NEVADA LIFE AND HEALTH
LICENSE EXAM PREP QUESTIONS
& ANSWERS WITH COMPLETE
SOLUTIONS GRADED A+
QUESTIONS AND ANSWERS
What are the four required elements of an insurance contract? ANSWER -
Agreement, consideration, competent parties, and legal purpose.
What two parts make up a life insurance application? ANSWER -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? ANSWER -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? ANSWER -At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial
that change? ANSWER -The applicant.
Insurers may change what on a guaranteed renewable health insurance polity?
ANSWER -The rates by class.
,At what age may an individual make withdrawals from an HSA for nonhealth
purposes without being penalized? ANSWER -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? ANSWER -Recurrent
Disability Provision
In forming an insurance contract, when does acceptance occur? ANSWER -When an
insurer's underwriter approves coverage
What is an important feature of a dental expense insurance plan that is not found in a
medical expense insurance plan? ANSWER -Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance?
ANSWER -The insured is not required to pay a deductible
Occasional visits by what medical professionals will not be covered under Long-Term
Care's home health care? ANSWER -Attending physicians
Can an individual who belongs to a POS plan use an out-of-network physician?
ANSWER -Yes, they can use any physician even if not part of the HMO
What is the advantage of reinstating a policy instead of applying for a new one?
ANSWER -The original age is used for premium determination
What would basic medical expense coverage not cover? ANSWER -Surgeon's services
,What is not provided by an HMO? ANSWER -Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance
policy on a child where the parent is the policyowner? ANSWER -Third-party
ownership
What is not true about dividends? ANSWER -Dividend amounts are guaranteed in
the policy
What is not true about Accidental Death and Dismemberment? ANSWER -Death
benefits are paid only if death occurs within 24 hours of an accident
When would a 20-pay whole life policy endow? ANSWER -When the insured reaches
age 100
What section of a health policy that states the causes of eligible loss under which an
insurance is assumed to be disabled? ANSWER -Insuring Clause
The insurance clause of a disability policy usually states what except? ANSWER -The
method of premium payment
What best describes annually renewable term insurance? ANSWER -It is level term
insurance
, What best describes an annuity period? ANSWER -Period of time during which
accumulated money is converted into income payments
What is an eligibility requirement for all Social Security Disability Income benefits?
ANSWER -Have attained fully insured status
What protects the insured from unintentional policy lapse due to a nonpayment of
premium? ANSWER -Automatic premium loan
What is the maximum amount that the Nevada Life & Health Insurance Guaranty
Association be obligated to pay with respect to life insurance death benefits for one
life? ANSWER -$300,000
What is the penalty for transacting insurance without a proper license? ANSWER -
$1,000 for each violation
What type of misrepresentation persuades an insured to cancel, lapse, or switch
policies from one to another? ANSWER -Twisting
The patient protection and affordable care act includes what except? ANSWER -
Individual tax deduction for premiums paid
What entity determines if an advertisement is deceptive of confusing? ANSWER -The
Commissioner
How many days does a nonresident procedure have to file a change of address when
the agent moves to Nevada from another state? ANSWER -30 days
LICENSE EXAM PREP QUESTIONS
& ANSWERS WITH COMPLETE
SOLUTIONS GRADED A+
QUESTIONS AND ANSWERS
What are the four required elements of an insurance contract? ANSWER -
Agreement, consideration, competent parties, and legal purpose.
What two parts make up a life insurance application? ANSWER -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? ANSWER -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? ANSWER -At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial
that change? ANSWER -The applicant.
Insurers may change what on a guaranteed renewable health insurance polity?
ANSWER -The rates by class.
,At what age may an individual make withdrawals from an HSA for nonhealth
purposes without being penalized? ANSWER -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? ANSWER -Recurrent
Disability Provision
In forming an insurance contract, when does acceptance occur? ANSWER -When an
insurer's underwriter approves coverage
What is an important feature of a dental expense insurance plan that is not found in a
medical expense insurance plan? ANSWER -Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance?
ANSWER -The insured is not required to pay a deductible
Occasional visits by what medical professionals will not be covered under Long-Term
Care's home health care? ANSWER -Attending physicians
Can an individual who belongs to a POS plan use an out-of-network physician?
ANSWER -Yes, they can use any physician even if not part of the HMO
What is the advantage of reinstating a policy instead of applying for a new one?
ANSWER -The original age is used for premium determination
What would basic medical expense coverage not cover? ANSWER -Surgeon's services
,What is not provided by an HMO? ANSWER -Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance
policy on a child where the parent is the policyowner? ANSWER -Third-party
ownership
What is not true about dividends? ANSWER -Dividend amounts are guaranteed in
the policy
What is not true about Accidental Death and Dismemberment? ANSWER -Death
benefits are paid only if death occurs within 24 hours of an accident
When would a 20-pay whole life policy endow? ANSWER -When the insured reaches
age 100
What section of a health policy that states the causes of eligible loss under which an
insurance is assumed to be disabled? ANSWER -Insuring Clause
The insurance clause of a disability policy usually states what except? ANSWER -The
method of premium payment
What best describes annually renewable term insurance? ANSWER -It is level term
insurance
, What best describes an annuity period? ANSWER -Period of time during which
accumulated money is converted into income payments
What is an eligibility requirement for all Social Security Disability Income benefits?
ANSWER -Have attained fully insured status
What protects the insured from unintentional policy lapse due to a nonpayment of
premium? ANSWER -Automatic premium loan
What is the maximum amount that the Nevada Life & Health Insurance Guaranty
Association be obligated to pay with respect to life insurance death benefits for one
life? ANSWER -$300,000
What is the penalty for transacting insurance without a proper license? ANSWER -
$1,000 for each violation
What type of misrepresentation persuades an insured to cancel, lapse, or switch
policies from one to another? ANSWER -Twisting
The patient protection and affordable care act includes what except? ANSWER -
Individual tax deduction for premiums paid
What entity determines if an advertisement is deceptive of confusing? ANSWER -The
Commissioner
How many days does a nonresident procedure have to file a change of address when
the agent moves to Nevada from another state? ANSWER -30 days
