Nevada Statutes & Regulations Common to All Lines

What is the minimum amount of days notice that the commissioner has to give all interested parties when giving a hearing?

- 20 Days.

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 Days.

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 5 years. * The purpose and time parameters for insurance company examinations is established by the Insurance Code.

When a producer's appointment with the insurer is terminated, who must notify the commissioner?

- The appointing insurer. * An insurer or its authorized representative who terminates the appointment or other relationship of a producer for any reason must notify the Commissioner within 30 days after the effective date of termination.

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

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

Which of the following will NOT be considered a limited lines producer license?

- A producer selling only life insurance.

The duties of a managing general agent may include all of the following EXCEPT

- Altering policies. * Managing general agents negotiate reinsurance contracts on behalf of the insurer, issue binders, as well as participate in the adjustment of claims. ONLY an insurer's executive officer may change a policy

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.

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT...

- Dividends from a mutual insurer. * Dividends paid to policyholders of a mutual insurer are not considered to be a rebate because the policy specifies that they might be paid.

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 is NOT considered a misrepresentation as it pertains to unfair trade practices?

- Making comparisons between different policies. * Making accurate comparisons of policies is not illegal.

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes

- Misrepresentation. * Making false or misleading statements with the intent to defraud another is a misrepresentation.

Who might receive dividends from a mutual insurer?

- Policyholders. * A mutual insurer has NO stock, and is owned by the policyholders. Since they may receive a dividend (NOT guaranteed), such policies are known as participating policies. Dividends received by policyholders of a mutual insurer are not taxable.

Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as

- Rebating. * Rebating is defined as any inducement offered to the insured in the sale of insurance products that are not specified in the policy. Both the offer and acceptance of a rebate are illegal.