Free Nevada Life Insurance Practice Test Online

Correct answer: A. Soliciting, negotiating, or selling life insurance policies to Nevada residents for compensation

Correct. NRS 683A.201 requires a license to act as a producer of insurance, which includes soliciting, negotiating, or selling policies for compensation.

• B: Wrong. Purely educational discussion of insurance concepts, without soliciting or selling a specific policy, is not a licensed activity.
• C: Wrong. An uncompensated referral with no solicitation or negotiation of policy terms does not trigger the licensing requirement.
• D: Wrong. Adjusting claims is regulated separately as a distinct licensed occupation (public/independent adjusters under NRS Chapter 684A), not as a producer activity.

Correct answer: B. 20 hours

Correct. Nevada requires 20 hours of Division-approved pre-licensing education per line of authority, including required NRS Title 57/regulation content, before an applicant may sit for the life exam.

• A: Wrong. 10 hours is insufficient; Nevada's approved pre-licensing course requirement per line of authority is greater than this.
• C: Wrong. 40 hours overstates the requirement; that figure is not the Nevada standard for a single line of authority such as life.
• D: Wrong. Nevada does require completion of approved pre-licensing coursework in addition to passing the examination; the exam alone does not satisfy the requirement.

Correct answer: C. The applicant must pass a written examination, approved by the Commissioner, covering the life line of authority

Correct. NRS 683A.241 requires an applicant to pass a written examination for the line(s) of authority sought, unless a specific statutory exemption applies.

• A: Wrong. Experience in an unrelated line does not by itself waive the life exam requirement under NRS 683A.241.
• B: Wrong. An unrelated professional designation does not automatically exempt an applicant from the required examination.
• D: Wrong. Resident applicants are also required to pass the examination; the requirement is not limited to nonresidents.

Correct answer: D. A salaried full-time employee of an employer who performs only administrative or clerical duties related to enrollment under one group life policy and receives no commission

Correct. NRS 683A.211 exempts persons whose duties are limited to administrative or clerical functions tied to enrollment under a single group policy, so long as they receive no commission.

• A: Wrong. Soliciting new business for any carrier requires a license; competing with another producer does not change that.
• B: Wrong. Receiving a commission for each policy sold is itself a licensable, compensated sales activity, which removes the exemption.
• C: Wrong. Counseling customers on suitability is a solicitation-type activity that requires licensure; clerical status alone does not exempt it.

Correct answer: A. 3 years, unless earlier revoked, suspended, or otherwise terminated

Correct. NRS 683A.261 sets a license term that runs for a multi-year cycle (aligned with Nevada's 3-year CE cycle) unless the license is earlier revoked, suspended, or terminated.

• B: Wrong. Nevada does not require annual renewal for producer licenses; the renewal cycle is longer than one year.
• C: Wrong. Licenses are not indefinite; they must be renewed on the statutory cycle to remain valid.
• D: Wrong. There is no 6-month probationary license term under NRS 683A.261 for a standard producer license.