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Life and Health Insurance Producer Exam

Replacement (NV): practice questions

Our Life & Health Insurance bank has 3 questions on this topic. Here are 3 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Nevada

Under the Nevada replacement regulation, borrowing against an existing life policy is a replacement when the aggregate borrowing exceeds what share of the policy's loan value?

  1. One-half of the loan value
  2. 5%
  3. 10 percent
  4. 25 percent
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D. 25 percent — NAC 686A.526(5).

Question 2 · Nevada

What must a producer give a buyer when proposing to replace an existing individual fixed deferred annuity?

  1. A waiver form giving up the free-look period on the replacement contract
  2. A buyer's guide for life insurance and a copy of the producer's license
  3. A signed, dated comparison of both contracts and a notice of annuity replacement
  4. Only an oral explanation of the surrender charges under the existing contract
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C. A signed, dated comparison of both contracts and a notice of annuity replacement — NAC 686A.573.

Question 3 · Nevada

When a life insurance replacement is involved, how long must the agent keep a copy of the replacement notice and any sales proposals?

  1. At least 3 years after signing the notice
  2. Only until the free-look period ends
  3. At least 6 months after the policy is issued
  4. At least 10 years after the existing policy lapses
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A. At least 3 years after signing the notice — NAC 686A.550(2)(c).

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