Insurance
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
All of the following statements concerning dividends are true except
Dividend amounts are guaranteed in the policy
On a health insurance application a signature is required from all of the following individuals except
the spouse of the policyowner
An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?
$120 a day
Which of the following is a feature of a disability buyout plan?
A lump-sum benefit payment option
What is a foreign insurer?
An insurer with a home office in another state
An insurance contract must contain all of the following to be considered legally binding except
Beneficiary's consent
Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner
Cash surrender: once cash surrender value is paid, the contract is over
When delivering a policy, which of the following is an agents responsibility?
Collect payment at time of delivery (if payment has not already been collected)
The mode of premium payment
Is defined as the frequency and the amount of the premium payment.
In respect to the consideration clause, which of the following is consideration on the part of the insurer?
Promising to pay in accordance with the contract terms
What type of care is Respite care?
Relief for a major care giver
The Nevada insurance Guaranty Association has a legal right to seek damages from third parties after having reimbursed the insured for the loss. This is known as
Subrogation
Which of the following is incorrect concerning a noncontributory group plan?
The employees receive individual policies
All of the following are true of key person insurance except
The plan is funded by permanent insurance only.
Which of the following premium modes would result in the highest annual cost for an insurance policy?
monthly
The primary eligibility requirement for Medicaid benefits is based upon
to need
In all healthcare plans under the affordable care act (ACA), how many essential benefit categories are there?
10
Which of the following does NOT fit the definition of an administrator?
A life and health producer who only sells insurance
Which of the following documents delivered to the policy owner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
A policy summary
Who is a third-party owner?
A policyowner who is not the insured
Which of the following will not be considered a limited line producer license?
A producer only selling life insurance
To be eligible for a resident producers license in Nevada, an applicant must meet all of the following eligibility requirements except
Be licensed as a solicitor for at least one year prior to application
Which of the following includes information regarding a person's credit, character, reputation, and habits?
Consumer report
Which of the following is not an exclusion and medical expense insurance policies?
Coverage for dependents
What characteristic makes whole life permanent protection
Coverage until death or age 100
The type of insurance sold to a debtor and design to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit life
Which of the following is true regarding the insurance amount in a credit life policy
Creditor can only insure the debtor for the amount owed
What amount of care is provided in LTC's intermediate care?
Daily care by medical personnel
When a producer was reviewing a potential customers coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty if
Defamation
Which of the following is not a duty of the commissioner
Develop insurance rates
Which of the following will not be considered unfair discrimination by insurers
Discriminating in benefits and coverages based on the insured's habits and lifestyle
When twin brothers applied for life insurance from company a, the company found that well neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered
Discrimination
All of the following could be considered rebates if offered to an insured in the sale of insurance except
Dividends from a mutual insurer.
The period of time immediately following a disability during which benefits are not payable is
Elimination period
How often are producers required to complete continuing education requirements to keep the license in force
Every 3 years
For a purpose of determining its financial condition, fulfillment of its contractual obligation's and compliance with Nevada law, the commissioner will examine the affairs of each insured as often as deemed necessary. Each domestic insurer must be examined at least
Every five years
Items stipulated in the contract that the insurer will not provide coverage for are found in the
Exclusions
What does "level" refer to in level term insurance?
Face amount
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
Fair Credit Reporting Act
During partial withdrawal from a universal life policy, which portion will be taxed?
Interest. During the withdrawal, the interest earned on the withdrawn cash value may be subject to taxation.
A guaranteed renewable disability insurance policy
Is renewable at the insureds option to a specified age
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
Issue the policy anyway and pay the face value to the beneficiary
Which of the following is correct about a group health insurance policy?
It can provide coverage for handicapped children
What is the term for how frequently a policy owner is required to pay the policy premium?
Mode
An applicant for a health Insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?
Neither approved the application nor issued the policy
A Medicare supplement policy can exclude coverage based on
None of the above
Which of the following statements is incorrect concerning Medicare part B coverage
Part B coverage is provided free of charge when an individual turns age 65
According to the PPACA metal levels classification, if a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%, what type of plant is that premium
Platinum
A guaranteed renewable health insurance policy allows the
Policyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.
Who is a person, other than a viator, that enters into a viatical settlement contract?
Provider
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount
Insurers may change which of the following on a guaranteed renewable health insurance policy?
Rates by class
Which of the following statements about a suicide clause in a life insurance policy is true
Suicide is excluded for a specific period of years and covered thereafter.
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
Survivor protection Life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death. This is known as survivor protection.
Which of the following is called a "second-to-die" policy?
Survivorship life
The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following except
The insureds age at death
Which of the following is NOT a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
All of the following are true statements regarding the accumulation at interest option except
The interest is not taxable since it remains inside the insurance policy
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
Which provision states that the insurance company must pay Medical Expense claims immediately
Time of Payment of Claims
What is the purpose of the buyers guide
To allow the consumer to compare costs of different policies
The primary purpose of disability income insurance is to
To replace income lost due to a disability
If an insured is not required to pay a deductible, what kind of coverage does he/she have
first dollar
What provision in an insurance policy extends coverage beyond the premium due date?
grace period
In long-term care (LTC) policies, as the benefit period lengthens, the premium
increases
All advertisements are the responsibility of the
insurer
During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes
misrepresentation
An employee insured under a group health plan has been paying $25 monthly premium for his group health coverage. The employer has been contributing $75, for the total monthly cost of $100. If the employee leaves the company, what would be his maximum monthly premium for COBRA coverage?
$102
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
$200,000
Mike is the owner of a new life insurance policy. He meets with his agent, takes his policy home, and reads through the contract. Mike realizes that he doesn't want the policy after all and decides to cancel it. He must notify the insurer within
10 days
The policy owner in Nevada gets a free-look period of
10 days
Should any person will fully engage in an on authorized insurance transaction, the commissioner may impose an administrative fine or penalty of up to
10,000 for each and every act
Under the affordable care act, what percentage of preventive care must be covered without cost sharing
100%
A client has a new individual disability income policy with a 20-day probationary period and a 30-day elimination period. Ten days later, the client breaks their leg and is off work for 45 days. How many days of disability benefits will the policy pay?
15 days
How many consecutive months of coverage other than in an acute care unit of the hospital does LTC insurance cover in Nevada
24
An insured has Medicare Part D coverage. Upon reaching the initial benefit limit, what percentage of the prescription drug cost is the insured responsible for paying?
25%
For how long must agents retain copies of notices in sales proposals for life insurance applications
3 years
What is the maximum age for qualifying for a catastrophic plan
30
A Medicare supplement must have a free look provision of at least
30 days
What is the required grace period in group life policies in this state?
31 days
Accident and health procedures may qualify to sell continuous care coverage if they complete a minimum of how many hours of approved instruction in workers compensation and employers liability insurance?
8 hours
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
According to the Entire Contract provision, a policy must contain
A copy of the original application for insurance
All of the following statements concerning workers compensation are correct except
A worker receives benefits only if the work related injury was not his/her fault.
Which of the following is not one of the three basic types of coverages that are available based on how the face amount changes during the policy term?
A. Decreasing B. Level C. Increasing D. Renewable ✅
Which of the following statements could not be used in an advertisement of life insurance policies in Nevada?
A. Untrue statements of the insurers assists or financial standing B. Imply that claim settlements will be generous beyond the terms of the policy C. Statements that make unfair or incomplete comparisons of another insurer or the policies D. Any of the above would be of violation of the Insurance Code daddy ✅
The following are allowable exclusions of Medicare supplement insurance except
A.) Dental Treatment B.) Hearing Aids C.) Emotional Disorders D.) All of the above are allowable exclusions ✅
If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?
Adjust the benefit in accordance with the increased risk.
What are the most common variations in a Long-term care policy?
All of the above, confinement covered, number of home health visits covered, the amount paid for nursing home care
Which of the following is required for a producer to transact business on behalf of an insurer?
An agent appointment
In insurance, an offer is usually made when
An applicant submits an application to the insurer
Bob purchased a policy to provide coverage on himself, his wife Linda, and their two children, John and Kristen. All of them would need to prove insurability except
Any children born to them after the inception of the contract
Which of the following would be an allowable purpose of forming a group to be covered by a life insurance plan?
Assembling a group of employees
When must insurable interest exist in a life insurance policy?
At the time of application
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first.
Which one of the following is an eligibility requirement for Social Security disability income benefits?
Fully insured status
If a life policy allows the policy owner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
Guaranteed insurability rider
What are the 2 types of Flexible Spending Accounts?
Health care accounts and dependent care accounts
Under the privacy rule for HIPAA, Protected information includes all individually identifiable health information
Held or transmitted in any form
Which of the following riders would not increase the premium for a policy owner
Impairment Rider
The patient protection and affordable care act includes all of the following provisions except
Individual tax deduction for premiums paid
The mechanism used by individuals to transfer their risk of loss to a larger group of individuals that have Similar exposures to loss, is called
Insurance
In which of the following situations is it legal to limit coverage based on marital status
It is never legal to limit coverage based on marital status
Which of the following is not true regarding a non-qualified retirement plan?
It needs IRS approval
Which of the following statements is true about a policy assignment?
It transfers rights of ownership from the owner to another person.
Which of the following statements is true concerning the accidental death rider
It will pay double or triple the face amount
Which statement is not true regarding a straight life policy?
Its premium steadily decreases over time, in response to its growing cash value.
All of the following are true regarding rebates except
Rebates are allowed if it's in the best interest of the client.
An agent offered his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of
Rebating
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
Which nonforfeiture option provides coverage for the longest period of time?
Reduced paid-up. The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy.
The owner of a viatical settlement contract rescinds the contract 5 days after receiving the payment, and then unexpectedly dies 2 days later. This life settlement contract is considered to be
Rescinded, subject to repayment of the life settlement proceeds
When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy as well as a refund of all of the premiums paid. Which rider is attached to the policy?
Return of premium
If an agent fails to obtain an applicant's signature on the application, the agent must
Return the application to the applicant for a signature
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?
Revocable
Which type of life insurance policy generates immediate cash value?
Single Premium
An insured has endured multiple surgeries and hospitalizations for an illness during the summer months. Her insurer no longer bills her for medical expenses. What term best describes the condition she has met?
Stop-Loss Limit A "stop-loss limit" is a specified dollar amount beyond which the insured no longer participates in the sharing of expenses.
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to
The insured
And employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT
The insured may choose to convert to term or permanent individual coverage
Which of the following statements is true regarding coinsurance?
The larger the percentage that is paid by the insured, the lower the required premium will be
Which of the following is not required on an illustration used in the sale of a life insurance policy?
The name of the primary and secondary beneficiaries
All of the following are true regarding the guaranteed insurability rider except
This rider is available to all insureds with no additional premium.
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss?
Time of Payment of Claims
Insurers usually do not reimburse claimants for 100% of income lost due to disability. What is the reason for insurer limitations on coverage amounts?
To provide an incentive for the insured to return to work.
When may an insurance company use suicide as a defense against paying a death claim?
When death occurs within a specified period of time after the policy was issued.
When would a 20-pay whole life policy endow?
When the insured reaches age 100
In individual health insurance coverage, the insurer must cover a newborn from the moment of birth, and if additional premium payment is required, allow how many days of payment?
Within 31 days of bizzurthh
Whose responsibility is it to determine if all of the questions on an application have been answered?
agent
An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?
applicant
All of the following are personal uses of life insurance except
buy-sell agreement
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
death benefit
Who can provide skilled nursing care?
doctor
While a claim is pending, an insurance company may require
An independent examination as often as reasonably required
Which of the following definitions would make it easier to qualify for total disability benefits?
The more liberal "own occupation"
If an insured continually uses the automatic premium loan option to pay the policy premium,
The policy will terminate when the cash value is reduced to nothing
Under the 401(k) bonus or thrift plan, the employer will contribute
An undetermined percentage for each dollar contributed by the employee.
What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?
Application
To comply with fair credit reporting act, when must a producer and notify an applicant that a credit report may be requested?
At the time of application
What is a definition of a unilateral contract?
One-sided: only one party makes an enforceable promise
Which of the following is true about the requirements regarding HIV exams?
The applicant must give prior informed written consent
Which universal life option has a gradually increasing cash value and a level death benefit
Option A
A brain surgeon had an accident and develops tremors in her right arm, which disability income policy definition of total disability will cover her for all losses?
Own Occupation Less Restrictive than other definitions
Which of the following is true regarding taxation of cash value in a life insurance policy
Cash value in excess of the premiums paid is taxed upon policy surrender
What is an important feature of a dental expense insurance plan that is not typically found in a medical expense insurance plan
Diagnostic and preventive care
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level term
Which of the following settlement options in life insurance is known as straight life?
Life income
Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?
Size of each installment
If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?
The death benefit will be smaller
Which statement accurately describes group disability income insurance?
The extent of benefits offered is determined by the insured's income.
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policies cash value. There is a limit for a with drawl and the insured charges a fee. What type of policy does the insured most likely have?
Universal life
A medical expense policy that establishes the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charge for a specific procedure by a doctor of similar training and experience in that geographic area is known as
Usual, customary and reasonable
An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?
Adjust the claim benefit to reflect the insured's true age
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
If the father is disabled for more than 6 months
When Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled? A) The insurer may deny the claim since it was not notified within the required 20-day time frame B) The insured is considered to be notified since the notification to agent equals notification to the insurer C) The insurer may delay the payment of this claim for up to 6 months D) The insurer may settle this claim for less than it otherwise would have had the notification been provided in atimely manner
The insurer is considered to be notified since the notification to agent equals notification to the insurer
Which of the following terms describes a specific dollar amount of the cost of care that must be paid by the member?
copayment
In a basic expense policy, after the limits of the basic policy are exhausted, the insured must pay what kind of deductible?
corridor
Which of the following is not an essential element of an insurance contract
counteroffer
Which component increases in the increasing term insurance?
death benefit
Which of the following entities has the authority to make changes to an insurance policy?
insurer's executive officer
An insured pays her major medical insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On March 19, she had an accident and broke her leg. The insurance company would
pay claim
When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees
to renew the policy until the insured has reached age 65
The insurance policy, together with the policy application and any added riders form what is known as
Entire Contract
What statement best describes the free look provision
It allows the insured to return the policy within 10 days and receive a full refund of premiums.
Which is true regarding obtaining underwriting sources
The applicant must be informed of the sources contacted and how the information is being gathered.