Nevada Life: Day 4
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
An insurer licensed to conduct business in states other than the one in which it is incorporated IS
Foreign
If, after a hearing the Commissioner determines that a producer has committed an unfair trade practice, the Commissioner will issue a "cease and desist" order. Failure to comply will result in a fine of.
$5,000
The owner of a life insurance policy who enters or seeks to enter into a viatical settlement contract is called a/an
Viator
Credit life insurance is usually written as what type of policy?
Decreasing term
Making oral or written statements that are false, maliciously critical, and designed to injure an insurance person or business is known as
Defamation
An insurance company that is incorporated and has its home office in this state is called a
Domestic insurer.
Who is responsible for the advertisements
The insurance company
Insurers are required to keep a complete file of all advertisements and transactions for a maximum of how many vears?
3 years
Which of the following applies to credit life insurance sold in Nevada?
A credit life insurance policy is made in connection with a specific loan
If a company has a Simplified Employee Pension (SEP) plan, what type of plan is it?
A qualified plan for a small business
An insurance company that is incorporated and has its home office in another country is called a
Alien insurer.
A license may be denied, suspended, or revoked if the licensee
All of the above
An agent who deposits his client's premium in his personal account is guilty of
Commingling
In life insurance, cash value increases
Grow tax deferred
What nonprofit association protects the owners of policies issued by insurers that become insolvent?
Guaranty Association
The free-look period does not apply to
Industrial life insurance
If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy?
It is only taxable if the cash value exceeds the amount paid for premiums
Which plan can only be used by a self-employed unincorporated individual?
Keogh (HR-10)
Buying a policy to offset a financial loss in the event of a valuable employee's death is called
Key employee (key person) life insurance.
A producer who intentionally misleads his client by stating that his policy will pay dividends is guilty of
Misrepresentation.
If a life policy does not pass the "seven-pay test", that policy is considered
Modified Endowment Contract (MEC)
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?
Profit sharing plan
Which of the following falls under an agent's fiduciary responsibilities?
Submitting or forwarding premiums to the insurer
All of the following are general requirements of a qualified plan EXCEPT
The plan must provide an offset for social security benefits
Under a qualified retirement plan, which of the following is TRUE regarding taxation on both contributions and earnings?
They are tax deferred until withdrawn
All of the following are true regarding fraternal benefit societies in this state EXCEPT
They pay unemployment benefits
Which of the following requires the investor to stop contribution and start withdrawing at age 73?
Traditional IRAs
A Producer represents the
insurer
According to the definitions regarding viatical settlements, terminal illness that can reasonably be expected to result in death within no more than how many months?
24 months
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to annuities?
250,000
What is the minimum free-look period on a life insurance policy or annuity contract issued in Nevada?
10 days
An administrator is required to file, with the Commissioner, a surety bond of no less than
100,000
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to cash values of life insurance policies?
100,000
If a producer allows his or her license to expire, within what time period may the producer reinstate the existing license?
12 months
How many days does an insurance producer have to promptly forward premiums to the insurer?
15 days
What is the penalty for not complying with the minimum distribution requirement of a Traditional IRA?
25% Penalty on the amount that should have been taken out
The replacing insurer must notify the existing insurer with a written communication advising of the proposed replacement within at least
3 working days
Who is considered a nonresident agent?
An agent who resides in another state but is licensed to write insurance in this state
An agent CANNOT act as an agent of an insurer without which of the following?
An appointment by the insurer
SIMPLE Plans require all of the following EXCEPT
At least 1,000 employees
How long is the certificate of registration for an administrator valid for?
3 years
Regarding the replacement of life policies in Nevada, the replacing insurer must give applicable agents how many copies of the notice regarding replacement?
3 copies
What type of insurance policy may be used to fund a key person life insurance?
Any form of life insurance
How often are insurance producers required to nenew their license?
Every 3 years
When an owner offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)
Executive bonus
Broadcasting or telecasting any written or oral material that is untrue, deceptive and misleading IS
False Advertising.
All of the following are true regarding commissions EXCEPT
Sharing commissions are not allowed
A nonresident producer that moves from one state to another must file a change of address within
30 days
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 filling of the application?
30 days
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to a death benefit of a life insurance or disability insurance for 1 life?
300,000
What is the number of credits required for fully insured status for Social Security disability benefits?
40
In which type of qualified plan is it common for the employer to match the employee's contribution by a certain percentage or a dollar amount?
401(k) Plans
How long must a life insurance policy be in force before the owner can enter into a viatical settlement contract?
5 years
The Commissioner is required to do which of the following before suspending or revoking a producer's license?
Hold a hearing
Which of the following is NOT true regarding policy loans?
Money borrowed from the cash value is taxable
All of the following are requirements for anyone who wants to obtain an insurance producer license in the state of Nevada EXCEPT
Must be a citizen
An insurer who is not authorized to conduct business in a particular state is said to be
Nonadmitted
What document must be signed by the applicant and the producer and a copy given to the applicant at the time of application for a policy replacement?
Notice Regarding Replacement
If an insurer does not receive the premium within 30 days after its due the insurer must
Notify the commissioner
All of the following are requirements for a nonresident license EXCEPT
Pass the state exam
A person required to be licensed under the laws of Nevada to sell, solicit or negotiate insurance is called a
Producer
All of the following statements regarding agent appointments are true EXCEPT
The agent must be appointed by the Commissioner before he or she can transact insurance
All of the following are true regarding a key person life insurance policy EXCEPT
The beneficiary is the family
Which of the following means "liquidity" in a life insurance contract
The cash value available to the policy owner
If an insurer or agent makes a statement misrepresenting or incompletely comparing the terms of any insurance policy to persuade a policyholder to his or her detriment, to cancel, lapse, or switch policies from one to another, what unfair practice has occurred?
Twisting
For a retirement plan to be qualified, it must be designed for the benefit of the
employees
Which of the following arrangements allows someone living with a life threatening condition to sell an existing life insurance policy and use the proceeds before death?
viatical settlement
Anyone who transacts insurance without a license is subjected to an administrative fine of
$1,000 for each violation
What is the fine for an unauthorized transaction?
$10,000 for each and every act
If a person is charged with a category D felony for committing insurance fraud they could be subject to 1-4 years imprisonment and/or a fine of up to
$5,000
A life producer may be exempt from the pre licensing education and examination requirement for a viatical settlement broker license if the producer has held an active life license for at least how many years?
1 year
All of the following employees may use a 403(b) plan for their retirement EXCEPT
CEO of a private corporation
What must an insurer obtain from the state department of insurance in order to conduct business in a specific state
Certificate of Authority
No one may function as an administrator unless he or she obtains from the Commissioner a
Certificate of Registration
All of the following are true regarding social security EXCEPT
Covers unemployment
Who is the policyowner in credit life insurance?
Creditor
What is the maximum amount that the Nevada Life & Health Insurance Guaranty Association may be obligated to pay - with respect to major medical insurance for 1 life?
500,000
A 10% penalty must be paid on withdrawals made from a qualified plan before age
59 ½
To attain partial or currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?
6 credits
A person licensed in another state who moves to Nevada and wants to become license as a resident producer must apply for licensing within how many days after establishing legal residency?
90
The Commissioner may examine an insurer for the following reasons
All of the above
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary
Which of the following is known as a business continuation agreement, which determines what happens to a business if either one of the partner dies prematurely and that the other would be financially able to buy the interest of the deceased partner?
Buy-sell agreement
How is the state Life & Health Insurance Guaranty Association funded?
By its members - authorized insurers
Any licensee or representative of an insurance company who diverts or appropriates policyowner funds for his or her own use is quilty of
Embezzlement
All of the following circumstances will wave the 10% penalty if distribution from a qualified plan Is made before age 59 ½ EXCEPT
Purchasing a car
Any inducement offered in the sale of insurance products that is not specified in the policy is
Rebating
When a new policy is written to take the place of a policy that is already in force, is called a
Replacement
All of the following are requirements for license renewal EXCEPT
Retake and pass the state exam
The Commissioner of Insurance is responsible for all of the following actions EXCEPT
Setting premium rates
Which of the following retirement plans is a special tax favored plans for nonprofit, charitable, educational or religious groups?
Tax sheltered Annuity 403(B)
Denying insurance coverage on the basis of a person's marital status or charging different rates for their insurance policies due to an insignificant factor is called
Unfair discrimination
An unfair method of competition or an unfair or deceptive act or practice in the business of insurance is called a/an
Unfair trade practices
A person, other than a viator, that enters into or effectuates a viatical settlement contract is called a
Viatical provider
The person who, for compensation, solicits, negotiates, or offers a viatical settlement on behalf of the policyowner is the
Viatical settlement broker
