Simulate Exam Part 2 (Law)

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits

All contracts of property insurance covering subjects located in Nevada are subject to the applicable provisions of

The Insurance Code.

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 FALSE regarding motor vehicle physical damage appraisers?

They do not have to be employed by any one insurance company.

All Inland Marine policies must

Exclude coverage of money and securities.

Which of the following must be obtained by someone who intends to function as an administrator?

Certificate of registration

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

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.

Coverage provided by the Nevada Insurance Guaranty Association includes all of the following EXCEPT

Unlimited coverage for return of unearned premiums.

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

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.

Every Insurance Administrator must file a surety bond with the Commissioner which is written for an amount of at least

$100,000.

Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license?

Forgery

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

The appointing insurer

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 would NOT be considered a misrepresentation on the part of the insurer?

Backdating policies to secure a lower premium for the insured

Which of the following does NOT fit the definition of an administrator?

A life and health producer who only sells insurance

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

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

Dividends from a mutual insurer.

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

30