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Free NV Life Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the NV Life practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A buyer wants lifelong coverage with premiums scheduled at the same amount throughout the insured's life. Which policy fits that premium pattern?

    1. A. Ordinary whole life
    2. B. Limited-pay whole life
    3. C. Universal life
    4. D. Variable universal life

    Answer: A

    Explanation: NAIC states, "Premiums stay the same throughout the insured’s life." That scheduled level-premium pattern identifies ordinary whole life; the other listed permanent products use a different payment or value design.

    Reference: Insurance Topics | Life Insurance | NAIC — Permanent life insurance, Traditional whole life

  2. 2An insured develops a disability covered by a rider and cannot continue paying life premiums. Which rider addresses the premium obligation while the qualifying disability continues?

    1. A. Guaranteed insurability rider
    2. B. Waiver of premium rider
    3. C. Payor benefit rider
    4. D. Disability income rider

    Answer: B

    Explanation: NAIC says a waiver rider means "you can stop paying your life insurance premium if you develop a covered illness or disability." Guaranteed insurability concerns future coverage increases; payor and disability-income riders serve other payment triggers.

    Reference: Life Insurance | NAIC — Life insurance riders, waiver of premium

  3. 3A Nevada individual life application is attached to the issued policy, and no fraud is present. How are its statements characterized under the entire-contract rule?

    1. A. Representations
    2. B. Warranties
    3. C. Assignments
    4. D. Endorsements

    Answer: A

    Explanation: NRS 688A.070 says application statements, "in the absence of fraud, be deemed representations and not warranties." The rule classifies the statements as representations.

    Reference: Nevada Revised Statutes, Chapter 688A — NRS 688A.070, application statements

  4. 4A producer is estimating a family's needed life coverage after an earner's death. Which factor should drive the estimate?

    1. A. Survivors' continuing income needs and obligations
    2. B. The applicant's current salary without family expenses
    3. C. The face amount of a comparable family's policy
    4. D. The annual premium paid on the existing policy

    Answer: A

    Explanation: The NAIC guide states, "How much life insurance to buy depends on the financial needs that will continue after your death." The estimate should reflect survivor income needs and obligations.

    Reference: NAIC Life Insurance Buyer’s Guide — How much life insurance do you need?

  5. 5The Nevada Commissioner authorizes a Division examiner to exercise a delegated regulatory power. How is the examiner's authorized act treated?

    1. A. As an advisory act only
    2. B. As an official act of the Commissioner
    3. C. As an act requiring court ratification
    4. D. As an act of the Attorney General

    Answer: B

    Explanation: NRS 679B.110 says the authorized act "shall be deemed an official act of the Commissioner."

    Reference: NRS: CHAPTER 679B - COMMISSIONER OF INSURANCE — NRS 679B.110(2)

  6. 6Which coverage is included in Nevada's definition of consumer credit insurance?

    1. A. Credit life insurance
    2. B. Ordinary whole life only
    3. C. Group annuity only
    4. D. Variable life only

    Answer: A

    Explanation: NRS 690A.015 expressly includes "Credit life insurance."

    Reference: NRS: CHAPTER 690A - CREDIT INSURANCE — NRS 690A.015(1)

  7. 7A new life policy causes an existing policy to lapse. If the agent knows this, how is the transaction classified?

    1. A. Conversion
    2. B. Replacement
    3. C. Reinsurance
    4. D. Group enrollment

    Answer: B

    Explanation: NAC 686A.526 defines replacement to include an existing policy that "has been or will be ... Lapsed."

    Reference: NAC: CHAPTER 686A - INSURANCE: TRADE PRACTICES AND FRAUDS — NAC 686A.526(1)

  8. 8A client wants whole life coverage to remain after a planned, shorter premium-paying period ends. Which policy design meets that goal?

    1. A. Ordinary whole life with payments throughout life
    2. B. Limited-pay whole life with coverage for life
    3. C. Level term with a fixed payment period
    4. D. Deferred annuity with a payment period

    Answer: B

    Explanation: The NAIC description says, "Premiums are paid over a shorter time, but coverage lasts a lifetime." Limited-pay whole life separates the premium period from the coverage period.

    Reference: Insurance Topics | Life Insurance | NAIC — Permanent life insurance, Limited pay whole life

  9. 9At a scheduled option date, a life policyholder wants to elect more death coverage despite a new health condition, without another medical exam. Which rider grants that election?

    1. A. Term insurance rider
    2. B. Cost of living rider
    3. C. Guaranteed insurability rider
    4. D. Return of premium rider

    Answer: C

    Explanation: NAIC says guaranteed insurability lets an owner "increase your death benefit at certain times in the future without a medical exam." A term rider adds term coverage, a cost-of-living rider follows an index, and a return-of-premium rider concerns premiums at the end of the term.

    Reference: Life Insurance | NAIC — Life insurance riders, guaranteed insurability

  10. 10A person seeks to obtain life insurance on another adult in Nevada. At what point must the applicant have an insurable interest in the insured?

    1. A. Only when the death claim is filed
    2. B. Only when the first premium is paid
    3. C. When the insurance contract is made
    4. D. When the beneficiary is later changed

    Answer: C

    Explanation: NRS 687B.040 requires the interest "at the time when the contract was made." A later claim or beneficiary change does not substitute for interest at contract formation.

    Reference: Nevada Revised Statutes, Chapter 687B — NRS 687B.040, life insurance insurable interest

Topics in this practice bank

These topics describe the available practice for NV Life. Review the examination outline and its sources for scope and allocation details.

  • Life — General Knowledge: I. TYPES OF POLICIES
    • A. Traditional whole life products
    • A.1. Ordinary whole life
    • A.2. Limited-pay and single-premium life
    • B. Interest/market-sensitive/adjustable life products
    • B.1. Universal life
    • B.2. Variable whole life
    • B.3. Variable universal life
    • B.4. Interest-sensitive whole life
    • B.5. Indexed life
    • C. Term life
    • C.1. Types
    • C.1.a. Level
    • C.1.b. Decreasing
    • C.1.c. Return of premium
    • C.1.d. Annually renewable
    • C.2. Special features
    • C.2.a. Renewable
    • C.2.b. Convertible
    • D. Annuities
    • D.1. Single and flexible premium
    • D.2. Immediate and deferred
    • D.3. Fixed and variable
    • D.4. Indexed
    • D.5. Accumulation and Annuity Periods
    • D.6. Payout options
    • E. Combination plans and variations
    • E.1. Joint life (first to die)
    • E.2. Survivorship life (second to die)
  • Life — General Knowledge: II. LIFE PROVISIONS, RIDERS, OPTIONS, AND EXCLUSIONS
    • A. Policy riders
    • A.1. Waiver of premium and waiver of monthly deduction
    • A.2. Guaranteed insurability
    • A.3. Payor benefit
    • A.4. Accidental death and/or accidental death and dismemberment
    • A.5. Term riders
    • A.6. Other insureds
    • A.7. Long term care
    • A.8. Return of premium
    • A.9. Disability
    • A.10. Cost of Living
    • B. Policy provisions and options
    • B.1. Entire contract
    • B.2. Insuring clause
    • B.3. Free look
    • B.4. Consideration
    • B.5. Owner’s rights
    • B.6. Beneficiary designations
    • B.6.a. Primary and contingent
    • B.6.b. Revocable and irrevocable
    • B.6.c. Common disaster
    • B.6.d. Minor beneficiaries
    • B.6.e. Designation by class
    • B.7. Premium Payment
    • B.7.a. Modes
    • B.7.b. Grace period
    • B.7.c. Automatic premium loan
    • B.7.d. Level or flexible
    • B.8. Reinstatement
    • B.9. Policy loans, withdrawals, partial surrenders
    • B.10. Non-forfeiture options
    • B.11. Dividends and dividend options (eg. participating, non-participating)
    • B.12. Incontestability
    • B.13. Assignments
    • B.14. Suicide
    • B.15. Misstatement of age and gender
    • B.16. Settlement options
    • B.17. Accelerated death benefits
    • C. Policy exclusions
    • C.1. War
    • C.2. Aviation
    • C.3. Dangerous Occupation
  • Life — General Knowledge: III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE POLICES
    • A. Completing the application
    • A.1. Required signatures
    • A.2. Changes in the application
    • A.3. Consequences of incomplete applications
    • A.4. Warranties and representations
    • A.5. Collecting the initial premium and issuing the receipt
    • A.6. Replacement
    • A.7. Disclosures at point of sale (e.g., HIPAA, HIV consent)
    • A.8. USA PATRIOT Act/anti-money laundering
    • A.9. Gramm-Leach-Bliley Act (GLBA) Privacy
    • B. Underwriting
    • B.1. Insurable interest
    • B.2. Medical information and consumer reports
    • B.3. Fair Credit Reporting Act
    • B.4. Risk classification
    • B.5. Stranger/Investor-owned life insurance (STOLI/IOLI)
    • C. Delivering the policy
    • C.1. When coverage begins
    • C.2. Explaining the policy and its provisions, riders, exclusions, and ratings to the client
    • D. Contract law
    • D.1. Elements of a contract
    • D.1.a. Consideration
    • D.1.b. Offer and Acceptance
    • D.1.c. Competent parties
    • D.1.d. Legal purpose
    • D.2. Unique aspects of the insurance contract
    • D.2.a. Conditional
    • D.2.b. Unilateral
    • D.2.c. Adhesion
    • D.2.d. Aleatory
  • Life — General Knowledge: IV. RETIREMENT, AND OTHER INSURANCE CONCEPTS
    • A. Third-party ownership
    • B. Life Settlements
    • C. Group life insurance
    • C.1. Conversion privilege
    • C.2. Contributory vs. noncontributory
    • D. Retirement plans
    • D.1. Qualified plans
    • D.2. Nonqualified plans
    • E. Life insurance needs analysis/suitability
    • E.1. Personal insurance needs
    • E.2. Business insurance needs
    • E.2.a. Key person
    • E.2.b. Buy sell
    • F. Social Security benefits
    • G. Tax treatment of insurance premiums, proceeds, and dividends
    • G.1. Individual life
    • G.2. Group life
    • G.3. Modified Endowment Contracts (MECs)
  • Life — Nevada Specific: I. NEVADA STATUTES AND REGULATIONS COMMON TO LIFE, HEALTH, PROPERTY, AND CASUALTY INSURANCE
    • A. Insurance Commissioner
    • A.1. General powers and duties
    • A.2. Examinations
    • A.3. Notice and hearings, penalties
    • B. Definitions
    • B.1. Insurer
    • B.2. Authorized and unauthorized
    • B.3. Domestic, foreign, and alien
    • B.4. Transacting insurance
    • B.5. Certificate of authority
    • B.6. Premiums
    • C. Licensing
    • C.1. Persons required to be licensed
    • C.1.a. Producer
    • C.1.b. Nonresident
    • C.1.c. Prepaid Funeral contract agent
    • C.1.d. Limited Lines producer
    • C.1.e. Insurance Consultant
    • C.1.f. Reinsurance intermediary
    • C.1.g. Administrator
    • C.2. Obtaining a license
    • C.2.a. Insurance company appointment
    • C.2.b. License requirements
    • C.3. Termination of license
    • C.3.a. Renewal/Continuing Education
    • C.3.b. Suspension, revocation, and refusal of license
    • C.4. Name of licensee–true, fictitious
    • D. Marketing practices
    • D.1. Unfair practices
    • D.1.a. Unfair claims methods and practices; Settlement of claims
    • D.1.b. Rebating - Inducement
    • D.1.c. Twisting
    • D.1.d. Misrepresentation
    • D.1.e. Fraud
    • D.1.f. Unfair discrimination
    • D.1.g. Defamation
    • D.2. Fiduciary responsibilities
    • D.3. Commissions - payments, acceptance, sharing, prohibitions
    • D.4. Required records and record retention
    • E. Nevada Life & Health Insurance Guaranty Association
  • Life — Nevada Specific: II. NEVADA STATUTES AND CODES COMMON TO LIFE AND HEALTH INSURANCE ONLY
    • A. Credit life and health insurance
    • B. Group life and health insurance
    • B.1. Eligible groups
    • B.2. Required provisions
    • C. Advertising
  • Life — Nevada Specific: III. NEVADA STATUTES AND CODES PERTINENT TO LIFE INSURANCE ONLY
    • A. Marketing methods and practices
    • A.1. Replacement
    • A.1.a. Definition
    • A.1.b. Duties of agents
    • A.2. Disclosure, statement of policy cost in benefit information, Buyer's Guide
    • A.3. Fraternals
    • B. Ten-day free look
    • C. Viaticals

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