Nevada Life and Health License Exam

Nevada Life and Health License Exam Prep Questions and Correct Answers Rated A+

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 no forfeiture options? -ANSWER-The three no forfeiture 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.

What are some examples of qualified retirement plans? -ANSWER- Traditional IRA, Roth IRA, SIMPLE, SEP, and 401(k)

When would life insurance death benefits be tax free? -ANSWER-If paid as a lump sum to the beneficiary

What do individuals use to transfer their risk of loss to a larger group?-ANSWER-Insurance

What is insurance the transfer of? -ANSWER-Risk

Insurance is a contract by which one seeks to protect another from - ANSWER-Loss

What type of report provides information about the applicant's hobbies, habits, and financial status? -ANSWER-Inspection Report

What law protects consumers from the circulation of inaccurate or obsolete information -ANSWER-The Fair Credit Reporting Act

What term describes the fee a person pays an insurance company to receive coverage? -ANSWER-Premium

What is the purpose of the agent's report during the application process? -ANSWER-The agent's report discusses the agent's personal observations about the proposed insured that may help in the underwriting process.

What two elements are necessary for a life insurance contract to have a legal purpose? -ANSWER-Insurable interest and consent

What does it mean when health insurance contracts are unilateral? - ANSWER-Only one party makes a legally enforceable promise

How is the information obtained for an investigative consumer report?-ANSWER-Through interviews with the applicant's associates, friends, and neighbors

What is the name of the process that insurance companies use to determine whether or not an applicant is insurable? -ANSWER- Underwriting

What are the three types of risk rating classifications in life insurance?-ANSWER-Standard, substandard, and preferred

When would a misrepresentation on an insurance application be considered fraud? -ANSWER-When it is intentional and material

What entities make up the Medical Information Bureau? -ANSWER- Insurers

What risk classification would typically qualify for lower premiums? - ANSWER-Preferred Risk

What is policy replacement? -ANSWER-A new policy is issued while an existing policy is terminated or reissued with a reduction in cash value

What best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? -ANSWER-Aleatory Contract

What best describes gross annual premium? -ANSWER-Net premium plus expenses

What is the appropriate action by the insurer if a prospective insured submitted an incomplete application? -ANSWER-Return the application to the applicant for completion