Life Insurance Exam: Nevada Laws and Ethics Pertinent to Insurance

A newly licensed agent must complete 30 hours of continuing education every years?

3 years

Every insurance producer/broker MUST maintain all records, books, and documents for insurance transactions for a period of not less than:

3 years

An individual life insurance policy issued in Texas MUST have a grace period for premium payment of how many days?

31

The commissioner must examine each domestic insurance company at LEAST every:

5 years

An agent who sells an individual life insurance policy in Nevada MUST deliver to the policyowner:

A Policy Summary and Buyer's Guide

A stock life insurance company that issues both participating and nonparticipating policies is doing business on:

A mixed plan

Nevada insurance law specifically allows the Commissioner to issue a temporary license to which of the following individuals?

A surviving spouse of a deceased producer

In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom?

The state where they are conducting business

what is Nevada's definition of Life insurance replacement?

a transaction in which a new policy is bought, and an old policy is terminated

It is a legitimate insurance marketing practice to obtain business from a competitor by all of the following means, EXCEPT

agreeing to reduce commissions in order to obtain a sale

What type of insurance company is domiciled in England, but conducts business in Nevada?

alien

Which of the following is NOT an example of a producer's breach of fiduciary duty?

allowing premiums to be submitted electronically

The Misstatement of Age provision requires that if the age of the insured is misstated, then any amount payable is:

an amount that the premiums paid would have purchased at the current age or ages

An insurance company MUST clearly specify questions designed to obtain information solely for marketing research:

in any insurance transaction

The funds used by the Life and Health Insurance Guaranty Association to carry out its purpose are obtained from the:

insurance companies

An insurance broker in Nevada is a representative of the:

insured

A foreign insurance company doing business in Nevada:

is a company that was formed under the laws of another state

In Nevada, an element of an insurance transaction would be:

issuing an insurance contract

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert:

to an individual policy upon employment termination

A life insurance policyowner may sell their policy to an ___________ in order to receive a percentage of the policy's face value?

viatical settlement provider

Before holding a hearing that may lead to suspension or revocation of a producer's license, the Insurance Commissioner MUST give:

written notice to the producer

An insurance company can contest a life insurance contract due to application fraud within:

2 years

In Nevada, most life insurance policies have a contestability period of:

2 years

a temporary license may be issued for MAXIMUM period of how many days?

180

The practice of persuading someone to do something by using force or threats is called:

Coercion

Insurance agents MUST obtain a license from Nevada's:

Commissioner of Insurance

Which of the following unfair trade practices involves an agent who makes malicious statements about another person's financial condition?

Defamation

all of these are a prerequisite for becoming a licensed agent, EXCEPT:

Graduate from high school

Which of the following is a standard provision of the conversion privileges in a Group Life Policy?

Group Life coverage can be converted to an individual policy without providing evidence of insurability

which of the following BEST describes Credit Life Insurance?

Insurance issued on a debtor to cover outstanding balances on installment loans

Which of the following is NOT an unfair claim settlement practice?

Needing written documentation of claim details

A life insurance company may make policy rate discriminations against:

People that smoke

which of the following terms is defined as any transaction in which new life insurance or a new annuity is to be purchased and existing life insurance or annuity is to be terminated or discontinued?

Replacement

A mutual insurance company and a stock insurance company have one main difference between them. What is the major contrast?

Stock company is owned by its shareholders. Mutual company is owned by its policyholders

Under which circumstance can a group life insurance policy be converted to an individual policy?

Termination of employment

Nevada's 10-day free -look period for life insurance policies begins at the:

date of delivery

Circulation of any oral or written statement or any pamphlet, circular, article, or literature that is false or maliciously critical of or derogatory to the financial condition of an insurer is known as:

defamation

An insurance company that promises lower insurance rates than any other company in the country may be charged with:

false advertising

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

fingerprint-based criminal background check

An example of unfair discrimination would be:

offering different terms of coverage for different policyowners having the same risk classification

If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for the life insurance, the company will most likely:

pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age

What is the best description of an Insurer?

person or company that underwrites an insurance risk and issues an insurance contract

All of the following actions are considered rebating, EXCEPT:

sharing commissions with other licensed and appointed agents

If the commissioner of insurance finds that a licensed person has used fraudulent, coercive, or dishonest practices or has proved to be incompetent, untrustworthy, or financially irresponsible, the law allows the commissioner to:

suspend, revoke, or refuse to renew the agent's license

Group Life policies in Nevada are required to contain a conversion privilege that allows for conversion:

to an individual policy for a stated period of time