NEVADA LIFE AND HEALTH LICENSE EXAM PREP
QUESTIONS
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
What is not considered a misrepresentation? - Answer - Making comparisons between
different policies
A producer who has allowed their license to lapse may reinstate the license without
retaking the examination within what maximum time period? - Answer - 12 months or 1
year
Who is a person, other than a viator, that enters into a viatical settlement? - Answer -
Viatical Settlement Provider
How many days after cancellation of a license in another state does a new resident
agent have to apply for Nevada producer license without having to fulfill licensing
examination and education requirements? - Answer - 90 days
What are the three basic types of term life insurance? - Answer - The three basic types
of term life insurance are level, increasing, and decreasing.
When would a whole life insurance policy mature? - Answer - The whole life insurance
policy matures when the insured dies or turns 100.
Who is an annuitant? - Answer - The annuitant is the person on whose life expectancy
the annuity is written and who receives benefits from the annuity.
What constitutes the entire contract? - Answer - The entire contract constitutes the
policy, a copy of application, and any riders or amendments.
Which rider allows an insured to purchase additional coverage without evidence of
insurability? - Answer - The Guaranteed Insurability Rider allows an insured to purchase
additional coverage without evidence of insurability.
What are the three nonforfeiture options? - Answer - The three nonforfeiture options are
reduced paid-up, extended term, and cash surrender value.
In group life insurance, who receives the master contract? - Answer - The employer
receives the master contract in group life insurance.
QUESTIONS
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
What is not considered a misrepresentation? - Answer - Making comparisons between
different policies
A producer who has allowed their license to lapse may reinstate the license without
retaking the examination within what maximum time period? - Answer - 12 months or 1
year
Who is a person, other than a viator, that enters into a viatical settlement? - Answer -
Viatical Settlement Provider
How many days after cancellation of a license in another state does a new resident
agent have to apply for Nevada producer license without having to fulfill licensing
examination and education requirements? - Answer - 90 days
What are the three basic types of term life insurance? - Answer - The three basic types
of term life insurance are level, increasing, and decreasing.
When would a whole life insurance policy mature? - Answer - The whole life insurance
policy matures when the insured dies or turns 100.
Who is an annuitant? - Answer - The annuitant is the person on whose life expectancy
the annuity is written and who receives benefits from the annuity.
What constitutes the entire contract? - Answer - The entire contract constitutes the
policy, a copy of application, and any riders or amendments.
Which rider allows an insured to purchase additional coverage without evidence of
insurability? - Answer - The Guaranteed Insurability Rider allows an insured to purchase
additional coverage without evidence of insurability.
What are the three nonforfeiture options? - Answer - The three nonforfeiture options are
reduced paid-up, extended term, and cash surrender value.
In group life insurance, who receives the master contract? - Answer - The employer
receives the master contract in group life insurance.
