Nevada Life and Health License Exam Prep
Questions and Guide Answers
100% Verified Graded A+
1. What are the four required elements of an insurance contract?
Answer: Agreement, consideration, competent parties, and legal purpose.
2. 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.
3. When must insurable interest exist in life insurance?
Answer: At the time of application.
4. When does coverage begin, if the premium was submitted with the applica-
tion, and the policy was issued two weeks later?
Answer: At the time of the application.
5. If an agent makes a mistake on the application and then corrects it, who
must initial that change?
,Answer: The applicant.
6. Insurers may change what on a guaranteed renewable health insurance
polity?
Answer: The rates by class.
7. At what age may an individual make withdrawals from an HSA for nonhealth
purposes without being penalized?
Answer: At age 65.
8. 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
9. In forming an insurance contract, when does acceptance occur?
Answer: When an insurer's underwriter approves coverage
10. 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
11. What best describes the "first-dollar coverage" principle in basic medical
insurance?
Answer: The insured is not required to pay a deductible
12. Occasional visits by what medical professionals will not be covered under
,Long-Term Care's home health care?
Answer: Attending physicians
13. Can an individual who belongs to a POS plan use an out-of-network physi-
cian?
Answer: Yes, they can use any physician even if not part of the HMO
14. What is the advantage of reinstating a policy instead of applying for a new
one?
Answer: The original age is used for premium determination
15. What would basic medical expense coverage not cover?
Answer: Surgeon's services
16. What is not provided by an HMO?
Answer: Reimbursement
17. 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
18. What is not true about dividends?
Answer: Dividend amounts are guaranteed in the policy
19. What is not true about Accidental Death and Dismemberment?
Answer: Death benefits are paid only if death occurs within 24 hours of an accident
, 20. When would a 20-pay whole life policy endow?
Answer: When the insured reaches age 100
21. 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
22. The insurance clause of a disability policy usually states what except?
Answer: The method of premium payment
23. What best describes annually renewable term insurance?
Answer: It is level term insurance
24. What best describes an annuity period?
Answer: Period of time during which accumulated money is converted into income payments
25. What is an eligibility requirement for all Social Security Disability Income
benefits?
Answer: Have attained fully insured status
26. What protects the insured from unintentional policy lapse due to a nonpay-
ment of premium?
Answer: Automatic premium loan
27. What is the maximum amount that the Nevada Life & Health Insurance
Guaranty Association be obligated to pay with respect to life insurance death
Questions and Guide Answers
100% Verified Graded A+
1. What are the four required elements of an insurance contract?
Answer: Agreement, consideration, competent parties, and legal purpose.
2. 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.
3. When must insurable interest exist in life insurance?
Answer: At the time of application.
4. When does coverage begin, if the premium was submitted with the applica-
tion, and the policy was issued two weeks later?
Answer: At the time of the application.
5. If an agent makes a mistake on the application and then corrects it, who
must initial that change?
,Answer: The applicant.
6. Insurers may change what on a guaranteed renewable health insurance
polity?
Answer: The rates by class.
7. At what age may an individual make withdrawals from an HSA for nonhealth
purposes without being penalized?
Answer: At age 65.
8. 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
9. In forming an insurance contract, when does acceptance occur?
Answer: When an insurer's underwriter approves coverage
10. 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
11. What best describes the "first-dollar coverage" principle in basic medical
insurance?
Answer: The insured is not required to pay a deductible
12. Occasional visits by what medical professionals will not be covered under
,Long-Term Care's home health care?
Answer: Attending physicians
13. Can an individual who belongs to a POS plan use an out-of-network physi-
cian?
Answer: Yes, they can use any physician even if not part of the HMO
14. What is the advantage of reinstating a policy instead of applying for a new
one?
Answer: The original age is used for premium determination
15. What would basic medical expense coverage not cover?
Answer: Surgeon's services
16. What is not provided by an HMO?
Answer: Reimbursement
17. 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
18. What is not true about dividends?
Answer: Dividend amounts are guaranteed in the policy
19. What is not true about Accidental Death and Dismemberment?
Answer: Death benefits are paid only if death occurs within 24 hours of an accident
, 20. When would a 20-pay whole life policy endow?
Answer: When the insured reaches age 100
21. 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
22. The insurance clause of a disability policy usually states what except?
Answer: The method of premium payment
23. What best describes annually renewable term insurance?
Answer: It is level term insurance
24. What best describes an annuity period?
Answer: Period of time during which accumulated money is converted into income payments
25. What is an eligibility requirement for all Social Security Disability Income
benefits?
Answer: Have attained fully insured status
26. What protects the insured from unintentional policy lapse due to a nonpay-
ment of premium?
Answer: Automatic premium loan
27. What is the maximum amount that the Nevada Life & Health Insurance
Guaranty Association be obligated to pay with respect to life insurance death
