NV COMMON LAW STUDY GUIDE 2026/2027 QUESTIONS
AND SOLUTIONS RATED A+
✔✔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 - ✔✔a. Premiums
collected
Explanation:
The compensation paid to an administrator for his or her services may be based upon
premiums or charges collected, on number of claims paid or processed or on any other
basis agreed upon by the administrator and the insurer.
✔✔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 - ✔✔b. 30
Explanation:
An insurer or its authorized representative who terminates the appointment,
employment or other relationship of a producer of insurance to the insurer for any
reason shall notify the Commissioner within 30 days after the effective date of the
termination.
✔✔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 - ✔✔d. A person who refuses without just cause to be examined under oath is
guilty of a felony
Explanation:
Any person who refuses without just cause to be examined under oath or who willfully
obstructs or interferes with the examiners in the exercise of their authority pursuant to
this section is guilty of a misdemeanor.
, ✔✔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 - ✔✔d. By the person examined
Explanation:
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 - ✔✔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
Explanation:
To appoint a producer of insurance as its agent, an insurer must file, in a form approved
by the Commissioner, a notice of appointment within 15 days after the contract is
executed or the first application for insurance is submitted.
✔✔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 - ✔✔d. An insurer includes every person engaged as a
principal in the business of entering into contracts of insurance
Explanation:
An insurer includes every person engaged as principal and as indemnitor, surety or
contractor in the business of entering into contracts of insurance. A mutual insurer is
owned by its policyholders whereas a stock insurer is owned by its stockholders. A
reciprocal insurer is an unincorporated aggregation of subscribers operating individually
AND SOLUTIONS RATED A+
✔✔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 - ✔✔a. Premiums
collected
Explanation:
The compensation paid to an administrator for his or her services may be based upon
premiums or charges collected, on number of claims paid or processed or on any other
basis agreed upon by the administrator and the insurer.
✔✔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 - ✔✔b. 30
Explanation:
An insurer or its authorized representative who terminates the appointment,
employment or other relationship of a producer of insurance to the insurer for any
reason shall notify the Commissioner within 30 days after the effective date of the
termination.
✔✔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 - ✔✔d. A person who refuses without just cause to be examined under oath is
guilty of a felony
Explanation:
Any person who refuses without just cause to be examined under oath or who willfully
obstructs or interferes with the examiners in the exercise of their authority pursuant to
this section is guilty of a misdemeanor.
, ✔✔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 - ✔✔d. By the person examined
Explanation:
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 - ✔✔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
Explanation:
To appoint a producer of insurance as its agent, an insurer must file, in a form approved
by the Commissioner, a notice of appointment within 15 days after the contract is
executed or the first application for insurance is submitted.
✔✔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 - ✔✔d. An insurer includes every person engaged as a
principal in the business of entering into contracts of insurance
Explanation:
An insurer includes every person engaged as principal and as indemnitor, surety or
contractor in the business of entering into contracts of insurance. A mutual insurer is
owned by its policyholders whereas a stock insurer is owned by its stockholders. A
reciprocal insurer is an unincorporated aggregation of subscribers operating individually
