Nevada life and health blah blah blah practice questions

Applicant's past medical history

A health insurance company can refuse coverage solely for which of the following reasons?

Other insured rider

A rider attached to a life insurance policy that provides coverage in the insured family members is called the

8 hours

Accident and health producers may qualify to sell continuous care coverage if they complete a minimum of how many hours of approved instruction in workers compensation and employer liability insurance?

Compiling a list of prospects

Transacting insurance includes all of the following activities EXCEPT:

Taxable

Unlike the dividend itself, the interest earned on dividends is

taxable

Unlike the dividend itself, the interest earned on dividends is a. 40% taxable, similar to a capital gain

Cash values can be borrowed at any time. Liquidity in life insurance refers to availability of cash to the insured through cash values.

What does "liquidity" refer to in a life insurance policy?

Cancellable

What type of policy allows the insurance company to cancel a policy at any time?

Paid-up insurance option.

Which of the following allows the dividend to be used to pay up policy premiums sooner than originally planned?

annually renewable term insurance

the insurance component of a universal life policy is what type of insurance

extended term option

the insurer uses the policy cash value to convert to term insurance for the same face amount as the former policy. the duration of the new term coverage lasts for as long a period as the amount of cash value will purchase. if the policyowner has neglected to purchase one of these non-forfeiture options, the insurer will automatically implement the extended term option in the event of termination of the original policy.

insurers executive officer

who has the authority to make changes to an insurance policy

payor benefit- waives the premium of the owner when the owner becomes disable and is a person other than the insured

Which of the following riders provides for a waiver of premium when the policy owner and the insured are NOT the same person?

Life income

Which of the following settlement options does NOT guarantee that the entire death benefit will be paid out to the beneficiary?

The annuitant must be a natural person

Which of the following statements is true regarding an annuitant?

Period of time

Which renewability provision are you most likely to see on a travel accident policy?

Presumptive Disability

An insured owns a disability policy and is in an accident which leaves him permanently blind. Which of the following provisions in a disability policy would qualify the insured for benefits, even if he were able to resume working?

Adverse Selection

The tendency for less favorable risks to seek or continue insurance to a greater extent than more favorable risks.

Obtaining an insurance license. An insurance transaction means the carrying on of business in insurance, which could include the solicitation of a policy, advising, negotiation, or inducement related to coverage or claims. Obtaining an insurance license is a prerequisite to transacting insurance.

All of the following would be considered an insurance transaction EXCEPT

Warranty

An absolutely true statement upon which the validity of the insurance policy depends

The face amount. (Because it did not occur within 90 days of the accident)

An insured covered by a life insurance policy with an accidental death rider was injured in an accident and died 15 weeks later. The policy had $50,000 coverage with triple indemnity. The insurer will pay the beneficiary.

$120 a day

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 a $100 per day. How much will the insurance company pay?

Keogh plan

Another name for an HR 10 plan or a self-emoloyed retirement plan is a

A person with no insurable interest in the policy

Which of the following describes a Stranger-Originated Life Insurance (STOLI) arrangement?

Waiver of premium

Which of the following disability riders in life insurance allows the policyowner to keep coverage in force without paying policy premiums?

If paid by the individual, the premiums are tax deductible

Which of the following is INCORRECT concerning taxation of disability income benefits?

Refusing to pay persons bringing false or fraudulent claims

Any of the following may be an unfair claims practice EXCEPT

30 days

The minimum free look on an annuity contract or life insurance policy is which of the following?

notice of claims

which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of loss ?

Return of premium rider

Because of financial obligations, John felt that he needed more insurance than the insurer was willing to issue. John's insurance producer told him that he could maximize the death benefit without increasing the face amount by the use of a(n)

Adhesion

Because the insurer is the party who controls the language used in the policy, and the insured cannot change that wording, an insurance policy is considered what type of contract?

5 years

How long does an agent whose license has been revoked have to wait before they can reapply for a new license:

Mental illness

In health underwriting, it would be inappropriate to decline a risk using any of the following factors EXCEPT

Aleatory

Over several years, a policyowner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristic of an insurance contract does this describe?

His hypertension may be considered a pre-existing condition, and may not be covered under his new policy.

Q was treated for hypertension prior to applying for a major medical policy. As the producer who is writing the replacing policy, what should you tell Q?

Substandard risks are not insurable and are always rejected

Regarding health insurance premiums, all of the following statements are true EXCEPT

Fair Credit Reporting Act

The act established procedures that consumer- reporting agencies must follow in order to ensure that records are confidential, accurate, relevant, and properly used. The law also protects consumers against the circulation of inaccurate or obsolete personal or financial information.

On a tax-deferred basis.

The cash value under a MEC accumulates