Nevada P&C Laws Verified Solutions
A producer in Nevada is aggrieved by an order of the Commissioner. The producer may:
A Submit a demand for a hearing within 30 days after the order is made
B Apply for judicial review within 20 days of knowing of the order
C Petition for judicial review wi...
A producer in Nevada is aggrieved by an order of the Commissioner. The producer may:
A Submit a demand for a hearing within 30 days after the order is made
B Apply for judicial review within 20 days of knowing of the order
C Petition for judicial review within 45 days of knowing of the order
D File an application for a hearing within 60 days of knowing the order ✔️✔️D - In the case of a person
aggrieved by any act, threatened act, regulation, or order of the Commissioner, an application must be
filed with the Division of Insurance within 60 days after the person knew or reasonably should have
known of the act, regulation, or order. If the application is found to have been made in good faith, then
the Commissioner must hold the hearing within 30 days of the filing, providing at least 20 days' advance
notice of the hearing to all involved parties.
Insureds with an auto liability policy issued in Nevada may qualify for a premium reduction as long as
they meet all of the following eligibility requirements, except:
A
They are not involved in an accident for which they are at fault
B
They keep their driving record free of violations
C
They are at least 55 years old
D
They complete an approved traffic safety course every 5 years ✔️✔️D - An insured vehicle operator
who is 55 years of age or older must have successfully completed a traffic safety course, approved by
the Department of Motor Vehicles, and continue to do so every 3 years thereafter, to qualify for a
premium reduction.
In Nevada, money handled by a licensed administrator must be remitted to the person entitled to it, or
deposited in a fiduciary account, within how many days?
,A
10 days
B
15 days
C
5 days
D
30 days ✔️✔️B - Money handled by an administrator on behalf of an insurer is held in a fiduciary
capacity. Money must be remitted to the person entitled to it or deposited in a fiduciary account within
15 days.
In Nevada, when must an insurer file a notice of appointment with the Commissioner?
A
30 days after the employment contract is executed
B
20 days after the first application for insurance is submitted
C
5 days after the first application for insurance is submitted
D
15 days after the appointment contract is executed ✔️✔️D - To appoint an agent, an insurer must file
a notice of appointment with the Commissioner within 15 days after the appointment contract is
executed or the first application for insurance is submitted. The Commissioner then has 30 days to
determine whether the producer is eligible for appointment.
In accordance with general rate standards and regulations in Nevada, rates are considered to be
excessive if the Commissioner finds that:
A
Rates fail to reflect equitably the differences in expected losses and expenses
B
,Rates are insufficient to sustain projected losses and expenses in the class of business to which they
apply
C
Rates cause a reasonable degree of competition with respect to its applicable classification
D
Rates are unreasonably high for the insurance provided ✔️✔️D - Rates are considered to be excessive
if the Commissioner finds that the rate is unreasonably high for the insurance provided or that a
reasonable degree of competition does not exist with respect to the classification to which the rate is
applicable. Rates that are insufficient to sustain projected losses and expenses are considered
inadequate. Rates that fail to reflect equitable differences in expected losses and expenses are
considered unfairly discriminatory.
In Nevada, proof of financial responsibility for motor vehicles may be furnished in all of the following
forms, except:
A
Deposit of money or securities
B
Evidence of an auto insurance policy currently in effect
C
Evidence the vehicle is owned by a county or city government agency
D
Certificate of self-insurance ✔️✔️C - Proof of financial responsibility may be furnished in the form of a
certificate of insurance, certificate of a deposit of money or securities, certificate of self-insurance, or a
surety bond.
Which of the following statements regarding the appointment of a producer in the state of Nevada is
NOT correct?
A
An insurer may mail a copy of the appointment termination notice to the Commissioner, but not the
terminated producer
, B
An insurer must pay an appointment fee
C
A producer who is acting as an agent for an insurer may also act as a broker with other insurers that
they do not represent as an agent
D
An insurer must pay a fee to renew each of its appointed producers every other year ✔️✔️A - In the
event an agent appointment is terminated, the insurer must notify the Commissioner within 30 days of
the termination effective date and send the notice to the producer within 15 days of notifying the
Commissioner. Producers appointed as agents of an insurer may act as a broker with other insurers as
long as they are not appointed by that insurer. This is because brokers work on behalf of the insured,
not the insurer, and an agent appointment would be a conflict of interest.
What are the required liability limits for an auto liability insurance policy issued in Nevada?
A
25/30/5
B
20/50/10
C
25/50/20
D
15/30/20 ✔️✔️C - A policy must provide coverage of no less than $25,000 for bodily injury or death of
one person, $50,000 for bodily injury or death of two or more persons, and $20,000 for property
damage liability, occurring out of any one accident.
The purpose of the Nevada Insurance Guaranty Association is to:
A
Provide funds for member insurers after their license to transact insurance expires
B
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