Nevada Statutes and Codes Life
How many years is good standing in order be a life insurance producer?
1 year
The election of society's officers must occur within how many years of the date of the certificate of authorities issuance?
1 year
The policyowner in Nevada gets a free - look period of
10 days
In the state of Nevada a group of how many people can be formed a fraternal society if they are all U.S citizens and Nevada residents?
10 or more people
Within how many months must a person be expected to die from a sickness in order to be classified as terminally ill ?
24
For how long must agents retain copies of notices and sales proposals for life insurance applications ?
3 years
How many days does a producer must register with the Divsion of Insurance of first acting as a viatical investment agent or broker.
30 days
How many days does the viator have to rescind after they recieve the proceeds?
30 days
How long is the rescission period after the date all parties signed the agreement?
60 days
What are the most common penalties for violations of insurance statutes ?
A cease and desist order , a fine , and license suspension or revocation
Viatical settlement purchaser " does not include
A licensee under the Viatical Settlement Act ; An accredited investor or qualified institutional buyer ; A financing entity ; A special purpose entity ; or A related provider trust .
Who is an insurance agent ?
A person authorized to sell , solicit and negotiate insurance contracts
Who must be a member of insurance guaranty associations ?
All insurers authorized to write insurance within a state
Who is considered a nonresident agent ?
An agent who resides and is licensed in another state , but who is authorized to transact insurance in this state
If an insurer meets the state's financial requirements and is approved to transact business in the state , it is considered what type of insurer ?
Authorized and admitted
If an insurer holds a Certificate of Authority, it is known as what type of insurer?
Authorized or admitted
What events would allow a policyowner to enter a life settlement within the 5 years of purchasing a life insurance policy?
Bankruptcy, divorce, disability or spouses death
What type pf licensee represnets the insured?
Broker
If the Commissioner / Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice , what order will be issued ?
Cease and desist order
What document is required for an insurance company to transact insurance ?
Certificate of authority
A society authorized to do business in Nevada is permitted to provide the following contractual benefits :
Death benefits ; Endowment benefits Annuity benefits ; Temporary or permanent disability benefits ; Hospital , medical or nursing benefits ; Monument or tombstone benefits ; and Any other benefits life insurance companies are authorized to pay
If a producer makes maliciously critical statements about another insurer , what is this illegal practice called ?
Defamation
Two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor . What is this called ?
Discrimination
Insurers are classified according to their domicile What are the three types of insurers ?
Domestic , foreign , and alien
For what reason can a temporary license be issued ?
For continuation of business in case the licensed producer dies or becomes disabled
An organization that operates on a lodge system and provides a formal life insurance plan to its members is classified as a
Fraternal insurer .
In general , who can be excluded from producer licensing and examination requirements ?
Insurance company officers , directors , or any other employees who do not transact insurance and who do not receive commissions for their services ( usually , their responsibilities include administrative , executive or clerical ) .
What is a controlled business?
Insurance on the producers own life or property of the producers family or business associates
In the agent / insurer relationship , who is considered the principal ?
Insurer
Which of the following is true about the mandatory free - look period in a Life Insurance policy ?
It commences when the policy is delivered
On its advertisement , a company claims that has funds in its possession that are , in fact , not available for the payment of losses or claims . What is the company guilty of ?
Misrepresentation
What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is ?
Misrepresentation
Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies ?
No , advertising of the existence of the guaranty association for the purposes of solicitation and sale of insurance policies by insurers is an illegal business practice .
What is the fine for failing to register with the Division of Insurance as a viatical investment agent or broker?
No more than $500
Which of the following documents must be provided to the policyowner or applicant during policy replacement ?
Notice Regarding Replacement
Who may share in the commission from the sale of a life insurance policy ?
Only producers properly licensed for the type of insurance transaction
Viators typically recieve a poilcys what from thr person who purchases the policy
Percentage of face value
Which of the following documents delivered to the policyowner includes information about premium amounts , cash values surrender values and death benefits for specific policy years ?
Policy summary
Which of the following will be included in a policy summary ?
Premium amounts and surrender values
Who can usually be granted a temporary license ?
Producer's spouse or designee in case the licensed producer dies or becomes disabled
An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy . What is the agent guilty of ?
Rebating
Who owns stock companies?
Stockholders
A viatical settlement is arranged between a viatical company and a / an
Terminally ill insured
What type of licensee represents the insurance company ?
The agent
Who must be notified of a producer's change of address ?
The department lf insurance ( commissioner/ director/ superintendent)
Who is responsible for the contents of insurance advertisements ?
The insurance company
Who is responsible for the costs associated with thr examination of insurers?
The insurer who is being examined
To which of the following would the rule prohibiting a viatical settlement contract within 5 years of a policy issue date apply ?
The owner needs money for downpayment on the first home
In a viatical settlement , who is considered the viator ?
The policyowner
What happens if the insured dies during the rescission period?
The settlement is automatically rescinded and viator must return all the proceeds and premiums to the settlement providers
To whom may a certificate of authority be issued ?
To an insurer authorized to transact business in this state
What is the purpose of a disclosure statement in life insurance policies ?
To explain features and benefits of a proposed policy to the consumer
What is the purpose of a cease and desist order ?
To prevent a producer or insurer from further violating laws for transacting insurance
What is the purpose of insurance guaranty associations?
To protect policyowners, insureds and beneficiaries from financial losses caused bu insolvent insurers
What type of misrepresentation persuades an insured , to their detriment cancel , lapse , or switch policies from one to another ?
Twisting
An insured with a life insurance policy is diagnosed with a terminal illness . Which of the following could be a suitable option for this insured ?
Viatical settlement
When is controlled business legal?
When the commissions from controlled business do not exceed the aggregate commissions on all the other business specific limits may vary from state to state )
When can the Comissioner or Director examine insurers?
Whenever deeme necessary, but at least every few years
Do vitatical settlement contracts entered in this state must contian an unconditional right for the viator to cancel or rescind the contract?
Yes
Does the purchaser has the right to rescind the agreement to buy the viatical settlement within 3 business days after receiving the purchaser's disclosures .
Yes
If the contract is rescinded does the viator have to pay all the proceeds and premiums back to the settlement provider?
Yes
What is a fraternal benefit society?
a group without capital stock
Viatical settlement
allows an insured with a life threatening condition to sell his or her existing policy in order to receive benefits when they are most needed
Reciprocal insurers
associations that provide insurance for their members but they are formed only for the purpose of providing insurance .
Chronically III
being unable to perform at least two activities of daily living such as eating , toileting , transferring , bathing , dressing , or continence , or conditions requiring substantial supervision to protect the individual from threats to severe cognitive impairment .
Viatical Settlement Broker
means a person who on behalf of a viator and for a fee , commission , or other valuable consideration negotiates viatical settlement contracts between a viator and one or more viatical settlement providers .
Terminally Ill
means having an illness or sickness that can reasonably be expected to result in death in 24 months or less .
Fraternal insurers
operate on the basis of a lodge or charitable organization but they may also sell formal insurance plans for the benefit of their members