Practice Exam Nevada Life and

Nevada Life and Health Insurance Practice Exam Nevada Life and Health Insurance Practice Update Questions and

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