NV Common Law Quiz

A person found guilty of insurance fraud is guilty of which of the following? a. A misdemeanor b. A category A felony c. A category B felony d. A category D felony

d. A category D felony

Obligations 義務 of the Nevada Insurance Guaranty Association (NIGA) include all of the following except: a. Workers' compensation claims paid without limit b. Up to $300,000 for each policy when the claim is for the return on unearned premiums c. The limit specified in the policy, or $300,000, whichever is less d. Up to $500,000 for each policy when the claim is for the return on unearned premiums

d. Up to $500,000 for each policy when the claim is for the return on unearned premiums Explanation: The obligation of the Association to pay a covered claim is limited to the payment of: the entire amount of the claim, if the claim is for workers' compensation (unlimited); not more than $300,000 for each policy if the claim is for the return of unearned premiums; or the limit specified in a policy or $300,000, whichever is less.

When is a producer allowed to pay a commission to others? a. When the person with whom the commission is shared holds the license required by law b. When the commission paid to others is properly disclosed c. When the commission paid is not in addition to a fee d. At anytime

a. When the person with whom the commission is shared holds the license required by law

Which of the following is true regarding a producer's license a. The license is good for five years between renewals b. The license is perpetual, it remains in effect unless revoked, suspended or otherwise terminated c. If a producer's license should lapse he or she is given 2 years to reinstate d. If a person requests renewal of his or her license within 30 days after the license has lapsed, he or she may reinstate subject to fees, penalty and completion of continuing education.

b. The license is perpetual, it remains in effect unless revoked, suspended or otherwise terminated

Coverage provided by the Nevada Insurance Guaranty Association (NIGA) includes all of the following except:涉及範圍 a. The entire amount of the claim for workers' compensation b. Unlimited coverage for return of unearned premiums c. Up to $300,000 for each policy if the claim is for return of unearned premiums d. The limit specified in the policy, up to $300,00 whichever is less

b. Unlimited coverage for return of unearned premiums

Which of the following is false regarding the Commissioner's ability to conduct investigations?

Correct Answer: The cost of examinations is paid for by the state of Nevada Explanation: The cost of examinations conducted by the Commissioner and his or her examiners must be paid by the person being examined.

If the Commissioner should ask you to appear at a hearing, he or she must give you how many days advance written notice of the hearing date? a. 20 b. 30 c. 45 d. 60

Correct Answer: a. 20 Explanation: The Commissioner shall give written notice of the hearing not less than 20 days in advance.

Which of the following statements is correct regarding an administrator?

The Commissioner has the authority to examine, audit and inspect books and records maintained by an administrator at anytime

What must you do if your license is suspended or revoked? a. Hide it from the public b. Shred it c. Surrender the license immediately to the Commissioner d. Send it to the Governor of Nevada

c. Surrender the license immediately to the Commissioner

Which of the following is not considered a rebate? a. Offering a client a multi-policy discount b. Returning part of your premium to your client c. Any inducement to buy that is not stated in the policy d. Giving clients who buy policies from you $100 gift cards

a. Offering a client a multi-policy discount

A certificate of registration as an administrator is valid for how many years? a. 1 b. 2 c. 3 d. 4

c. 3

Which of the following would not result in license suspension or revocation? a. Intentional misrepresentation of the terms of an actual or proposed insurance contract b. Misappropriation of client's monies c. Being found to have committed an unfair trade practice d. Holding a non-resident producer's license in another state

d. Holding a non-resident producer's license in another state

When a client is due a return premium that is in your possession, how long do you have to remit the return premium to your client? a. 10 days b. 30 days c. 90 days d. 15 days

b. 30 days

A foreign insurer has its home office where? a. In this State b. In a state other than Nevada c. In more than one state d. In another country

b. In a state other than Nevada...

In order to be an administrator in Nevada the person must post a surety bond, in favor of the State of Nevada of no less than which amount? a. $10,000 b. $50,000 c. $100,000 d. $250,000

c. $100,000

An approved health claim should be paid within 30 days of approval. If it is not, the administrator shall pay interest in what amount?

Correct Answer: Equal to the prime rate at the largest bank in Nevada, plus six percent Explanation: If the approved claim is not paid within the 30-day period, the administrator shall pay interest on the claim at a rate of interest equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date on which the payment was due, plus 6%.

The Commissioner must examine each authorized insurer at minimum once every:

Correct Answer: Five years Explanation: The Commissioner must examine each authorized insurer not less frequently than every 5 years.

If the administrator determines that he or she needs additional information to process a claim, the administrator shall notify the claimant of the request for the additional information within: a. 10 days after receiving the claim b. 20 days after receiving the claim c. 30 days after receiving the claim d. 45 days after receiving the claim

Correct Answer: b. 20 days after receiving the claim Explanation: If the administrator requires additional information to determine whether to approve or deny the claim, the administrator shall notify the claimant of the administrator's request for the additional information within 20 days after receiving the claim.

A domestic insurer has its home office where? a. In this State b. In a state other than Nevada c. In more than one state d. In another country

a. In this State

In order to receive a nonresident producer license in the State of Nevada which of the following is true? a. The person must have a resident producer license in a state reciprocal with Nevada, in good standing b. The person must be age 16 c. The person must maintain a part time residence in Nevada d. The person must have been licensed for at least 10 years in his or her home state

a. The person must have a resident producer license in a state reciprocal with Nevada, in good standing

A licensee has how many days to give written notice to the Insurance Commissioner regarding a business or residential address change a. 10 b. 20 c. 30 d. 45

c. 30

Which of the following is true regarding the Commissioner's ability to deny an application for insurance? a. The Commissioner does not have to state in writing the reason for the denial b. The person denied a license cannot request a hearing regarding the denial c. The Commissioner can deny a license without a hearing first d. There may not be fines in additional to denial of a license

c. The Commissioner can deny a license without a hearing first

When a person's license has been suspended, which of the following is true? a. Such person is exempt from continuing education requirements b. No fees are due while the license is suspended c. A license may be suspended without prior notice d. All applicable fees, including renewal fees, and continuing education is required to be completed during the time of the suspension

d. All applicable fees, including renewal fees, and continuing education is required to be completed during the time of the suspension

Which of the following is not a duty of the Commissioner? a. The adoption of reasonable regulations necessary for the administration of state or federal insurance laws b. To levy fines c. To participate in programs designed to counsel elderly persons concerning health insurance d. To fine a person engaged in the unauthorized transaction of insurance unlimited fines

d. To fine a person engaged in the unauthorized transaction of insurance unlimited fines Explanation: If any person willfully engages in the unauthorized transaction of insurance, the Commissioner may impose an administrative fine of not more than $10,000 for each act or violation

All of the following are valid reasons for a person to be unable to renew his or her license except: a. The person moved and didn't get his or her renewal notice b. Due to military service c. Due to extended medical disability d. Due to extenuating circumstances

a. The person moved and didn't get his or her renewal notice

Which of the following types of accounts would not be appropriate for depositing clients' premiums received into? a. A brokerage account b. A checking account that bears interests c. A time deposit d. A savings account

a. A brokerage account

A person found guilty of violating any provision of state insurance law, in addition to any other penalty allowed by law, will be found guilty of: a. A misdemeanor b. A felony c. A class A felony d. A class C misdemeanor

a. A misdemeanor

If a health claim is approved, the administrator shall pay the claim within how many days after it is approved? a. 10 b. 20 c. 30 d. 45

c. 30

The expense of an examination of an insurer or of any person engaged in the business of insurance must be borne by which of the following? a. The insurer's home state b. The State of Nevada c. The city of Las Vegas d. By the person examined

d. By the person examined Explanation: The expense of examination of an insurer, or of any person engaged in the business of insurance must be borne by the person examined.

Covered claims of the Nevada Insurance Guaranty Association (NIGA) include which of the following? a. Coverage exists only for claims that occurred prior to the determination of insolvency b. Coverage exists only for claims turned in within 60 days of insolvency c. Coverage exists only for claims turned in within 30 days of insolvency d. Coverage exists for those claims that existed prior to insolvency and those that occur within 30 days of the determination of insolvency

d. Coverage exists for those claims that existed prior to insolvency and those that occur within 30 days of the determination of insolvency

An alien insurer has its home office where? a. In this State b. In a state other than Nevada c. In more than one state d. In another country

d. In another country Explanation: An alien insurer has its home office in another country.

An administrator must maintain a fiduciary account for depositing clients' premiums and return premiums. Acceptable withdrawals from this account include all of the following except: a. Remittance to the insurer b. Payment to the administrator of commission c. Remittance of return premiums d. Overhead expenses such as rent and utilities of the administrator

d. Overhead expenses such as rent and utilities of the administrator

In investigating insurance fraud the Attorney General may request all of the following information regarding the claim except: a. Information regarding the policy of insurance on the property to which the claim relates b. Information on previous claim made by the insured c. Records of the premiums paid for the policy of insurance d. Results of a polygraph test

d. Results of a polygraph test

As an employee of an insurer when handling the money of an insurer you must act in which of the following capacities? a. As a broker b. As a producer c. As a trustee d. As a fiduciary

d. As a fiduciary

When the Commissioner receives an application for a request for a hearing in good faith, the hearing must be held within how many days after filing of the application?

Correct Answer: 30 days Explanation: If the Commissioner finds that the application is made in good faith, that the applicant would be so aggrieved if his or her grounds are established and that the grounds otherwise justify the hearing, the Commissioner shall hold the hearing within 30 days after the filing of the application, unless postponed by mutual consent.

On a health insurance coverage claim, the administrator shall approve or deny a claim within how many days of receipt of the claim? a. 10 b. 20 c. 30 d. 45

c. 30

All of the following would be practices prohibited by Nevada's Unfair Discrimination laws except: a. Denying coverage to women who are gainfully employed by relatives when coverage is offered to men who are similarly employed b. Denying policy riders to women when the riders are available to men c. Denying maternity coverage to unmarried women when such coverage would be made available to married applicants. d. Treating a complication of pregnancy the same as any other illness or sickness covered by the policy

d. Treating a complication of pregnancy the same as any other illness or sickness covered by the policy

If your license is suspended it is gone for a maximum of: a. 12 months b. 6 months c. 3 years d. 2 years

a. 12 months

How old do you have to be to get a producer's license? a. 18 b. 21 c. 16 d. 25

a. 18

A person who should be licensed as a producer but is not can be fined up to how much for each violation? a. $1,000 b. $2,000 c. $2,500 d. $1,500

a. $1,000 Explanation: A person required to be licensed in this State who transacts insurance without a license is subject to an administrative fine of not more than $1,000 for each violation.

All of the following are true regarding an administrator except: a. An administrator may advertise the insurance which he or she administers as soon as all the proper paperwork is filed b. An administrator must maintain books and records of all transactions between the administrator, the insurer and the insured at his or her principal office c. An administrator may not advertise the insurance which he or she administers until he or she receives the approval of the insurer who underwrites the business involved d. Books and records must be maintained for five years from the date of the transaction to which they relate

a. An administrator may advertise the insurance which he or she administers as soon as all the proper paperwork is filed Explanation: You are looking for the false answer. "An administrator may advertise the insurance which he or she administers as soon as all the proper paperwork is filed" is false. An administrator may advertise the insurance which he or she administers only after the administrator receives the approval of the insurer who underwrites the business involved. Each administrator shall maintain at his or her principal office adequate books and records of all transactions between the administrator, the insurer and the insured for 5 years from the date of the transaction.

A person found guilty of breaching his or her fiduciary duty is guilty of which of the following? a. Embezzlement b. Misrepresentation c. Rebating d. Defamation

a. Embezzlement...

All of the following are valid reasons to suspend or revoke a person's insurance license except: a. Failure to pay parking tickets b. Conviction of a felony c. Forging another's name to an application d. Failing to pay state income income taxes

a. Failure to pay parking tickets...

Which of the following statements regarding sex or marital status is correct? a. Nevada law allows marital status to be used for the purpose of determining eligibility for dependent or family coverage b. The amount of benefits payable may be restricts based upon sex or marital status c. The type of coverage may be modified based on marital status d. Policy riders may be available only to only men and not women

a. Nevada law allows marital status to be used for the purpose of determining eligibility for dependent or family coverage

Compensation paid to an administrator may be based upon: a. Premiums collected b. Claims experience of the policies that he or she handles c. The savings realized by the administrator's adjusting of claims d. The savings realized by the administrator's settling the claims

a. Premiums collected Explanation: The compensation paid to an administrator for his or her services may be based upon premiums or charges collected, on number of claims paid or processed or on any other basis agreed upon by the administrator and the insurer.

A person who desires to use a name other than his or her true name shown on the license must submit a request for approval of such name when? a. Prior to using the fictitious name b. Within 10 days of use of the fictitious name c. Within 30 days of use of the fictitious name d. Within 60 days of use of the fictitious name

a. Prior to using the fictitious name

All of the following are true regarding the ethics requirement under continuing education except: a. The course must be completed via a live lecture class b. The course may be completed via homestudy, online or live lecture class c. The three hour ethics requirement applies to resident producers, with slight exception d. The requirement does not apply to nonresident producers

a. The course must be completed via a live lecture class Explanation: The 3 hour ethics course may be completed via homestudy, online or live lecture class.

If an assessment is made by the Nevada Life and Health Guaranty Association it is due when? a. Within 30 days after receipt of written notice b. Within 10 days after receipt of written notice c. Within 40 days after receipt of written notice d. Within 60 days after receipt of written notice

a. Within 30 days after receipt of written notice

If a person would like to request a hearing the application for a hearing must be filed when? a. Within 60 days after the person knew or reasonably should have known of the act that was in violation of state insurance law b. Within 20 days after the person knew or reasonably should have known of the act that was in violation of state insurance law c. Within 30 days after the person knew or reasonably should have known of the act that was in violation of state insurance law d. Within 45 days after the person knew or reasonably should have known of the act that was in violation of state insurance law

a. Within 60 days after the person knew or reasonably should have known of the act that was in violation of state insurance law Explanation: The application for a hearing must be filed in the Division within 60 days after the person knew or reasonably should have known of the act.

When is it allowable for renewal commissions to be paid? a. anytime b. if the person had held a license for 5 years c. if the person was properly licensed at the time of the sales d. if the renewal commission is less than $500

a. anytime

Coverage provided by the Nevada Life and Health Guaranty Association include all of the following except: a. $300,000 in life insurance death benefits b. $500,000 in cash surrender benefits c. $300,000 for disability insurance d. $100,000 in the present value of an annuity

b. $500,000 in cash surrender benefits

As an administrator, when you hold clients' money, funds must be remitted to the person entitled to the funds or deposited to a fiduciary account within how many days of receipt? a. 10 b. 15 c. 30 d. 31

b. 15 Explanation: Money must be remitted within 15 days to the person or persons entitled to it, or be deposited within 15 days in one or more fiduciary accounts established and maintained by the administrator in a bank, credit union or other financial institution in this State.

When an insurer terminates an appointment, the Commissioner shall be notified of such termination within how many days after the termination is effective? a. 10 b. 30 c. 15 d. 45

b. 30 Explanation: An insurer or its authorized representative who terminates the appointment, employment or other relationship of a producer of insurance to the insurer for any reason shall notify the Commissioner within 30 days after the effective date of the termination.

Producer of insurance means a person required to be licensed under Nevada's state law. A producer is a person involved in all of the following except: a. Sale of insurance b. A third party administrator c. Soliciting insurance d.

b. A third party administrator

A person who acts as an administrator without having applied for and received from the Commissioner a certificate of registration shall: a. Be fined not less than $500 nor more than $5,000 b. Be fined not less than $300 nor more than $2,000 c. Be fined not less than $500 nor more than $2,500 d. Be fined not less than $200 nor more than $5,000

b. Be fined not less than $300 nor more than $2,000 -Any person who acts as an administrator without having applied for and received from the Commissioner a certificate of registration as an administrator shall be fined not less than $300 nor more than $2,000-

To deny insurance on the basis of a person's marital status is: a. Allowed under state law b. Considered unfair discrimination c. Allowable with permission of the Insurance Commissioner d. Considered a category D felong

b. Considered unfair discrimination

Interest due on a claim payment that is made late must begin accruing when? a. As of the date the claim was approved b. From 30 days after the date the claim was approved until the date the claim is paid c. From the date of the claim d. From 30 days after the claim was received by the administrator

b. From 30 days after the date the claim was approved until the date the claim is paid Explanation: The interest due must be calculated from 30 days after the date on which the claim is approved until the date on which the claim is paid.

Which of the following statements is incorrect regarding insurers? a. An authorized insurer is one that holds a certificate of authority in the State of Nevada b. Insurers holding a certificate of authority have been approved by the Insurance Commissioner c. An unauthorized insurer is one that does not have a certificate of authority d. Surplus lines insurers are allowed to do business in Nevada without a certificate of authority as a non admitted insurer

b. Insurers holding a certificate of authority have been approved by the Insurance Commissioner Explanation: Insurers holding a certificate of authority are called admitted or authorized to do business in this State, they are not ever approved by the Insurance Commissioner.

All of the following would be considered insurance fraud except: a. Accidentally misinforming a client b. Projecting a dividend on a participating policy c. Misrepresentation of the effects of a loan on a policy d. Using a misleading name for a policy

b. Projecting a dividend on a participating policy

Misrepresentation is prohibited and includes all of the following except: a. Misrepresentation of the benefits or terms of any insurance policy b. Projecting a dividend on a participating policy c. Misrepresentation of the effects of a loan on a policy d. Using a misleading name for a policy

b. Projecting a dividend on a participating policy

All of the following are unfair trade practice except: a. Failing to acknowledge and act promptly on claims communications b. Requiring a claimant to submit proof of loss c. Failing to affirm or deny coverage within a reasonable time after proof of loss has been received by the insurer d. Failing to implement standards for the prompt investigation and processing of claims

b. Requiring a claimant to submit proof of loss

Whenever a loss is believed to have been caused by an intentional fire (arson), the insurer is required to notify an investigative or law enforcement agency. An investigative or law enforcement agency includes all of the following except: a. The State Fire Marshall b. The insurance company c. The chief of the fire depart in whose jurisdiction the fire has occurred d. The district attorney of the county where the fraudulent activity occured

b. The insurance company Explanation: The insurance company is not an investigative or law enforcement agency.

A person who has just moved to Nevada, who had an insurance license in his or her home state in good standing is not required to complete pre-licensing education or pass an examination if the application for licensure in Nevada is received within how many days of cancellation of the license? a. 10 b. 30 c. 90 d. 180

c. 90

When may the Commissioner examine an authorized insurer? a. At most annually b. At most every five years c. As often as he or she deems advisable d. At most every two years

c. As often as he or she deems advisable...

Which of the following is not a requirement for obtaining a resident producer's license? a. Complete pre license training b. Pass an examination, submit fingerprints, be a good person c. Be a resident of Nevada for at least one year d. Pay all applicable licensing fees

c. Be a resident of Nevada for at least one year

Regarding life or health insurance which of the following is allowed if the applicant is blind? a. Charging the person a higher rate solely due to blindness b. Refusing to insure the person solely due to blindness c. Charging the person a rate based upon his or her age d. Limiting the person's coverage

c. Charging the person a rate based upon his or her age

Which of the following is true regarding an officer of an insurer? a. The officer must be licensed as a producer b. If the officer does not receive a commission he or she must be licensed as a producer c. If the officer receives a commission he or she must be licensed as a producer d. An officer whose activities are solely executive and managerial must be licensed as a producer

c. If the officer receives a commission he or she must be licensed as a producer Explanation: An officer, director or employee of an insurer must be licensed as a producer is he or she receives any commission.

An insurer must appoint a producer as its agent in certain situations. In order for the insurer to properly appoint a producer as an agent of the insurer, which of the following is true regarding the notice of appointment? a. It must be filed with the Commissioner within 10 days after the contract is executed or the first application for insurance is submitted to the insurer b.It must be filed with the Commissioner within 20 days after the contract is executed or the first application for insurance is submitted to the insurer c. It must be filed with the Commissioner within 15 days after the contract is executed or the first application for insurance is submitted to the insurer d. It must be filed with the Commissioner within 30 days after the contract is executed or the first application for insurance is submitted

c. It must be filed with the Commissioner within 15 days after the contract is executed or the first application for insurance is submitted to the insurer Explanation: To appoint a producer of insurance as its agent, an insurer must file, in a form approved by the Commissioner, a notice of appointment within 15 days after the contract is executed or the first application for insurance is submitted.

Which of the following would be considered defamation? a. Returning premiums paid to clients as an inducement to buy b. Requiring the client buy insurance from you as a condition to a loan c. Making a maliciously critical statement regarding an insurer calculated to injure the insurer's reputation d. Stating that the insurer is having financial difficulties when that is a true statement

c. Making a maliciously critical statement regarding an insurer calculated to injure the insurer's reputation

Which of the following properly describes twisting? a. Policy replacement when your client has had a policy for less than one year b. Policy replacement in which your commission is greater c. Policy replacement that is to the detriment of your client d. Policy replacement that is in your client's best interest

c. Policy replacement that is to the detriment of your client 損害 Explanation: Twisting is policy replacement that is to the detriment of your client and is prohibited.

All of the following are true regarding an administrator except: a. An administrator is a person who directly underwrites insurance coverages provided by an employer for his or her employees b. An administrator includes a person who administers a program of self insurance for an employer c. The term administrator includes a life and health producer who limits his or her activities to the sale of insurance d. A person may not hold himself or herself out as an administrator unless such person is properly licensed as such by the Commissioner

c. The term administrator includes a life and health producer who limits his or her activities to the sale of insurance

Every producer of insurance shall keep complete records of transactions under his or her license for how long? a. One year from the date of sale b. Five years from the date of sale c. Three years after expiration of the policy d. Six years after expiration of the policy

c. Three years after expiration of the policy Explanation: Every producer of insurance shall keep complete records of transactions under his or her license. Records of a particular policy or contract may be destroyed 3 years after expiration of the policy or contract.

Which of the following correctly describes Nevada's continuing education requirement? a. 24 hours of CE every 2 years b. 30 hours of CE every 3 years, plus 3 hours in ethics c. 30 hours of CE every 2 years d. 30 hours of CE every 3 years, of which 3 of those hours must be in ethics

d. 30 hours of CE every 3 years, of which 3 of those hours must be in ethics Explanation: To renew a license as a producer of insurance or an insurance consultant, each licensee must certify that he or she has successfully completed 30 hours of approved continuing education within the 3-year period before the date of renewal. Three of the 30 hours of continuing education must be in the subject of ethics.

Books and records related to the business of insurance must be kept for how long? a. 1 year b. 4 years c. 2 years d. 5 years

d. 5 years

The statute of limitations to be found guilty of engaging in willful unauthorized insurance is how long? a. 1 year b. 2 years c. 3 years d. 5 years

d. 5 years... Explanation: The statute of limitations to be found guilty of engaging in willful unauthorized insurance is 5 years after the date on which the act or violation occurred.

Which of the following is incorrect regarding an examination conducted by the Commissioner? a. The Commissioner may administer oath b. Every person being examined must make records freely available to the Commissioner c. If the Commissioner finds the records to be inadequate he or she may hire an expert to reconstruct such records, at the expense of the examinee d. A person who refuses without just cause to be examined under oath is guilty of a felony

d. A person who refuses without just cause to be examined under oath is guilty of a felony Explanation: Any person who refuses without just cause to be examined under oath or who willfully obstructs or interferes with the examiners in the exercise of their authority pursuant to this section is guilty of a misdemeanor.

Which of the following is false in regards to a hearing conducted by the Commissioner? a. The Commissioner may hold the hearing in Carson City b. The Commissioner has the power to subpoena witnesses c. The Commissioner has the power to administer oaths d. A person who willfully fails to appear is guilty of a felony

d. A person who willfully fails to appear is guilty of a felony

Which of the following statements is false? a. Agent means a producer of insurance who is compensated by the insurer and sells, solicits or negotiates insurance for the insurer b. A broker means a producer of insurance who is not an agent of an insurer and solicits, negotiates or procures insurance on behalf of an insured or prospective insured c. A producer of insurance shall not act as an agent unless he or she is appointed as an agent by the insurer d. A producer who is not acting as an agent is a broker who must be appointed

d. A producer who is not acting as an agent is a broker who must be appointed

Which of the following is true regarding an insurer? a. A stock insurer is owned by its policyholders b. A mutual insurer is owned by its stockholders c. A reciprocal insurer is owned by the State of Nevada d. An insurer includes every person engaged as a principal in the business of entering into contracts of insurance

d. An insurer includes every person engaged as a principal in the business of entering into contracts of insurance Explanation: An insurer includes every person engaged as principal and as indemnitor, surety or contractor in the business of entering into contracts of insurance. A mutual insurer is owned by its policyholders whereas a stock insurer is owned by its stockholders. A reciprocal insurer is an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact common to all such persons to provide reciprocal insurance among themselves.

Which of the following is true regarding assessments made by the Nevada Insurance Guaranty Association (NIGA)? a. Assessments are equal against all member insurers b. Assessments are only made against insurers that are within their first five years of membership c. Assessments are made proportionally against all member insurers d. Assessments are made proportionally against all member insurers

d. Assessments are made proportionally against all member insurers. Explanation: The assessment of each member insurer must be in the proportion that the net direct written premiums of the member insurer for the calendar year preceding the assessment bear to the net direct written premiums of all member insurers for the same calendar year.

All of the following are general powers and duties of the Insurance Commissioner except: a. Delegating duties to his or her deputy b. Organizing and managing the Division of Insurance c. Enforcing state insurance law to protect consumers d. Sentencing offenders to jail time

d. Sentencing offenders to jail time

Which of the following is not an unfair claims practice? a. Attempting to settle on the basis of an application which was altered b. Failing to settle claims promptly c. Advising an insured not to seek legal counsel d. Stating with the denial of the claim the reason why the claim was denied

d. Stating with the denial of the claim the reason why the claim was denied Explanation: Insurers may deny a claim when there is a valid reason to do so.

When you receive clients' money, which of the following is a true statement? a. You are allowed to put the money in our personal account b. You are allowed to put the money in your business account c. Commingling is permissible d. The funds must be kept separate from all other funds, deposited in a fiduciary account

d. The funds must be kept separate from all other funds, deposited in a fiduciary account

Transacting insurance includes all of the following except: a. Solicitation of insurance b. Negotiation of insurance c. Effectuation of a contract of insurance d. Underwriting insurance

d. Underwriting insurance Explanation: Transacting insurance includes: solicitation of insurance, negotiations, effectuation of a contract of insurance and matters related to such contract. You must be properly licensed to engage in the business of transacting insurance. Underwriters do not have to hold insurance licenses since they are not involved in transacting insurance.