Chapter 5: Nevada Statutes and Codes Common to All Lines
Which of the following would be required to be licenses as an insurance producer?
A salaried employee who advertises and soliceites insurance A person does not require an insurance producers license if they only advertise without intent to sell insurance. However, once there is a sell a license is required.
Which of the following is an example of an agents fiduciary responsibilities?
An agent promptly forwarding premiums to the insurance company. Fiduciary refers to a position of trust. When agents are handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity
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 insureds habits and lifestlyes
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 best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
What is rebating?
Offering any inducement in the sale of insurance products that is not specified in the policy, including money, reductions and commissions, promises, and personal services BOTH offer and acceptance of rebate are ILLEGAL
When a producers appointment with the insurer is terminated, who must notify the commissioner
the appointing insurer
agents who pursued 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
Should any person willfully engage in an unauthorized insurance transaction, the Commissioner may impose an administrative fine or penalty of up _________.
$10,000 for each and every act
A producer who has allowed his or her license to lapse may reinstate the license without retaking the examination within what max time period?
12 months
What is the minimum age for a person seeking a bail enforcement agents license
21
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 non resident producer have to file a change in address when the agent moves to Nevada from another state
30 days
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
What is a non-admitted/unauthorized insurer?
An insurance company that is not applied for, or has applied and been denied a certificate of authority and may not transact insurance
What action by an insurance company will cause an examination by the commissioner?
Application for an initial certificate fo authority
to be eligible for a resident producers license in Nevada, an applicant must meet all the following eligibility requirements except
Be licensed as a solicitor for at least one year prior to application I.e. There is no requirement that producers first be licensed as solicitors
What is discrimination?
Permitting individuals of the same class to be charged a different rate for the same insurance as an unfair trade practice of discrimination
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 waved if he purhases the insurance policy today
What is twisting?
a misrepresentation that persuades an insured or a policy owner, to their detriment, to cancel, lapse, or switch policy
Which of the following persons is required to hold a producer license?
a person who negotiates insurance contracts
in life insurance, agents are permitted to share or split commissions provided that
both are properly licensed for the line of insurance
When an agent is handling premium funds while conducting business, the insurance agent acts as a
fiduciary capacity Money designated as premium belongs to the insurance company. An agent is handling this money in a position of trust. Fiduciary is the term that refers to the handling of money.
the requirements 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 an agent
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
What is misrepresentation?
issuing, publishing, or circulating any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms, the payment of dividends. this includes oral statements
All of the following are true regarding rebates except
rebates are allowed if it is in the best interest of the client ^Not allowed. Rebates are only allowed if specifically stated in the policy