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NEVADA LIFE AND HEALTH LICENSE
EXAM PREP 2025 BRAND NEW ACTUAL
EXAM WITH ANSWERS.
1. The Nevada Insurance Guaranty Association has a legal right
to seek damages from third parties after having reimbursed the
insured for the loss. What is this known as? -correct answer -
Subrogation
2. An agent offers a client free tickets to a sporting event in
exchange for the purchase of an insurance policy. What is the
agent guilty of? -correct answer -Rebating
3. Who is an insurance agent? -correct answer -A person
authorized to sell, solicit, and negotiate insurance contracts.
4. When is controlled business legal? -correct answer -When the
commissions from controlled business do not exceed the
aggregate commissions on all the other business
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5. What type of licensee represents the insured? -correct answer -
Broker
6. Who is considered a nonresident agent? -correct answer -An
agent who resides and is licensed in another state, but who is
authorized to transact insurance in this state.
7. For what reason can a temporary license be issued? -correct
answer -For continuation of business in case the licensed
producer dies or becomes disabled.
8. What illegal act does a producer commit when the producer
represents a policy in a more favorable light than the policy
really is? -correct answer -Misrepresentation
9. What document is required for an insurance company to
transact insurance? -correct answer -Certificate of Authority
10. Who must be a member of insurance guaranty associations?
-correct answer -All insurers authorized to write insurance in
Nevada.
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11. If an insurer meets the state's financial requirements and is
approved to transact business in the state, it is considered
what type of insurer? -correct answer -Authorized or admitted
insurer
12. Insurers are classified according to their domicile. What are
the three types of insurers? -correct answer -Domestic, foreign,
and alien.
13. When can the Commissioner or Director examine insurers? -
correct answer -Whenever deemed necessary but at least once
every few years.
14. Who may share in the commission from the sale of a life
insurance policy? -correct answer -Only producers properly
licensed for the type of insurance transaction
15. What are the most common penalties for violations of
insurance statutes? -correct answer -A Cease and Desist
order, a fine, and license suspension or revocation.
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16. In general, who can be excluded from producer licensing
and examination requirements? -correct answer -Insurance
company officers, directors, or others who do not transact
insurance and who do not receive commissions for their
services.
17. To whom may a certificate of authority be issued? -correct
answer -To an insurer authorized to transact business in this
state.
18. In the Commissioner finds a licensee engaging in an unfair
method of competition, what order will be issued? -correct
answer -A Cease and Desist order.
19. What is controlled business? -correct answer -Insurance on
the producer's own life or property, or the lives, or or property
of the producer's family or business associates.
20. On its advertisement, a company claims that it has funds in
its possession that are, in fact, not available for the payment of
NEVADA LIFE AND HEALTH LICENSE
EXAM PREP 2025 BRAND NEW ACTUAL
EXAM WITH ANSWERS.
1. The Nevada Insurance Guaranty Association has a legal right
to seek damages from third parties after having reimbursed the
insured for the loss. What is this known as? -correct answer -
Subrogation
2. An agent offers a client free tickets to a sporting event in
exchange for the purchase of an insurance policy. What is the
agent guilty of? -correct answer -Rebating
3. Who is an insurance agent? -correct answer -A person
authorized to sell, solicit, and negotiate insurance contracts.
4. When is controlled business legal? -correct answer -When the
commissions from controlled business do not exceed the
aggregate commissions on all the other business
, Page | 2
5. What type of licensee represents the insured? -correct answer -
Broker
6. Who is considered a nonresident agent? -correct answer -An
agent who resides and is licensed in another state, but who is
authorized to transact insurance in this state.
7. For what reason can a temporary license be issued? -correct
answer -For continuation of business in case the licensed
producer dies or becomes disabled.
8. What illegal act does a producer commit when the producer
represents a policy in a more favorable light than the policy
really is? -correct answer -Misrepresentation
9. What document is required for an insurance company to
transact insurance? -correct answer -Certificate of Authority
10. Who must be a member of insurance guaranty associations?
-correct answer -All insurers authorized to write insurance in
Nevada.
, Page | 3
11. If an insurer meets the state's financial requirements and is
approved to transact business in the state, it is considered
what type of insurer? -correct answer -Authorized or admitted
insurer
12. Insurers are classified according to their domicile. What are
the three types of insurers? -correct answer -Domestic, foreign,
and alien.
13. When can the Commissioner or Director examine insurers? -
correct answer -Whenever deemed necessary but at least once
every few years.
14. Who may share in the commission from the sale of a life
insurance policy? -correct answer -Only producers properly
licensed for the type of insurance transaction
15. What are the most common penalties for violations of
insurance statutes? -correct answer -A Cease and Desist
order, a fine, and license suspension or revocation.
, Page | 4
16. In general, who can be excluded from producer licensing
and examination requirements? -correct answer -Insurance
company officers, directors, or others who do not transact
insurance and who do not receive commissions for their
services.
17. To whom may a certificate of authority be issued? -correct
answer -To an insurer authorized to transact business in this
state.
18. In the Commissioner finds a licensee engaging in an unfair
method of competition, what order will be issued? -correct
answer -A Cease and Desist order.
19. What is controlled business? -correct answer -Insurance on
the producer's own life or property, or the lives, or or property
of the producer's family or business associates.
20. On its advertisement, a company claims that it has funds in
its possession that are, in fact, not available for the payment of
