Free Nevada Casualty practice questions

Answer: B. At least 3 days before the hearing

Nev. Rev. Stat. Sec. 687A.107 lets the Commissioner hold a hearing on whether an insurer is insolvent under the court-order branch of the definition in Sec. 687A.035(2), and it requires the Commissioner to notify the insurer at least 3 days before that hearing. Fifteen days is the period the same section gives the Commissioner to make a written determination after the hearing, so it is the wrong period for notice. The section sets 3 days as the notice period, not 10 days or 30 days.

Answer: C. It is deemed an official act of the Commissioner, as if the Commissioner had acted

Nev. Rev. Stat. Sec. 679B.110(1) lets the Commissioner delegate any power, duty or function to a deputy, an examiner or a Division employee, and it expressly reaches discretionary functions as well as ministerial ones. Subsection 2 provides that the official act of a delegate acting in the Commissioner's name and by the Commissioner's authority is deemed an official act of the Commissioner. The order therefore takes effect as the Commissioner's own act. Personal ratification is not required by the section, the ministerial-only limit contradicts the express reference to discretionary functions, and the section attaches no hearing requirement to a delegate's act.

Answer: D. 40 days from the date of service on the Commissioner

NRS 685A.200(3) gives the defendant unauthorized insurer 40 days, counted from service of the summons and complaint on the Commissioner, to plead, answer or defend. The clock starts with service on the Commissioner, not with the Division forwarding a copy or the insurer receiving it, so the options counting from those later events misstate when the period begins. Neither 20 days nor 30 days is the period this section provides.

Answer: D. Payment is barred, because Jordan solicited insurance without a required license

An insurer or a producer may not pay a commission, service fee, brokerage or other valuable consideration to someone for selling, soliciting or negotiating insurance in Nevada if that person must be licensed and is not. Jordan solicited insurance without a required license, so the producer may not share the commission. The prohibition reaches producers as well as insurers, covers any valuable consideration rather than only payments labeled commissions, and sets no percentage below which a share is allowed.

Answer: D. It carries the same statutory duties as if no other producer were involved and keeps the required records on it

Under the Nevada rule on business from other producers, a broker who accepts business from a producing agent or broker takes on the same statutory responsibilities and obligations that would apply if no other producer were involved. The broker must also keep the records and files required by NRS 685A.160 and NAC 685A.250 on coverage it places for that producer. The duties do not shift to the originating producer and are not split with that producer, and the recordkeeping duty stays with the broker.

Answer: C. $100 per month, from the city, town or district where the patrol serves

NRS 616A.170 deems junior traffic patrol members, who are schoolchildren chosen by school officials (or school and local officials) to patrol crossings on school days, to be employees receiving $100 per month from the city, town or school district in which they perform their duty, and entitles them to benefits if injured on that duty. The $250 figure is the deemed wage for school district trustees, $150 from the Division of Social Services applies to job training participants, and $2,000 from the State applies to members of the Nevada Legislature.

Answer: C. At least 3 months

Nevada's bail solicitor qualifications require the applicant to be a resident of the state who has lived here for not less than 3 months immediately preceding the license application. The solicitor provision sets 3 months, so 30 days, 6 months and 1 year all misstate its residency period.

Answer: A. Through the NAIC's System for Electronic Rate and Form Filing

Nev. Admin. Code Sec. 686B.100(1) requires every rate, rule or form that must be filed under chapter 686B of NRS to go through the System for Electronic Rate and Form Filing, which the National Association of Insurance Commissioners developed and implemented. A mailed paper filing, an email to the Commissioner, or an electronic system of the insurer's own choosing does not meet the rule, because the rule names that one system.

Answer: C. The insured had no at-fault crash and kept a driving record free of violations

NRS 690B.029(1) requires a Nevada auto liability policy issued to a person 55 or older to provide a premium reduction for 3-year periods when the insured completes an approved traffic safety course after reaching 55 and every 3 years thereafter, and, for the 3-year period before the course, was in no crash for which the insured was at fault, kept a violation-free driving record, and has no conviction or plea for a moving violation or a listed impaired-driving offense. The statute does not require continuous coverage with one insurer, does not disqualify an insured for claims other than at-fault crashes, and sets no 90-day window before renewal.

Answer: A. A domestic insurer, because it was formed under Nevada law

Nev. Rev. Stat. Sec. 679A.090(1)(a) defines a domestic insurer as one formed under the laws of Nevada, unless it has converted into a foreign insurer. This insurer was formed in Nevada and never converted, so it is domestic. A foreign insurer is one formed under the laws of a jurisdiction other than Nevada, and an alien insurer is one formed under the laws of a country other than the United States, so neither label fits. These definitions turn on the law under which the insurer was formed or into which it converted, not on where a particular policy is issued.