Nevada Life & Health Review
Which policy component decreases in decreasing term insurance?
Face amount.
Regarding long-term care coverage, as the elimination period gets shorter, the premium:
Gets higher
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
Which of the following disability income policies would have the highest premium?
15-day waiting period/10-year benefit period
The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last how many months?
24 months.
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to disability insurance for 1 life?
$300,000
An insured pays a month premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
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
How soon from the delivery of a Medicare Supplement policy may the insured return it for a full refund?
30 days
Under the uniform required provisions, proof of loss under a health insurance policy normally should be filled within:
90 days of a loss
A hospital indemnity policy will pay what?
A benefit for each day the insured is in a hospital.
Which of the following will NOT be considered a limited lines producer license?
A producer selling only life insurance
Long-term care policies MUST cover what condition?
Alzheimer's disease.
Who can made a fully deductible contribution to a traditional IRA?
An individual not covered by an employer sponsored plan who has earned income
What is a foreign insurer?
An insurer with a home office in another state
For an agent to sell continuous care coverage, the agent must meet all of the following requirements EXCEPT:
Be licensed as.a life insurance producer
Which of the following best describes fixed-period settlement option?
Both the principal and interest would be liquidated over a selected period of time
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyer's Guide
What amount of care is provided in LTC's intermediate care?
Daily care by medical personnel
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing Term
Variable Whole Life insurance is based on what type of premium?
Level fixed
Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?
Life expectancy
Which of the following statements is TRUE concerning whole life insurance?
Lump-sum death benefits are not taxable
All of the following are the most common variations in a Long- term Care policy EXCEPT:
Number of family dependents
Don has both a basic expense and a major medical policy. He is injured in an accident, which requires several major surgeries. This quickly exhausts Don's basic expense policy. What must Don do before his major medical policy can pick up where the basic expense policy left off?
Pay a special deductible on his major medical policy
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
Which two terms are associated directly with the way an annuity is funded?
Single payment or periodic payments
Which of the following determines the length of time the benefits will be received under the Fixed-Amount settlement option?
Size of each installment
Which of the following information will be stated in the consideration clause of a life insurance policy?
The amount of premium payment
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.
In which of the following situations would Social security disability benefits NOT cease?
The individuals son gets a part-time job to help support the family.
Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to:
The insured
Who is responsible for the cost of examinations conducted by the Commissioner?
The insurer being examined
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.
According to the rights and renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT:
Unearned premiums are retained by the insurance company
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
Which characterstic does NOT describe managed care?
Unlimited access to providers
The coverage provided by a disability income policy that does not pay benefits for losses occurring as the result of the insured's employment is called:
nonoccupational coverage
In a survivorship life policy, when does the insurer pay the death benefit?
upon the last death
What is the typical deductible for basic surgical expense insurance?
$0
What is a penalty for transacting insurance without a proper license?
$1,000
What would be INCORRECT about the required provisions of a health insurance policy?
A reinstated policy provides immediate coverage for an illness
All of the following are examples of third-party ownership of a life insurance policy EXCEPT:
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
The death protection component of Universal Life Insurance is always:
Annually Renewable Term
A Universal Life Insurance policy is best described as a/an:
Annually Renewable Term policy with a cash value account
Employer contributions made to a qualified plan?
Are subject to vesting requirements
What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application?
As long as the policy is in force
In a replacement situation, all of the following must be considered EXCEPT:
Assets.
SIMPLE Plans require all of the following EXCEPT:
At least 1,000 employees
A life insurance policy used to fund an agreement that contractually establishes the intent of someone to purchase a business upon the insured business owner's death is a:
Buy-sell agreement.
Concerning a Whole Life Policy, which of the following statements is correct?
Cash value is guaranteed
An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called?
Consideration
An applicant for an individual health policy failed to complete the application properly. Before being able to complete the application and pay the initial premium, she is confined to a hospital. This will not be covered by insurance because she has not met the conditions specified in the:
Consideration Clause
The term "fixed" in a fixed annuity refers to all of the following EXCEPT:
Death benefit
What does Social Security disability definition NOT include?
Disability expected to last for at least 6 months.
Which of the following statements about occupation vs. nonoccupational coverage is TRUE?
Disability insurance can be written as occupational or nonoccupational.
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT:
Dividends from a mutual insurer
Who can provide skilled nursing care?
Doctor
An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job. To what extent will he receive Presumptive Disability Benefits?
Full benefits
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a:
Guaranteed insurability rider
Most LTC plans have which of the following features?
Guaranteed renewability
An insured has a Modified Endowment Contract. He wants to withdraw some monty in order to pay medical bills. Which of the following is true?
He will have to pay a penalty if he is younger than 59 1/2
Which of the following riders would NOT increase the premium for a policyowner?
Impairment rider
What type of insurance would be used for a Return of Premium rider?
Increasing Term
Which of the following licensees are not compensated directly related to the amount of the insurance sold?
Insurance consultant
Which of the following policy components contains the company's promise to pay?
Insuring clause
Which of the following is correct about a group health insurance policy?
It can provide coverage for handicapped children
Which of the following statements is NOT true concerning Medicaid?
It consists of 3 parts: Part A hospitalization, Part B: doctor's services, Part C: disability income
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate
Which of the following best describes annually renewable term insurance?
It is level term insurance
Which statement is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value.
Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?
Notice of Claim
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the:
One year term option
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which of the following riders would NOT cause the Death Benefit to increase?
Payor Benefit Rider
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 plan is that?
Platinum
A woman obtains health coverage through he Marketplace on October 1. Two weeks later she finds out that she is 3 months pregnant. Which of the following is true about coverage for pregnancy?
Pregnancy will be covered immediately
Which of the following will be included in a policy summary?
Premium amounts and surrender values
Which of the following is correct concerning the taxation of premiums in a key person life insurance policy?
Premiums are not tax deductible as a business expense
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
Premiums are not tax deductible as a business expense
In which of the following instances would the premium be tax deductible?
Premiums paid by an employer on a $30,000 group term life insurance plan for employees
Who is a person, other than a viator, that enters into a viatical settlement contract?
Provider
Which provision states how much time must pass between two like illnesses in order for the second one to be covered under a new set of benefits?
Recurrent Disability Provision
Todd has been informed that he has a hernia which requires repair. When Todd researches the cost, he learns that his insurance plan will cover 200 points worth of surgical expenses. Each point represents $10, which means that $2000 of his surgery will be covered by his insurance plan. What system is Todd's insurance company using?
Relative value
Disability Income policies can provide coverage for a loss of income when returning to work only part-time after recovering from total disability. What is the benefit that is based on the insured's loss of earnings after recover from a disability?
Residual disability
What would be considered a nonqualified retirement plan?
Split-dollar plan
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
What term describes the specified dollar amount beyond which the insured no longer participates in the sharing of expenses?
Stop-loss limit
Your client wants to know what the tax implications are for contributions to a Health Savings Account. You should advise her that the contributions are:
Tax deductible
Which of the following, when attached to a permanent life insurance policy allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?
Term rider.
If an applicant does not receive a copy of the new insurance policy, who would be held responsible?
The agent
A licensed agent in Utah wants to become a nonresident agent in Nevada in the same line of insurance. Considering that all other requirements are met, which of the following would most likely happen?
The agent will be exempt from education and examination requirements
Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?
The beneficiary will only receive payments of the interest earned on the death benefit.
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customer's associates, friends, and neighbors provide the report's data.
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
The date of the medical exam.
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at a higher premium rate
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions.
Which of the following is true regarding elimination periods and the cost of coverage?
The longer the elimination period, the lower the cost of coverage.
Which of the following definitions would make it easier to qualify for disability benefits?
The more liberal "own occupation"
To which of the following would the rule prohibiting a viatical settlement contract within 5 years of a policy issue date apply?
The owner needs money for downpayment on the first home
All of the following are true regarding a decreasing term policy EXCEPT:
The payable premium amount steadily declines throughout the duration of the contract
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The policy will be interpreted as if the insurer waived its right to have an answer on the application
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
In a disability policy, the probationary period refers to what?
Time, during which illness-related disabilities are excluded from coverage
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
Which of the following products requires a securities license?
Variable annuity
Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical settlement contract?
Viatical settlement provider
What benefits are NOT available under Social Security?
Welfare benefits.
Social Security Supplement (SIS) or Social Security Riders would provide for the payment of income benefits in each of the situations below EXCEPT:
When the amount payable under Social Security is more than the amount payable under the rider.
When is an offer, in insurance, usually made?
When the applicant submits an application to the insurer.
When would a 20-pay whole life policy endow?
When the insured reaches age 100
How soon following the occurrence of a covered loss must an insured submit written proof of such loss to the insurance company?
Within 90 days or as soon as reasonably possible, but not to exceed 1 year.
Is it illegal for an insurance company to advertise that it is the leader of the financial industry and therefore pays the most claims each year?
Yes; advertisements must not mislead the public in terms of financial standing.
The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called:
joint and survivor
