NLHI - Nevada Life and Health Insurance Exam

Question 21: A retiree hands an insurer a single lump sum and wants guaranteed income checks to begin within a month or two, with the first payment no later than a year out. Which annuity is structured to start income almost immediately after a single purchase payment?

Flexible-premium deferred annuity

Single-premium deferred annuity

Single-premium immediate annuity

Variable accumulation annuity

Question 22: A deferred annuity guarantees a fixed rate for a term, but if the owner surrenders early the insurer applies an adjustment that can raise or lower the surrender value depending on how interest rates have moved since purchase. Which annuity feature is this?

A bonus interest credit

A cost-of-living increase

An exclusion ratio

A market value adjustment

Question 23: A retired couple wants annuity income that continues as long as either of them is alive, stopping only when both have died. They accept smaller payments in exchange for that longevity protection across two lives. Which payout option provides this?

Joint and survivor life income

Straight life income

Life income with period certain

Fixed-amount installments

Question 24: An annuitant wants lifetime income but worries about dying early and forfeiting the balance. She chooses an option that pays for life yet guarantees that if she dies before receiving at least her purchase amount, the remainder goes to a beneficiary. Which option is this?

Straight life income

Life income with refund

Joint and survivor income

Interest-only option

Question 25: A conservative saver wants an annuity held in the insurer's general account where the company bears the investment risk and promises the principal will earn no less than a stated minimum interest rate. Which annuity provides these guarantees?

A variable annuity

A market value adjusted annuity only

A fixed annuity

A variable universal contract

Question 26: A producer holding only a life license wants to sell an equity-indexed annuity whose interest is linked to a market index but which is legally a fixed annuity in the general account with a guaranteed minimum. What license does selling it require?

A securities registration is required

A property license is required

A variable products endorsement is required

A life license alone suffices

Question 27: A breadwinner wants his life policy to also pay him a monthly cash income if he becomes totally disabled, in addition to waiving premiums. The agent adds a rider that pays a monthly benefit, commonly about one percent of the face amount. Which rider is this?

Disability income rider

Waiver of premium rider

Payor benefit rider

Accelerated death benefit rider

Question 28: A company owns a key-person life policy on an executive who is retiring. Rather than surrender it, the firm wants to swap the coverage onto a newly hired executive, subject to the new person proving insurability. Which rider permits changing who is insured?

Other-insured rider

Guaranteed insurability rider

Substitute-insured rider

Payor benefit rider

Question 29: An accidental death and dismemberment policy pays the full face amount, the principal sum, for accidental death or the loss of two limbs, but pays only half, the capital sum, for the loss of a single limb or one eye. What does the capital sum represent?

Twice the principal sum

Half the principal sum for one loss

The full principal for any single loss

A monthly income for dismemberment

Question 30: An accidental death benefit rider pays double only for death by accident. When reviewing a claim, the insurer checks whether the death fell within a common exclusion. Which cause of death would typically be excluded from an accidental death benefit?

Death in an ordinary car crash

Death from an accidental fall

Death by accidental drowning

Death from a preexisting illness

Question 31: A policyowner in Las Vegas wants to add temporary coverage on his spouse and children under his own permanent policy, using convertible term units, without buying separate policies for each family member. Which rider provides this bundled family protection?

Family term rider

Substitute-insured rider

Cost-of-living rider

Return of premium rider

Question 32: New parents add a rider covering all their children, including those born later, under one flat charge, and the rider lets each child convert to permanent coverage at a specified age without proving insurability. Which rider fits this description?

Payor benefit rider

Guaranteed insurability rider

Children's term rider

Accelerated death benefit rider

Question 33: A beneficiary does not want a lump sum and instead wants the death proceeds paid as income that continues over the lives of two people, herself and her sister, until both have died. Which settlement option provides income across two lives?

Fixed-period option

Interest-only option

Fixed-amount option

Joint and survivor option

Question 34: A beneficiary wants proceeds paid as income for her whole life but insists that if she dies early, any unpaid remainder of the proceeds goes to her own beneficiary rather than being kept by the insurer. Which settlement option accomplishes this?

Straight life income

Life income with refund

Fixed-period income

Interest-only payments

Question 35: A participating whole life owner in Reno wants to use the annual dividend to purchase additional one-year term insurance, often equal to the cash value, in what is sometimes called the fifth dividend option. What does this option do with the dividend?

Buys one-year term insurance

Reduces the next premium due

Pays the dividend in cash

Purchases paid-up whole life additions

Question 36: A prospect in Henderson reviewing a participating whole life illustration sees generous projected dividends and asks whether the insurer is obligated to pay them every year. How should the producer accurately characterize policy dividends on a participating policy?

They are contractually guaranteed

They are taxable as ordinary income

They are not guaranteed

They must be taken in cash

Question 37: An insured dies and no beneficiary is living or the named beneficiary is a minor. A clause lets the insurer pay a limited sum to a relative who appears entitled to it, such as one who paid funeral costs. Which provision permits this convenience payment?

Spendthrift provision

Entire contract provision

Assignment provision

Facility-of-payment provision

Question 38: An insured and the primary beneficiary die in the same accident, and it cannot be determined who died first. A model law directs that proceeds be distributed as if the insured survived the beneficiary. Which law governs this outcome?

Uniform Simultaneous Death Act

The spendthrift clause

The facility-of-payment rule

The common disaster grace period

Question 39: A life policy issued to a frequent traveler contains an aviation exclusion, and the insured later dies in a plane crash while traveling. Under a typical aviation exclusion clause, which of the following situations would most likely still be covered rather than excluded?

A death while piloting a private plane

A death as a fare-paying airline passenger

A death during military test flights

A death as a charter crew member

Question 40: A life policy issued to a service member includes a war exclusion. The clause can be written to deny the claim only if death results from war, or more broadly if the insured merely has military status when death occurs. What do these two forms describe?

The suicide and aviation clauses

The grace and reinstatement clauses

The results and status war clauses

The primary and contingent clauses

NLHI Nevada Life and Health Insurance Exam - Set 3 - Part 2

Question 21: A retiree hands an insurer a single lump sum and wants guaranteed income checks to begin within a month or two, with the first payment no later than a year out. Which annuity is structured to start income almost immediately after a single purchase payment?

Question 22: A deferred annuity guarantees a fixed rate for a term, but if the owner surrenders early the insurer applies an adjustment that can raise or lower the surrender value depending on how interest rates have moved since purchase. Which annuity feature is this?

Question 23: A retired couple wants annuity income that continues as long as either of them is alive, stopping only when both have died. They accept smaller payments in exchange for that longevity protection across two lives. Which payout option provides this?

Question 24: An annuitant wants lifetime income but worries about dying early and forfeiting the balance. She chooses an option that pays for life yet guarantees that if she dies before receiving at least her purchase amount, the remainder goes to a beneficiary. Which option is this?

Question 25: A conservative saver wants an annuity held in the insurer's general account where the company bears the investment risk and promises the principal will earn no less than a stated minimum interest rate. Which annuity provides these guarantees?

Question 26: A producer holding only a life license wants to sell an equity-indexed annuity whose interest is linked to a market index but which is legally a fixed annuity in the general account with a guaranteed minimum. What license does selling it require?

Question 27: A breadwinner wants his life policy to also pay him a monthly cash income if he becomes totally disabled, in addition to waiving premiums. The agent adds a rider that pays a monthly benefit, commonly about one percent of the face amount. Which rider is this?

Question 28: A company owns a key-person life policy on an executive who is retiring. Rather than surrender it, the firm wants to swap the coverage onto a newly hired executive, subject to the new person proving insurability. Which rider permits changing who is insured?

Question 29: An accidental death and dismemberment policy pays the full face amount, the principal sum, for accidental death or the loss of two limbs, but pays only half, the capital sum, for the loss of a single limb or one eye. What does the capital sum represent?

Question 30: An accidental death benefit rider pays double only for death by accident. When reviewing a claim, the insurer checks whether the death fell within a common exclusion. Which cause of death would typically be excluded from an accidental death benefit?

Question 31: A policyowner in Las Vegas wants to add temporary coverage on his spouse and children under his own permanent policy, using convertible term units, without buying separate policies for each family member. Which rider provides this bundled family protection?

Question 32: New parents add a rider covering all their children, including those born later, under one flat charge, and the rider lets each child convert to permanent coverage at a specified age without proving insurability. Which rider fits this description?

Question 33: A beneficiary does not want a lump sum and instead wants the death proceeds paid as income that continues over the lives of two people, herself and her sister, until both have died. Which settlement option provides income across two lives?

Question 34: A beneficiary wants proceeds paid as income for her whole life but insists that if she dies early, any unpaid remainder of the proceeds goes to her own beneficiary rather than being kept by the insurer. Which settlement option accomplishes this?

Question 35: A participating whole life owner in Reno wants to use the annual dividend to purchase additional one-year term insurance, often equal to the cash value, in what is sometimes called the fifth dividend option. What does this option do with the dividend?

Question 36: A prospect in Henderson reviewing a participating whole life illustration sees generous projected dividends and asks whether the insurer is obligated to pay them every year. How should the producer accurately characterize policy dividends on a participating policy?

Question 37: An insured dies and no beneficiary is living or the named beneficiary is a minor. A clause lets the insurer pay a limited sum to a relative who appears entitled to it, such as one who paid funeral costs. Which provision permits this convenience payment?

Question 38: An insured and the primary beneficiary die in the same accident, and it cannot be determined who died first. A model law directs that proceeds be distributed as if the insured survived the beneficiary. Which law governs this outcome?

Question 39: A life policy issued to a frequent traveler contains an aviation exclusion, and the insured later dies in a plane crash while traveling. Under a typical aviation exclusion clause, which of the following situations would most likely still be covered rather than excluded?

Question 40: A life policy issued to a service member includes a war exclusion. The clause can be written to deny the claim only if death results from war, or more broadly if the insured merely has military status when death occurs. What do these two forms describe?

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