NEVADA COLLECTION AGENCY MANAGER EXAM –
PRACTICE QUESTIONS WITH VERIFIED ANSWERS &
RATIONALES 2026-2027
Question 1: Under NRS 649.035, a “manager” is defined as a person who:
A) Holds a valid manager’s certificate and is designated as the compliance manager of a
collection agency
B) Shares equally with the holder of a license the responsibility for the collection
operation
C) Devotes a majority of their working time to the collection operation
D) All of the above
Correct Answer: D) All of the above
Rationale: NRS 649.035 defines a manager as a person who: (1) holds a compliance
manager’s certificate, (2) is designated as the compliance manager of a collection agency,
(3) shares equally with the holder of a license the responsibility for the collection
operation, and (4) devotes a majority of their working time to the collection operation. All
of these elements are required for a person to qualify as a manager under Nevada law.
Question 2: Under NAC 649.030, what is the definition of a “primary collection agency”?
A) Any collection agency that operates from a physical office in Nevada
B) A collection agency that is the first to contact a debtor regarding a debt
C) A collection agency that is licensed by the Nevada Financial Institutions Division
D) A collection agency that is owned by a person who holds a valid manager’s certificate
Correct Answer: A) Any collection agency that operates from a physical office in
Nevada
Rationale: NAC 649.030 defines a “primary collection agency” as a collection agency that
operates from a physical office in Nevada. This is distinguished from a “secondary
collection agency” which may operate from a different location.
,Question 3: Under Nevada law, which of the following is NOT exempt from licensure as
a collection agency?
A) Banks
B) Attorneys
C) Debt buyers who collect on behalf of third parties
D) Real estate brokers
Correct Answer: C) Debt buyers who collect on behalf of third parties
Rationale: Banks, attorneys, and real estate brokers are exempt from collection agency
licensure under Nevada law. However, debt buyers who collect on behalf of third parties
must be licensed as collection agencies. This distinction is important because debt buyers
are subject to the same regulatory requirements as traditional collection agencies.
Question 4: A “secondary collection agency” under Nevada law is defined as:
A) A collection agency that operates from a physical office in Nevada
B) A collection agency that collects debts on behalf of a primary collection agency
C) A collection agency that is not the primary agency for a specific debt
D) A collection agency that collects debts for a fee on behalf of creditors
Correct Answer: B) A collection agency that collects debts on behalf of a primary
collection agency
Rationale: NAC 649.040 defines a “secondary collection agency” as a collection agency
that collects debts on behalf of a primary collection agency. This distinction is important
for regulatory purposes, as different requirements may apply to primary versus secondary
collection agencies.
Question 5: Under NRS 649.196, each applicant for a manager’s certificate must submit
proof that the applicant:
A) Is a citizen of the United States or lawfully entitled to remain and work in the United
States
B) Is at least 21 years of age
,C) Has a good reputation for honesty, trustworthiness, and integrity
D) All of the above
Correct Answer: D) All of the above
Rationale: NRS 649.196 requires each applicant for a manager’s certificate to submit proof
that the applicant: (a) is a citizen of the United States or lawfully entitled to remain and
work in the United States, (b) is at least 21 years of age, and (c) has a good reputation for
honesty, trustworthiness, and integrity. All of these requirements must be met for the
application to be considered complete.
Question 6: Under NRS 649.196(g), applicants for a manager’s certificate must have at
least how many years of full-time experience with a collection agency?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Correct Answer: B) 2 years
Rationale: NRS 649.196(g) requires applicants to have not less than 2 years of full-time
experience with a collection agency in the collection of accounts or with a financial
institution or as a compliance manager. At least 1 year of the 2 years of experience must
have been within the 18-month period preceding the date of filing the application.
Question 7: At least 1 year of the required 2 years of experience must have been within
what period preceding the date of filing the application?
A) 6 months
B) 12 months
C) 18 months
D) 24 months
Correct Answer: C) 18 months
, Rationale: At least 1 year of the 2 years of experience must have been within the 18-
month period preceding the date of filing the application. This ensures that applicants
have recent, relevant experience in the collection industry.
Question 8: Under NRS 649.196, which of the following would disqualify an applicant
from obtaining a manager’s certificate?
A) A misdemeanor conviction unrelated to collection activities
B) A conviction of a felony or crime involving fraud, misrepresentation, or moral
turpitude
C) A traffic violation
D) Filing for personal bankruptcy
Correct Answer: B) A conviction of a felony or crime involving fraud,
misrepresentation, or moral turpitude
Rationale: NRS 649.196 requires that applicants have not committed any of the acts
specified in NRS 649.215, which includes conviction of a felony or any crime involving
fraud, misrepresentation, or moral turpitude. Misdemeanors unrelated to collection
activities, traffic violations, and personal bankruptcy are typically not grounds for
disqualification.
Question 9: Under NRS 649.035, a manager shares equally with the holder of a license
the responsibility for:
A) Marketing the agency’s services
B) The collection operation of the collection agency
C) The agency’s financial investments
D) The agency’s real estate holdings
Correct Answer: B) The collection operation of the collection agency
Rationale: NRS 649.035 requires that a manager share equally with the holder of a license
the responsibility for the collection operation of the collection agency. This shared
responsibility ensures that both the license holder and the manager are accountable for
the agency’s compliance with state and federal laws.
PRACTICE QUESTIONS WITH VERIFIED ANSWERS &
RATIONALES 2026-2027
Question 1: Under NRS 649.035, a “manager” is defined as a person who:
A) Holds a valid manager’s certificate and is designated as the compliance manager of a
collection agency
B) Shares equally with the holder of a license the responsibility for the collection
operation
C) Devotes a majority of their working time to the collection operation
D) All of the above
Correct Answer: D) All of the above
Rationale: NRS 649.035 defines a manager as a person who: (1) holds a compliance
manager’s certificate, (2) is designated as the compliance manager of a collection agency,
(3) shares equally with the holder of a license the responsibility for the collection
operation, and (4) devotes a majority of their working time to the collection operation. All
of these elements are required for a person to qualify as a manager under Nevada law.
Question 2: Under NAC 649.030, what is the definition of a “primary collection agency”?
A) Any collection agency that operates from a physical office in Nevada
B) A collection agency that is the first to contact a debtor regarding a debt
C) A collection agency that is licensed by the Nevada Financial Institutions Division
D) A collection agency that is owned by a person who holds a valid manager’s certificate
Correct Answer: A) Any collection agency that operates from a physical office in
Nevada
Rationale: NAC 649.030 defines a “primary collection agency” as a collection agency that
operates from a physical office in Nevada. This is distinguished from a “secondary
collection agency” which may operate from a different location.
,Question 3: Under Nevada law, which of the following is NOT exempt from licensure as
a collection agency?
A) Banks
B) Attorneys
C) Debt buyers who collect on behalf of third parties
D) Real estate brokers
Correct Answer: C) Debt buyers who collect on behalf of third parties
Rationale: Banks, attorneys, and real estate brokers are exempt from collection agency
licensure under Nevada law. However, debt buyers who collect on behalf of third parties
must be licensed as collection agencies. This distinction is important because debt buyers
are subject to the same regulatory requirements as traditional collection agencies.
Question 4: A “secondary collection agency” under Nevada law is defined as:
A) A collection agency that operates from a physical office in Nevada
B) A collection agency that collects debts on behalf of a primary collection agency
C) A collection agency that is not the primary agency for a specific debt
D) A collection agency that collects debts for a fee on behalf of creditors
Correct Answer: B) A collection agency that collects debts on behalf of a primary
collection agency
Rationale: NAC 649.040 defines a “secondary collection agency” as a collection agency
that collects debts on behalf of a primary collection agency. This distinction is important
for regulatory purposes, as different requirements may apply to primary versus secondary
collection agencies.
Question 5: Under NRS 649.196, each applicant for a manager’s certificate must submit
proof that the applicant:
A) Is a citizen of the United States or lawfully entitled to remain and work in the United
States
B) Is at least 21 years of age
,C) Has a good reputation for honesty, trustworthiness, and integrity
D) All of the above
Correct Answer: D) All of the above
Rationale: NRS 649.196 requires each applicant for a manager’s certificate to submit proof
that the applicant: (a) is a citizen of the United States or lawfully entitled to remain and
work in the United States, (b) is at least 21 years of age, and (c) has a good reputation for
honesty, trustworthiness, and integrity. All of these requirements must be met for the
application to be considered complete.
Question 6: Under NRS 649.196(g), applicants for a manager’s certificate must have at
least how many years of full-time experience with a collection agency?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Correct Answer: B) 2 years
Rationale: NRS 649.196(g) requires applicants to have not less than 2 years of full-time
experience with a collection agency in the collection of accounts or with a financial
institution or as a compliance manager. At least 1 year of the 2 years of experience must
have been within the 18-month period preceding the date of filing the application.
Question 7: At least 1 year of the required 2 years of experience must have been within
what period preceding the date of filing the application?
A) 6 months
B) 12 months
C) 18 months
D) 24 months
Correct Answer: C) 18 months
, Rationale: At least 1 year of the 2 years of experience must have been within the 18-
month period preceding the date of filing the application. This ensures that applicants
have recent, relevant experience in the collection industry.
Question 8: Under NRS 649.196, which of the following would disqualify an applicant
from obtaining a manager’s certificate?
A) A misdemeanor conviction unrelated to collection activities
B) A conviction of a felony or crime involving fraud, misrepresentation, or moral
turpitude
C) A traffic violation
D) Filing for personal bankruptcy
Correct Answer: B) A conviction of a felony or crime involving fraud,
misrepresentation, or moral turpitude
Rationale: NRS 649.196 requires that applicants have not committed any of the acts
specified in NRS 649.215, which includes conviction of a felony or any crime involving
fraud, misrepresentation, or moral turpitude. Misdemeanors unrelated to collection
activities, traffic violations, and personal bankruptcy are typically not grounds for
disqualification.
Question 9: Under NRS 649.035, a manager shares equally with the holder of a license
the responsibility for:
A) Marketing the agency’s services
B) The collection operation of the collection agency
C) The agency’s financial investments
D) The agency’s real estate holdings
Correct Answer: B) The collection operation of the collection agency
Rationale: NRS 649.035 requires that a manager share equally with the holder of a license
the responsibility for the collection operation of the collection agency. This shared
responsibility ensures that both the license holder and the manager are accountable for
the agency’s compliance with state and federal laws.
