NLHI - Nevada Life and Health Insurance Exam

Question 1: A Reno lender arranges coverage that repays a car loan if the borrower dies, plus separate coverage that makes payments if the borrower is disabled or loses a job. Nevada sorts all such coverage into statutory kinds. How many kinds of credit insurance does the statute recognize?

Two kinds

Three kinds

Four kinds

Six kinds

Question 2: A Henderson finance manager offers borrowers a product that covers the loan installments during a stretch of involuntary joblessness. A colleague insists Nevada treats only death and disability as credit coverage. Under the statute defining the kinds of credit insurance, is involuntary unemployment coverage a recognized kind?

Yes, it is a recognized kind

No, only credit life qualifies

No, only life and disability qualify

Only if the debtor is salaried

Question 3: A borrower in Sparks takes an installment loan and buys credit life insurance tied to it. The borrower dies while the balance is still outstanding, and the family wonders what the credit life coverage is supposed to do. Under the statute defining credit life insurance, what does the coverage do?

Pays the debtor a lump-sum benefit

Refunds all interest to the estate

Continues the loan for the survivors

Satisfies the debt on the debtor's death

Question 4: An Elko credit union writes credit insurance scheduled to run alongside a borrower's installment loan. The loan reaches its scheduled maturity date, and compliance staff ask how long the attached credit coverage may linger before it must end. Under the Nevada credit-insurance statute, what is that limit?

It ends on the maturity date exactly

Within fifteen days after scheduled maturity

Within thirty days after scheduled maturity

Within sixty days after final payment

Question 5: A Las Vegas producer reviewing which groups may lawfully be insured finds a regulation listing the categories of eligible groups, designed to stop promoters from assembling a crowd merely to sell them coverage. Under that regulation, how many categories of eligible groups are set out?

Five categories

Three categories

Four categories

Seven categories

Question 6: A Carson City organizer wants to insure the members of an established labor union and asks whether a union counts as a legitimate group under Nevada's eligible-group regulation, or whether unions fall outside the recognized categories. Under the regulation, how is a labor union treated?

Unions are never eligible groups

Only public-sector unions qualify

It is a recognized eligible group

Eligible only with fifty members

Question 7: Promoters in Reno assemble a brand-new association whose only real function is to let members buy group life insurance together. An insurer asks whether Nevada permits group life for a body formed to obtain the insurance. Under the statute, group life may issue to such a group only if what is true?

Never, such groups are always barred

Only if the group predates statehood

Only if every member is related

Only if two statutory findings are made

Question 8: A Henderson employee leaves her job and loses eligibility under the employer's group life plan. She exercises her conversion right and expects a new individual policy. She asks what premium basis and policy form the converted coverage will use. Under Nevada's group life conversion statute, what applies to her converted policy?

Attained-age premium, any form except term

Original-age premium on a term policy

Group rates frozen for five years

Level premium matching the group plan

Question 9: A Sparks employer terminates its entire group life policy, and a long-tenured worker wants to convert to individual coverage. He asks whether his length of coverage under the group plan matters. Under Nevada law, conversion after group termination requires the insured to have been covered for what period?

At least ninety days

At least five years

At least one year

At least three years

Question 10: When a Nevada group life policy terminates, a qualifying insured may convert, but the amount carried into the new policy is capped by a formula. A Las Vegas adjuster needs the ceiling. Under Nevada law, that converted amount is the lesser of the replacement-coverage shortfall or what fixed figure?

One thousand dollars

Ten thousand dollars

Two thousand dollars

The full terminated amount

Question 11: A Reno insurer must tell a departing group member about the right to convert group life coverage. Compliance asks how much advance notice of that conversion privilege the statute requires. Under Nevada law, notice of the conversion right must be given at least how far in advance?

At least five days

At least ten days

At least forty-five days

At least fifteen days

Question 12: A former group member in Henderson never received timely notice of his conversion right and dies after the conversion window would normally have closed. Nevada extends the insurer's exposure when notice is late, but not indefinitely. Under Nevada law, the insurer's liability during that extension can never run beyond how many days?

Sixty days

Thirty days

Ninety days

One hundred eighty days

Question 13: A group life claim in Carson City is approved, but the insurer sits on the payment. The beneficiary asks when interest begins to accrue on the delay. Under Nevada law, group life proceeds must be paid within how many days of proof before interest accrues?

Fifteen days

Twenty days

Thirty days

Sixty days

Question 14: A Las Vegas employer's group health policy is challenged after the insurer tries to void coverage by treating statements in the application as strict warranties. A required provision limits that tactic. Under Nevada law, statements made by any covered person are to be treated as what, absent fraud?

Warranties that void coverage if inexact

Representations rather than warranties

Binding admissions against the insured

Conditions precedent to any claim

Question 15: A growing Sparks company adds workers mid-year and wants its group health policy to let newly eligible employees and their dependents come aboard. A required provision addresses exactly this. Under Nevada law, a mandated group health provision must allow for what regarding new members?

Excluding all new hires for a year

Reopening enrollment every third year

Limiting coverage to founding employees

Adding newly eligible employees and dependents

Question 16: Reviewing a Nevada group health contract, an auditor in Reno checks the list of required provisions and notes that certain non-hospital services must be addressed. Among the mandated group health provisions in Nevada law, which of the following must the policy provide for?

Home and health-supportive services

Only inpatient surgical care

Dental cleanings twice yearly

Unlimited cosmetic procedures

Question 17: A Henderson insurer runs an advertisement featuring a satisfied customer's glowing testimonial about a health policy. The insurer later argues it should not answer for the customer's words. Under the regulation governing testimonials in insurance advertising, how are such testimonials treated with respect to the insurer?

As the customer's opinion only

As exempt from advertising rules

As adopted statements of the insurer

As protected commercial free speech

Question 18: A Las Vegas agent replaces an existing life policy with a new one. The client asks whether Nevada can compel a side-by-side comparison of old and new coverage. Under Nevada law, what authority does the statute give the Commissioner over replacement transactions?

Power to ban replacements outright

Power to set commission caps

Power to fix policy premiums

Power to require a written comparison

Question 19: Under Nevada's replacement rules, an agent in Reno must hand the policyholder a comparison document when swapping life coverage. Beyond merely comparing figures, the statute describes the document's required character. Under Nevada law, the comparison furnished to the policyholder must be what?

Verbal and confirmed by phone

Written, signed, and dated

Filed only with the insurer

Notarized by a public official

Question 20: A policy summary delivered to a Carson City buyer must disclose standardized cost measures so the buyer can compare life policies. A trainee asks how many cost indexes the disclosure regulation requires. Under the regulation, the summary must show which cost indexes?

Surrender cost and net payment cost

A single blended cost index

Only the interest-adjusted premium

Three separate mortality indexes

NLHI Nevada Life and Health Insurance Exam - Set 2 - Part 1