Nevada Life and Health License Exam Prep Questions with 100% Correct Answers

Nevada Life and Health License Exam Prep Questions with 100% Correct 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 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 licens