Nevada Statutes & Regulations Common to All Lines

How many days does a nonresident producer have to file a change of address when the agent moves to Nevada from another state?

30 (A nonresident producer that moves from 1 state to another must file a change of address within 30 days of this change.)

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. (This fine will be in addition to any other administrative fine or penalty, except where specifically provided by the Insurance Code.)

Which of the following does NOT fit the definition of an administrator?

A life and health producer who only sells insurance (Administrators collect premiums, adjust or settle claims, administer trust and self-insurance programs. Someone whose activities are limited to the sale of insurance would not be considered an administrator.)

Which of the following is required for a producer to transact business on behalf of an insurer?

An agent appointment (A producer cannot transact insurance on behalf of an insurer until the producer is appointed by the insurer.)

What is a foreign insurer?

An insurer with a home office in another state (A domestic insurer's is in another state, and an alien insurer's is in another country.)

Which of the following actions by an insurance company will cause an examination by the Commissioner?

Application for an initial Certificate of Authority (The commissioner will examine each insurer applying for an initial Certificate of Authority to transact insurance in Nevada.)

In life insurance, agents are permitted to share or split commissions, provided that...

Both are properly licensed for the line of insurance. (For an agent to receive commissions from the sale of insurance, they must be properly licensed for that line of insurance.)

Which of the following is true regarding insurance company appointment for a broker?

Brokers do not need to be appointed (A broker is a producer who is not action as an agent of an insurer and does not need to be appointed.)

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of...

Defamation A producer or broker who makes oral or written statements intended to injure another producer or insurer is guilty of the unfair trade practice of defamation.

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. (Money collected with respect to an insurance transaction must be held in a position of trust by the agent.)

Which of the following criminal activates would be sufficient violation to warrant rejection, revocation, or suspension of a insurance producer's license?

Forgery (Upon conviction of a felony, a producer's license will be revoked by the commissioner.)

An insurer publishes intimidation brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?

Illegal under any circumstance (When a company criticizes the financial situation of another company with the intention of injuring that company, it has committed an illegal trade practice called defamation.)

The mechanism used by individuals to transfer their risk of loss to a lager group of individuals that have similar exposures to loss, is called...

Insurance (Insurance is the mechanism whereby an insured is protected against loss by a specified future contingency or peril in return for the present payment of premium. Because many other individuals with the same or similar risk of loss are paying premiums, funds are available to indemnify those who actually suffer that loss.)

Which of the following is NOT a duty of the Commissioner?

Develop insurance rates (The commissioner reviews rates to make sure that they are fair, adequate, and not unfairly discrimination, but the Commissioner does not develop the rates.

All of the following are true regarding rebates EXCEPT...

Rebates are allowed if it's in the best interest of the client. (A rebate is an illegal act which involves returning something of value to the client as an inducement to buy, such as the commission. Rebates are only allowed if specifically stated in the policy. Insurance dividends are not considered rebates as the IRS considers it as a return of overpaid premium.)