NLHI - Nevada Life and Health Insurance Exam

Question 1: The Nevada Commissioner delegates the discharge of a duty to a Division examiner, who then acts in the Commissioner's name. A party questions whether that examiner's official act carries the same authority as the Commissioner's own act would. Under Nevada law, how is the delegate's official act treated?

As advisory until later ratified

As binding on the examiner alone

As an official act of the Commissioner

As void without a court order

Question 2: A member of the public asks to inspect records held by the Nevada Division of Insurance. Nevada law establishes a general rule about the availability of the Division's records, subject to specific exceptions such as active investigation files. Under the statute, what is the default status of the Division's records?

Open to public inspection

Confidential unless a court orders release

Available only to licensed insurers

Sealed automatically for five years

Question 3: In examining insurers, the Nevada Commissioner considers criteria drawn from handbooks on financial condition and market regulation published by a national association of insurance regulators. Which body publishes the handbooks the statute directs the Commissioner to consider when examining an insurer?

The Securities and Exchange Commission

The Financial Industry Regulatory Authority

The federal Department of Labor

The National Association of Insurance Commissioners

Question 4: Nevada law sets a firm outer interval for examining authorized insurers, but it treats the examination of producers, adjusters, and similar licensees differently. Regarding how often the Commissioner may examine those licensees, what does the statute actually provide for such examinations?

A five-year maximum, as with insurers

As often as the Commissioner deems advisable

No more than once every three years

Only upon a written consumer complaint

Question 5: During a Nevada examination, a person without just cause refuses to be examined under oath and willfully obstructs the examiners in their work. Nevada law attaches a specific criminal consequence to this conduct. How is obstructing an examination classified under the statute?

A misdemeanor

A category D felony

A civil contempt only

A gross misdemeanor

Question 6: While conducting an examination, a Nevada examiner wants to take the examinee's original records back to the Division office. Nevada law restricts removing an examinee's records from the premises. Under the statute, when may an examiner remove those original records from the examinee's premises?

At the examiner's own discretion

Never, under any circumstances

Only with consent or court order

After giving thirty days notice

Question 7: Nevada defines a type of incorporated insurer that has no capital stock and whose governing body is elected by its policyholders, so the policyholders effectively own and control the company. Which type of insurer does this description match under the Nevada definitions?

A stock insurer

A reciprocal insurer

A fraternal benefit society

A mutual insurer

Question 8: Nevada defines a type of incorporated insurer whose capital is divided into shares owned by its stockholders, who supply the company's capital in exchange for ownership of those shares. Which type of insurer does this description match under the Nevada definitions?

A stock insurer

A mutual insurer

A reciprocal insurer

A risk retention group

Question 9: Nevada classifies insurers by where they are formed. One of these categories consists of an insurer that was organized under the laws of Nevada itself, rather than under the laws of another state or country. What does Nevada call an insurer formed under its own laws?

A foreign insurer

A domestic insurer

An alien insurer

An admitted insurer

Question 10: A Nevada producer helps place a policy with an unauthorized insurer that later refuses to pay a covered claim. Nevada law addresses the personal exposure of a person who assisted in procuring coverage from an unauthorized insurer. Under the statute, what is that person's exposure to the insured?

Liable only for the premium collected

Not liable, since the insurer failed

Liable for the full claim amount

Liable only after a criminal conviction

Question 11: Nevada allows certain large commercial buyers to procure excess coverage from an unauthorized insurer without that insurer holding a certificate of authority. The exception applies only when the purchaser meets several size thresholds. To qualify for this exception, what must the purchaser satisfy?

A single policy of any size

Nevada residence alone

Trade association membership

All of the size thresholds together

Question 12: An insurer applying for authority in Nevada is owned in substantial part by a foreign government. Nevada law addresses whether such an insurer may be authorized to transact business in the state. Under the statute, how is a substantially government-owned foreign insurer treated?

It may not be authorized in Nevada

It is authorized like any applicant

It is authorized only for life lines

It is authorized with a larger deposit

Question 13: A foreign insurer seeking to keep its Nevada authority owes the state unpaid fees, taxes, and fines. Nevada law addresses whether authority may be granted or continued while such amounts remain unpaid. Under the statute, what is the effect of an insurer being in arrears to the state?

Authority continues if the insurer is solvent

Only a warning is issued for arrears

Authority may not be granted or continued

Arrears affect only brand-new applicants

Question 14: Nevada defines a producer of insurance as a person required to be licensed to perform certain core activities regarding insurance. Considering how the statute frames the producer's role, which set of activities does the statutory definition of a producer center on?

Investigating and settling insurance claims

Selling, soliciting, or negotiating insurance

Underwriting and pricing insurance risks

Examining and auditing insurance companies

Question 15: When a Nevada insurer appoints a producer to act as its agent, the insurer must notify the Commissioner of the appointment within a set time after the contract is executed or the first application is submitted. Within how many days must the insurer file that notice of appointment?

Thirty days

Five days

Sixty days

Fifteen days

Question 16: Nevada's definitions distinguish an agent from a broker in part by the source of the producer's compensation and by whom the producer represents. Considering that distinction, under Nevada law an agent is a producer who is compensated by which party?

The insurer

The insured buyer

The state government

A third-party administrator

Question 17: Nevada exempts a producer from continuing education if the producer holds and continues to maintain one of several recognized professional designations in the insurance field. Considering that basis for exemption, which of the following correctly reflects the designation-based continuing education exemption?

Holding a high school diploma

Passing the licensing exam once

Maintaining a designation like CLU

Working part time for an insurer

Question 18: Nevada offers a continuing education exemption based on long experience in the insurance business. To qualify on this basis, a producer must satisfy both a length-of-experience requirement and a condition about the source of the producer's income. What must the producer show to qualify?

Ten years of experience only

Any experience plus a college degree

Five years and any source of income

Twenty years plus primary insurance income

Question 19: A Nevada producer license may be issued for one or more lines of authority permitted by statute or regulation. A candidate should know the total number of lines the statute enumerates, since older material sometimes undercounts them. How many lines of authority does the statute list?

Eleven lines

Twelve lines

Eight lines

Fifteen lines

Question 20: A natural person lets a Nevada producer license expire. Nevada law provides a window during which the person may reinstate the license without taking the written examination again, upon meeting conditions. Within what period after the renewal date may reinstatement occur without a new examination?

Twelve months

Three months

Twenty-four months