17 Free Nevada Life & Health Practice Questions: Health and Disability Insurance Products (2026)
How to Use This Health and Disability Products Set
Types of policies is the first topic of the Accident and Health-General section of the Nevada Life and Health exam: 16 of its 50 scored items. The outline lists disability income, accidental death and dismemberment, medical expense, Medicare supplement, group, long-term care and other coverages.
These 17 questions come from LanePrep's Nevada Life & Health quiz bank (chapter 5). They mix the big products (disability income, long-term care, major medical) with the limited-benefit and business coverages that are easy to confuse with them. Nevada's own rules for long-term care and Medicare supplement are tested in the Nevada health law set.
Ask what triggers the benefit. Disability income pays when you cannot work under the policy's definition, long-term care when you cannot perform enough activities of daily living, and specified-disease or travel accident coverage only when a named event occurs. Name the trigger and most wrong answers fall away.
Practice Questions 1-6: Disability, Long-Term Care and Major Medical Features
These questions cover a buyout policy for business partners, the activities of daily living that trigger long-term care benefits, stop-loss limits, levels of nursing care, the any-occupation definition of disability and a rider that fills the gap left by Social Security.
Question 1 (Chapter 5)
Two partners in a Las Vegas law firm enter into a buy-sell agreement funded by a Business Disability Buyout policy. If one partner becomes permanently disabled, how are the benefits typically paid?
- A) As a monthly income to the disabled partner's family.
- B) To the business to pay for a temporary replacement attorney.
- C) To the state of Nevada to cover the firm's licensing fees.
- D) In a lump sum or installments to the non-disabled partner to purchase the disabled partner's interest.
Show answer & explanation
Answer: D
A Disability Buyout policy provides the funds necessary for the healthy partner(s) to buy out the business interest of the disabled partner. Unlike BOE, which pays monthly expenses, the Buyout policy is specifically for the transfer of ownership.
Question 2 (Chapter 5)
Which of the following is a standard 'Activity of Daily Living' (ADL) used as a trigger for benefits in a Long-Term Care (LTC) policy?
- A) Driving a vehicle
- B) Cooking a three-course meal
- C) Speaking a second language
- D) Transferring (moving in and out of a bed or chair)
Show answer & explanation
Answer: D
LTC policies typically trigger benefits when the insured cannot perform 2 out of 6 ADLs. The standard ADLs are bathing, dressing, toileting, transferring, continence, and eating.
Question 3 (Chapter 5)
A Major Medical policy includes a 'Stop-Loss' feature. What is the effect of this feature on the insured?
- A) It limits the amount the insurer has to pay for any single claim.
- B) It stops the policy from lapsing if a premium is missed.
- C) It prevents the insured from seeing out-of-network doctors.
- D) It limits the maximum out-of-pocket expenses the insured must pay in a year.
Show answer & explanation
Answer: D
The Stop-Loss feature (or Out-of-Pocket Maximum) protects the insured by capping the amount they must pay in coinsurance. Once the insured's covered out-of-pocket costs reach the stop-loss limit, the insurer pays 100% of remaining covered expenses for the year.
Question 4 (Chapter 5)
An insured requires 'Skilled Nursing Care' following a stroke. How is this level of care defined in a Long-Term Care policy?
- A) Daily nursing and rehabilitative care that can only be performed by, or under the supervision of, skilled medical personnel.
- B) Occasional assistance with ADLs provided by a family member.
- C) Assistance with eating and dressing provided by a non-medical aide.
- D) Care provided exclusively in a hospital emergency room.
Show answer & explanation
Answer: A
Skilled Nursing Care is daily care performed by medical professionals (like RNs or physical therapists) under a doctor's orders. This is distinguished from Intermediate Care (occasional medical care) and Custodial Care (non-medical help with ADLs).
Question 5 (Chapter 5)
An individual disability income policy uses the 'Any Occupation' definition of total disability. This means the insured will receive benefits only if they:
- A) Cannot perform the duties of their own specific job.
- B) Cannot perform any job whatsoever, including manual labor.
- C) Are confined to a hospital bed.
- D) Cannot perform the duties of any occupation for which they are reasonably suited by education, training, or experience.
Show answer & explanation
Answer: D
The 'Any Occupation' definition is stricter than 'Own Occupation.' It requires that the insured be unable to work in any job that fits their background and education.
Question 6 (Chapter 5)
An insured has a disability policy with a Social Insurance Supplement (SIS) rider. If the insured becomes disabled and is awarded Social Security disability benefits that are less than the SIS rider amount, what will the SIS rider pay?
- A) The difference between the SIS rider amount and the Social Security benefit.
- B) Nothing, as Social Security is now paying.
- C) The full SIS rider amount regardless of Social Security.
- D) The SIS rider amount plus the Social Security benefit.
Show answer & explanation
Answer: A
The SIS rider is designed to 'fill the gap' left by social insurance programs. It pays the difference between the rider's limit and what is actually received from Social Security (or pays the full amount if Social Security denies the claim).
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Practice Questions 7-12: Deductibles, Conversion, Vision, Earnings Limits, Rating and Long-Term Care Tax
Here you meet the corridor deductible that bridges a basic plan and major medical, converting group coverage when employment ends, what vision insurance covers, the clause that limits benefits to earnings, how group premiums are rated and the tax treatment of qualified long-term care.
Question 7 (Chapter 5)
An insured has a Basic Hospital policy and a Major Medical policy. Between the two, he must pay a specific dollar amount before the Major Medical coverage begins. This is known as a:
- A) Corridor Deductible
- B) Flat Deductible
- C) Integrated Deductible
- D) Stop-Loss Limit
Show answer & explanation
Answer: A
A Corridor Deductible is used in Supplemental Major Medical plans. It 'bridges the gap' between a basic plan and the major medical plan, requiring the insured to pay a specific amount after the basic plan is exhausted but before the major medical plan starts paying.
Question 8 (Chapter 5)
An employee at a casino in Laughlin leaves his job. He has a group health insurance policy and wants to convert it to an individual policy. How many days does he typically have to exercise this conversion privilege without proving insurability?
- A) 10 days
- B) 30 days
- C) 31 days
- D) 60 days
Show answer & explanation
Answer: C
The standard conversion period for group health and life insurance is 31 days after termination of employment.
Question 9 (Chapter 5)
A Vision insurance policy typically includes coverage for which of the following?
- A) Surgery to repair a detached retina.
- B) Treatment for glaucoma.
- C) Annual eye exams and eyeglasses.
- D) Emergency room visits for eye injuries.
Show answer & explanation
Answer: C
Vision insurance is generally limited to routine care, such as exams, frames, and lenses. Medical issues like glaucoma or surgery are typically covered under a standard Major Medical health policy.
Question 10 (Chapter 5)
A self-employed consultant in Reno earns $5,000 a month and carries two disability policies totaling $6,000 in monthly benefits. If he becomes disabled, how will the 'Relation of Earnings to Insurance' provision likely affect his claim?
- A) He will receive the full $6,000 and the insurer will raise his future premiums.
- B) Both policies are cancelled immediately for over-insurance.
- C) He will only receive benefits from the policy he purchased first.
- D) The insurers will reduce the benefits proportionally to match his actual earnings and refund the excess premium.
Show answer & explanation
Answer: D
The Relation of Earnings to Insurance provision prevents an insured from profiting from a disability. If benefits exceed current earnings, the insurer reduces the payout to a percentage of the earnings and refunds the portion of the premium that paid for the excess coverage.
Question 11 (Chapter 5)
A large manufacturing company in Henderson has a group health plan. The insurer reviews the company's actual claims history from the previous year to determine the premium for the upcoming year. This process is called:
- A) Experience Rating
- B) Manual Rating
- C) Community Rating
- D) Adverse Selection
Show answer & explanation
Answer: A
Experience rating uses the specific group's past claims experience to set future premiums. Manual rating uses the insurer's general data for similar groups.
Question 12 (Chapter 5)
What is a primary tax advantage of a 'Tax-Qualified' Long-Term Care policy?
- A) Benefits received are generally received income tax-free.
- B) Premiums are 100% deductible for all taxpayers regardless of income.
- C) The federal government pays 50% of the premium.
- D) The policy can be used as collateral for a tax-free loan.
Show answer & explanation
Answer: A
In a tax-qualified LTC plan, benefits are generally excluded from federal income tax. Premiums may also be deductible as a medical expense if they exceed a certain percentage of the taxpayer's adjusted gross income.
Practice Questions 13-17: Limited-Benefit, Business and Account-Based Coverages
The last five questions cover specified-disease coverage, key person disability, the health reimbursement account, orthodontic limits in dental plans and the travel accident policy that pays only in specific circumstances.
Question 13 (Chapter 5)
A 'Specified Disease' policy, such as a Heart Attack and Stroke policy, is designed to:
- A) Pay a lump sum or daily benefit upon the diagnosis of a specifically named illness.
- B) Replace a Major Medical policy for lower-income individuals.
- C) Cover all medical expenses related to any illness.
- D) Provide coverage only if the insured is hospitalized for more than 30 days.
Show answer & explanation
Answer: A
Specified Disease (or Dread Disease) policies provide supplemental coverage for specific illnesses named in the policy, often paying a lump sum to help with non-medical costs.
Question 14 (Chapter 5)
A corporation in Henderson purchases a Key Person Disability policy on its Chief Technology Officer. If the CTO becomes disabled and the policy pays a benefit to the corporation, what is the tax status of that benefit?
- A) The benefit is fully taxable as ordinary income to the corporation.
- B) The benefit is taxable only if it exceeds the CTO's annual salary.
- C) The benefit is received tax-free by the corporation.
- D) The benefit is tax-free to the corporation but taxable to the CTO.
Show answer & explanation
Answer: C
In Key Person Disability insurance, the business is the owner and beneficiary. Premiums are not deductible, and consequently, the benefits are received by the business tax-free.
Question 15 (Chapter 5)
A company in Sparks offers a Health Reimbursement Account (HRA) to its employees. Which statement accurately describes the funding of this account?
- A) It is funded by employee pre-tax salary reductions.
- B) It is funded entirely by employer contributions.
- C) It must be funded 50% by the employer and 50% by the employee.
- D) It is a personal savings account funded by the employee's after-tax income.
Show answer & explanation
Answer: B
Unlike HSAs or FSAs, a Health Reimbursement Account (HRA) is established and funded solely by the employer. Employees cannot contribute to an HRA.
Question 16 (Chapter 5)
A dental insurance plan in Nevada includes coverage for orthodontics. Which of the following is a typical characteristic of orthodontic coverage?
- A) It is considered a 'Basic' service (Type II).
- B) It is usually subject to a separate, lifetime maximum benefit.
- C) It never requires a deductible.
- D) It is only available to adults over age 25.
Show answer & explanation
Answer: B
Orthodontic coverage is typically categorized as a 'Major' service and is almost always subject to a lifetime maximum per person, rather than an annual maximum.
Question 17 (Chapter 5)
An insured has a Travel Accident policy. While on a business trip, the insured is injured in a hotel fire. Why might the policy NOT pay a benefit?
- A) Travel Accident policies are 'Limited Risk' and usually only cover accidents occurring while the insured is actually riding in or boarding a specific type of common carrier.
- B) The insured was traveling for business rather than pleasure.
- C) Hotel fires are considered 'Acts of God' and are excluded from all accident policies.
- D) The insured did not purchase a separate 'Fire Rider'.
Show answer & explanation
Answer: A
Travel Accident insurance is a type of Limited Risk policy. It provides coverage for death or injury resulting from accidents, but only while the insured is a passenger on a common carrier (like a plane, train, or bus).
The Mistakes That Cost Marks
Confusing own occupation with any occupation. An own-occupation definition pays when you cannot do your own job. An any-occupation definition is stricter: you must be unable to perform any occupation for which you are reasonably suited by education, training or experience (question 5).
Getting the long-term care trigger wrong. Benefits typically begin when the insured cannot perform two of six activities of daily living: bathing, dressing, toileting, transferring, continence and eating. Driving a car or cooking a meal is not on the list (question 2). Skilled care is daily care by or under the supervision of skilled medical personnel, and custodial care is non-medical help (question 4).
Mixing up the cost-sharing terms. The deductible comes first, coinsurance shares the rest, and a stop-loss limit caps what the insured pays. A corridor deductible sits between a basic plan and a supplemental major medical plan (questions 3 and 7).
Treating limited-benefit policies as comprehensive. A specified-disease policy pays on the diagnosis of a named illness, and a travel accident policy pays for accidents on a common carrier. Neither replaces major medical (questions 13 and 17).
Mixing up business coverages. A disability buyout policy funds the purchase of a disabled partner's interest, while key person disability protects the business itself. For key person coverage the premiums are not deductible and the benefits are received tax free (questions 1 and 14).
Mistaking who funds an HRA. A health reimbursement account is funded by the employer alone. Employees cannot contribute to it (question 15).
Forgetting the earnings limit. The relation of earnings to insurance provision reduces benefits that exceed earnings and refunds the premium paid for the excess (question 10).
Your Next Step
Mark the ones you missed, then continue with health policy provisions, underwriting and social insurance, the heaviest block of the exam. For the rest of the course, start from the free Nevada Life & Health practice questions page, and you can open the free course preview to try the audio lessons.
Item counts and weights come from Pearson VUE's Nevada Insurance Content Outlines. Read October 2026.
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