2026 NEVADA LIFE AND HEALTH LICENSE
CORRECT FINAL EXAMS QUESTIONS AND
ANSWERS SURE A+
✔✔When does an adjustable life policy accumulate cash value? - ✔✔When the
premiums paid are more than the cost of the policy
✔✔What type of whole life insurance policies only requires a payment of premium at its
inception, and in addition to providing insurance protection for the life of the insured,
endows at the insured's age 100? - ✔✔Single premium whole life
✔✔What type of insurance would perform the function of cash accumulation? -
✔✔Whole Life Insurance
✔✔What are the two components of a universal policy? - ✔✔Insurance and cash
account
✔✔Which Universal Life option has a gradually increasing cash value and a level death
benefit? - ✔✔Option A
,✔✔What policies would have an IRS required corridor or gap between the cash value
and the death benefit? - ✔✔Universal Life, Option A
✔✔What is the main difference between immediate and deferred annuities? - ✔✔When
the income payments begin
✔✔In a survivorship life policy, when does the insurer pay the death benefit? - ✔✔Upon
the last death
✔✔Upon the death of the insured, the primary beneficiary discovers that the insured
chose the interest only settlement option. What does this mean? - ✔✔The beneficiary
will only receive payments of the interest earned on the death benefit
✔✔What happens to a policy's cash value under an extended term nonforfeiture option?
- ✔✔The cash value is converted to the same face amount as in the whole life policy
✔✔What nonforfeiture option is automatically selected by the company if not chosen by
the policyowner? - ✔✔Extended Term
✔✔What is the purpose of settlement options in life insurance policies? - ✔✔to
determine how the death benefit will be paid to the beneficiary
✔✔What is the life insurance policy rider that provides coverage on the insured's family
members? - ✔✔Other-Insured Rider
✔✔What is the advantage of reinstating a life insurance policy as opposed to applying
for a new one? - ✔✔Policy premium in a reinstated policy will be set according to the
insured's original age
✔✔What life insurance policy rider allows the company to forgo collecting the premium
if the insured becomes disabled? - ✔✔Waiver of Premium
✔✔What beneficiary designation has first claim to the death proceeds of a life insurance
policy? - ✔✔Primary beneficiary
✔✔What life insurance policy provision prevents an insurer from disputing or denying a
claim due to misstatements on the application after a certain period of time? -
✔✔Incontestability
✔✔What is the purpose of the Automatic Premium Loan provision? - ✔✔To prevent the
unintentional lapse of a policy because of nonpayment of the premium
, ✔✔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
CORRECT FINAL EXAMS QUESTIONS AND
ANSWERS SURE A+
✔✔When does an adjustable life policy accumulate cash value? - ✔✔When the
premiums paid are more than the cost of the policy
✔✔What type of whole life insurance policies only requires a payment of premium at its
inception, and in addition to providing insurance protection for the life of the insured,
endows at the insured's age 100? - ✔✔Single premium whole life
✔✔What type of insurance would perform the function of cash accumulation? -
✔✔Whole Life Insurance
✔✔What are the two components of a universal policy? - ✔✔Insurance and cash
account
✔✔Which Universal Life option has a gradually increasing cash value and a level death
benefit? - ✔✔Option A
,✔✔What policies would have an IRS required corridor or gap between the cash value
and the death benefit? - ✔✔Universal Life, Option A
✔✔What is the main difference between immediate and deferred annuities? - ✔✔When
the income payments begin
✔✔In a survivorship life policy, when does the insurer pay the death benefit? - ✔✔Upon
the last death
✔✔Upon the death of the insured, the primary beneficiary discovers that the insured
chose the interest only settlement option. What does this mean? - ✔✔The beneficiary
will only receive payments of the interest earned on the death benefit
✔✔What happens to a policy's cash value under an extended term nonforfeiture option?
- ✔✔The cash value is converted to the same face amount as in the whole life policy
✔✔What nonforfeiture option is automatically selected by the company if not chosen by
the policyowner? - ✔✔Extended Term
✔✔What is the purpose of settlement options in life insurance policies? - ✔✔to
determine how the death benefit will be paid to the beneficiary
✔✔What is the life insurance policy rider that provides coverage on the insured's family
members? - ✔✔Other-Insured Rider
✔✔What is the advantage of reinstating a life insurance policy as opposed to applying
for a new one? - ✔✔Policy premium in a reinstated policy will be set according to the
insured's original age
✔✔What life insurance policy rider allows the company to forgo collecting the premium
if the insured becomes disabled? - ✔✔Waiver of Premium
✔✔What beneficiary designation has first claim to the death proceeds of a life insurance
policy? - ✔✔Primary beneficiary
✔✔What life insurance policy provision prevents an insurer from disputing or denying a
claim due to misstatements on the application after a certain period of time? -
✔✔Incontestability
✔✔What is the purpose of the Automatic Premium Loan provision? - ✔✔To prevent the
unintentional lapse of a policy because of nonpayment of the premium
, ✔✔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
