Nevada Life: Day 4

The Commissioner must give reasonable notice to all interested parties as to the time, place and purpose of a hearing within the minimum of how many days of the hearing?

20 days

An insurer licensed to conduct business in states other than the one in which it is incorporated IS

Foreign

If, after a hearing the Commissioner determines that a producer has committed an unfair trade practice, the Commissioner will issue a "cease and desist" order. Failure to comply will result in a fine of.

$5,000

The owner of a life insurance policy who enters or seeks to enter into a viatical settlement contract is called a/an

Viator

Credit life insurance is usually written as what type of policy?

Decreasing term

Making oral or written statements that are false, maliciously critical, and designed to injure an insurance person or business is known as

Defamation

An insurance company that is incorporated and has its home office in this state is called a

Domestic insurer.

Who is responsible for the advertisements

The insurance company

Insurers are required to keep a complete file of all advertisements and transactions for a maximum of how many vears?

3 years

Which of the following applies to credit life insurance sold in Nevada?

A credit life insurance policy is made in connection with a specific loan

If a company has a Simplified Employee Pension (SEP) plan, what type of plan is it?

A qualified plan for a small business

An insurance company that is incorporated and has its home office in another country is called a

Alien insurer.

A license may be denied, suspended, or revoked if the licensee

All of the above

An agent who deposits his client's premium in his personal account is guilty of

Commingling

In life insurance, cash value increases

Grow tax deferred

What nonprofit association protects the owners of policies issued by insurers that become insolvent?

Guaranty Association

The free-look period does not apply to

Industrial life insurance

If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?

It is only taxable if the cash value exceeds the amount paid for premiums

Which plan can only be used by a self-employed unincorporated individual?

Keogh (HR-10)

Buying a policy to offset a financial loss in the event of a valuable employee's death is called

Key employee (key person) life insurance.

A producer who intentionally misleads his client by stating that his policy will pay dividends is guilty of

Misrepresentation.

If a life policy does not pass the "seven-pay test", that policy is considered

Modified Endowment Contract (MEC)

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit sharing plan

Which of the following falls under an agent's fiduciary responsibilities?

Submitting or forwarding premiums to the insurer

All of the following are general requirements of a qualified plan EXCEPT

The plan must provide an offset for social security benefits

Under a qualified retirement plan, which of the following is TRUE regarding taxation on both contributions and earnings?

They are tax deferred until withdrawn

All of the following are true regarding fraternal benefit societies in this state EXCEPT

They pay unemployment benefits

Which of the following requires the investor to stop contribution and start withdrawing at age 73?

Traditional IRAs

A Producer represents the

insurer

According to the definitions regarding viatical settlements, terminal illness that can reasonably be expected to result in death within no more than how many months?

24 months

What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to annuities?

250,000

What is the minimum free-look period on a life insurance policy or annuity contract issued in Nevada?

10 days

An administrator is required to file, with the Commissioner, a surety bond of no less than

100,000

What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to cash values of life insurance policies?

100,000

If a producer allows his or her license to expire, within what time period may the producer reinstate the existing license?

12 months

How many days does an insurance producer have to promptly forward premiums to the insurer?

15 days

What is the penalty for not complying with the minimum distribution requirement of a Traditional IRA?

25% Penalty on the amount that should have been taken out

The replacing insurer must notify the existing insurer with a written communication advising of the proposed replacement within at least

3 working days

Who is considered a nonresident agent?

An agent who resides in another state but is licensed to write insurance in this state

An agent CANNOT act as an agent of an insurer without which of the following?

An appointment by the insurer

SIMPLE Plans require all of the following EXCEPT

At least 1,000 employees

How long is the certificate of registration for an administrator valid for?

3 years

Regarding the replacement of life policies in Nevada, the replacing insurer must give applicable agents how many copies of the notice regarding replacement?

3 copies

What type of insurance policy may be used to fund a key person life insurance?

Any form of life insurance

How often are insurance producers required to nenew their license?

Every 3 years

When an owner offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)

Executive bonus

Broadcasting or telecasting any written or oral material that is untrue, deceptive and misleading IS

False Advertising.

All of the following are true regarding commissions EXCEPT

Sharing commissions are not allowed

A nonresident producer that moves from one state to another must file a change of address within

30 days

When the Commissioner receives an application for a request for a hearing in good faith, the hearing must be held within how many days after filling of the application?

30 days

What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to a death benefit of a life insurance or disability insurance for 1 life?

300,000

What is the number of credits required for fully insured status for Social Security disability benefits?

40

In which type of qualified plan is it common for the employer to match the employee's contribution by a certain percentage or a dollar amount?

401(k) Plans

How long must a life insurance policy be in force before the owner can enter into a viatical settlement contract?

5 years

The Commissioner is required to do which of the following before suspending or revoking a producer's license?

Hold a hearing

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable

All of the following are requirements for anyone who wants to obtain an insurance producer license in the state of Nevada EXCEPT

Must be a citizen

An insurer who is not authorized to conduct business in a particular state is said to be

Nonadmitted

What document must be signed by the applicant and the producer and a copy given to the applicant at the time of application for a policy replacement?

Notice Regarding Replacement

If an insurer does not receive the premium within 30 days after its due the insurer must

Notify the commissioner

All of the following are requirements for a nonresident license EXCEPT

Pass the state exam

A person required to be licensed under the laws of Nevada to sell, solicit or negotiate insurance is called a

Producer

All of the following statements regarding agent appointments are true EXCEPT

The agent must be appointed by the Commissioner before he or she can transact insurance

All of the following are true regarding a key person life insurance policy EXCEPT

The beneficiary is the family

Which of the following means "liquidity" in a life insurance contract

The cash value available to the policy owner

If an insurer or agent makes a statement misrepresenting or incompletely comparing the terms of any insurance policy to persuade a policyholder to his or her detriment, to cancel, lapse, or switch policies from one to another, what unfair practice has occurred?

Twisting

For a retirement plan to be qualified, it must be designed for the benefit of the

employees

Which of the following arrangements allows someone living with a life threatening condition to sell an existing life insurance policy and use the proceeds before death?

viatical settlement

Anyone who transacts insurance without a license is subjected to an administrative fine of

$1,000 for each violation

What is the fine for an unauthorized transaction?

$10,000 for each and every act

If a person is charged with a category D felony for committing insurance fraud they could be subject to 1-4 years imprisonment and/or a fine of up to

$5,000

A life producer may be exempt from the pre licensing education and examination requirement for a viatical settlement broker license if the producer has held an active life license for at least how many years?

1 year

All of the following employees may use a 403(b) plan for their retirement EXCEPT

CEO of a private corporation

What must an insurer obtain from the state department of insurance in order to conduct business in a specific state

Certificate of Authority

No one may function as an administrator unless he or she obtains from the Commissioner a

Certificate of Registration

All of the following are true regarding social security EXCEPT

Covers unemployment

Who is the policyowner in credit life insurance?

Creditor

What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to major medical insurance for 1 life?

500,000

A 10% penalty must be paid on withdrawals made from a qualified plan before age

59 ½

To attain partial or currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?

6 credits

A person licensed in another state who moves to Nevada and wants to become license as a resident producer must apply for licensing within how many days after establishing legal residency?

90

The Commissioner may examine an insurer for the following reasons

All of the above

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice

All of the following statements are correct regarding credit life insurance EXCEPT

Benefits are paid to the borrower's beneficiary

Which of the following is known as a business continuation agreement, which determines what happens to a business if either one of the partner dies prematurely and that the other would be financially able to buy the interest of the deceased partner?

Buy-sell agreement

How is the state Life & Health Insurance Guaranty Association funded?

By its members - authorized insurers

Any licensee or representative of an insurance company who diverts or appropriates policyowner funds for his or her own use is quilty of

Embezzlement

All of the following circumstances will wave the 10% penalty if distribution from a qualified plan Is made before age 59 ½ EXCEPT

Purchasing a car

Any inducement offered in the sale of insurance products that is not specified in the policy is

Rebating

When a new policy is written to take the place of a policy that is already in force, is called a

Replacement

All of the following are requirements for license renewal EXCEPT

Retake and pass the state exam

The Commissioner of Insurance is responsible for all of the following actions EXCEPT

Setting premium rates

Which of the following retirement plans is a special tax favored plans for nonprofit, charitable, educational or religious groups?

Tax sheltered Annuity 403(B)

Denying insurance coverage on the basis of a person's marital status or charging different rates for their insurance policies due to an insignificant factor is called

Unfair discrimination

An unfair method of competition or an unfair or deceptive act or practice in the business of insurance is called a/an

Unfair trade practices

A person, other than a viator, that enters into or effectuates a viatical settlement contract is called a

Viatical provider

The person who, for compensation, solicits, negotiates, or offers a viatical settlement on behalf of the policyowner is the

Viatical settlement broker