Nevada Statutes & Regulations Common to all lines (Solved)

What is the most basic definiton of Ins? correct answers Is the TRANSFER of the possibility of a loss (risk) to an insurance company, which in turn spreads the costs of unexpected losses to many individuals. In most situations only a small number of those insured will actually suffer a loss. Insurance redistributes the financial consequences of individual losses to all person insured. If there were no insurance mechanism, the cost of a loss would have to be borne solely by the unfortunate individual who suffered the loss. With insurance, however, the cost of the loss is limited to the amount of the insurance premium. What is the difference between domestic,foreign & alied Ins. companies? correct answers A DOMESTIC INSURANCE is an insurance company that is incorporated in this state. An FOREIGN insurer is an insurance company that is incorporated in another state or territorial possession (such a Puerto Rico, Guam, American Samoa). What is the difference between an authorized insurer? correct answers An authorized insurer is an insurance company that has qualified and received a Certificate of Authority from the Division of Insurance to transact insurance in the state. Who issues certificates of authority? correct answers Is issued by The State Department of Insurance How often should insurers expect to be examined by the commission? correct answers Will examine each authorized insurer not less frequently than every 5 year. What is the penalty for acting as an insurance producer without a license ? correct answers Fine of $1,000 for each violation. What are the requirements for ins. licensing in this state? correct answers A regular salaried officer or employee, as long as, their duties and responsibilities do not include the negotiation or solicitation of insurance. Persons who secure and furnish information,but not solicit, make calls, enroll or issue certificates for the purpose of the sale of insurance. Employer of their officers or employees or the trustees of any employee trust plan, engaged in the administration or operating of any program of employee benefits, and not are compensated by the issuing insurance company.