Nevada Life and Health License Actual Exam
COMPLETE QUESTION AND ANSWER GRADED A+
ACCURATE Prep Questions
Which rule would apply is an agent knows an applicant is going to cash in an old policy and use the funds
to purchase new insurance?
Replacement rule
What happens to the proceeds of a life insurance policy if there is no named beneficiary?
The proceeds are paid to the insured's estate
With the reduction of premium dividend option, how is the dividend used?
The dividend is applied to the next year's premium; it reduces the next year's premium
A policyowner borrowed a portion of cash value from his whole life policy. If the loan is not repaid, how
will that affect the death benefit to the beneficiary?
The amount of the loan will be subtracted from the death benefit
What type of beneficiary is next in line after the primary beneficiary?
Contingent beneficiary
If a settlement option is not chosen by the policy owner or the beneficiary, what option will be used by
the insurer?
Lump-sum payment
What provision allows the policyowner to reactivate a lapsed life insurance policy within a specified
period of time with proof of insurability?
,Reinstatement
Which of the two types of policy assignments requires transfer of all ownership rights in the policy to a
third party>
Absolute Assignment
What are the dividend options in life insurance policy
Cash, reduced premium, accumulation at interest, paid-up additions, paid-up option, one-year term, and
acceleration of endowment
When will a contingent beneficiary receive death benefit from a life insurance policy?
When the primary beneficiary dies before the insured
What provision in a life insurance policy extends coverage beyond the premium due date?
Grace period
.
In the fixed-period settlement option, how will the number of installments for the death benefit
proceeds determine the amount of the installments?
The longer the period selected, the smaller each installment will be
What nonforfeiture option has the highest amount of insurance protection?
Extended Term
,If a life insurance policy has an irrevocable beneficiary designation
The beneficiary can old be changed with written permission of the beneficiary
What is the purpose of a free-look period in insurance policies?
It allows the insured to reject the policy with a full refund
What is the clause that is included in a life policy that limits or eliminates the death benefit if the insured
dies as a result of war or while serving in the military?
Military Service or War
An insured receives an annual life insurance dividend check. What term best described this
arrangement?
Cash option
Nonforfeiture values guarantee what for the policyowner?
That the cash value will not be lost
What required provision protects against unintentional lapse of the policy?
Grace period
what are the four required elements of an insurance contract?
Agreement, consideration, competent parties, and legal purpose.
, What two parts make up a life insurance application?
General Information and the Medical Information. An agent's report can go in a life insurance
application but is not included in the life insurance policy.
When must insurable interest exist in life insurance?
At the time of application.
When does coverage begin, if the premium was submitted with the application, and the policy was
issued two weeks later?
At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial that change?
The applicant.
Insurers may change what on a guaranteed renewable health insurance polity?
The rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes without being
penalized?
At age 65.
.
Which provision states how much time must pass between two like illnesses in order for the second one
to be covered under a new set of benefits?
COMPLETE QUESTION AND ANSWER GRADED A+
ACCURATE Prep Questions
Which rule would apply is an agent knows an applicant is going to cash in an old policy and use the funds
to purchase new insurance?
Replacement rule
What happens to the proceeds of a life insurance policy if there is no named beneficiary?
The proceeds are paid to the insured's estate
With the reduction of premium dividend option, how is the dividend used?
The dividend is applied to the next year's premium; it reduces the next year's premium
A policyowner borrowed a portion of cash value from his whole life policy. If the loan is not repaid, how
will that affect the death benefit to the beneficiary?
The amount of the loan will be subtracted from the death benefit
What type of beneficiary is next in line after the primary beneficiary?
Contingent beneficiary
If a settlement option is not chosen by the policy owner or the beneficiary, what option will be used by
the insurer?
Lump-sum payment
What provision allows the policyowner to reactivate a lapsed life insurance policy within a specified
period of time with proof of insurability?
,Reinstatement
Which of the two types of policy assignments requires transfer of all ownership rights in the policy to a
third party>
Absolute Assignment
What are the dividend options in life insurance policy
Cash, reduced premium, accumulation at interest, paid-up additions, paid-up option, one-year term, and
acceleration of endowment
When will a contingent beneficiary receive death benefit from a life insurance policy?
When the primary beneficiary dies before the insured
What provision in a life insurance policy extends coverage beyond the premium due date?
Grace period
.
In the fixed-period settlement option, how will the number of installments for the death benefit
proceeds determine the amount of the installments?
The longer the period selected, the smaller each installment will be
What nonforfeiture option has the highest amount of insurance protection?
Extended Term
,If a life insurance policy has an irrevocable beneficiary designation
The beneficiary can old be changed with written permission of the beneficiary
What is the purpose of a free-look period in insurance policies?
It allows the insured to reject the policy with a full refund
What is the clause that is included in a life policy that limits or eliminates the death benefit if the insured
dies as a result of war or while serving in the military?
Military Service or War
An insured receives an annual life insurance dividend check. What term best described this
arrangement?
Cash option
Nonforfeiture values guarantee what for the policyowner?
That the cash value will not be lost
What required provision protects against unintentional lapse of the policy?
Grace period
what are the four required elements of an insurance contract?
Agreement, consideration, competent parties, and legal purpose.
, What two parts make up a life insurance application?
General Information and the Medical Information. An agent's report can go in a life insurance
application but is not included in the life insurance policy.
When must insurable interest exist in life insurance?
At the time of application.
When does coverage begin, if the premium was submitted with the application, and the policy was
issued two weeks later?
At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial that change?
The applicant.
Insurers may change what on a guaranteed renewable health insurance polity?
The rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes without being
penalized?
At age 65.
.
Which provision states how much time must pass between two like illnesses in order for the second one
to be covered under a new set of benefits?
