Nevada Laws and Ethics Pertinent to Insurance
What is the maximum amount an individual can contribute to a flexible savings account according to the Affordable Care Act?
$2500
The policyholder has how many days to return an accident/health insurance policy and receive a full refund on premiums?
10 days
How long is the free look period for Medicare supplements?
30 days
What action by an insurance producer is considered rebating?
Splitting commissions with a policyholder who has purchased additional coverage.
True or False: An agent must Include a statement that dividends are not guaranteed during a sales presentation for a participating life insurance policy.
True
True or False: An insurer may decline to provide coverage for a debtor 66 years of age or older or someone who will turn 70 or older when the debt is paid off.
True
True or False: If the commissioner wishes to conduct a hearing regarding a producer, a notice must be sent by registered or certified mail to the licensees current address of record.
True
True or False: In Nevada, a long-term care policy must be guaranteed renewable.
True
True or False: Suspension or revocation of the producers license can be a penalty for any violation of the Code.
True
True or False: When a Medicare supplement policy is purchased during the open enrollment period, the policy must be issued regardless of health status.
True
True or False: Proceeds from a life insurance policy are protected from any claims by a creditor of the insured.
True, as long as there is a named beneficiary.
All credit insurance must be evidenced by an individual policy or a certificate of coverage and must be delivered to the insured within how many days after acceptance?
Within 30 days after acceptance.
When an insurer terminates a producer appointment, how quickly must they notify the Commissioner of the termination?
Within 30 days of the date of termination.
What document must be presented to the applicant at the time of the initial solicitation, which provides a very brief description of the important features of the policy?
An Outline of Coverage
A person who violates the Commissioners cease and desist order may be fined what additional amount of money for each violation?
An additional $5000 for each violation.
J is an agent who recently told a claimant that his rights may be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of?
Coercion
A producer who has combined premiums collected with personal funds has engaged in what prohibited act?
Commingling
How long is a typical free look period?
10 days from the date of delivery of the policy.
A long-term care insurance contract shall provide coverage for a minimum of how many months?
12
What is the maximum period, without cause for extension, that the commissioner may issue a temporary insurance producer license?
180 days
When the commissioner decides to hold a hearing, they must give how many days written notice of the hearing?
20 days written notice.
Health coverage provided under the affordable care act shall be made available for dependents until the child attains what age?
26
Are mutual life insurance companies considered participating or non-participating?
Participating, because they share in company profits and participate in electing a board of trustees or governing body to manage the firm.
When does the open enrollment period for Medicare begin?
3 months before your 65th birthday and lasts for seven months.
How many days does a producer or insurer have to pay for fines before their license can be revoked?
30 days
Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?
30 days
After a terminated producer receives a copy of the notice of termination, how long do they have to submit written comments to the Commissioner?
30 days.
How many hours of continuing education are required when renewing your license?
30 hours; 3 of which must cover ethics.
An individual life insurance policy issued in Texas must have a grace period for premium payment of how many days?
31 days
How long does a terminated employee have to convert their group life policy into an individual life policy without having to prove insurability?
31 days
How long of a grace period must insurance policies provide?
31 days
The age discrimination in employment act prohibits employers from discriminating against those who are at least what age?
40 years old
How long does an agent have to deliver a Medicare supplement policy to an applicant once it has been received by the agent for delivery?
7 days
What document must be on the first page of each long-term care policy delivered, explaining that some long-term care costs may not be covered?
A "notice to buyer"
An insurance company owned and controlled by its policy owners is known as what type of insurance company?
A Mutual Life Insurance Company
What two items must be provided by a producer who sells an individual life insurance policy in Nevada?
A Policy Summary and Buyers Guide.
An insurance company that is owned and controlled by stockholders who provide the capital and share in profits or losses is known as what type of company?
A Stock Insurance Company
An agreement under which the owner of a life insurance policy sells the policy to another person in exchange for a bargained for payment is known as what type of settlement?
A Viatical Settlement
According to Nevada's rules on disclosure, a life insurance applicant is expected to be provided with what two documents?
A buyers guide and policy summary.
After due notice and a hearing, if the Commissioner finds that a person committed an unfair act of competition or a deceptive act that violated the code, what will the Commissioner issue?
A cease and desist order.
In order to function as an administrator, what must a producer obtain from the Commissioner?
A certificate of registration as an administrator.
What form must an applicant be provided with prior to policy delivery if it is replacing an existing health policy?
A notice regarding replacement
Employee Group Policies must cover at least how many insureds?
At least 2
For a group policy, how many members of a credit union must be covered at date of issue?
At least 25 members.
How long must all producers maintain and keep complete records of all insurance transactions?
At least 3 years.
How often must the Commissioner conduct a financial examination of any insurance company in order to determine the solvency of the company?
At least once every 5 years, but may do so as often as deemed necessary.
How is the Life and Health Guaranty Association funded?
By insurance companies through assessments.
A producers attempt to stop the replacement of existing life insurance policy or annuity is known as what?
Conservation
Worker's compensation insurance issued jointly with a health insurance policy by one or more insurers covering the same employer for the same policy period is known as what type of coverage?
Continuous Care Coverage
Circulation of any oral or written statement or any pamphlet, circular, article, or literature that is false or maliciously critical of or derogatory to the financial condition of an insurer is known as what?
Defamation
What is the primary purpose of the employment retirement income security act?
ERISA regulates and protects those enrolled in group health plans.
How often must resident producers renew their license?
Every 3 years
True or False: And insureds adopted children will not be covered under an insurance policy.
False: All individual and group health plans must provide coverage to the insureds adopted children on the same basis as other dependence.
What type of societies exist for the benefit of its members and their beneficiaries?
Fraternal Benefit Societies.
Plans purchased before March 23, 2010 that do not have to follow the ACA's rules and regulations or offer the same benefits, rights and protections as a new plans are known as what type of plans?
Grandfathered Plans
Are stock insurance companies considered participating or non-participating?
Non-participating, because the policy owners do not share in the profits of the company.
Who has the power to make and enforce rules and regulations to implement the insurance laws of Nevada?
The Commissioner of Insurance
An individual suffering from a terminal illness or severe chronic illness who sells his or her life insurance policy to a viatical settlement provider is known as what?
The Viator
Individual long-term care insurance policies shall contain an appropriately captioned renewability provision on what page of the policy form?
The first page of the policy form
In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom?
The state where they are conducting business.
What is the purpose of replacement regulations?
To ensure that purchasers receive specified information and also to reduce the opportunity for misrepresentation.
True or False: A person other than the commissioner may request a hearing in writing within 60 days of learning of an alleged violation or new regulation. If justified by the commissioner, the hearing will be held 30 days after the application is made.
True
True or False: All health policies issued or delivered in Nevada must include coverage for hospice care for terminally ill insureds.
True
True or False: All health policies that cover a mastectomy is also must cover prosthetic devices and reconstructive surgery.
True
True or False: Handicapped children are not subject to an age limitation and are covered until they become self supportive.
True
True or False: Health plans cannot limit or deny benefits or deny coverage for a child younger than age 19 because of pre-existing conditions.
True
True or False: Nevada insurance law specifically allows the Commissioner to issue a temporary license to a surviving spouse of a deceased producer.
True
True or False: Proceeds of the viatical settlement contract could be subject to the claims of creditors.
True
Attempting to induce any insured person through misrepresentation to lapse, forfeit, or surrender insurance is a prohibited act known as what?
Twisting
How long may and insurer exclude coverage for a pre-existing condition on a Medicare Supplement policy?
Up to 6 months.
If a licensee is convicted in any court for any crime or offense other than a motor vehicle infraction, the licensee must notify the commissioner within how many days after the date of conviction?
Within 30 days after the date of conviction.
If a license applicant is denied, they may request a hearing on the matter, which must be held within how many days of the request?
Within 30 days of the request.
Producers must report a change in address or name to the Commissioner within how many days of the change?
Within 30 days.
If a premium is required to continue a newborns coverage, it must be paid within the first how many days of life in order to continue coverage?
Within the first 31 days of life.
Can 2 producers share in the commissions of an insurance contract?
Yes, as long as they are licensed in the same line of insurance.
