NPCI Nevada Property and Casualty Insurance Exam - Set 1 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: The Nevada Insurance Code defines a managing general agent partly by the authority the person exercises over an insurer's field force of agents. Which authority does the Code identify as characteristic of a managing general agent for an insurer?

Authority to license other producers

Authority to enact state insurance law

Authority to appoint and terminate agents

Authority to examine other insurers

Question 42: The Nevada Insurance Code penalizes a person who acts as an administrator without holding the required certificate of registration from the Commissioner of Insurance. What administrative fine does Nevada law provide for a person acting as an administrator without that certificate?

No fine at all

Exactly one hundred dollars

At least ten thousand dollars

Three hundred to two thousand dollars

Question 43: The Nevada Insurance Code defines an administrator and enumerates the several distinct ways in which a person can qualify as one under that definition. Roughly how many separate ways to be an administrator does the statutory definition actually set out?

Seven ways

Only two ways

As many as twenty ways

Only a single way

Question 44: The Nevada Insurance Code penalizes a person who acts as, offers to act as, or holds out as a producer of insurance without holding the required license. What administrative fine does Nevada law authorize for acting as an unlicensed producer of insurance?

At least fifty thousand dollars

Exactly ten dollars each year

Up to one thousand dollars per violation

No penalty is authorized

Question 45: After an insolvency, the Nevada guaranty association pays most covered claims subject to a per-occurrence cap, yet it treats one category of claim without that cap. How does the association handle a covered workers compensation claim of an insolvent insurer?

It caps the claim at ten thousand

Capped at three hundred thousand dollars

It pays nothing on the claim

It pays the claim in full

Question 46: A Nevada insurer that pays assessments to the Nevada Insurance Guaranty Association may recover part of that cost over time through a premium tax credit. Under the Nevada Insurance Code, how may a member insurer recover its guaranty association assessments through that credit?

One hundred percent in a single year

Twenty percent yearly over five years

Five percent yearly over twenty years

It may never be recovered at all

Question 47: The Nevada Insurance Guaranty Association excludes certain first-party claims from coverage based on the net worth of the insured making the claim. A first-party claim is excluded when it is made by an insured whose net worth is greater than what amount?

Ten million dollars

One hundred thousand dollars

Twenty-five million dollars

One million dollars

Question 48: The Nevada Insurance Guaranty Association responds when a covered insurer becomes insolvent, but the term insolvent insurer is limited to a particular kind of company. Which requirement must a company have met to count as an insolvent insurer whose claims the association covers?

It operated as a foreign bank

It was an unauthorized surplus lines insurer

It held a certificate of authority

It was a self-insured employer

Question 49: Nevada's rebating statutes prohibit unlawful rebates in property and casualty insurance and attach a penalty to a violation of that prohibition. Under the Nevada Insurance Code, how is a violation of the property and casualty rebating prohibition classified?

As no offense at all

As a category B felony

As a category D felony

As a misdemeanor

Question 50: Nevada's property and casualty unfair discrimination statute forbids treating truly comparable insureds differently, and it measures fairness by a particular standard of comparison. Against what standard does the statute judge whether discrimination among property and casualty insureds is unfair?

Insureds who are exactly the same age

Insureds having like insuring or risk characteristics

Insureds living in the same county

Insureds who share an identical name

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