17 Free Nevada Life & Health Practice Questions: Nevada Life Insurance Law (2026)
How to Use This Nevada Life Law Set
Nevada life insurance law sits in the state-law section of the Nevada Life and Health exam, which has 44 scored items in all. Statutes and codes common to life and health only (credit, group, advertising) account for 4 of them and those pertinent to life insurance only (replacement, disclosure and the Buyer's Guide, fraternals, the 10-day free look, viaticals) for 6: 10 of the 44 in total.
These 17 questions come from LanePrep's Nevada Life & Health quiz bank (chapter 7). Four test the free look and replacement rules, five test fraternal benefit societies, three test credit insurance, three test group life and two test disclosure.
Learn the Nevada number, then the exception. These are mostly recall questions, and the trap is usually a figure or a chapter number that is almost right.
Practice Questions 1-6: The Free Look, Fraternals, Credit Insurance and Group Conversion
These questions cover the 10-day free look on an ordinary policy, what defines a fraternal benefit society, credit life and credit health insurance, and the conversion privilege in group life.
Question 1 (Chapter 7)
An applicant in Las Vegas receives a new life insurance policy on June 1st that is NOT a replacement for an existing policy. On June 15th, the applicant decides they no longer want the coverage and requests a full refund. Under NRS 688A.165, what is the insurer's obligation?
- A) The insurer must refund all premiums because the policy is within the 30-day free-look period.
- B) The insurer must refund the premium minus a pro-rated mortality charge.
- C) The insurer is not required to refund the premium because the 10-day free-look period has expired.
- D) The insurer must refund the premium only if the applicant can prove the producer made a misrepresentation.
Show answer & explanation
Answer: C
Under NRS 688A.165(1), the standard free-look period for a life insurance policy or annuity contract in Nevada is 10 days from the date of delivery. Since this was not a replacement policy and 14 days had passed, the insurer is no longer legally obligated to provide a full refund under the free-look provision.
Question 2 (Chapter 7)
A local lodge of a fraternal benefit society in Reno provides insurance benefits to its members. Which of the following is a defining characteristic of such an entity under NRS 695A.010?
- A) It must be operated for the profit of its stockholders.
- B) It is exempt from all Nevada insurance advertising regulations.
- C) It can only provide health insurance, never life insurance.
- D) It must have a representative form of government and a lodge system.
Show answer & explanation
Answer: D
Under NRS 695A.010, a fraternal benefit society is a non-profit organization that must have a lodge system and a representative form of government, operating solely for the benefit of its members and beneficiaries.
Question 3 (Chapter 7)
A car dealership in Henderson offers insurance that will pay off a customer's auto loan if the customer dies before the loan is repaid. This is an example of:
- A) Industrial Life Insurance
- B) Viatical Settlement
- C) Key Person Insurance
- D) Credit Life Insurance
Show answer & explanation
Answer: D
Credit life insurance (NRS 690A) is designed specifically to pay off the remaining balance of a debt, such as a car loan, upon the death of the borrower.
Question 4 (Chapter 7)
A group life insurance policy issued in Nevada under NRS 688B must include a provision that allows an insured individual to convert their coverage to an individual policy if they leave the group. How long is the standard conversion period?
- A) 10 days
- B) 60 days
- C) 90 days
- D) 31 days
Show answer & explanation
Answer: D
Standard group life provisions (NRS 688B) generally include a 31-day conversion period, during which the individual can switch to an individual permanent policy without evidence of insurability.
Question 5 (Chapter 7)
In a credit health insurance policy (NRS 690A), if the insured borrower becomes disabled, the policy is designed to:
- A) Pay the entire loan balance in one lump sum immediately.
- B) Refund all interest paid on the loan since its inception.
- C) Provide a death benefit to the borrower's spouse.
- D) Make the monthly loan payments on behalf of the borrower during the disability.
Show answer & explanation
Answer: D
Credit health (or disability) insurance is intended to cover the loan payments while the borrower is disabled and unable to work, rather than paying off the entire principal (which is the role of credit life).
Question 6 (Chapter 7)
Which Nevada statute provides the Commissioner with the authority to regulate the rates and forms of credit life insurance?
- A) NRS 688A
- B) NRS 686C
- C) NRS 683A
- D) NRS 690A
Show answer & explanation
Answer: D
NRS 690A is the specific chapter of the Nevada Revised Statutes that governs Credit Life and Credit Health insurance.
Get the 25-question sample set by email
Want a full-exam practice set to study offline? Drop your email — we'll send 25 questions across every content area, each with the answer and explanation.
No spam. Just the questions and one optional follow-up.
Practice Questions 7-12: Fraternal Exemptions, Policy Summaries, Cost Indexes, Replacement and Group Provisions
Here you will meet what a fraternal society is exempt from, what a policy summary must contain, the surrender cost index, which transactions the replacement rule does not cover, the benefits a fraternal society may not provide and how long a group life policy stays contestable.
Question 7 (Chapter 7)
Under NRS 695A.550, fraternal benefit societies are generally exempt from:
- A) The requirement to pay death benefits to beneficiaries.
- B) The authority of the Nevada Insurance Commissioner.
- C) All anti-fraud regulations.
- D) All state taxes, except those on real estate and office equipment.
Show answer & explanation
Answer: D
NRS 695A.550 declares every fraternal benefit society a charitable and benevolent institution and exempts it from every state, county, district, municipal and school tax other than the commerce tax imposed under chapter 363C of NRS and taxes on real property and office equipment. A society is not exempt from the Commissioner's examination authority (NRS 695A.500) or from the trade practices and fraud provisions of chapter 686A of NRS (NRS 695A.530), and it must still pay the death benefits it promises.
Question 8 (Chapter 7)
Which of the following must be included in a Policy Summary provided to a Nevada life insurance applicant?
- A) The producer's home address and personal phone number.
- B) A list of all the insurer's other policyholders in Nevada.
- C) A comparison of the insurer's stock price over the last 10 years.
- D) The generic name of the policy and the name and address of the insurer.
Show answer & explanation
Answer: D
NAC 686A.410-455 requires a Policy Summary to include identifying information about the insurer and the specific policy being sold, including its generic name and cost/benefit information.
Question 9 (Chapter 7)
During a sales presentation in Pahrump, a producer uses the 'Life Insurance Surrender Cost Index' to compare two policies. According to NAC 686A.425, what does this index primarily measure?
- A) The total premium paid over the life of the policy.
- B) The guaranteed cash value at age 65.
- C) The probability of the insured dying within the first 10 years.
- D) The relative cost of the insurance if the policy is surrendered at a future point in time, considering the time value of money.
Show answer & explanation
Answer: D
NAC 686A.445(1) calculates the life insurance surrender cost index by accumulating the premiums at 5 percent interest, crediting the guaranteed cash surrender value (plus accumulated dividends and any terminal dividend for participating policies) at the end of the 10th and 20th policy years, and expressing the result as an equivalent level annual cost per $1,000 of death benefit. Because of the interest adjustment it shows the relative cost of the insurance if the policy is surrendered at that future point. NAC 686A.425 requires that cost comparisons recognize the time value of money (subsection 5) and that cost indexes be described as useful only for comparing the relative costs of two or more similar policies (subsection 7).
Question 10 (Chapter 7)
Which of the following transactions is generally EXEMPT from the Nevada Life Insurance Replacement Rule (NAC 686A.510)?
- A) Replacing a whole life policy with a universal life policy
- B) Replacing a term policy with a permanent policy
- C) Replacing a policy that has been in force for 15 years
- D) Group life insurance policies used for employee benefits
Show answer & explanation
Answer: D
NAC 686A.540 lists the transactions to which the replacement rules (NAC 686A.510 to 686A.577) do not apply. Subsection 2 exempts policies of group life insurance, group credit life insurance and life insurance issued in connection with a pension, profit-sharing or other benefit plan that qualifies for tax deductibility of premiums; an agent replacing such a plan must still make full disclosure of all material facts to the person in charge of the plan. Replacing a whole life policy with universal life, a term policy with a permanent policy, or a policy that has been in force for 15 years is an ordinary replacement covered by the rules (the only term exemption is for a nonconvertible, nonrenewable term policy that will expire in 5 years or less, NAC 686A.540(5)).
Question 11 (Chapter 7)
A Nevada Fraternal Benefit Society wants to expand its offerings. Under NRS 695A.180, which of the following benefits is a fraternal society NOT permitted to provide to its members?
- A) Endowment benefits
- B) Annuity benefits
- C) Monument or tombstone benefits
- D) Property and Casualty insurance on commercial buildings
Show answer & explanation
Answer: D
NRS 695A.180 lists authorized benefits for fraternal societies, including life, endowment, annuity, disability, and monument benefits. They are not authorized to write general commercial property and casualty insurance.
Question 12 (Chapter 7)
A group life insurance policy issued in Nevada to an employer must contain an 'Incontestability' provision. Under NRS 688B.040, after how long is the validity of the policy generally beyond contest, except for nonpayment of premiums?
- A) 1 year from the date of issue
- B) 3 years from the date of issue
- C) 2 years from the date of issue
- D) 5 years from the date of issue
Show answer & explanation
Answer: C
NRS 688B.040 requires every group life policy delivered in Nevada to contain the provisions set out in NRS 688B.040 to 688B.150. The incontestability provision, NRS 688B.060, states that the validity of the policy shall not be contested, except for nonpayment of premium, after it has been in force for 2 years from its date of issue.
Practice Questions 13-17: Fraternal Benefits, Eligible Groups, Replacement Refunds and Agent Licensing
The last five questions cover the benefits a fraternal society may offer, the rule that a group must exist for a purpose other than buying insurance, the 30-day free look on a replacement, the term-policy exemption from the replacement rule and the licensing of fraternal agents.
Question 13 (Chapter 7)
A fraternal benefit society in Nevada wants to amend its bylaws. Under NRS 695A.180, which of the following statements is true regarding the society's power to provide benefits?
- A) It may only provide life insurance and no other benefits
- B) It may provide disability, monument, and annuity benefits in addition to life insurance
- C) It is prohibited from providing any health-related benefits
- D) It must obtain permission from the Governor for every new benefit type
Show answer & explanation
Answer: B
NRS 695A.180 allows fraternal benefit societies to provide various benefits, including life, endowment, annuity, disability, and monument/tombstone benefits.
Question 14 (Chapter 7)
A group life insurance policy is issued to a labor union in Las Vegas. Under NAC 679B.036, what is the primary requirement for the group to be considered an 'eligible group'?
- A) The group must have been formed solely for the purpose of obtaining insurance
- B) The group must have been formed for a purpose other than obtaining insurance
- C) The group must have at least 1,000 members
- D) The group must be headquartered outside of Nevada
Show answer & explanation
Answer: B
A fundamental principle of group insurance (and reflected in NAC 679B.036) is that the group must be formed for a purpose other than simply buying insurance to avoid adverse selection.
Question 15 (Chapter 7)
A policyholder in Las Vegas surrenders a variable life insurance policy during the 30-day replacement free-look period. According to NRS 688A.165, the insurer must refund:
- A) Only the cash value on the date of surrender
- B) Any premium paid for the policy
- C) The premiums paid minus a 25% surrender charge
- D) Nothing, as variable products have no free-look rights
Show answer & explanation
Answer: B
NRS 688A.165(2) requires a full refund of any premium paid when a replacement policy is surrendered during the 30-day free-look period.
Question 16 (Chapter 7)
A producer is helping a client in Boulder City. Which of the following transactions would be EXEMPT from the Nevada Life Insurance Replacement Rule (NAC 686A.510)?
- A) Replacing an existing whole life policy with a new universal life policy.
- B) Replacing non-convertible term life insurance that will expire in 5 years or less and cannot be renewed.
- C) Replacing an existing term policy with a new term policy from a different insurer.
- D) Replacing a policy where the new premium is paid via a policy loan from the old policy.
Show answer & explanation
Answer: B
NAC 686A.540(5) exempts from the replacement rules (NAC 686A.510 to 686A.577) a transaction in which the existing policy is a nonconvertible term policy that will expire in 5 years or less and cannot be renewed. The other transactions are ordinary replacements covered by the rules, including one financed by borrowing against the old policy (NAC 686A.526(5) and (6)).
Question 17 (Chapter 7)
An individual in Fallon wants to sell life insurance certificates for a Fraternal Benefit Society. Under NRS 695A.330, this individual:
- A) Is exempt from all licensing requirements because the society is non-profit.
- B) Must only register with the local city council.
- C) Must be licensed as an insurance producer in accordance with the laws governing producers.
- D) Can only sell insurance if they have been a member of the society for 20 years.
Show answer & explanation
Answer: C
NRS 695A.330 requires agents of fraternal benefit societies to be licensed as producers of insurance in the same manner as other life and health insurance producers in Nevada.
The Mistakes That Cost Marks
Reversing the replacement free look. An ordinary life policy or annuity has a 10-day free look from delivery. A replacement policy gets a longer one, 30 days (NRS 688A.165), and the insurer refunds the premium if the contract is surrendered inside it. Count from delivery, not from the application (questions 1 and 15).
Applying the replacement rule to everything. The replacement rules (NRS 686A.060 and NAC 686A.510 to 686A.570) carry exemptions. Questions 10 and 16 test two of them: group life policies, and a short non-convertible, non-renewable term policy.
Treating credit life and credit health as the same product. Credit life pays off a debt, such as a car loan, if the borrower dies. Credit health or disability insurance makes the loan payments while the borrower is disabled. Both belong to NRS Chapter 690A (questions 3, 5 and 6).
Mixing up group rules. A group must be organized for a purpose other than obtaining insurance (NAC 679B.036; question 14). Group life policies also carry a conversion privilege and an incontestability clause, and the questions ask for the periods (questions 4 and 12).
Guessing about fraternal benefit societies. Five questions in this set are about them. Know what defines a society, which benefits it may and may not provide, what its tax exemption leaves out and how its agents are licensed (questions 2, 7, 11, 13 and 17).
Misreading the disclosure documents. The policy summary identifies the insurer and the policy and gives cost and benefit information, and the surrender cost index compares the cost of similar policies after allowing for the time value of money (questions 8 and 9). NAC 686A.430 sets when the Buyer's Guide and policy summary are delivered: generally before the insurer accepts the initial premium.
Your Next Step
Mark the ones you missed, then take the health half of the state-law section with Nevada health insurance law. 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 hear the material instead of reading it.
Item counts and weights come from Pearson VUE's Nevada Insurance Content Outlines. Read October 2026.
Free: 25 Nevada L&H practice questions
Liked this article? Get 25 exam-style questions emailed to you — with full answer explanations, no credit card. Closest thing to studying offline.
No spam. Just the questions and one optional follow-up.
Study this topic with LanePrep
Listen to these audio chapters on your commute — no screen required.
Related Articles
25 Free Nevada Life & Health Exam Practice Questions (2026)
25 min read
How to Pass the Nevada Life and Health Insurance Exam on the First Try (2026)
10 min read
How Much Does a Nevada Life and Health Insurance License Cost? (2026 Fees)
6 min read
Is the Nevada Life & Health Exam Hard? Pass Rates and Difficulty (2026)
4 min read
17 Free Nevada Life & Health Practice Questions: Life Insurance Provisions, Riders and Exclusions (2026)
13 min read
17 Free Nevada Life & Health Practice Questions: Life Underwriting, Applications and Retirement Concepts (2026)
10 min read
17 Free Nevada Life & Health Practice Questions: Nevada Health Insurance Law (2026)
13 min read