NLHI - Nevada Life and Health Insurance Exam

Question 21: Preparing a life policy summary for a Henderson client, an actuary must compute the surrender cost and net payment cost indexes on a common interest assumption so buyers can compare policies fairly. Under the regulation, the two cost indexes are computed using what interest rate?

Two percent

Four percent

Five percent

The policy's own credited rate

Question 22: A membership organization in Elko wants to qualify as a fraternal benefit society. Beyond having no capital stock, the statute describes how it must be organized and governed. Under Nevada law, a fraternal benefit society must operate through what structure?

A publicly traded holding company

A state-run administrative board

A single centralized headquarters only

A lodge system with representative government

Question 23: Organizers in Las Vegas plan to form a new fraternal benefit society and need to know the minimum number of incorporators the statute demands, and whether those incorporators must have any Nevada connection. Under Nevada law, a domestic fraternal society must be formed by at least how many people?

Ten citizens, a majority Nevada residents

Three incorporators of any state

Twenty-five nonresident members

Fifty citizens residing anywhere

Question 24: A fraternal benefit society in Reno wants to offer members a benefit toward a grave marker in addition to its life certificates. A member asks whether Nevada authorizes that kind of benefit. Under Nevada law listing the benefits a fraternal may provide, is a monument or tombstone benefit permitted?

No, only life benefits are allowed

Yes, it is an authorized benefit

Only for officers of the society

Only if members vote each year

Question 25: A Nevada insurer prints a free-look notice on its life policies and asks whether the statutory right to examine and return the policy reaches its industrial life contracts. Under Nevada law, the free-look right applies to ordinary life, annuities, and pure endowments, but excludes which of the following?

Replacement policies

Annuity contracts

Industrial life insurance

Pure endowment contracts

Question 26: A retiree in Henderson buys a fixed annuity and wonders whether Nevada's examine-and-return right - familiar from ordinary life policies - also lets her return the annuity during an initial period. Under Nevada law, does the statutory free-look right extend to annuity contracts?

No, annuities are always excluded

Only variable annuities qualify

Only if purchased through an agent

Yes, annuities are covered

Question 27: A Sparks policyholder returns a new life policy during the free-look period and expects money back. She asks whether she recovers only the base premium or the full amount she paid, including any fees. Under Nevada law, a timely free-look return entitles the owner to a refund of what?

Premium paid, including any fees

Premium minus a cancellation charge

Only the first month's premium

Half the premium as liquidated damages

Question 28: A viatical provider in Las Vegas evaluates an insured who is not terminally ill but needs substantial help with everyday tasks. The provider must confirm the insured is chronically ill. Under the statute, a person is chronically ill when unable to perform how many activities of daily living?

At least four activities of daily living

A single activity of daily living

At least two activities of daily living

All six activities of daily living

Question 29: An insured in Reno sells his life policy to a viatical settlement provider for a cash payment now, giving up the death benefit. A student asks what fundamentally characterizes the price in a viatical settlement. Under Nevada law, a viatical settlement involves a payment that is what, compared with the death benefit?

Equal to the full death benefit

Less than the death benefit

Greater than the death benefit

Set by the insured's premiums paid

Question 30: A viatical settlement provider licensed in Nevada is asked when a particular transaction falls under Nevada's viatical law based on the seller's connection to the state. Under Nevada law, Nevada's viatical settlement provisions generally govern a transaction when the viator does what?

Bought the policy in Nevada

Names a Nevada beneficiary

Uses a Nevada-licensed broker only

Resides in this state

Question 31: Before a viator in Carson City signs, the provider must hand over a set of required disclosures, and the statute even dictates how legibly they must be printed. Under Nevada law, the mandated viatical disclosures must be presented in type of at least what size?

Twelve-point type

Eight-point type

Ten-point type

Fourteen-point type

Question 32: A viator in Henderson dies during the rescission period that follows a viatical settlement, before anyone acts to unwind the deal. The provider asks how the statute characterizes what happens on that death. Under Nevada law, the viator's death within the rescission period is treated as what?

An automatic forfeiture of proceeds

A waiver of all rescission rights

A deemed rescission of the settlement

A conversion to a death claim

Question 33: After funds change hands in a viatical transaction, a purchaser in Las Vegas has second thoughts and wants to rescind within the short window the statute affords purchasers specifically. Under Nevada law, a purchaser may rescind the transaction within how many business days?

Fifteen business days

Ten business days

Thirty business days

Three business days

Question 34: When a viatical settlement is rescinded, the broker who earned a commission on the deal must give it back, and the statute puts that obligation on a tight clock measured in business days. Under Nevada law, a broker must refund the commission within how many business days?

Twenty business days

Five business days

Ten business days

Thirty business days

Question 35: A viatical settlement broker in Reno holds a Nevada license and wants to know when it comes up for renewal each cycle. Rather than a fixed calendar date shared by all licensees, the statute ties renewal to the license itself. Under Nevada law, a viatical settlement license renews on what date?

The license anniversary date

The last day of December

The applicant's birthday

The first business day of July

Question 36: Nevada generally bars a viatical settlement within five years after a policy is issued, but a Henderson provider recalls that certain situations open the door earlier. Under Nevada law, a viatical settlement inside the five-year window is permitted when, for example, which circumstance exists?

The policy was issued in another state

The premiums were fully paid in advance

The viator converted from a group policy

The insured changed the beneficiary once

Question 37: A nationally trained producer moving to Nevada is confused that health plans use different words for the covered person depending on the chapter. For a health maintenance organization governed by Nevada's HMO chapter, what does the law call the individual who receives covered health care services?

A subscriber

A certificate holder

A policyholder

An enrollee

Question 38: Reviewing Nevada's parallel health chapters, an auditor notes that a nonprofit medical or hospital service corporation uses its own label for the covered person, different from the HMO's term. Under Nevada's service-corporation chapter, the individual entitled to covered services is called what?

A subscriber

An enrollee

An insured

A member-owner

Question 39: A Nevada study group maps the four health chapters and their vocabulary. For traditional individual and group health insurance, issued under the two conventional insurance chapters rather than the HMO or service-corporation chapters, what does the law call the covered person?

An enrollee

An insured

A subscriber

A beneficiary

Question 40: An individual health insurer in Nevada is deciding whether coverage for severe mental illness is something it may simply omit. A compliance officer in Las Vegas checks the mandate. Under Nevada law, how does Nevada treat benefits for the treatment of severe mental illness in individual health policies?

Coverage is optional for the insurer

Coverage is prohibited entirely

Coverage is required

Coverage applies only to groups

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

Question 21: Preparing a life policy summary for a Henderson client, an actuary must compute the surrender cost and net payment cost indexes on a common interest assumption so buyers can compare policies fairly. Under the regulation, the two cost indexes are computed using what interest rate?

Question 22: A membership organization in Elko wants to qualify as a fraternal benefit society. Beyond having no capital stock, the statute describes how it must be organized and governed. Under Nevada law, a fraternal benefit society must operate through what structure?

Question 26: A retiree in Henderson buys a fixed annuity and wonders whether Nevada's examine-and-return right - familiar from ordinary life policies - also lets her return the annuity during an initial period. Under Nevada law, does the statutory free-look right extend to annuity contracts?

Question 27: A Sparks policyholder returns a new life policy during the free-look period and expects money back. She asks whether she recovers only the base premium or the full amount she paid, including any fees. Under Nevada law, a timely free-look return entitles the owner to a refund of what?

Question 30: A viatical settlement provider licensed in Nevada is asked when a particular transaction falls under Nevada's viatical law based on the seller's connection to the state. Under Nevada law, Nevada's viatical settlement provisions generally govern a transaction when the viator does what?

Question 31: Before a viator in Carson City signs, the provider must hand over a set of required disclosures, and the statute even dictates how legibly they must be printed. Under Nevada law, the mandated viatical disclosures must be presented in type of at least what size?

Question 33: After funds change hands in a viatical transaction, a purchaser in Las Vegas has second thoughts and wants to rescind within the short window the statute affords purchasers specifically. Under Nevada law, a purchaser may rescind the transaction within how many business days?

Question 34: When a viatical settlement is rescinded, the broker who earned a commission on the deal must give it back, and the statute puts that obligation on a tight clock measured in business days. Under Nevada law, a broker must refund the commission within how many business days?

Question 39: A Nevada study group maps the four health chapters and their vocabulary. For traditional individual and group health insurance, issued under the two conventional insurance chapters rather than the HMO or service-corporation chapters, what does the law call the covered person?

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