Simulate Exam Part 1 (Law), Simulate Exam Part 2 (Law)
How much notice must an insurer give to an insured when canceling a personal policy that was issued for a 3 year term?
30 days before any anniversary
The term "adjuster" may include which of the following?
A firm that acts on behalf of the insurer
The Commissioner denied an application for insurance license and notified the applicant. Which of the following is true regarding a hearing regarding this?
A hearing will be held within 30 days of the request.
Which of the following statements is true regarding the relationship between a lender and a borrower?
A lender cannot require a borrower to provide property insurance on improvements to real property in an amount that exceeds the reasonable replacement value on the improvements.
Which of the following does NOT fit the definition of an administrator?
A life and health producer who only sells insurance
The duties of a managing general agent may include all of the following EXCEPT
Altering policies.
Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT
An agent misrepresents policy benefits to convince a policyowner to replace policies.
Which of the following actions by an insurance company will cause an examination by the Commissioner?
Application for an initial Certificate of Authority.
Which of the following would NOT be considered a misrepresentation on the part of the insurer?
Backdating policies to secure a lower premium for the insured
For an agent to sell continuous care coverage, the agent must meet all of the following requirements EXCEPT
Be licensed as a life insurance producer.
Which of the following is issued by the state Department of Insurance to show that the insurer has power to write insurance contracts in that state?
Certificate of Authority
Which of the following must be obtained by someone who intends to function as an administrator?
Certificate of registration
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 five years.
According to the sole remedy provision in workers compensation insurance, the rights and remedies provided for an employee injured in the course of the employment must be
Exclusive of all other rights and remedies.
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation.
A person who acts as a motor vehicle physical damage appraiser without a license is subject to an administrative fine of
Not more than $1,000 for each violation.
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
Twisting
Coverage provided by the Nevada Insurance Guaranty Association includes all of the following EXCEPT
Unlimited coverage for return of unearned premiums.
The Commissioner must give reasonable notice to all interested parties as to the time, place and purpose of a hearing within the minimum of how many days of the hearing?
20 days
In Nevada, to qualify to act as a surplus lines broker, a person must have been a resident, general lines producer for a minimum period of
6 months.
If an insurer intends not to renew a commercial policy, how much notice must it give the policyholder?
60 days before the expiration of the policy
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer.
Which of the following best describes an insurance company that has been formed under the laws of this state?
Domestic
All Inland Marine policies must
Exclude coverage of money and securities.
All of the following actions can be described as twisting EXCEPT
Explaining to client the advantages of permanent insurance over term and suggesting changing policies
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?
Foreign
Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license?
Forgery
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstances
Which of the following licensees are not compensated directly related to the amount of insurance sold?
Insurance consultant
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
A policy that is issued to replace a binder must include
Limits of coverage that are equal to the limits stated in the binder and an effective date for the policy that is the same as the effective date of the initial binder.
During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes
Misrepresentation.
Insurance on real or personal property of every kind against loss or damage from hazards is described as
Property insurance
Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as
Rebating.
The Commissioner of Insurance is responsible for all of the following actions EXCEPT
Setting premium rates.
All contracts of property insurance covering subjects located in Nevada are subject to the applicable provisions of
The Insurance Code.
Insurance companies in Nevada must offer insureds under policies covering the use of passenger cars the option of purchasing how much coverage to pay for reasonable and necessary medical expenses resulting from an accident?
$1,000
What is the minimum required liability limit for property damage in an auto liability policy?
$10,000
Every Insurance Administrator must file a surety bond with the Commissioner which is written for an amount of at least
$100,000.
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
An insurer offering private passenger automobile policies recently increased an insured's premiums. This insurer must advise the insured of her right to request the reasons for this increase, within a few days of the expiration of her policy. How many days?
30 days
How many days does a nonresident producer have to file a change of address when the agent moves to Nevada from another state?
30
How many hours of approved continuing education within a 3-year period are required?
30
What insurance provides coverage that indemnifies the insured against loss arising from the lack of integrity or fidelity of persons holding positions of trust, from the insolvency of debtors, or from breaches of contract?
Surety insurance
A nonadmitted insurer who provides insurance coverages that are not available from an admitted insurer is called
Surplus lines insurer.
A licensed agent in Utah wants to become a nonresident agent in Nevada in the same line of insurance. Considering that all other requirements are met, which of the following would most likely happen?
The agent will be exempt from education and examination requirements.
When a producer's appointment with the insurer is terminated, who must notify the Commissioner?
The appointing insurer
All Inland Marine policies must exclude coverage of money and securities, but musical instrument dealers, camera dealers and equipment dealers policies may include coverage of
The tenant's interest in improvements of the building, furniture, fixtures, tools, machinery, patterns, molds and dies.
Which of the following statements is FALSE regarding motor vehicle physical damage appraisers?
They do not have to be employed by any one insurance company.