
Portion of premiums paid by employer may be a tax deduction (In a
contributory plan for its share of premium costs)
6. Q would like to purchase $100,000 of permanent protection on his wife
and $50,000 of Term coverage on himself under the same policy. What kind
of policy should Q purchase? (A) Joint policy
(B) Joint survivor policy
(C) Whole life policy with a guaranteed insurab9ility option
,NV XCEL EXAM
(D) Whole life policy with other insured rider: Whole life policy with other
insured rider
7. All of the following are examples of insurance advertisement EXCEPT
(A) A newspaper notice announcing free insurance advice
(B) An employer newsletter announcing the availability of coverage for em-
ployees
(C) A direct mail brochure announcing specific insurance plans
(D) A tv spot announcing an insurance company's new product: An employer
newsletter announcing the availability of coverage for employees
8. Which of these provisions is NOT required in life insurance policies?
(A) Grace period
(B) Free look
(C) Entire contract
(D) Extended term: Extended term
9. Which of the following annuities pay benefits based on units rather
than specific dollar amounts? (A) Flexible annuity
(B) Single premium annuity
(C) Variable annuity
(D) Deferred annuity: Variable annuity
10. NV's 10-day free-look period for life insurance policies begins at the
(A) date of delivery
(B) date of application
(C) date of approval
(D) date of physical exam: date of delivery
11. Which of following is a req to attain a nonres producer license?
(A) Pass special exam for nonres producers
(B) Be licensed as producer in producer's state of domicile
(C) Own real estate in NV
(D) Maintain a specific sales quota in res state: Be licensed as producer in
producer's state of domicile
12. NV Life & Health insurance guaranty association
(A) Assists in underwriting large policies
(B) is funded by producers through their commissions
(
,NV XCEL EXAM QUESTIONS AND ANSWERS
(C) is financed by US treasury
(D) is funded by insurance companies through assessments: Is funded by
insurance companies through assessments
13. An individual who has a contract w/an insurance company to represent it
is called a (A) producer
(B) director
(C) administrator
D) representative: Producer
14. Which action will a life insurance company most likely take if an
insured dies & it is discovered that insured's age was misstated on the
app?: Pay an amount premiums would have purchased at insured's actual age
15. In a qualified retirement plan, the yearly contributions to an employee's
account
(A) are restricted to maximum levels set by IRS
(B) are not tax-deductible
(C) are restricted to minimum levels set by IRS
(D) must be matched dollar-for-dollar by the employer: are restricted to
maximum levels set by IRS
16. What is a warranty?: Statement guaranteed to be true
17. Which of these are NOT an example of a Nonforfeiture option? (A)
Life income
(B) Extended Term
(C) Cash Surrender
(D) Reduced Paid-up: Life income
18. Which of these is NOT considered to be a right given to a policyowner?
(A) Modify a provision in insurance contract
(B) Assignment of ownership
(C) Surrendering policy's cash value
(D) Change beneficiary, if revocable: Modify a provision in insurance contract
19. K is looking to purchase Renewable Term insurance. Which of these
types of Term insurance may be renewable?
(A) Adjustable
(B) Level
(C) Decreasing
, NV XCEL EXAM
(D) Increasing: Level (Pays same benefit amount if death occurs at any point
during term)
20. Credit life insurance is: Issued on a debtor to cover outstanding balances
on installment loans
21. What determines the full amount of Social Security retirement benefits
a qualified individual is entitled to receive?
(A) Number of dependents
(B) Primary Insurance Amount
(C) State of residence
(D) Total taxes paid into FICA: Primary insurance amount (PIA)
22. Which of these types of policies may NOT have the Automatic
Premium Loan provision attached to it? (A) Endowment
(B) Modified Whole Life
(C) Decreasing Term
(D) 20-Pay Life: Decreasing Term
23. Which type of life insurance beneficiary requires their consent when a
change of beneficiary is attempted by policyowner?: Irrevocable beneficiary
24. The most important factor to consider when determining whether to
convert term insurance at insured's attained age or insured's original age is
(A) amount of coverage being converted
(B) Who will be beneficiary
(C) health of the insured
(D) cost: cost
25. K applies for a life insurance policy on herself and submits the initial
premium with the application. She is given a receipt by the agent stating
that coverage begins immediately if the application is approved. What kind
of receipt was used? (A) Conditional
(B) Contingent
(C) Initial premium
(D) Binding: Conditional
26. When an employee is terminated, how long does this employee have to
convert group life coverage to an individual plan?
(A) 30 days
(
