Nevada Statutes and Codes Life

How many years is good standing in order be a life insurance producer?

1 year

The election of society's officers must occur within how many years of the date of the certificate of authorities issuance?

1 year

The policyowner in Nevada gets a free - look period of

10 days

In the state of Nevada a group of how many people can be formed a fraternal society if they are all U.S citizens and Nevada residents?

10 or more people

Within how many months must a person be expected to die from a sickness in order to be classified as terminally ill ?

24

For how long must agents retain copies of notices and sales proposals for life insurance applications ?

3 years

How many days does a producer must register with the Divsion of Insurance of first acting as a viatical investment agent or broker.

30 days

How many days does the viator have to rescind after they recieve the proceeds?

30 days

How long is the rescission period after the date all parties signed the agreement?

60 days

What are the most common penalties for violations of insurance statutes ?

A cease and desist order , a fine , and license suspension or revocation

Viatical settlement purchaser " does not include

A licensee under the Viatical Settlement Act ; An accredited investor or qualified institutional buyer ; A financing entity ; A special purpose entity ; or A related provider trust .

Who is an insurance agent ?

A person authorized to sell , solicit and negotiate insurance contracts

Who must be a member of insurance guaranty associations ?

All insurers authorized to write insurance within a state

Who is considered a nonresident agent ?

An agent who resides and is licensed in another state , but who is authorized to transact insurance in this state

If an insurer meets the state's financial requirements and is approved to transact business in the state , it is considered what type of insurer ?

Authorized and admitted

If an insurer holds a Certificate of Authority, it is known as what type of insurer?

Authorized or admitted

What events would allow a policyowner to enter a life settlement within the 5 years of purchasing a life insurance policy?

Bankruptcy, divorce, disability or spouses death

What type pf licensee represnets the insured?

Broker

If the Commissioner / Superintendent finds a licensee engaging in an unfair method of competition or an unfair practice , what order will be issued ?

Cease and desist order

What document is required for an insurance company to transact insurance ?

Certificate of authority

A society authorized to do business in Nevada is permitted to provide the following contractual benefits :

Death benefits ; Endowment benefits Annuity benefits ; Temporary or permanent disability benefits ; Hospital , medical or nursing benefits ; Monument or tombstone benefits ; and Any other benefits life insurance companies are authorized to pay

If a producer makes maliciously critical statements about another insurer , what is this illegal practice called ?

Defamation

Two individuals who are in the same risk and age class are charged different rates for their insurance policies due to an insignificant factor . What is this called ?

Discrimination

Insurers are classified according to their domicile What are the three types of insurers ?

Domestic , foreign , and alien

For what reason can a temporary license be issued ?

For continuation of business in case the licensed producer dies or becomes disabled

An organization that operates on a lodge system and provides a formal life insurance plan to its members is classified as a

Fraternal insurer .

In general , who can be excluded from producer licensing and examination requirements ?

Insurance company officers , directors , or any other employees who do not transact insurance and who do not receive commissions for their services ( usually , their responsibilities include administrative , executive or clerical ) .

What is a controlled business?

Insurance on the producers own life or property of the producers family or business associates

In the agent / insurer relationship , who is considered the principal ?

Insurer

Which of the following is true about the mandatory free - look period in a Life Insurance policy ?

It commences when the policy is delivered

On its advertisement , a company claims that has funds in its possession that are , in fact , not available for the payment of losses or claims . What is the company guilty of ?

Misrepresentation

What illegal act does a producer commit when the producer represents a policy in a more favorable light than the policy really is ?

Misrepresentation

Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies ?

No , advertising of the existence of the guaranty association for the purposes of solicitation and sale of insurance policies by insurers is an illegal business practice .

What is the fine for failing to register with the Division of Insurance as a viatical investment agent or broker?

No more than $500

Which of the following documents must be provided to the policyowner or applicant during policy replacement ?

Notice Regarding Replacement

Who may share in the commission from the sale of a life insurance policy ?

Only producers properly licensed for the type of insurance transaction

Viators typically recieve a poilcys what from thr person who purchases the policy

Percentage of face value

Which of the following documents delivered to the policyowner includes information about premium amounts , cash values surrender values and death benefits for specific policy years ?

Policy summary

Which of the following will be included in a policy summary ?

Premium amounts and surrender values

Who can usually be granted a temporary license ?

Producer's spouse or designee in case the licensed producer dies or becomes disabled

An agent offers a client free tickets to a sporting event in exchange for the purchase of an insurance policy . What is the agent guilty of ?

Rebating

Who owns stock companies?

Stockholders

A viatical settlement is arranged between a viatical company and a / an

Terminally ill insured

What type of licensee represents the insurance company ?

The agent

Who must be notified of a producer's change of address ?

The department lf insurance ( commissioner/ director/ superintendent)

Who is responsible for the contents of insurance advertisements ?

The insurance company

Who is responsible for the costs associated with thr examination of insurers?

The insurer who is being examined

To which of the following would the rule prohibiting a viatical settlement contract within 5 years of a policy issue date apply ?

The owner needs money for downpayment on the first home

In a viatical settlement , who is considered the viator ?

The policyowner

What happens if the insured dies during the rescission period?

The settlement is automatically rescinded and viator must return all the proceeds and premiums to the settlement providers

To whom may a certificate of authority be issued ?

To an insurer authorized to transact business in this state

What is the purpose of a disclosure statement in life insurance policies ?

To explain features and benefits of a proposed policy to the consumer

What is the purpose of a cease and desist order ?

To prevent a producer or insurer from further violating laws for transacting insurance

What is the purpose of insurance guaranty associations?

To protect policyowners, insureds and beneficiaries from financial losses caused bu insolvent insurers

What type of misrepresentation persuades an insured , to their detriment cancel , lapse , or switch policies from one to another ?

Twisting

An insured with a life insurance policy is diagnosed with a terminal illness . Which of the following could be a suitable option for this insured ?

Viatical settlement

When is controlled business legal?

When the commissions from controlled business do not exceed the aggregate commissions on all the other business specific limits may vary from state to state )

When can the Comissioner or Director examine insurers?

Whenever deeme necessary, but at least every few years

Do vitatical settlement contracts entered in this state must contian an unconditional right for the viator to cancel or rescind the contract?

Yes

Does the purchaser has the right to rescind the agreement to buy the viatical settlement within 3 business days after receiving the purchaser's disclosures .

Yes

If the contract is rescinded does the viator have to pay all the proceeds and premiums back to the settlement provider?

Yes

What is a fraternal benefit society?

a group without capital stock

Viatical settlement

allows an insured with a life threatening condition to sell his or her existing policy in order to receive benefits when they are most needed

Reciprocal insurers

associations that provide insurance for their members but they are formed only for the purpose of providing insurance .

Chronically III

being unable to perform at least two activities of daily living such as eating , toileting , transferring , bathing , dressing , or continence , or conditions requiring substantial supervision to protect the individual from threats to severe cognitive impairment .

Viatical Settlement Broker

means a person who on behalf of a viator and for a fee , commission , or other valuable consideration negotiates viatical settlement contracts between a viator and one or more viatical settlement providers .

Terminally Ill

means having an illness or sickness that can reasonably be expected to result in death in 24 months or less .

Fraternal insurers

operate on the basis of a lodge or charitable organization but they may also sell formal insurance plans for the benefit of their members