Life Insurance Nevada

Which of the following is required for a producer to transact business on behalf of an insurer?

An agent appointment

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice

Which of the following actions by an insurance company will cause an examination by the commissioner?

Application for an initial certificate of authority

Employer contributions made to a qualified plan

Are subject to vesting requirements

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

Which of the following documents must be provided to the policy owner or applicant during policy replacement?

Buyers guide and policy summary

All of the following are duties and responsibilities of producers at the time of application except

Change any incorrect statement on the application by personally initialing next to the corrected statement.

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Contracts of adhesion

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

$100,000.00

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?

$300,000.00

What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay with respect to major medical insurance for one life?

$500,000.00

A life producer applying for a viatical settlement broker license may be exempt from the pre-licensing education examination requirement if the producer held an active life license for at least how many years?

1 year

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

2

The Commissioner must give reasonable notice to all interested parties as to the time, place and purpose of a hearing within the minimum of how many days of the hearing?

20 days

How many days does a nonresident producer have to file a change of address when the agent moves to Nevada from another state?

30 days

How many days does a nonresidential producer have to file a change of address when the agent moves to Nevada from another state?

30 days

When requested by a person aggrieved by an act, a hearing must be held within how many days after the commissioner receives the written demand?

30 days

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

31 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

For how long is an insurance policy allowed to defer policy loan requests?

6 months

Whic of the following is the required number of participants in a contributory group plan?

75%

An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?

A portion of the benefit up to a limit is tax free; the rest is taxable income.

Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced?

Cost comparison methods

What type of insurance is known as consumer credit insurance?

Credit insurance

All of the following could be considered rebating if offered to an insured in the sale of insurance except

Dividends from a mutual insurer

Which of the following best describes the aleatory nature of an insurance contract?

Exchange of unequal values

What are the two components of a universal policy?

Insurance and cash amount

Which of the following licensees are not compensated directly related to the amount of insurance sold?

Insurance consultant

When a reduced paid-up nonforfeiture option is chosen, what happens to the face amount of the policy?

It is reduced to the amount of what the cash value would buy as a single premium

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint life

During the replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

What is the definition of a unilateral contract?

One-sided. Only one part makes an enforceable promise.

Under a pure life annuity, an income is payable by the company

Only for the life of the annuitant

Part 2 of the application for life insurance provides questions regarding all of the following except

Other insurance coverages

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

Pay the policy proceeds only if it would have issued the policy

Who is a person, other that the viator, that enters into a viatical settlement option?

Provider

An insured committed suicide 6 months after his life policy was issued. The insurer will

Refund the premiums paid

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Revocable beneficiary

The commissioner of insurance is responsible for all of the following actions except

Setting new premium rates

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

When a producer's appointments with the insurer is terminated, who must notify the commissioner

The appointing insurer

If a life insurance policy has an irrevocable beneficiary designation,

The beneficiary can only be changed with written permission of the beneficiary.

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

All advertisements are responsibility of

The insurer

What is the advantage to reinstating a policy instead of applying for a new one?

The original age is used for premium determination

The insured has chosen a joint and 2/3 survivor option. What does this mean to the beneficiaries?

The surviving beneficiary will continue receive 2/3 of the benefit paid when both beneficiaries were alive?

All of the following are requirements for life insurance illustrations except

They must be part of the contract

What kind of policy allows withdrawals or partial surrenders?

Universal life

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

What is the name for the owner of a life insurance policy who enters into a viatical settlement contract?

Viator

When would a 20-pay whole life policy endow?

When the insured reaches age 100