Nevada Statutes & Regulations Common to Life and Health Only

What does credit life and health insurance cover?

The life and disability of a debtor during the time a loan is outstanding (Credit life and health insurance covers the life and disability of a debtor during the time a loan is outstanding.)

How many days after the death of an insured does an insurer have to pay group life insurance policy benefits?

30 (An insurer must pay the proceeds of any benefits under a group life insurance policy no more than 30 days after the death of the insured.)

Which of the following would be the beneficiary in credit life insurance?

Creditor (The creditor is the owner and the beneficiary of the policy.)

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer (In credit life insurance, creditor may require that the debtor has a life insurance, but they cannot tell you who to buy the insurance from.)

Bev is insured under her employers group life insurance policy. She dies while the policy is still in force. The benefits must be paid within how many days?

30 (An insurer must pay the proceeds of any benefits under a group life insurance policy no more than 30 days after the death of the insured.)

Which of the following policy provisions required in group life insurance policies states that a policy application must be attached to the policy when issued?

Entire contract (The entire contract provision states that if an application is used, it must be attached to the policy when issued.)

Credit Life insurance...

Insures the life of a debtor. (Credit insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor.)

When group coverage terminates, the insured may convert coverage to an individual policy without evidence of insurability within...

31 days. (When insurance coverage ends due to the insured's termination of employment, the insured must be entitled to convert to an individual life insurance policy without evidence of insurability, provided that the application for the individual policy is made and the premium is received within 31 days.)

All of the following are required provisions in all group life insurance policies issued in this state EXCEPT...

Nonforfeiture benefits (Nonforfeiture provision is only required in policies other than term.)

The initial amount of credit life insurance may NOT exceed...

The amount to be repaid under the contract. (The initial amount of credit life insurance may not exceed the total amount repayable under the contract of indebtedness.)

What is the minimum number of persons that can be covered by a group insurance plan?

2 (Group insurance plans must cover at least 2 persons, and are formed for a purpose other than obtaining insurance.)

What is the required grace period in group life policies in this state?

31 days Group life insurance policies issued in this state must include a grace period of 31 days for payment of any premium due after the first premium payment.)

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. (Credit life insurance cannot pay out more than the balance of the debt, so that there is no financial incentive for the death of the insured.)

Which of the following is TRUE about credit life insurance?

Creditor is the policyowner. (In credit life insurance, the creditor is the policyowner and the beneficiary; the debtor is the insured.

Which of the following types of insurance policies is most commonly used in credit life insurance?

Decreasing Term (Credit insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor. It is usually written as decreasing term insurance.)

What type of insurance is know as consumer credit insurance?

Credit insurance (Also known as "consumer credit insurance," credit life and health covers the life and disability of a debtor during the time a loan is outstanding.)