Practice Exam Nevada Life and

Nevada Life and Health Insurance Practice Exam Nevada Life and Health Insurance Practice Actual Exam Latest Update Questions and Correct Answers Rated A+

An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? -ANSWER-Long term care

Which juvenile following provisions guarantees that premiums will be waived if a Juvenile Life policy owner becomes disables? -ANSWER- Payor Clause

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company.The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? -ANSWER-Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company.

Which of the following circumstances would cause a Medicare Supplement policy to be cancelled? -ANSWER-The insured fails to pay the premium

K pays on a $20,000 20-year Endowment policy for 10 years and dies from an automobile accident. How Much will the insurance company pay the beneficiary ?

• Return of premiums paid

• Cash Value plus interest
• 20,000 death benefit
• Face amount plus interest? -ANSWER-C. $20,000 death benefit

The Misstatement of Age Provisions requires that if the age of the

insured is misstated, then any amount payable is:

• Forfeited
• An amount that the premiums paid would have purchased at the

current age or ages

• An amount consists of the premiums paid for the policy if the policy

was issued for over three years

• Reduced by a specified percentage of the face amount -ANSWER-
• An amount that the premiums paid would have purchased at the

current age or ages

When is the face amount paid under a Joint Life and Survivorship policy?

• When policy reaches maturation
• Upon death of the first insured
• Upon death of the last insured
• When one of the insureds becomes disables and no longer able to

make premium payments -ANSWER-C. Upon the death of the last insured

Which of the following is a characteristic of variable annuity?

• Underlying equity investments
• Does not have surrender charges
• Does not provide a transfer of ownership
• Selling this product requires only a life license -ANSWER-A.

Underlying equity investments

Who is a mutual insurance company owned by>

• Its board of directors
• Its policyholders
• The State of Florida
• Its employees -ANSWER-B. Its Policyholders

The USA PATRIOT ACT was enacted in:

A. 2001

B. 2002

C. 2003

D. 2004 -ANSWER-A. 2001

P is self-employed and owns an Individual Disability Income Policy.He becomes totally disables on June 1 and receives a $2,000 a month for the next 10 months. How much of this income is subject to federal income tax?

A. $20,000

B. $14,000

C. $6,000

D. $0 -ANSWER-D. $0

What is the elimination period of an individual disability policy?

• Time period an insured must wait before coverage begins
• Time period a disabled person must wait before benefits are paid
• Time of period after the policy issue date in which the provisions

are still contestable

• The point in time when benefits are no longer payable -ANSWER-
• Time period a disabled person must wait before benefits are paid

Which of the following BEST describes Credit Life Insurance?

• Insurance purchased on a mandatory basis with money bowled

from a bank of credit institution.

• Insurance issued on a debtor to cover outstanding balances on

installment loans

• Insurance that allows an insured to use a policy's cash value to pay

outstanding debts

• Low-cost insurance issued through the mail by credit card

companies -ANSWER-B. Insurance issued on a debtor to cover outstanding balances on installment loans

When an employee is required to pay a portion of the premium for an employer/employee group health plan, the employee is covered under which of the following plans?

• Joint
• Noncontributory
• Contributory
• Participating -ANSWER-C. Contributory

N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled

for 3 1/2 months. N's total benefit received on this claim is:

A. $2,000

B. $1,750

C. $1,500

• $1,250 -ANSWER-D. $1,250 (waited for 3.5 months, so the math

would be $500+$500+$250).

Which of the following is required for an insurance producer applicants who are required to pass a written examination?

• Fingerprint-based criminal background check
• Credit report
• High school diploma
• Sponsoring insurance company -ANSWER-A. Fingerprint-based

criminal background check