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.