Nevada Life Insurance Practice Exam Free - 2026

• A. 16 years
• B. 18 years
• C. 19 years
• D. 21 years

Correct answer: B. 18 years

Explanation: NRS 683A.251(1)(a) requires the Commissioner to find that a natural person applying for a resident producer license has attained the age of 18 years, along with paying fees, completing any required course of study and passing the examination. Ages 16 and 19 have no basis in the statute, and 21 is the age used by some other states but not Nevada. See NRS 683A.251.

• A. Within 5 days after March 1
• B. Within 10 days after March 1
• C. Within 15 days after March 1
• D. Within 30 days after March 1

Correct answer: C. Within 15 days after March 1

Explanation: NRS 683A.321(2) requires an insurer to file a notice of appointment within 15 days after the agency contract is executed or the first application for insurance is submitted. Five days is the period for the Commissioner to notify an insurer that a producer is ineligible, 30 days is the Commissioner's period to determine eligibility (and the period for reporting a termination under NRS 683A.331), and 10 days has no basis. See NRS 683A.321.

• A. Inform the Commissioner of the new address within 30 days after the change
• B. Apply for a new license reflecting the new address
• C. Notify only the insurers that have appointed her
• D. Nothing, because only a change of residence must be reported

Correct answer: A. Inform the Commissioner of the new address within 30 days after the change

Explanation: NRS 683A.261(6) requires a licensee to inform the Commissioner of each change of business, residence or electronic mail address within 30 days after the change; if the Commissioner cannot locate a licensee who failed to give notice, the license may be revoked without a hearing. A new license is not required, notifying insurers does not satisfy the statute, and business addresses are covered as well as residence addresses. See NRS 683A.261.

• A. 12 hours of continuing education each year
• B. 20 hours of continuing education within the 3-year period, none of which need be ethics
• C. 24 hours of continuing education within the 3-year period, including 3 hours of ethics
• D. 30 hours of approved continuing education within the 3-year period before renewal, including 3 hours of ethics

Correct answer: D. 30 hours of approved continuing education within the 3-year period before renewal, including 3 hours of ethics

Explanation: NAC 683A.330(1) requires each producer, to renew, to certify successful completion of 30 hours of approved continuing education within the 3-year period before the renewal date, and 3 of those 30 hours must be in ethics; the hours must relate to the lines held. The regulation exempts holders of the CPCU, CLU, CIC, CFP or ChFC designation and persons with 20 years of continuous insurance experience. The 12-, 20- and 24-hour figures are not Nevada's requirement. See NAC 683A.330.

• A. An agreement funded by life insurance that facilitates business ownership transfer upon death
• B. An agreement in which a business insures a key employee to offset losses from their death
• C. An agreement in which an employer and employee share the premiums and benefits of one policy
• D. An agreement in which a policyowner assigns policy rights to a creditor as loan security

Correct answer: A. An agreement funded by life insurance that facilitates business ownership transfer upon death

Explanation: A buy-sell agreement is a legally binding contract, often funded by life insurance, that allows surviving business owners to purchase a deceased owner's share of the business at a predetermined price.

• A. An arrangement where the surviving business owners buy a deceased owner's share using life insurance
• B. An arrangement where the cost and benefits of a policy are shared between employer and employee
• C. An arrangement where an employer pays a bonus that the employee uses to pay premiums on a policy they own
• D. An arrangement where the death benefit is divided between two named beneficiaries in equal shares

Correct answer: B. An arrangement where the cost and benefits of a policy are shared between employer and employee

Explanation: Split-dollar life insurance is an arrangement where the premium costs and policy benefits are shared between an employer and employee (or other parties) according to a specified agreement.

• A. The disability income rider
• B. The guaranteed insurability rider
• C. The waiver of monthly deductions rider
• D. The automatic premium loan provision

Correct answer: C. The waiver of monthly deductions rider

Explanation: Universal life policies deduct monthly charges (cost of insurance and expenses) from cash value. The waiver of monthly deductions rider pays those internal charges while the insured is totally disabled, so coverage continues - but it does not pay the full planned premium, so cash value growth may stall. A traditional waiver of premium rider on a whole life policy, by contrast, waives the entire premium.

• A. It protects proceeds still held by the insurer from the beneficiary's creditors and prevents the beneficiary from assigning future payments
• B. It lets the insurer reduce payments if the beneficiary mismanages money
• C. It allows the policyowner's creditors to claim the death benefit
• D. It requires the beneficiary to spend the proceeds only on necessities

Correct answer: A. It protects proceeds still held by the insurer from the beneficiary's creditors and prevents the beneficiary from assigning future payments

Explanation: A spendthrift clause protects proceeds the insurer still holds under a settlement option: the beneficiary cannot assign or borrow against future installments, and the beneficiary's creditors generally cannot reach payments before they are made. It does not police how money is spent once received, and it has no effect on a lump sum already paid out.

• A. The consideration clause
• B. The insuring clause
• C. The entire contract provision
• D. The settlement options section

Correct answer: B. The insuring clause

Explanation: The insuring clause (or insuring agreement), usually on the policy's first page, states the insurer's core promise: to pay the stated death benefit to the named beneficiary on proof of the insured's death, subject to the policy's terms. The consideration clause instead describes what the policyowner gives in exchange - the application statements and the premium.

• A. They are guaranteed to be true in every detail, or the policy is void
• B. They must be true only to the best of the applicant's knowledge and belief
• C. They are legally binding promises about the applicant's future behavior
• D. They cannot be used by the insurer for any purpose after the policy is issued

Correct answer: B. They must be true only to the best of the applicant's knowledge and belief

Explanation: Representations are statements the applicant believes true to the best of their knowledge. Unlike warranties - which must be literally true - an inaccurate representation lets the insurer void coverage only if the misstatement was material to accepting the risk, and generally only during the contestable period.

• A. Small amounts of permanent insurance purchased with dividends
• B. Dividends left on deposit with the insurer to accumulate interest
• C. One-year term insurance purchased with policy dividends
• D. Dividends applied to reduce the next premium payment due

Correct answer: A. Small amounts of permanent insurance purchased with dividends

Explanation: Paid-up additions are small amounts of single-premium whole life insurance purchased with policy dividends. They increase the policy's death benefit and cash value without additional out-of-pocket premiums.

• A. As though the primary beneficiary died first, so proceeds go to the contingent beneficiary or the insured's estate
• B. As though the insured died first, so proceeds pass through the beneficiary's estate
• C. Split equally between the two estates
• D. Held by the insurer until a court appoints a receiver

Correct answer: A. As though the primary beneficiary died first, so proceeds go to the contingent beneficiary or the insured's estate

Explanation: When the insured and primary beneficiary die together with no proof of survivorship, the Uniform Simultaneous Death Act directs proceeds to be paid as if the beneficiary died first - so they go to any contingent beneficiary, or to the insured's estate if none is named. Many policies add a common disaster (survivorship) clause requiring the beneficiary to outlive the insured by a stated period, such as 30 days, to the same effect.