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NEVADA LIFE AND HEALTH LICENSE EXAM 202 5
VERSION 1 LATEST UPDATE 202 5 WITH 300
QUESTIONS AND CORRECTLY ANSWERED ALREADY
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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? ✔- $300, What is the penalty for transacting insurance without a proper license? ✔-$1,000 for each violation At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized? ✔- 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?✔- Recurrent Disability Provision In forming an insurance contract, when does acceptance occur? ✔- 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? ✔- Diagnostic and preventive care What best describes the "first-dollar coverage" principle in basic medical insurance? ✔- 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? ✔- Attending physicians Can an individual who belongs to a POS plan use an out-of-network physician? ✔- 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? ✔- The original age is used for premium determination What would basic medical expense coverage not cover? ✔- Surgeon's services What is not provided by an HMO? ✔- Reimbursement What insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? ✔- Third- party ownership What is not true about dividends? ✔- Dividend amounts are guaranteed in the policy What is not true about Accidental Death and Dismemberment? ✔- Death benefits are paid only if death occurs within 24 hours of an accident
✔- Twisting What are the four required elements of an insurance contract? ✔- Agreement, consideration, competent parties, and legal purpose. What two parts make up a life insurance application? ✔- 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? ✔- 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? ✔- At the time of the application. If an agent makes a mistake on the application and then corrects it, who must initial that change? ✔- The applicant. Insurers may change what on a guaranteed renewable health insurance polity? ✔- The rates by class. The patient protection and affordable care act includes what except? ✔- Individual tax deduction for premiums paid What entity determines if an advertisement is deceptive of confusing? ✔- 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? ✔- 30 days What is not considered a misrepresentation? ✔- 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? ✔- 12 months or 1 year Who is a person, other than a viator, that enters into a viatical settlement? ✔- 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? ✔- 90 days What are the three basic types of term life insurance? ✔- The three basic types of term life insurance are level, increasing, and decreasing. When would a whole life insurance policy mature? ✔- The whole life insurance policy matures when the insured dies or turns 100. Who is an annuitant? ✔- The annuitant is the person on whose life expectancy the annuity is written and who receives benefits from the annuity.
Insurance is a contract by which one seeks to protect another from ✔- Loss What type of report provides information about the applicant's hobbies, habits, and financial status? ✔- Inspection Report What law protects consumers from the circulation of inaccurate or obsolete information ✔- The Fair Credit Reporting Act What term describes the fee a person pays an insurance company to receive coverage? ✔- Premium What is the purpose of the agent's report during the application process? ✔- 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? ✔- Insurable interest and consent What does it mean when health insurance contracts are unilateral? ✔- Only one party makes a legally enforceable promise How is the information obtained for an investigative consumer report? ✔- 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? ✔- Underwriting
What are the three types of risk rating classifications in life insurance? ✔- Standard, substandard, and preferred When would a misrepresentation on an insurance application be considered fraud? ✔- When it is intentional and material What entities make up the Medical Information Bureau? ✔- Insurers
If the annuitant dies before the annuitization period starts, what will beneficiary receive? ✔- Either the amount paid into the annuity or cash value, whichever is greater In annually renewable term policies, what is the annual premium based upon? ✔- The insured's attained age If the annuitant dies during the accumulation period, who will receive the annuity benefits?✔- The beneficiary What does the term "level" refer to in level term insurance? ✔- Face amount What type of life insurance is best suited to cover a mortgage? ✔- Decreasing term Who receives income payments from an annuity? ✔- Annuitant What type of premium is charged on a straight life policy? ✔- A level premium for the life of the insured In variable universal life insurance, to what policy component does the term "variable" refer? ✔- Cash value and death benefit
A whole policy that requires that the policyowner only pays premiums for a specified number of years is known as what kind of policy? ✔- Limited- Pay Whole Life In an annuity, the accumulated money is converted into a stream of income during which phase? ✔- Annuitization period Whose life expectancy is taken into consideration in an annuity contract? ✔- The annuitant What type of life insurance offers an applicant a cash value element? ✔- Permanent Insurance Mortality tables are used by insurance companies to predict what? ✔- Life expectancy and the death rates for specific groups of individuals If there is no named beneficiary for the annuity benefits, to which entity will the benefits be paid? ✔- The annuitant's estate How soon can income payments begin in an immediate annuity? ✔- No later than 1 year from the time of annuity purchase What type of annuity requires an agent to have a securities license? ✔- Variable annuity What policy loans are not available on term insurance? ✔- There is no cash value to borrow against
What policies would have an IRS required corridor or gap between the cash value and the death benefit? ✔- Universal Life, Option A What is the main difference between immediate and deferred annuities? ✔- When the income payments begin In a survivorship life policy, when does the insurer pay the death benefit? ✔- Upon the last death Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean? ✔ - The beneficiary will only receive payments of the interest earned on the death benefit What happens to a policy's cash value under an extended term nonforfeiture option? ✔- The cash value is converted to the same face amount as in the whole life policy What nonforfeiture option is automatically selected by the company if not chosen by the policyowner? ✔- Extended Term What is the purpose of settlement options in life insurance policies? ✔- to determine how the death benefit will be paid to the beneficiary What is the life insurance policy rider that provides coverage on the insured's family members? ✔- Other-Insured Rider
What is the advantage of reinstating a life insurance policy as opposed to applying for a new one? ✔- Policy premium in a reinstated policy will be set according to the insured's original age What life insurance policy rider allows the company to forgo collecting the premium if the insured becomes disabled? ✔- Waiver of Premium What beneficiary designation has first claim to the death proceeds of a life insurance policy? ✔- Primary beneficiary What life insurance policy provision prevents an insurer from disputing or denying a claim due to misstatements on the application after a certain period of time? ✔- Incontestability What is the purpose of the Automatic Premium Loan provision? ✔- To prevent the unintentional lapse of a policy because of nonpayment of the premium What happens to the proceeds of a life insurance policy if there is no named beneficiary? ✔- The proceeds are paid to the insured's estate With the reduction of premium dividend option, how is the dividend used? ✔- The dividend is applied to the next year's premium; it reduces the next year's premium
In the fixed-period settlement option, how will the number of installments for the death benefit proceeds determine the amount of the installments? ✔- The longer the period selected, the smaller each installment will be What nonforfeiture option has the highest amount of insurance protection? ✔- Extended Term If a life insurance policy has an irrevocable beneficiary designation ✔- The beneficiary can old be changed with written permission of the beneficiary What is the purpose of a free-look period in insurance policies? ✔- It allows the insured to reject the policy with a full refund What is the clause that is included in a life policy that limits or eliminates the death benefit if the insured dies as a result of war or while serving in the military? ✔- Military Service or War An insured receives an annual life insurance dividend check. What term best described this arrangement? ✔- Cash option Nonforfeiture values guarantee what for the policyowner? ✔- That the cash value will not be lost What required provision protects against unintentional lapse of the policy? ✔- Grace period What are the benefits available under Social Security? ✔- Disability
benefits, death benefits, survivor's benefits, and old-age and retirement benefits Group life insurance policies are written as what type of life insurance? ✔- Annually Renewable Term What are the personal uses of life insurance? ✔- Survivor protection, estate creation and conservation, cash accumulation and liquidity Who qualifies for tax-sheltered annuities, or 403(b) plans? ✔- Employees of nonprofit organizations under Section 501(c)(3) and employees of public school systems What is the general taxation rule for death benefits payable to the beneficiary of a life insurance policy? ✔- Death benefits are generally not subject to income taxes Upon surrender of a life insurance policy, what portion of the cash value will be taxed?✔- Only the portion in excess of the premium paid
Who would be considered a third ✔- An individual or an entity who is not the insured What does liquidity mean in a life insurance policy? ✔ - Availability of cash value What is required to qualify an individual to contribute to a traditional IRA? ✔- Earned income When would life insurance policy proceeds be included in the insured's taxable estate? ✔- When there is an incident of ownership at the time of death What type of policy is typically issued without proof of insurability from the insured? ✔- Group policy SIMPLE plans are available to groups of how many employees? ✔- No more than 100 Why are dividends in life insurance policies not taxable? ✔- They are a return of unused premiums and are not considered income for tax purposes What type of worker would not qualify for Keogh Plan? ✔- A worker who works less than 1,000 hours per year
The premiums paid by the employer in a business life insurance policy are ✔- Tax deductible by the employer When an employee terminates coverage under a group insurance policy, how long does the coverage stay in force? ✔- 31 days How are contributions to a tax-sheltered annuity treated with regards to taxation? ✔- They are not included as income for the employee, but are taxable upon distribution What type of insurance policies would perform the function of cash accumulation? ✔- Whole Life Insurance In a life settlement contract, whom does the life settlement broker represent? ✔- The owner of the policy What is true regarding a nonqualified retirement plan? ✔- Contributions are not tax deductible, It can discriminate in benefits and selecting participants, earnings grow tax deferred and it does not need IRS approval What document describes an insured's medical history, including diagnosis and treatments? ✔- Attending Physician's Statement What must the insurer do before giving the applicant an HIV exams? ✔- Get the applicants informed written consent prior to the exam. Results will be disclosed to underwriters but not agents
