Nevada Life and Health License Exam
Prep Questions and answers | 2026/27
What are the four required elements of an insurance contract? - Agreement,
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consideration, competent parties, and legal purpose.
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What two parts make up a life insurance application? - General Information and the
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Medical Information. An agent's report can go in a life insurance application but is not
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included in the life insurance policy.
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II When must insurable interest exist in life insurance? - At the time of application.
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When does coverage begin, if the premium was submitted with the application, and the
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policy was issued two weeks later? - At the time of the application.
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If an agent makes a mistake on the application and then corrects it, who must initial that
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change? - The applicant.
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Insurers may change what on a guaranteed renewable health insurance polity? - The
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rates by class.
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At what age may an individual make withdrawals from an HSA for nonhealth purposes
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without being penalized? - At age 65.
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Which provision states how much time must pass between two like illnesses in order for
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the second one to be covered under a new set of benefits? - Recurrent Disability
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Provision
II
In forming an insurance contract, when does acceptance occur? - When an insurer's
II II II II II II II II II II II II II II II
underwriter approves coverage
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What is an important feature of a dental expense insurance plan that is not found in a
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medical expense insurance plan? - Diagnostic and preventive care
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What best describes the "first-dollar coverage" principle in basic medical insurance? -
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The insured is not required to pay a deductible
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Occasional visits by what medical professionals will not be covered under Long-Term
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Care's home health care? - Attending physicians
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Can an individual who belongs to a POS plan use an out-of-network physician? - Yes,
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they can use any physician even if not part of the HMO
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, What is the advantage of reinstating a policy instead of applying for a new one? - The
II II II II II II II II II II II II II II II I II II II
original age is used for premium determination
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II What would basic medical expense coverage not cover? - Surgeon's services
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II What is not provided by an HMO? - Reimbursement
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What insurance arrangements will be appropriate for a parent buying a life insurance
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policy on a child where the parent is the policyowner? - Third-party ownership
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II What is not true about dividends? - Dividend amounts are guaranteed in the policy
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What is not true about Accidental Death and Dismemberment? - Death benefits are paid
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only if death occurs within 24 hours of an accident
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II When would a 20-pay whole life policy endow? - When the insured reaches age 100
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What section of a health policy that states the causes of eligible loss under which an
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insurance is assumed to be disabled? - Insuring Clause
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The insurance clause of a disability policy usually states what except? - The method of
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premium payment
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II What best describes annually renewable term insurance? - It is level term insurance
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What best describes an annuity period? - Period of time during which accumulated
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money is converted into income payments
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II What is an eligibility requirement for all Social Security Disability Income benefits? -
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II Have attained fully insured status
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What protects the insured from unintentional policy lapse due to a nonpayment of
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premium? - Automatic premium loan
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What is the maximum amount that the Nevada Life & Health Insurance Guaranty
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Association be obligated to pay with respect to life insurance death benefits for one life? -
II II II II II II II II II II II II II II II II II II
$300,000
II
What is the penalty for transacting insurance without a proper license? - $1,000 for each
II II II II II II II II II II II II II II II II II
violation
II
What type of misrepresentation persuades an insured to cancel, lapse, or switch policies
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from one to another? - Twisting
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The patient protection and affordable care act includes what except? - Individual tax
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deduction for premiums paid
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, What entity determines if an advertisement is deceptive of confusing? - The
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Commissioner
II
How many days does a nonresident procedure have to file a change of address when the
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agent moves to Nevada from another state? - 30 days
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What is not considered a misrepresentation? - Making comparisons between different
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policies
II
A producer who has allowed their license to lapse may reinstate the license without
II II II II II II II II II II II II II II
retaking the examination within what maximum time period? - 12 months or 1 year
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Who is a person, other than a viator, that enters into a viatical settlement? - Viatical
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Settlement Provider
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How many days after cancellation of a license in another state does a new resident agent
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have to apply for Nevada producer license without having to fulfill licensing examination
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and education requirements? - 90 days
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What are the three basic types of term life insurance? - The three basic types of term life
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insurance are level, increasing, and decreasing.
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When would a whole life insurance policy mature? - The whole life insurance policy
II II II II II II II II II II II II II II II II
matures when the insured dies or turns 100.
II II II II II II II II
II Who is an annuitant? - The annuitant is the person on whose life expectancy the annuity
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II is written and who receives benefits from the annuity.
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What constitutes the entire contract? - The entire contract constitutes the policy, a copy
II II II II II II II II II II II II II II II II
of application, and any riders or amendments.
II II II II II II II
Which rider allows an insured to purchase additional coverage without evidence of
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insurability? - The Guaranteed Insurability Rider allows an insured to purchase
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additional coverage without evidence of insurability.
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What are the three nonforfeiture options? - The three nonforfeiture options are reduced
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paid-up, extended term, and cash surrender value.
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In group life insurance, who receives the master contract? - The employer receives the
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master contract in group life insurance.
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What are some examples of qualified retirement plans? - Traditional IRA, Roth IRA,
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SIMPLE, SEP, and 401(k)
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Prep Questions and answers | 2026/27
What are the four required elements of an insurance contract? - Agreement,
II II II II II II II II II II II II II
consideration, competent parties, and legal purpose.
II II II II II II
What two parts make up a life insurance application? - General Information and the
II II II II II II II II II II II II II II II II
Medical Information. An agent's report can go in a life insurance application but is not
II II II II II II II II II II II II II II II
included in the life insurance policy.
II II II II II II
II When must insurable interest exist in life insurance? - At the time of application.
II II II II II II II II II II II II II II II
When does coverage begin, if the premium was submitted with the application, and the
II II II II II II II II II II II II II II
policy was issued two weeks later? - At the time of the application.
II II II II II II II II II II II II II II II
If an agent makes a mistake on the application and then corrects it, who must initial that
II II II II II II II II II II II II II II II II II
change? - The applicant.
II II II II II II
Insurers may change what on a guaranteed renewable health insurance polity? - The
II II II II II II II II II II II II II II II
rates by class.
II II II
At what age may an individual make withdrawals from an HSA for nonhealth purposes
II II II II II II II II II II II II II II
without being penalized? - At age 65.
II II II II II II II II II
Which provision states how much time must pass between two like illnesses in order for
II II II II II II II II II II II II II II II
the second one to be covered under a new set of benefits? - Recurrent Disability
II II II II II II II II II II II II II II II II II
Provision
II
In forming an insurance contract, when does acceptance occur? - When an insurer's
II II II II II II II II II II II II II II II
underwriter approves coverage
II II II
What is an important feature of a dental expense insurance plan that is not found in a
II II II II II II II II II II II II II II II II II
medical expense insurance plan? - Diagnostic and preventive care
II II II II II II II II II II II
What best describes the "first-dollar coverage" principle in basic medical insurance? -
II II II II II II II II II II II I II II
The insured is not required to pay a deductible
II II II II II II II II II
Occasional visits by what medical professionals will not be covered under Long-Term
II II II II II II II II II II II II
Care's home health care? - Attending physicians
II II II II II II II II II
Can an individual who belongs to a POS plan use an out-of-network physician? - Yes,
II II II II II II II II II II II II II II II II II
they can use any physician even if not part of the HMO
II II II II II II II II II II II II
, What is the advantage of reinstating a policy instead of applying for a new one? - The
II II II II II II II II II II II II II II II I II II II
original age is used for premium determination
II II II II II II II
II What would basic medical expense coverage not cover? - Surgeon's services
II II II II II II II II II II II II
II What is not provided by an HMO? - Reimbursement
II II II II II II II II II II
What insurance arrangements will be appropriate for a parent buying a life insurance
II II II II II II II II II II II II II
policy on a child where the parent is the policyowner? - Third-party ownership
II II II II II II II II II II II II II II II
II What is not true about dividends? - Dividend amounts are guaranteed in the policy
II II II II II II II II II II II II II II II
What is not true about Accidental Death and Dismemberment? - Death benefits are paid
II II II II II II II II II II II II II II II II
only if death occurs within 24 hours of an accident
II II II II II II II II II II
II When would a 20-pay whole life policy endow? - When the insured reaches age 100
II II II II II II II II II II II II II II II II
What section of a health policy that states the causes of eligible loss under which an
II II II II II II II II II II II II II II II II
insurance is assumed to be disabled? - Insuring Clause
II II II II II II II II II II II
The insurance clause of a disability policy usually states what except? - The method of
II II II II II II II II II II II I II II II II II
premium payment
II II
II What best describes annually renewable term insurance? - It is level term insurance
II II II II II II II II II II II II II II
What best describes an annuity period? - Period of time during which accumulated
II II II II II II II II II II II II II II II
money is converted into income payments
II II II II II II
II What is an eligibility requirement for all Social Security Disability Income benefits? -
II II II II II II II II II II II I II II
II Have attained fully insured status
II II II II
What protects the insured from unintentional policy lapse due to a nonpayment of
II II II II II II II II II II II II II
premium? - Automatic premium loan
II II II II II II II
What is the maximum amount that the Nevada Life & Health Insurance Guaranty
II II II II II II II II II II II II II
Association be obligated to pay with respect to life insurance death benefits for one life? -
II II II II II II II II II II II II II II II II II II
$300,000
II
What is the penalty for transacting insurance without a proper license? - $1,000 for each
II II II II II II II II II II II II II II II II II
violation
II
What type of misrepresentation persuades an insured to cancel, lapse, or switch policies
II II II II II II II II II II II II II
from one to another? - Twisting
II II II II II II II II
The patient protection and affordable care act includes what except? - Individual tax
II II II II II II II II II II II II II II II
deduction for premiums paid
II II II II
, What entity determines if an advertisement is deceptive of confusing? - The
II II II II II II II II II II I II II II
Commissioner
II
How many days does a nonresident procedure have to file a change of address when the
II II II II II II II II II II II II II II II II
agent moves to Nevada from another state? - 30 days
II II II II II II II II II II II II
What is not considered a misrepresentation? - Making comparisons between different
II II II II II II II II II II II II II
policies
II
A producer who has allowed their license to lapse may reinstate the license without
II II II II II II II II II II II II II II
retaking the examination within what maximum time period? - 12 months or 1 year
II II II II II II II II II II II II II II II II
Who is a person, other than a viator, that enters into a viatical settlement? - Viatical
II II II II II II II II II II II II II II II II II II
Settlement Provider
II II
How many days after cancellation of a license in another state does a new resident agent
II II II II II II II II II II II II II II II II
have to apply for Nevada producer license without having to fulfill licensing examination
II II II II II II II II II II II II II
and education requirements? - 90 days
II II II II II II II II
What are the three basic types of term life insurance? - The three basic types of term life
II II II II II II II II II II II II II II II II II II II II
insurance are level, increasing, and decreasing.
II II II II II II
When would a whole life insurance policy mature? - The whole life insurance policy
II II II II II II II II II II II II II II II II
matures when the insured dies or turns 100.
II II II II II II II II
II Who is an annuitant? - The annuitant is the person on whose life expectancy the annuity
II II II II II II II II II II II II II II II II II
II is written and who receives benefits from the annuity.
II II II II II II II II
What constitutes the entire contract? - The entire contract constitutes the policy, a copy
II II II II II II II II II II II II II II II II
of application, and any riders or amendments.
II II II II II II II
Which rider allows an insured to purchase additional coverage without evidence of
II II II II II II II II II II II II
insurability? - The Guaranteed Insurability Rider allows an insured to purchase
II II II II II II II II II II II II II
additional coverage without evidence of insurability.
II II II II II II
What are the three nonforfeiture options? - The three nonforfeiture options are reduced
II II II II II II II II II II II II II II II
paid-up, extended term, and cash surrender value.
II II II II II II II
In group life insurance, who receives the master contract? - The employer receives the
II II II II II II II II II II II II II II II II
master contract in group life insurance.
II II II II II II
What are some examples of qualified retirement plans? - Traditional IRA, Roth IRA,
II II II II II II II II II II II II II II II
SIMPLE, SEP, and 401(k)
II II II II
