NPCI - Nevada Property and Casualty Insurance Exam

Question 1: The Nevada Insurance Code sets out the general duties of the Commissioner and introduces the list with the word shall. When the statute says the Commissioner shall perform these general duties, what does that word indicate about the nature of those duties for the Commissioner?

They apply only to insurers

They may be freely ignored

They are mandatory, not optional

They expire after one year

Question 2: A Nevada producer acts in good faith and in conformity with a regulation the Commissioner adopted, but that regulation is later amended or held invalid by a court. Under the Nevada Insurance Code, what protection does a person who relied in good faith on such a regulation receive?

Double damages from the Commissioner

Automatic renewal of the license

A refund of all premiums paid

No penalty for the act

Question 3: When the Nevada Commissioner or the Division of Insurance needs legal representation in enforcement and regulatory matters, the Insurance Code names a particular statewide officer to fill that role. Which officer does Nevada law designate to act as legal counsel to the Division and the Commissioner?

The Attorney General

The Governor

The Secretary of State

The State Treasurer

Question 4: The Nevada Commissioner shares confidential investigation documents with the National Association of Insurance Commissioners, taking care that their confidentiality is maintained during the sharing. Under the Nevada Insurance Code, what effect does that permitted disclosure have on any privilege attaching to the documents?

It waives all privilege permanently

No waiver of privilege occurs

It makes the documents public records

It transfers ownership to the association

Question 5: In deciding how frequently to examine an authorized insurer, the Nevada Commissioner weighs several scheduling criteria, one of which points to handbooks published by a national body of state insurance regulators. Which organization publishes the examination handbooks the Nevada criteria direct the Commissioner to consider?

The federal Department of the Treasury

The Securities and Exchange Commission

The National Association of Insurance Commissioners

The American Bar Association

Question 6: During an examination of an insurer, the Nevada Commissioner's examiner wishes to take original records away from the examined company's premises. Under the Nevada Insurance Code, on what condition may an examiner remove records from the premises of the person being examined?

Never, under any circumstance

Any time the examiner chooses

Only during normal business hours

With written consent or a court order

Question 7: The Nevada Commissioner conducts an examination of an alien insurer, meaning one organized under the laws of a country other than the United States. Under the Nevada Insurance Code, how is the geographic scope of the Commissioner's examination of such an alien insurer limited?

To its United States transactions and affairs

To its entire worldwide operation

To its investments alone

To a single calendar year

Question 8: Beyond examining insurers themselves, the Nevada Commissioner may also examine various other persons who are connected to the insurance business under the Insurance Code. Which of the following persons clearly falls within the Commissioner's authority to examine under that provision?

A retail customer buying a policy

A random member of the public

A licensed producer or adjuster

An unrelated out-of-state bank

Question 9: The Nevada Insurance Code defines the term insurer by reference to the principal roles a person plays in the business of entering into insurance contracts. Under that definition, an insurer includes a person engaged as principal in which of the following capacities?

As a state insurance regulator

As a licensed producer only

As a claims adjuster only

As indemnitor, surety, or contractor

Question 10: A Nevada insurer is incorporated, and its capital is divided into shares that are owned by stockholders who in turn elect its board of directors. Under the Nevada Insurance Code definitions of insurer types, what type of insurer does this describe?

A mutual insurer

A stock insurer

A reciprocal insurer

A fraternal benefit society

Question 11: The Nevada Insurance Code defines domestic, foreign, and alien insurers and then adds a special rule about how the word foreign is read. Except where the context distinguishes the two terms, how does the definition treat an alien insurer relative to the term foreign insurer?

Foreign insurer includes an alien insurer

Alien and foreign are always separate

Alien insurer means a domestic insurer

Foreign insurer excludes an alien insurer

Question 12: The Nevada Insurance Code separates an authorized insurer from an unauthorized one on the basis of a particular status the insurer holds with the Commissioner. What must an insurer hold in order to be an authorized insurer under Nevada law, and it must currently be in force?

A federal insurance charter

A surplus lines broker license

A subsisting certificate of authority

A producer appointment letter

Question 13: The Nevada Insurance Code lets a very large commercial buyer procure certain excess coverage from an unauthorized insurer without a certificate of authority, but only if the buyer is large enough. Under one threshold for this large-risk exception, how many full-time employees must the buyer have?

No employees at all

Ten or fewer

Exactly one employee

Two hundred fifty or more

Question 14: The Nevada Insurance Code bars authorizing certain foreign insurers based on who owns or controls them, out of concern about outside influence. Which of the following foreign insurers may not be granted authority to transact insurance in Nevada under this ownership restriction?

One controlled by a government

One owned by its policyholders

A privately held stock insurer

A subscriber-owned reciprocal

Question 15: The Nevada Insurance Code lists specific acts that count as transacting insurance when performed by or for an unauthorized insurer, whether done by mail or otherwise. Which of the following is one such act that constitutes transacting insurance by an unauthorized insurer?

Owning stock in an unrelated firm

Reading a newspaper advertisement

Collecting a premium or other consideration

Paying personal property taxes

Question 16: To be eligible for a certificate of authority, a Nevada insurer must be organized as one of the recognized insurer structures that could also be formed as a domestic insurer of the same general type. Which structures satisfy this eligibility requirement under the Insurance Code?

A sole proprietorship only

Stock, mutual, or reciprocal insurers

A general partnership only

An unlicensed association only

Question 17: A person applying for a Nevada resident insurance producer license reviews the fees the Division of Insurance charges for licensing. According to the Division of Insurance, what is the state licensing fee charged for a Nevada insurance producer license?

Fifty dollars

One thousand dollars

Five hundred dollars

One hundred eighty-five dollars

Question 18: A licensed Nevada producer already holds a resident license and now wants to add one or more additional lines of authority to it, and asks the Division of Insurance about the cost. According to the Division of Insurance, what is the application fee to add one or more lines of authority?

Fifty dollars

One hundred eighty-five dollars

Two hundred dollars

Ten dollars

Question 19: A Nevada applicant passed the producer licensing examination and then waited a while before actually applying for the license. Under the Nevada Administrative Code, within what period before applying must the applicant have successfully completed the licensing examination for it to count?

Within thirty days before applying

Within five years before applying

Within one year before applying

There is no time limit

Question 20: The Nevada Insurance Code defines a producer of insurance by pointing to the activities that require a person to hold a producer license. Which set of activities does the Code identify as defining a producer of insurance who must be licensed?

Printing blank insurance forms

Auditing an insurer's financial statements

Drafting proposed insurance legislation

Selling, soliciting, or negotiating insurance

NPCI Nevada Property and Casualty Insurance Exam - Set 1 - Part 1