Nevada Statutes & Regulations Common to all lines
Should any person willfully engage in an unauthorized ins. transaction, the commissioner may impose an administrative fine or penalty of up up to?
$10,000 for each & every act
A producer who has allowed his or her license to lapse may reinstate the license without retaking the exam within what maximum time period?
12 months
What is the difference between domestic,foreign & alied Ins. companies?
A DOMESTIC INSURANCE is an insurance company that is incorporated in this state. An FOREIGN insurer is an insurance company that is incorporated in another state or territorial possession (such a Puerto Rico, Guam, American Samoa).
What are the requirements for ins. licensing in this state?
A regular salaried officer or employee, as long as, their duties and responsibilities do not include the negotiation or solicitation of insurance. Persons who secure and furnish information,but not solicit, make calls, enroll or issue certificates for the purpose of the sale of insurance. Employer of their officers or employees or the trustees of any employee trust plan, engaged in the administration or operating of any program of employee benefits, and not are compensated by the issuing insurance company. Persons whose activities are limited to advertising. An employee that responds to the requests of individuals holding policies that have already been issued-but is not directly compensated according to the volume of these premiums.
Which of the following is an example of an agent's fiduciary responsiblities?
An agent promptly forwarding premiums to the company
What is the difference between an authorized insurer?
An authorized insurer is an insurance company that has qualified and received a Certificate of Authority from the Division of Insurance to transact insurance in the state.
To be eligible for a resident producer's license in NV, an applicant must meet all of the following eligibility requirements EXCEPT?
Be licensed as a solicitor for at least one year prior to appliction
All of the following actions can be described as twisting EXCEPT?
Explaining to client the advantages of permanent ins. over term & suggesting changing policies
When an agent is handling premium funds while conducting business, the ins. agent acts in an/
Fiduciary capacity
What is the penalty for acting as an insurance producer without a license ?
Fine of $1,000 for each violation.
What are the CE requirements in NV?
Has successfully completed 30 hours of approved CONTINUING EDUCATION (CE) within a 3-year period before the date of renewal of his or her license. CE hours must relate to the type of insurance for which the license was issued, and must include 3 hours of ethics training.
Who issues certificates of authority?
Is issued by The State Department of Insurance
What is the most basic definiton of Ins?
Is the TRANSFER of the possibility of a loss (risk) to an insurance company, which in turn spreads the costs of unexpected losses to many individuals. In most situations only a small number of those insured will actually suffer a loss. Insurance redistributes the financial consequences of individual losses to all person insured. If there were no insurance mechanism, the cost of a loss would have to be borne solely by the unfortunate individual who suffered the loss. With insurance, however, the cost of the loss is limited to the amount of the insurance premium.
In which of the following situations is it legal to limit coverage based on martial status?
It is never legal to limit coverage based on marital status
A participating ins. policy may do which of the following?
Pay dividends to the policyowner
What do rebate include?
Rebate include: * Rebates of premiums payable on the policy * Special favors or service * Advantages in the dividends or other benefits * Stocks, bonds, securities, and their dividends or profits.
What constitutes rebating?
Rebating is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy.
What is the purpose of the ins. guaranty association?
When an insurance is insolvent, the Life and Health Insurance Guaranty Association may guarantee or reinsure all covered policies or loan the insurer money. All insurers transacting life, health or annuity contracts must be a member of the associations a condition of their authority
How often should insurers expect to be examined by the commission?
Will examine each authorized insurer not less frequently than every 5 year.
Which of the following is required for a producer to transact business on behalf of an insurer?
an agent appoinment
What is a Fiduciary?
are legally obliged to perform in an ethical manner