NV Life Insurance Law Quiz

The minimum free look on an annuity contract or life insurance policy is which of the following? a. 10 days b. 20 days c. 30 days d. 31 days

30 days

Which of the following is the replacing insurer required to do? a. The replacing insurer must not issue a policy unless a signed copy of the notice is attached to the application b. Review all applications with 7 business days of receipt to determine if it is a replacement transaction c. Send a copy of the notice to the existing insurer within 30 days of receipt of the application for a replacement policy d. Keep records related to replacement transactions for 7 years

a. The replacing insurer must not issue a policy unless a signed copy of the notice is attached to the application

Each insurer is required to maintain at its home or principal office, a complete file containing a copy of each Buyer's Guide that it has authorized for use for how many years after the date of last authorized use? a. 1 b. 2 c. 3 d. 5

c. 3

How many copies of the notice must the prospective insured sign? a. 1 b. 2 c. 3 d. 4

c. 3

The minimum free look on an annuity contract or life insurance policy that is a replacement transaction is which of the following? a. 10 days b. 20 days c. 30 days d. 31 days

10 days

In which of the following situations do the replacement rules not apply? a. When the applicant purchases from you an additional policy of life insurance b. When the applicant terminates an existing policy of insurance to buy a policy from you c. When the applicant converts his or her existing policy to reduced paid up insurance as a condition to purchasing a policy from you d. When the applicant ends up reissuing an resisting policy with a reduction in cash value in order to buy a policy from you

a. When the applicant purchases from you an additional policy of life insurance Explanation: The replacement rules do not apply when the applicant is simply purchasing another policy of insurance from you.

In order for the buyer's guide and policy summary to be delivered with the policy the policy must contain a free look period of at least _____ days. a. 10 b. 12 c. 15 d. 30

b. 12 Explanation: An insurer shall provide a buyer's guide and a policy summary to each applicant before accepting the applicant's initial premium or premium deposit, unless the policy summary or the policy for which application is made contains a provision for an unconditional refund of at least 12 days, in which event the buyer's guide and policy summary must be delivered with the policy or before the delivery of the policy.

The replacement notice and policy summary must be kept for how many years after the applicant signs the notice? a. 1 b. 3 c. 5 d. 2

b. 3

Which of the following is true regarding a replacement transaction? a. The agent who is replacing the policy has to give out a comparison of the old policy versus the replacement policy upon request of the applicant. b. Replacement rules only apply to group policies c. When an applicant borrows an amount in excess of 25 percent of his or her existing policy to buy an additional policy that is considered a replacement transaction d. Replacement rules only apply to life insurance policies but not annuities

c. When an applicant borrows an amount in excess of 25 percent of his or her existing policy to buy an additional policy that is considered a replacement transaction

All of the following are true regarding viatical settlement in Nevada except: 重大疾病和解 a. There must be a right of rescission b. They are prohibited by state law c. Medical information obtained in a viatical settlement is confidential d. Books and records related to viaticals must be kept for 5 years

b. They are prohibited by state law

All of the following are duties of a direct response insurer except: a. Each completed application must include a statement signed by the applicant, declaring whether or not an existing policy will be replaced. b. When there is a replacement transaction, within 5 days after receiving the application, the direct response insurer must mail three copies of the notice to the applicant to be signed and returned c. When the direct response insurer is not the insurer for the existing policy, the direct response insurer must send to the existing insurer, within 3 working days after receiving the signed notice and a list of existing policies, a copy of the notice. d. The direct response insurer must hold the application for 30 days before forwarding the application to underwriting to allow time for the applicant to review their existing policy

d. The direct response insurer must hold the application for 30 days before forwarding the application to underwriting to allow time for the applicant to review their existing policy Explanation: There is no requirement for the direct response insurer to hold the application for 30 days before forwarding the application to underwrite to allow time for the applicant to review their existing policy.

The Buyer's Guide regulation applies to which of the following?' a. Individual life insurance b. Annuities c. Group life insurance d. Variable life insurance

a. Individual life insurance

When does the insurer have to provide the buyer's guide and policy summary to an applicant? a. Within 10 days of receipt of the premium b. Within 20 days of policy delivery c. Before accepting the applicant's initial premium or premium deposit d. With the policy if the policy includes a 10 day free look

c. Before accepting the applicant's initial premium or premium deposit

Which of the following is not true regarding the policy summary? a. The insurer must provide a policy summary b. The policy summary may be part of the policy c. To not deliver a policy summary constitutes an omission which misrepresents the benefits, advantages, conditions or terms of an insurance policy d. The policy summary must be a separate document

b. The policy summary may be part of the policy

When replacement is involved and the replacing insurer is not the insurer for the existing policy the replacing insurer has how many days from receipt of the application to send the insurer of the existing policy a copy of the notice? a. One working day b. Three calendar days c. Five working days d. Three working days

d. Three working days

Which of the following is true regarding the requirements when replacing an individual fixed deferred annuity contract? a. The insurer or producer must provide to the prospective buyer a written, signed and dated statement which compares the terms, conditions and benefits of the existing annuity contract with the new annuity contract b. The insurer or producer must provide to the prospective buyer, upon request, a written signed and dated statement which compares the terms, conditions and benefits of the existing annuity contract with the new annuity contract d. The insurer or producer does not have to provide to the prospective buyer a written, signed and dated statement which compares the terms, conditions and benefits of the existing annuity contract with the new annuity contract d. The insurer or producer or producer must provide to the prospective buyer a written, signed and dated statement which compares the terms, conditions and benefits of the existing annuity contract with the new annuity contract anytime the existing annuity contract has a cash value of $100,000 or more

a. The insurer or producer must provide to the prospective buyer a written, signed and dated statement which compares the terms, conditions and benefits of the existing annuity contract with the new annuity contract Explanation: An insurer or producer of insurance who replaces, or offers to replace an existing individual fixed deferred annuity contract with a new annuity contract must provide to the prospective buyer a written, signed and dated statement which compares the terms, conditions and benefits of the existing annuity contract with the new annuity contract regardless of the cash value amount.

Which of the following statements about a fraternal benefit society is correct? a. A society may not provide benefits to minors b. A society may only provide benefits to minors with special permission from the Insurance Commissioner c. A society may provide benefits on the lives of children under the minimum age for adult membership upon application of an adult d. A society does not have to license its insurance agent

c. A society may provide benefits on the lives of children under the minimum age for adult membership upon application of an adult

All of the following are required when replacement is occurring except: a. The agent must indicate on the application that an existing policy will be replaced b. The agent must present the "notice" to the applicant c. The agent must retain a copy of the notice and any sales proposals used for at least five years after signing the notice d. The agent must retain a copy of the notice and any sales proposals used for at least three years after signing the notice

c. The agent must retain a copy of the notice and any sales proposals used for at least five years after signing the notice Explanation: Nevada insurance law requires the retention of copies of the notice and copies of the policy summary for at least 3 years after the applicant signs the notice or until the conclusion of the next succeeding regular examination by the dept of insurance of its states of domicile, whichever is later.

Which of the following is not allowed when making a life insurance sales presentation? a. The full disclosure of the fact that the life insurance agent is acting as such and the full name of the insurance company that he or she works for b. The full disclosure of the full name of the insurance company that the insurance agent works for c. The use of the term "financial planner" by a person which implies that the insurance agent is generally engaged in an advisory business in which compensation is unrelated to sales, when that is not the case d. The use of the term "investment adviser" by a person which implies that the insurance agent is generally engaged in an advisory business in which compensation is unrelated to sales

c. The use of the term "financial planner" by a person which implies that the insurance agent is generally engaged in an advisory business in which compensation is unrelated to sales, when that is not the case

All of the following are descriptive of a fraternal benefit society兄弟造福社會 except: a. It operates on a lodge system with ritualistic form of work b. It is conducted solely for the benefit of its members and their beneficiaries and not for profit c. It has a representative form of government d. It has capital stock

d. It has capital stock (fraternal benefit is for a large corporation)