NPCI - Nevada Property and Casualty Insurance Exam

Question 1: A Nevada homeowners policy has been in force for more than seventy days, and the insurer now decides to cancel it during the policy term because the insured failed to pay a premium when it came due. How much advance notice must the insurer give?

At least 60 days

At least 30 days

At least 10 days

At least 20 days

Question 2: A Nevada commercial general liability policy has been in effect for six months when the insurer moves to cancel it midterm after discovering a material misrepresentation the insured made when applying. For this ground, what minimum advance notice does Nevada law require?

At least 90 days

At least 10 days

At least 5 days

At least 30 days

Question 3: Nevada limits an insurer's ability to cancel a policy midterm, but those limits apply only after a policy has been in effect for a defined minimum time or has been renewed. For how long must a policy have been in effect before the restrictions apply?

70 days

60 days

30 days

90 days

Question 4: A Nevada insurer issued a business owners policy for a three-year term. It now wants to cancel the policy at an upcoming anniversary date rather than midterm. Because this is a commercial policy written for longer than one year, how much notice must the insurer provide?

30 days before the anniversary

60 days before the anniversary

10 days before the anniversary

90 days before the anniversary

Question 5: At the end of its term, a Nevada insurer decides not to renew a private passenger automobile policy. The policyholder ordinarily has a right to renewal unless proper notice is given. For this personal, non-commercial policy, how far in advance must the nonrenewal notice reach the insured?

At least 10 days before expiration

At least 60 days before expiration

At least 30 days before expiration

At least 5 days before expiration

Question 6: Nevada generally requires an insurer to give advance notice before it may decline to renew a policy. The statute lists a few situations in which that notice duty does not apply. Which of the following removes the insurer's obligation to give a nonrenewal notice?

The agent changed appointments

The premium rose by ten percent

The insured filed one claim

The insured accepted replacement coverage

Question 7: Nevada's rating law states the central standard that every property and casualty insurance rate must satisfy, and it repeats the same three-word formula in its statement of purposes. Under NRS 686B.050, insurance rates in Nevada must not be which of the following?

Excessive, inadequate, or unfairly discriminatory

Published, filed, or advertised

Actuarial, audited, or approved

Fixed, uniform, or standardized

Question 8: Before a new or changed property and casualty rate may take effect in Nevada, an authorized insurer or rate service organization must file it with the Commissioner ahead of the proposed effective date. What is the minimum lead time the statute requires for that filing?

At least 60 days

At least 10 days

At least 30 days

At least 90 days

Question 9: Nevada's rating chapter does not apply to every line of insurance; it lists several kinds that are excluded, including much commercial property and commercial casualty business. Despite those commercial carve-outs, which kind of casualty coverage does the chapter expressly keep under rate regulation?

Fraternal benefit contracts

Ocean marine insurance

Credit life insurance

Professional liability insurance

Question 10: When a Nevada insurer sets up rate classifications, the rating law allows many risk-based distinctions but flatly forbids grouping insureds on certain personal characteristics. Under NRS 686B.060, a rate classification may not be based on which of the following?

Prior loss experience

Race, color, or national origin

Type of vehicle driven

Geographic territory

Question 11: The Nevada content outline lists NRS 680A.300 under the heading of countersigning of policies, but the statute's actual text addresses a different requirement. Under NRS 680A.300, an authorized insurer generally may write insurance on Nevada risks only in what manner?

Through duly appointed, licensed agents

With a resident agent's countersignature

After paying a countersignature fee

Only on countersigned duplicate policies

Question 12: Before a Nevada surplus lines broker may place coverage with a nonadmitted insurer, the transaction must satisfy several statutory conditions for export. Which of the following is one of the conditions NRS 685A.040 imposes before insurance may be exported to an unauthorized insurer?

The insured waives all policy defenses

The premium is under a thousand dollars

Coverage is unavailable from authorized insurers

The Commissioner personally approves each policy

Question 13: A Nevada surplus lines broker must pay premium tax on the coverage it places with nonadmitted insurers. The surplus lines chapter sets that tax by cross-reference to the general premium tax rate rather than stating a figure itself. What is that rate?

0.4 percent

2 percent

5 percent

3.5 percent

Question 14: Nevada surplus lines brokers file reports and pay the premium tax on a quarterly schedule, with each filing covering the quarter that ended at the preceding calendar-quarter close. On which set of dates are those quarterly surplus lines reports and payments due?

Fifteenth of February, May, August, November

First day of each calendar quarter

Last day of each calendar quarter

April 15 and October 15

Question 15: A Nevada surplus lines broker fails to file the quarterly statement that the surplus lines law requires. Separate from any tax delinquency penalty, what specific penalty does NRS 685A.190 impose simply for failing to file that quarterly statement on time?

250 dollars

1,000 dollars

500 dollars

100 dollars

Question 16: Nevada's Nonadmitted Insurance Law defines surplus lines insurance by reference to how and through whom the coverage is obtained. Under that definition, surplus lines insurance is coverage a broker procures for an insured from what type of insurer?

A domestic admitted insurer

A nonadmitted, eligible insurer

A fraternal benefit society

The state insurance fund

Question 17: A Nevada auto insurer receives a statement of charges from a body shop the insured authorized to repair a covered vehicle, and the repairs have been satisfactorily completed. Under NRS 686A.300, within what time must the insurer issue payment to avoid an unlawful delay?

Within 90 days

Within 10 days

Within 60 days

Within 30 days

Question 18: Under NRS 686A.300, when a damaged vehicle is subject to a security interest, it generally must be repaired by a licensed body shop rather than settled in cash. One exception applies when the total repair charge is small. At or below what amount does that exception apply?

300 dollars or less

500 dollars or less

1,000 dollars or less

750 dollars or less

Question 19: A Nevada agent issues a binder to provide temporary coverage while the insurer decides whether to issue a full policy. Absent an approved extension, the statute caps how long that binder may stay effective. What is the maximum effective period of a binder?

60 days

30 days

90 days

180 days

Question 20: A Nevada binder is about to reach the end of its maximum effective period, but the insurer still has not decided whether to issue the policy. The statute allows the binder to be extended, but only under a specific condition. How may the effective period be extended?

Only by issuing a new binder

Automatically for another 90 days

Indefinitely, at the agent's discretion

30 days with Commissioner's written approval

NPCI Nevada Property and Casualty Insurance Exam - Set 2 - Part 1

Question 1: A Nevada homeowners policy has been in force for more than seventy days, and the insurer now decides to cancel it during the policy term because the insured failed to pay a premium when it came due. How much advance notice must the insurer give?

Question 2: A Nevada commercial general liability policy has been in effect for six months when the insurer moves to cancel it midterm after discovering a material misrepresentation the insured made when applying. For this ground, what minimum advance notice does Nevada law require?

Question 3: Nevada limits an insurer's ability to cancel a policy midterm, but those limits apply only after a policy has been in effect for a defined minimum time or has been renewed. For how long must a policy have been in effect before the restrictions apply?

Question 4: A Nevada insurer issued a business owners policy for a three-year term. It now wants to cancel the policy at an upcoming anniversary date rather than midterm. Because this is a commercial policy written for longer than one year, how much notice must the insurer provide?

Question 6: Nevada generally requires an insurer to give advance notice before it may decline to renew a policy. The statute lists a few situations in which that notice duty does not apply. Which of the following removes the insurer's obligation to give a nonrenewal notice?

Question 7: Nevada's rating law states the central standard that every property and casualty insurance rate must satisfy, and it repeats the same three-word formula in its statement of purposes. Under NRS 686B.050, insurance rates in Nevada must not be which of the following?

Question 8: Before a new or changed property and casualty rate may take effect in Nevada, an authorized insurer or rate service organization must file it with the Commissioner ahead of the proposed effective date. What is the minimum lead time the statute requires for that filing?

Question 10: When a Nevada insurer sets up rate classifications, the rating law allows many risk-based distinctions but flatly forbids grouping insureds on certain personal characteristics. Under NRS 686B.060, a rate classification may not be based on which of the following?

Question 11: The Nevada content outline lists NRS 680A.300 under the heading of countersigning of policies, but the statute's actual text addresses a different requirement. Under NRS 680A.300, an authorized insurer generally may write insurance on Nevada risks only in what manner?

Question 12: Before a Nevada surplus lines broker may place coverage with a nonadmitted insurer, the transaction must satisfy several statutory conditions for export. Which of the following is one of the conditions NRS 685A.040 imposes before insurance may be exported to an unauthorized insurer?

Question 13: A Nevada surplus lines broker must pay premium tax on the coverage it places with nonadmitted insurers. The surplus lines chapter sets that tax by cross-reference to the general premium tax rate rather than stating a figure itself. What is that rate?

Question 14: Nevada surplus lines brokers file reports and pay the premium tax on a quarterly schedule, with each filing covering the quarter that ended at the preceding calendar-quarter close. On which set of dates are those quarterly surplus lines reports and payments due?

Question 15: A Nevada surplus lines broker fails to file the quarterly statement that the surplus lines law requires. Separate from any tax delinquency penalty, what specific penalty does NRS 685A.190 impose simply for failing to file that quarterly statement on time?

Question 16: Nevada's Nonadmitted Insurance Law defines surplus lines insurance by reference to how and through whom the coverage is obtained. Under that definition, surplus lines insurance is coverage a broker procures for an insured from what type of insurer?

Question 17: A Nevada auto insurer receives a statement of charges from a body shop the insured authorized to repair a covered vehicle, and the repairs have been satisfactorily completed. Under NRS 686A.300, within what time must the insurer issue payment to avoid an unlawful delay?

Question 18: Under NRS 686A.300, when a damaged vehicle is subject to a security interest, it generally must be repaired by a licensed body shop rather than settled in cash. One exception applies when the total repair charge is small. At or below what amount does that exception apply?

Question 19: A Nevada agent issues a binder to provide temporary coverage while the insurer decides whether to issue a full policy. Absent an approved extension, the statute caps how long that binder may stay effective. What is the maximum effective period of a binder?

Question 20: A Nevada binder is about to reach the end of its maximum effective period, but the insurer still has not decided whether to issue the policy. The statute allows the binder to be extended, but only under a specific condition. How may the effective period be extended?

Need Guaranteed Results?