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

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: During underwriting, an applicant discloses that he regularly goes scuba diving and skydiving. The insurer may still issue the policy but attach language removing coverage for death arising from those specific pursuits. What is this type of restriction called?

A war exclusion

An aviation exclusion

A suicide exclusion

A hazardous avocation exclusion

Question 42: A policyowner asks his agent to change a policy term by signing an endorsement. The agent explains he lacks that power and that only a certain company representative can alter the contract. Under the entire contract provision, who may change policy terms?

An executive officer of the insurer

The soliciting agent

The policyowner unilaterally

The primary beneficiary

Question 43: An agent lists the guaranteed nonforfeiture options available to a whole life owner who stops paying premiums. A trainee asks which of several choices is not one of the standard nonforfeiture options. Which of the following is NOT a nonforfeiture option?

Cash surrender value

Reduced paid-up insurance

Accumulation at interest

Extended term insurance

Question 44: A wife applies for and owns a life insurance policy on her husband, pays the premiums, and names their children as beneficiaries. The husband is the insured but holds no ownership rights. What is this ownership arrangement called?

A group life certificate

A third-party ownership policy

An assigned policy

A survivorship policy

Question 45: An employee in Sparks enrolls in her employer's group life plan and receives a document summarizing her individual coverage, while the insurer issues the single actual contract to the employer itself. What is the document that the employee receives called?

The master policy

A conditional receipt

A binding receipt

A certificate of insurance

Question 46: An employer sets up a group life plan in which participating employees pay part of the premium through payroll deduction. To limit adverse selection, the insurer requires a high percentage of eligible employees to enroll. A contributory plan typically requires what participation level?

Seventy-five percent of eligible employees

One hundred percent of eligible employees

Fifty percent of eligible employees

Twenty-five percent of eligible employees

Question 47: An employer wants a group life plan that automatically covers every eligible worker with no cost to them, so participation is complete. The insurer treats this arrangement differently from one where employees contribute. What is such an employer-pays-all plan called?

A contributory plan

A franchise plan

A noncontributory plan

A blanket accident plan

Question 48: An employee leaves her job and loses group life coverage. She wants to convert to an individual policy without a medical exam. The agent explains she has a limited window to do so and that the individual policy will be permanent. What is the typical conversion window?

Ten days with a new medical exam

Sixty days with employer approval

One year without any conditions

Thirty-one days without evidence of insurability

Question 49: A trainee is surprised that decreasing term, whose death benefit falls each year, does not also charge a falling premium. The instructor explains how the premium behaves over the term. In a typical decreasing term policy, the premium does what?

Declines along with the benefit

Stays level while the benefit declines

Increases as the benefit declines

Is paid only in the final year

Question 50: A term policyowner wants the assurance that at the end of the term he can continue coverage for another term even if his health has worsened, without taking a new medical exam. Which term feature guarantees this continuation?

Renewability without new evidence

Convertibility to permanent

A return of premium benefit

A decreasing benefit schedule

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