Podcast
Questions and Answers
Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?
Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?
- Daughter (correct)
- Insurance Company
- Husband
- Contingent Beneficiary
When is a Group Health policy required to provide coverage for a newborn child?
When is a Group Health policy required to provide coverage for a newborn child?
At the moment of birth
What is the required renewability status of all Medicare supplement policies?
What is the required renewability status of all Medicare supplement policies?
Guaranteed renewable
Who issues Medicare Supplement policies?
Who issues Medicare Supplement policies?
Which statement is true if P's premiums are waived due to disability on a participating life policy?
Which statement is true if P's premiums are waived due to disability on a participating life policy?
What type of policy would offer a 40-year-old the quickest accumulation of cash value?
What type of policy would offer a 40-year-old the quickest accumulation of cash value?
The Nevada Insurance Guaranty Association protects what?
The Nevada Insurance Guaranty Association protects what?
The most important factor to consider when determining whether to convert term insurance at the insured's attained age or to the insured's original age is?
The most important factor to consider when determining whether to convert term insurance at the insured's attained age or to the insured's original age is?
A Medicare Supplement policy may be cancelled for which reason?
A Medicare Supplement policy may be cancelled for which reason?
A noncontributory group term life plan is characterized by?
A noncontributory group term life plan is characterized by?
Variable annuities may invest premiums in each of the following, EXCEPT?
Variable annuities may invest premiums in each of the following, EXCEPT?
Which of the following costs would a Basic Hospital/Surgical policy likely cover?
Which of the following costs would a Basic Hospital/Surgical policy likely cover?
Information obtained from a phone conversation to the proposed insured can be found in which report?
Information obtained from a phone conversation to the proposed insured can be found in which report?
How are the $3,000 benefit payments taxable for T, receiving from a Disability Income policy?
How are the $3,000 benefit payments taxable for T, receiving from a Disability Income policy?
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
Basic Medical Expense insurance has what compared to Major Medical Insurance?
Basic Medical Expense insurance has what compared to Major Medical Insurance?
What is the requirement for maintaining an individual Nevada producer license?
What is the requirement for maintaining an individual Nevada producer license?
What is the definition of twisting in insurance?
What is the definition of twisting in insurance?
Which of these is considered a mandatory provision?
Which of these is considered a mandatory provision?
Which life insurance rider typically appears on a Juvenile life insurance policy?
Which life insurance rider typically appears on a Juvenile life insurance policy?
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their retirement plan?
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their retirement plan?
If a person with a Major Medical policy incurs $15,000 in medical expenses with a $5,000 deductible and an 80/20 Coinsurance clause, how much will the insured have to pay?
If a person with a Major Medical policy incurs $15,000 in medical expenses with a $5,000 deductible and an 80/20 Coinsurance clause, how much will the insured have to pay?
How many days after policy delivery can a Long-term Care policy be returned for a 100% premium refund?
How many days after policy delivery can a Long-term Care policy be returned for a 100% premium refund?
Which of the following is an example of defamation?
Which of the following is an example of defamation?
If T has a Disability Income policy that pays a monthly benefit of $5,000 and becomes partially disabled, what can he likely expect?
If T has a Disability Income policy that pays a monthly benefit of $5,000 and becomes partially disabled, what can he likely expect?
A Medicare Supplement policyholder has ___ days to return the policy and receive a full premium refund.
A Medicare Supplement policyholder has ___ days to return the policy and receive a full premium refund.
The health insurance program which is administered by each state and funded by both the federal and state governments is called?
The health insurance program which is administered by each state and funded by both the federal and state governments is called?
Which of these is NOT considered to be a cost connected with an individual's death?
Which of these is NOT considered to be a cost connected with an individual's death?
Group life insurance policies are generally written as?
Group life insurance policies are generally written as?
What happens to the proceeds under the misstatement of age provision if W's age was misstated?
What happens to the proceeds under the misstatement of age provision if W's age was misstated?
According to the Affordable Care Act (ACA), a dependent child's eligibility status is determined by?
According to the Affordable Care Act (ACA), a dependent child's eligibility status is determined by?
A Long-Term Care policy sold in Nevada MUST be?
A Long-Term Care policy sold in Nevada MUST be?
A health insurance policyholder has ___ days to return the policy and receive a full refund.
A health insurance policyholder has ___ days to return the policy and receive a full refund.
What type of beneficiary designation does M’s son have in the AD&D policy?
What type of beneficiary designation does M’s son have in the AD&D policy?
On a life insurance policy, who is qualified to change the beneficiary designation?
On a life insurance policy, who is qualified to change the beneficiary designation?
Which is true concerning a Variable Universal Life policy?
Which is true concerning a Variable Universal Life policy?
N has a Major Medical policy that only pays a portion of N's medical expenses. What is this provision called?
N has a Major Medical policy that only pays a portion of N's medical expenses. What is this provision called?
Which health policy clause specifies the amount of benefits to be paid?
Which health policy clause specifies the amount of benefits to be paid?
According to Nevada law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant?
According to Nevada law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant?
Which of the following is considered to be misrepresentation?
Which of the following is considered to be misrepresentation?
If T is covered by an AD&D policy that has an irrevocable beneficiary, what happens if T requests a change of beneficiary?
If T is covered by an AD&D policy that has an irrevocable beneficiary, what happens if T requests a change of beneficiary?
What would the insurance company NOT do if it receives the MIB report showing the applicant had a stroke not disclosed?
What would the insurance company NOT do if it receives the MIB report showing the applicant had a stroke not disclosed?
A person insured within a group contract will be given a?
A person insured within a group contract will be given a?
Which of thee contracts are affected by replacement regulations?
Which of thee contracts are affected by replacement regulations?
Which of the following actions is NOT required when a producer is replacing a Medicare Supplement policy?
Which of the following actions is NOT required when a producer is replacing a Medicare Supplement policy?
Which statement regarding the Change of Beneficiary provision is true?
Which statement regarding the Change of Beneficiary provision is true?
A group life insurance policy can be converted to an individual whole life policy under which circumstance?
A group life insurance policy can be converted to an individual whole life policy under which circumstance?
How long may pre-existing conditions be excluded on a Medicare Supplement policy?
How long may pre-existing conditions be excluded on a Medicare Supplement policy?
What is owed to M’s estate if M dies soon after becoming disabled and has a Disability Income policy that pays $2,000 a month?
What is owed to M’s estate if M dies soon after becoming disabled and has a Disability Income policy that pays $2,000 a month?
What could an insurance producer be found guilty of if they share commissions with a client who purchased insurance?
What could an insurance producer be found guilty of if they share commissions with a client who purchased insurance?
What factor would affect C's decision whether to convert her convertible term life policy?
What factor would affect C's decision whether to convert her convertible term life policy?
Which of these actions is taken when a policy owner uses a Life Insurance policy as collateral for a bank loan?
Which of these actions is taken when a policy owner uses a Life Insurance policy as collateral for a bank loan?
Group Life policies in Nevada are required to contain a conversion privilege that allows for conversion to what?
Group Life policies in Nevada are required to contain a conversion privilege that allows for conversion to what?
What is NOT a prerequisite for becoming a licensed resident producer in Nevada?
What is NOT a prerequisite for becoming a licensed resident producer in Nevada?
What type of insurance supplies an income stream over a set period of time starting when the insured dies?
What type of insurance supplies an income stream over a set period of time starting when the insured dies?
What is the requirement for maintaining an individual Nevada producer license?
What is the requirement for maintaining an individual Nevada producer license?
What will the beneficiary receive if an insured is past due on a life insurance premium but is still within the Grace Period?
What will the beneficiary receive if an insured is past due on a life insurance premium but is still within the Grace Period?
Pre-hospitalization authorization is considered an example of?
Pre-hospitalization authorization is considered an example of?
The first portion of a covered Major Medical Insurance expense that the insured is required to pay is called?
The first portion of a covered Major Medical Insurance expense that the insured is required to pay is called?
What does a Medicare Supplement policy cover?
What does a Medicare Supplement policy cover?
What might happen to an employee with $25,000 group life coverage who was recently fired?
What might happen to an employee with $25,000 group life coverage who was recently fired?
How much of T's disability income benefits is subject to federal income tax?
How much of T's disability income benefits is subject to federal income tax?
The investment gains from a Universal Life Policy usually go toward?
The investment gains from a Universal Life Policy usually go toward?
A domestic insurance company in Nevada MUST?
A domestic insurance company in Nevada MUST?
Which of these is considered a true statement regarding Medicaid?
Which of these is considered a true statement regarding Medicaid?
What is termed transacting insurance?
What is termed transacting insurance?
What happens on D's $100,000 Whole life policy containing a War Exclusion clause if D is killed in an automobile accident while on leave?
What happens on D's $100,000 Whole life policy containing a War Exclusion clause if D is killed in an automobile accident while on leave?
What must be signed by both the producer and applicant when an existing life insurance policy is reissued with a reduction in cash value?
What must be signed by both the producer and applicant when an existing life insurance policy is reissued with a reduction in cash value?
XYZ Company pays the entire premium for its group health plan. What is the MINIMUM percentage of eligible employees that must be covered?
XYZ Company pays the entire premium for its group health plan. What is the MINIMUM percentage of eligible employees that must be covered?
When does Nevada's 10-day free-look period for life insurance policies begin?
When does Nevada's 10-day free-look period for life insurance policies begin?
What is an example of an unfair claims practice?
What is an example of an unfair claims practice?
Any criminal charges taken against a producer must be reported to the Commissioner of Insurance within how many days of the final disposition?
Any criminal charges taken against a producer must be reported to the Commissioner of Insurance within how many days of the final disposition?
Which statement does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?
Which statement does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?
If M has a Major Medical insurance policy with a $200 flat deductible and 80% Coinsurance, how much will M receive in payment for a $2,200 claim?
If M has a Major Medical insurance policy with a $200 flat deductible and 80% Coinsurance, how much will M receive in payment for a $2,200 claim?
Life insurance replacement regulation protects the interest of?
Life insurance replacement regulation protects the interest of?
What type of renewability guarantees premium rates and renewability?
What type of renewability guarantees premium rates and renewability?
Study Notes
Life Insurance and Beneficiary Designation
- Under the Common Disaster clause, death proceeds of a life insurance policy go to the contingent beneficiary (daughter) if both the insured and primary beneficiary (husband) die simultaneously.
- A Family Maintenance policy provides an income stream to beneficiaries starting upon the insured's death, for a specified period.
Health Insurance Policies
- Group Health policies must cover newborns immediately at birth.
- Medicare Supplement policies are guaranteed renewable.
- Basic Medical Expense insurance has lower benefit limits compared to Major Medical Insurance.
- A 30-day free-look period is mandated for Medicare Supplement policies and Long-term Care policies, allowing for full premium refunds upon cancellation.
Disability Income and Coverage
- The monthly disability income benefits are taxable if the premiums were paid by the employer.
- Non-occupational disability coverage protects against non-work-related disabilities.
- Benefits under a Disability Income policy are based on insured wages, further influenced by features like the Residual Benefit clause that allows partial benefits for part-time work.
Insurance Regulations and Compliance
- Nevada Insurance Guaranty Association secures policyholders if an insurer becomes insolvent.
- Producers must fulfill continuing education requirements (30 hours every three years) to maintain their producer license in Nevada.
- Misrepresentation, such as guaranteeing dividends on a policy, is a violation of insurance regulations.
Policy Conversions and Provisions
- Eligibility for converting group life insurance to an individual policy occurs upon termination of employment.
- The Notice of Claims provision necessitates prompt reporting of claims by the policyholder.
- The payable amount under a Major Medical policy can involve deductibles and coinsurance, influencing net benefits.
Taxation and Retirement Considerations
- Individuals aged 70½ face a 50% excise tax for failing to take required minimum distributions from retirement plans.
- Disability income policies usually do not tax benefits paid from premiums wholly covered by the insured.
Annuities and Investment Options
- Annuities provide different investment options, with variable annuities allowing premium investment in various accounts, but not in the insurer's corporate business account.
- Universal Life policies typically allocate investment gains to the cash value.
Miscellaneous Insurance Facts
- The definition and nature of replacement refer to exchanging an existing policy for a new one, subject to regulations.
- Injuries or deaths related to military service may be exempt from certain clauses, such as a War Exclusion clause in a life insurance policy.
- A Child Term rider can be attached to a whole life policy to provide coverage for children.
Group and Medicare Policies
- Group life insurance policies are typically structured as annually renewable term plans.
- Medicaid is supported by both state and federal funding, focusing on low-income individuals.
Essential Guidelines for Producers
- Producers must provide policy summaries and buyer guides following the sale of life insurance.
- Immediate notification to a client following criminal charges is mandatory, within 30 days of resolution.
Claims and Coverage Regulations
- Under unfair claims practices, misrepresenting policy terms affecting loss recovery is prohibited.
- Employers paying for group term life insurance can deduct part of premium costs from taxable income, supporting employers' contributions.
Age and Coverage Factors
- An individual's eligibility for Medicare Supplement insurance begins at age 65.
- The misstatement of age provision adjusts the death benefit based on what premiums would have been if issued at the correct age.
Final Notes
- All insurance policies require compliance with state-specific regulations, which vary by jurisdiction, particularly regarding lapses and reinstatements of policies.
- Codifying key aspects of policies like taxes, payments, and regulations helps better prepare policyholders and producers for appropriate transactions and client advisement.
Studying That Suits You
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Description
Test your knowledge on insurance policies with these flashcards. This quiz covers key concepts including beneficiary designations, coverage for newborns, and common disaster clauses. Perfect for those preparing for an insurance final exam.
