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9 Cards in this Set
- Front
- Back
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Which of the following would NOT be considered a misrepresentation on the part of the insurer? A) Backdating policies to secure a lower premium for the insured B) Implying that term insurance has cash value C) Embellishing the benefits provided in the policy D) Overstating returns on policy dividends |
A) Backdating policies to secure a lower premium for the insured It is illegal to issue, publish, or circulate any illustration or sales material that is false, misleading, or deceptive as to policy benefits or terms, or the payment of dividends. Demonstrating conservative returns in the illustrations would not be a violation. |
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Which of the following is required for a producer to transact business on behalf of an insurer? A) Only the producer’s active license B) An agent appointment C) A business entity license D) A Certificate of Authority |
B) An agent appointment A producer cannot transact insurance on behalf of an insurer until the producer is appointed by the insurer. |
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Which of the following actions by an insurance company will cause an examination by the Commissioner? A) Application for an initial Certificate of Authority. B) Decrease in premium rates charged for coverage. C) Change of an insurance policy form. D) Increase in premium rates charged for coverage. |
A) Application for an initial Certificate of Authority. The Commissioner will examine each insurer applying for an initial Certificate of Authority to transact insurance in Nevada. |
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Which of the following is issued by the state Department of Insurance to show that the insurer has power to write insurance contracts in that state? A) Certificate of Insurance B) Binder C) License D) Certificate of Authority |
A) Certificate of Insurance A Certificate of Authority is issued by the state Department of Insurance and shows that the insurer has power to write insurance contracts in that state. |
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The term “adjuster” may include which of the following? A) Associate adjuster B) Attorney at law C) A firm that acts on behalf of the insurer D) Officer, director or regular salaried employee of an insurer |
C) A firm that acts on behalf of the insurer An adjuster is any person, firm, association or corporation, who, for a commission, acts on behalf of an insurer in the work of investigating and adjusting claims. Associate adjusters, attorneys or insurer’s salaried employees are excluded from the definition. |
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In Nevada, to qualify to act as a surplus lines broker, a person must have been a resident, general lines producer for a minimum period of A) 6 months. B) 1 year. C) 60 days. D) 3 months. |
A) 6 months. Established by the Insurance Code. |
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Which of the following is true regarding insurance company appointment for a broker? A) Brokers do not need to be appointed. B) Brokers must be appointed by the insurer. C) Brokers act as agents. D) Brokers represent insurers. |
A) Brokers do not need to be appointed. A broker is a producer who is not acting as an agent of an insurer and does not need to be appointed. |
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For purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with Nevada law, the Commissioner will examine the affairs of each insurer as often as deemed necessary. Each domestic insurer must be examined at least A) Every year. B) Every two years. C) Every three years. D) Every five years. |
D) Every five years. The purpose and time parameters for insurance company examinations is established by the Insurance Code. |
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Which of the following best describes a misrepresentation? A) Making a deceptive or untrue statement about a person engaged in the insurance business B) Making a maliciously critical statement that is intended to injure another person C) Discriminating among individuals of the same insuring class D) Issuing sales material with false statements about policy benefits |
D) Issuing sales material with false statements about policy benefits Misrepresentation is issuing, publishing or circulating any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms, the payment of dividends, etc. This includes oral statements. |
