Nevada statutes & regulations common to all lines
What is a penalty for transacting insurance without a proper license?
$1,000
Should any person willfully engage in an unauthorized insurance transaction, the Commissioner may impose an administrative fine or penalty of up to
$10,000 for each and every act.
Every Insurance Administrator must file a surety bond with the Commissioner which is written for an amount of at least
$100,000.
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay with respect to life insurance death benefits for one life?
$300,000
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 one life?
$500,000
A producer who has allowed his or her license to lapse may reinstate the license without retaking the examination within what maximum time period?
12 months
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
Producers must complete how many hours of continuing education on the subject of ethics every licensing period?
3 hours
In Nevada, how long must producers keep records of insurance transactions under their license?
3 years after a policy expires
How many days does a nonresident producer have to file a change of address when the agent moves to Nevada from another state?
30
How many hours of approved continuing education within a 3-year period are required?
30
When requested by a person aggrieved by an act, a hearing must be held within how many days after the Commissioner receives the written demand?
30 days
If a person is charged with a category D felony for committing insurance fraud, what would be the maximum time of imprisonment?
4 years
How many days after cancellation of a license in another state does a new resident agent have to apply for Nevada producer license without having to fulfill licensing examination and education requirements?
90
A person found guilty of insurance fraud is guilty of which of the following?
A category D felony
The Commissioner denied an application for insurance license and notified the applicant. Which of the following is true regarding a hearing regarding this?
A hearing will be held within 30 days of the request.
Which of the following does NOT fit the definition of an administrator?
A life and health producer who only sells insurance
Which of the following wilI NOT be considered a limited lines producer license?
A producer selling only life insurance
When transacting business in this state an insurer formed under the laws of another country is known as a/an
Alien insurer.
A license may be denied, suspended, or revoked if the licensee
All of the above.
The duties of a managing general agent may include all of the following EXCEPT
Altering policies.
Which of the following is required for a producer to transact business on behalf of an insurer?
An agent appointment
Which of the following is an example of an agent's fiduciary responsibilities?
An agent promptly forwarding premiums to the insurance company
What is a foreign insurer?
An insurer with a home office in another state
Which of the following actions by an insurance company will cause an examination by the Commissioner?
Application for an initial Certificate of Authority.
To be eligible for a resident producer's license in Nevada, an applicant must meet all of the following eligibility requirements EXCEPT
Be licensed as a solicitor for at least one year prior to application.
In life insurance, agents are permitted to share or split commissions, provided that
Both are properly licensed for the line of insurance.
Which of the following is true regarding insurance company appointment for a broker?
Brokers do not need to be appointed.
Which of the following is issued by the state Department of Insurance to show that the insurer has power to write insurance contracts in that state?
Certificate of Authority
Which of the following must be obtained by someone who intends to function as an administrator?
Certificate of registration
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
Which of the following is NOT a duty of the Commissioner?
Develop insurance rates
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?
Discrimination
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered
Discrimination.
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer.
How often are producers required to complete continuing education requirements to keep the license in force?
Every 3 years
For purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with Nevada law, the Commissioner will examine the affairs of each insurer as often as deemed necessary. Each domestic insurer must be examined at least
Every five years.
All of the following actions can be described as twisting EXCEPT
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
When an agent is handling premium funds while conducting business, the insurance agent acts in a(n)
Fiduciary capacity.
The requirement that agents must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to commingle those funds with their own funds, is known as
Fiduciary responsibility.
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?
Foreign
When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?
Foreign
Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license?
Forgery
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstances
Which of the following licensees are not compensated directly related to the amount of insurance sold?
Insurance consultant
The mechanism used by individuals to transfer their risk of loss to a larger group of individuals that have similar exposures to loss, is called
Insurance.
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
In which of the following situations is it legal to limit coverage based on marital status?
It is never legal to limit coverage based on marital status.
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
Which of the following best describes the unfair trade practice of defamation?
Making derogatory oral statements about another insurer's financial condition
During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes
Misrepresentation.
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation.
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
Mutual
On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are
Not taxable since the IRS treats them as a return of a portion of the premium paid.
What is the major difference between a stock company and a mutual company?
Ownership
A participating insurance policy may do which of the following?
Pay dividends to the policyowner
Who might receive dividends from a mutual insurer?
Policyholders
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it's in the best interest of the client.
Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as
Rebating.
Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting?
Stock
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchased the insurance policy today
A licensed agent in Utah wants to become a nonresident agent in Nevada in the same line of insurance. Considering that all other requirements are met, which of the following would most likely happen?
The agent will be exempt from education and examination requirements.
When a producer's appointment with the insurer is terminated, who must notify the Commissioner?
The appointing insurer
Who is responsible for the cost of examinations conducted by the Commissioner?
The insurer being examined
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
Twisting
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
Twisting.
