- | Page
Nevada Life and Health Insurance Exam Prep (Latest Update) Questions & Answers| Grade A| 100% Correct (Verified Solution) What are the four required elements of an insurance contract?
Correct answer: Agreement, consideration, competent parties,
and legal purpose.
What two parts make up a life insurance application?
Correct answer: General Information and the Medical
Information. An agent's report can go in a life insurance application but is not included in the life insurance policy.
When must insurable interest exist in life insurance?
Correct answer: At the time of application.
When does coverage begin, if the premium was submitted with the application, and the policy was issued two weeks later?
Correct answer: At the time of the application.
If an agent makes a mistake on the application and then corrects it, who must initial that change?
- | Page
Correct answer: The applicant.
Insurers may change what on a guaranteed renewable health insurance polity?
Correct answer: The rates by class.
At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized?
Correct answer: At age 65.
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?
Correct answer: Recurrent Disability Provision
In forming an insurance contract, when does acceptance occur?
Correct answer: When an insurer's underwriter approves
coverage
What is an important feature of a dental expense insurance plan that is not found in a medical expense insurance plan?
- | Page
Correct answer: Diagnostic and preventive care
What best describes the "first-dollar coverage" principle in basic medical insurance?
Correct answer: The insured is not required to pay a deductible
Occasional visits by what medical professionals will not be covered under Long-Term Care's home health care?
Correct answer: Attending physicians
Can an individual who belongs to a POS plan use an out-of- network physician?
Correct answer: Yes, they can use any physician even if not part
of the HMO
What is the advantage of reinstating a policy instead of applying for a new one?
Correct answer: The original age is used for premium
determination
What would basic medical expense coverage not cover?
- | Page
Correct answer: Surgeon's services
What is not provided by an HMO?
Correct answer: Reimbursement
What insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?
Correct answer: Third-party ownership
What is not true about dividends?
Correct answer: Dividend amounts are guaranteed in the policy
What is not true about Accidental Death and Dismemberment?
Correct answer: Death benefits are paid only if death occurs
within 24 hours of an accident
When would a 20-pay whole life policy endow?
