6. NV - Life Insurance Practice Final Examination Questions With Correct Answers
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Course
Nevada Life & Health Insurance
Institution
Nevada Life & Health Insurance
6. NV - Life Insurance Practice Final
Examination Questions With Correct
Answers
Jason is the insured in a $100,000, 10 year renewable term policy. Soon after taking out the
policy, he develops a serious heart condition. Which of the following statement is CORRECT?
a. Since the condition manif...
6. NV - Life Insurance Practice Final
Examination Questions With Correct
Answers
Jason is the insured in a $100,000, 10 year renewable term policy. Soon after taking out the
policy, he develops a serious heart condition. Which of the following statement is CORRECT?
a. Since the condition manifested after the policy was issued, he will not be able to renew his
policy.
b. Jason will be able to renew his policy
c. It will be necessary for Jason to show evidence of insurability in order to renew the policy
d. If Jason renews his policy, it will be rated for his health condition. - answer✔✔b. Jason will be
able to renew his policy
Jane buys a $25,000 policy and her agent tells her that as long as she is approved, the coverage
goes into effect immediately. What did Jane's agent give her?
a. Consideration
b. Conditional receipt
c. Return of premium
d. Binding receipt - answer✔✔b. Conditional receipt
The primary purpose of an annuity is to
a. liquidate the separate account of an investment portfolio
b. provide income for an individual's retirement
c. provide income for a beneficiary
d. create an estate immediately - answer✔✔a. liquidate the separate account of an investment
portfolio
Under what circumstance would an insurance applicant be asked to submit a signed statement of
continued good health?
a. When the initial premium is not submitted with the application
b. When the policy is underwritten as substandard
c. In order to receive a preferred rating
d. When an inspection report is ordered - answer✔✔a. When the initial premium is not submitted
with the application
When a firm established a contributor group term life insurance contract, what percentage test
must be met for the participation
a. 50%
b. 60%
c. 75%
d. 100% - answer✔✔c 75%
Louis owns a $10,000 term life policy. He paid the $200 annual premium on Feb 1. Louis fails to
pay the second annual premium and dies on Feb 28 of the following year. How much will the
beneficiary receive from Louis' insurance company
a. $0
b. $10,000
c. $9,800
d. Non of the above - answer✔✔c. $9,800
All of the following statements are true with regard to the 10 day free look provision in a life
insurance policy EXCEPT
a. the 10 day free look period begins when the insured receives the contract
b. an insured who returns the policy within the 10 days free look period will receive a full refund
of premiums paid
c. if a conditional receipt was issued, a pro rata refund will be made if the insured returns the
policy within the free look period
d. to get a refund, the policy holder must return the policy within 10 days from the date the
policy was received - answer✔✔c. if a conditional receipt was issued, a pro rata refund will be
made if the insured returns the policy within the free look period
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