NEVADA STATE LAW ANSWERS AND QUESTIONS
SET A+
✔✔Who is required to be licensed? - ✔✔Resident producers and limited lines
producers, non-resident producers, managing general agents, adjusters, bail agents
and bail enforcement agents, surplus lines brokers, reinsurance intermediaries,
insurance consultants, and administrators
✔✔Premium - ✔✔The consideration for insurance
✔✔True or false. Drivers and owners of motor vehicles must have proof of their ability to
cover damages for liability. Proof of financial responsibility can be in the form of a
certificate of insurance or a surety bond. - ✔✔true
✔✔Auto ID cards and ___ must be issued within 60 days of the effective date of the
policy. - ✔✔Insurance identification cards
✔✔Rebate - ✔✔Giving or offering something a value to persuade someone into signing/
requesting a policy contract. Licenses who engage in rebating are guilty of a
misdemeanor
✔✔Insurance companies are allowed to give clients small prizes, but that cannot
exceed ___ - ✔✔$100 a year
✔✔Every producer of insurance must maintain records ___ - ✔✔for 3 years after the
expiration of the policy. These records must be kept and made available for inspection
by the commissioner at all times.
✔✔Reinsurance intermediary - ✔✔A person who acts as a broker or manager for
reinsurance for a domestic, foreign, or alien, insurer, or reinsure.
✔✔The required limits for an auto policy - ✔✔25/50/20 =
Bodily Injury per person / Bodily Injury per accident / Property Damage per accident
, ✔✔Self insured employees must obtain a surety bond of ___ and make a deposit of ___
of the expected annual claims - ✔✔$100,000, at least 105%
✔✔The self insure must also obtain a policy of ___ - ✔✔Excess insurance. proof of
access coverage must be sent to the commissioner within 60 days after policy issuance
✔✔The right to recover compensation through Worker's Compensation benefits is an
employees exclusive ___ - ✔✔Sole remedy
✔✔The administrator can order an employer to ___ until they perform necessary duties
to obtain Worker's Comp. insurance. - ✔✔Cease all business operations
✔✔If an employer fails to maintain proper coverage of ___ AND can be required to pay
up to ___ worth of premiums - ✔✔Worker's Compensation they are guilty of a
misdemeanor, 6 years
✔✔If an employee is killed while the employer has no Worker's Comp. coverage, the
employer will be charged with ___ - ✔✔A category C felony, fined $1000 to $5000, and
sentenced to 1 to 5 years in prison
✔✔Surety insurance - ✔✔Contractual agreement where an insurance company
promises a third-party will successfully fulfill their legal obligations to a business. The
third-party is usually a client.
✔✔Surplus lines insurance - ✔✔a specialized coverage for high-risk or unique assets
that standard insurance companies refuse to cover.
✔✔What kind of insurance is obtained through a surplus lines broker with a non-
admitted ensure eligible to accept surplus lines business - ✔✔Surplus lines insurance
✔✔Surplus lines brokers must: - ✔✔- have a Nevada property and casualty license for
at least six months
- submit an application to the commissioner
-pay the applicable fees
-pass the exam
✔✔The commissioner may refuse to issue or revoke a license or certificate if a licensee
- ✔✔Withholds, miss appropriates, or converts any monies, is convicted of a felony or
refuses to pay child support or their taxes. License will be revoked for longer than 12
months.
SET A+
✔✔Who is required to be licensed? - ✔✔Resident producers and limited lines
producers, non-resident producers, managing general agents, adjusters, bail agents
and bail enforcement agents, surplus lines brokers, reinsurance intermediaries,
insurance consultants, and administrators
✔✔Premium - ✔✔The consideration for insurance
✔✔True or false. Drivers and owners of motor vehicles must have proof of their ability to
cover damages for liability. Proof of financial responsibility can be in the form of a
certificate of insurance or a surety bond. - ✔✔true
✔✔Auto ID cards and ___ must be issued within 60 days of the effective date of the
policy. - ✔✔Insurance identification cards
✔✔Rebate - ✔✔Giving or offering something a value to persuade someone into signing/
requesting a policy contract. Licenses who engage in rebating are guilty of a
misdemeanor
✔✔Insurance companies are allowed to give clients small prizes, but that cannot
exceed ___ - ✔✔$100 a year
✔✔Every producer of insurance must maintain records ___ - ✔✔for 3 years after the
expiration of the policy. These records must be kept and made available for inspection
by the commissioner at all times.
✔✔Reinsurance intermediary - ✔✔A person who acts as a broker or manager for
reinsurance for a domestic, foreign, or alien, insurer, or reinsure.
✔✔The required limits for an auto policy - ✔✔25/50/20 =
Bodily Injury per person / Bodily Injury per accident / Property Damage per accident
, ✔✔Self insured employees must obtain a surety bond of ___ and make a deposit of ___
of the expected annual claims - ✔✔$100,000, at least 105%
✔✔The self insure must also obtain a policy of ___ - ✔✔Excess insurance. proof of
access coverage must be sent to the commissioner within 60 days after policy issuance
✔✔The right to recover compensation through Worker's Compensation benefits is an
employees exclusive ___ - ✔✔Sole remedy
✔✔The administrator can order an employer to ___ until they perform necessary duties
to obtain Worker's Comp. insurance. - ✔✔Cease all business operations
✔✔If an employer fails to maintain proper coverage of ___ AND can be required to pay
up to ___ worth of premiums - ✔✔Worker's Compensation they are guilty of a
misdemeanor, 6 years
✔✔If an employee is killed while the employer has no Worker's Comp. coverage, the
employer will be charged with ___ - ✔✔A category C felony, fined $1000 to $5000, and
sentenced to 1 to 5 years in prison
✔✔Surety insurance - ✔✔Contractual agreement where an insurance company
promises a third-party will successfully fulfill their legal obligations to a business. The
third-party is usually a client.
✔✔Surplus lines insurance - ✔✔a specialized coverage for high-risk or unique assets
that standard insurance companies refuse to cover.
✔✔What kind of insurance is obtained through a surplus lines broker with a non-
admitted ensure eligible to accept surplus lines business - ✔✔Surplus lines insurance
✔✔Surplus lines brokers must: - ✔✔- have a Nevada property and casualty license for
at least six months
- submit an application to the commissioner
-pay the applicable fees
-pass the exam
✔✔The commissioner may refuse to issue or revoke a license or certificate if a licensee
- ✔✔Withholds, miss appropriates, or converts any monies, is convicted of a felony or
refuses to pay child support or their taxes. License will be revoked for longer than 12
months.
