Insurance MCQ

Every producer of insurance shall keep complete records of transactions under his or her license for how long? a. One year from the date of sale b. Five years from the date of sale c. Three years after expiration of the policy d. Six years after expiration of the policy Answer: c. Three years after expiration of the policy

Obligations of the Nevada Insurance Guaranty Association (NIGA) include all of the following except: a. Workers' compensation claims paid without limit b. Up to $300,000 for each policy when the claim is for the return on unearned premiums c. The limit specified in the policy, or $300,000, whichever is less d. Up to $500,000 for each policy when the claim is for the return on unearned premiums Answer: d. Up to $500,000 for each policy when the claim is for the return on unearned premiums

All of the following are true regarding the ethics requirement under continuing education except: a. The course must be completed via a live lecture class b. The course may be completed via homestudy, online or live lecture class c. The three hour ethics requirement applies to resident producers, with slight exception d. The requirement does not apply to nonresident producers Answer: a. The course must be completed via a live lecture class

Which of the following is true regarding an officer of an insurer? a. The officer must be licensed as a producer b. If the officer does not receive a commission he or she must be licensed as a producer c. If the officer receives a commission he or she must be licensed as a producer d. An officer whose activities are solely executive and managerial must be licensed as a producer Answer: c. If the officer receives a commission he or she must be licensed as a producer

Which of the following properly describes twisting? a. Policy replacement when your client has had a policy for less than one year b. Policy replacement in which your commission is greater c. Policy replacement that is to the detriment of your client d. Policy replacement that is in your client's best interest Answer: c. Policy replacement that is to the detriment of your client 

All of the following are true regarding an administrator except: a. An administrator may advertise the insurance which he or she administers as soon as all the proper paperwork is filed b. An administrator must maintain books and records of all transactions between the administrator, the insurer and the insured at his or her principal office c. An administrator may not advertise the insurance which he or she administers until he or she receives the approval of the insurer who underwrites the business involved d. Books and records must be maintained for five years from the date of the transaction to which they relate Answer: a. An administrator may advertise the insurance which he or she administers as soon as all the proper paperwork is filed

As an administrator, when you hold clients' money, funds must be remitted to the person entitled to the funds or deposited to a fiduciary account within how many days of receipt? a. 10 b. 15 c. 30 d. 31 Answer: b. 15

If the administrator determines that he or she needs additional information to process a claim, the administrator shall notify the claimant of the request for the additional information within: a. 10 days after receiving the claim b. 20 days after receiving the claim c. 30 days after receiving the claim d. 45 days after receiving the claim Answer: b. 20 days after receiving the claim

A person who should be licensed as a producer but is not can be fined up to how much for each violation? a. $1,000 b. $2,000 c. $2,500 d. $1,500 Answer: a. $1,000

The expense of examination of an insurer, or of any person engaged in the business of insurance must be borne by the person examined. An insurer must appoint a producer as its agent in certain situations. In order for the insurer to properly appoint a producer as an agent of the insurer, which of the following is true regarding the notice of appointment? a. It must be filed with the Commissioner within 10 days after the contract is executed or the first application for insurance is submitted to the insurer b.It must be filed with the Commissioner within 20 days after the contract is executed or the first application for insurance is submitted to the insurer c. It must be filed with the Commissioner within 15 days after the contract is executed or the first application for insurance is submitted to the insurer d. It must be filed with the Commissioner within 30 days after the contract is executed or the first application for insurance is submitted Answer: c. It must be filed with th...

Which of the following is true regarding an insurer? a. A stock insurer is owned by its policyholders b. A mutual insurer is owned by its stockholders c. A reciprocal insurer is owned by the State of Nevada d. An insurer includes every person engaged as a principal in the business of entering into contracts of insurance Answer: d. An insurer includes every person engaged as a principal in the business of entering into contracts of insurance

When an insurer terminates an appointment, the Commissioner shall be notified of such termination within how many days after the termination is effective? a. 10 b. 30 c. 15 d. 45 Answer: b. 30

Which of the following is incorrect regarding an examination conducted by the Commissioner? a. The Commissioner may administer oath b. Every person being examined must make records freely available to the Commissioner c. If the Commissioner finds the records to be inadequate he or she may hire an expert to reconstruct such records, at the expense of the examinee d. A person who refuses without just cause to be examined under oath is guilty of a felony Answer: d. A person who refuses without just cause to be examined under oath is guilty of a felony

The expense of an examination of an insurer or of any person engaged in the business of insurance must be borne by which of the following? a. The insurer's home state b. The State of Nevada c. The city of Las Vegas d. By the person examined Answer: d. By the person examined

Which of the following is not an unfair claims practice? a. Attempting to settle on the basis of an application which was altered b. Failing to settle claims promptly c. Advising an insured not to seek legal counsel d. Stating with the denial of the claim the reason why the claim was denied Answer: d. Stating with the denial of the claim the reason why the claim was denied

If a person would like to request a hearing the application for a hearing must be filed when? a. Within 60 days after the person knew or reasonably should have known of the act that was in violation of state insurance law b. Within 20 days after the person knew or reasonably should have known of the act that was in violation of state insurance law c. Within 30 days after the person knew or reasonably should have known of the act that was in violation of state insurance law d. Within 45 days after the person knew or reasonably should have known of the act that was in violation of state insurance law Answer: a. Within 60 days after the person knew or reasonably should have known of the act that was in violation of state insurance law

Compensation paid to an administrator may be based upon: a. Premiums collected b. Claims experience of the policies that he or she handles c. The savings realized by the administrator's adjusting of claims d. The savings realized by the administrator's settling the claims Answer: a. Premiums collected

Whenever a loss is believed to have been caused by an intentional fire (arson), the insurer is required to notify an investigative or law enforcement agency. An investigative or law enforcement agency includes all of the following except: a. The State Fire Marshall b. The insurance company c. The chief of the fire depart in whose jurisdiction the fire has occurred d. The district attorney of the county where the fraudulent activity occured Answer: b. The insurance company

Interest due on a claim payment that is made late must begin accruing when? a. As of the date the claim was approved b. From 30 days after the date the claim was approved until the date the claim is paid c. From the date of the claim d. From 30 days after the claim was received by the administrator Answer: b. From 30 days after the date the claim was approved until the date the claim is paid

An alien insurer has its home office where? a. In this State b. In a state other than Nevada c. In more than one state d. In another country Answer: d. In another country