Free Types of Life Insurance Policies Study Guide
Nevada Life, Accident & Health exam — Types of Life Insurance Policies.
Term, whole life, universal, variable and the other policy types are explained in the national Types of Life Insurance Policies guide. Nevada's state questions on this topic come mostly from its group life law (NRS 688B) and the licensing rule for variable products.
Group and wholesale life
- Wholesale life insurance is individual policies issued to three or more employees of one employer, or ten or more members of an association or union (NRS 688B.020).
- Group life may not be delivered to a group formed to buy insurance unless the Commissioner approves (NRS 688B.030).
Required group life provisions
| Provision | Nevada rule |
|---|---|
| Grace period | 31 days, with death coverage continuing unless the policyholder gave advance written notice of discontinuance (NRS 688B.050). |
| Incontestability | Incontestable, except for nonpayment, after two years from issue (NRS 688B.060). |
| Facility of payment | The insurer may pay up to $500 to a person equitably entitled because of funeral or last-illness expenses (NRS 688B.100). |
| Certificates | Issued to the policyholder for each insured, summarizing coverage, beneficiaries and conversion rights (NRS 688B.110). |
| Conversion when coverage ends | An individual policy, other than term, without evidence of insurability, if applied for and paid within 31 days (NRS 688B.120). |
| Conversion when the group policy ends | The amount may be capped at the smaller of the coverage lost (less any new group coverage) or $2,000 (NRS 688B.130). |
| Death during the conversion period | The amount that could have been converted is paid under the group policy whether or not the person applied (NRS 688B.140). |
Variable life and variable annuities
Variable life and variable annuities are a separate line of authority in Nevada (NRS 683A.261(1)(e)). Because they're securities, securities registration is generally required too. Their values move with the separate account, so the owner bears the investment risk.
Common exam traps
- Group grace period: 31 days.
- Conversion: 31 days, no evidence of insurability, and not into term insurance.
- Group policy ending: conversion may be capped at $2,000.
- Facility of payment up to $500 for funeral or last-illness costs.
- Wholesale life: 3 or more employees, or 10 or more association or union members.
Practice Types of Life Insurance Policies questions All Life, Accident & Health topics
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
