Free Nevada Life practice questions

Answer: B. It must cover the fill and may apply the copayment and deductible to it.

Nevada requires a group health policy that covers prescription drugs to cover a fill of less than a 30-day supply when the purpose is synchronizing chronic medications, the prescriber or the pharmacist determines the short fill is in the insured's best interest, and the insured requests it. The insurer may apply a copayment and deductible to that fill, so a rule barring all cost-sharing overstates the protection. The insurer may not deny such a fill when the drug is otherwise approved for coverage, which defeats the full-supply argument. Either the prescriber or the pharmacist may make the determination, so limiting it to the prescriber is wrong. The section does not reach controlled substances or unit-of-use packaging where synchronization is not practicable, and neither applies here.

Answer: D. 60 days from the date the order becomes final

Nev. Rev. Stat. Sec. 686C.340 halts every Nevada court case to which the impaired or insolvent insurer is a party for 60 days, counted from the date the order of liquidation, rehabilitation or conservation becomes final, so the Association has time to take proper legal action on matters within its powers and duties. The same section lets the Association ask the court that entered a default judgment to set it aside and then defend on the merits. Thirty, 120 and 180 days are not the length of this stay.

Answer: A. Not more than $1,000 for each violation

Nevada prohibits selling, soliciting or negotiating any class of insurance without a license for that class. A person required to be licensed who transacts insurance without one faces an administrative fine of up to $1,000 per violation. The cap applies to each violation rather than to the total, so a single $1,000 ceiling for all violations is wrong, and the $500 and $5,000 figures are not the amount the statute states.

Answer: C. She begins receiving commissions on policies covering Nevada risks

Nevada exempts an officer, director or employee of an insurer or producer from licensing when the person's work is executive, administrative, managerial or clerical and only indirectly related to selling, soliciting or negotiating insurance, but only if the person receives no commission on policies written or sold on risks in Nevada. Receiving commissions on Nevada risks removes the exemption. Full-time status is not a condition of this exemption. Supervising clerical staff is managerial work, which the exemption covers. Processing renewal paperwork is clerical work that remains indirectly related to sales.

Answer: D. 10 days from the date the policy is delivered to the owner

Nevada requires a life policy that is not a replacement to carry a provision or attached notice giving the owner 10 days from delivery to return it to the insurer with a written request to cancel, in which case the insurer refunds the premium paid, including any policy fees or other charges. Because this is the client's first policy, it replaces nothing, so the 30-day period Nevada gives for replacement policies does not apply. Counting from the application date is wrong because the period begins when the policy is delivered. Twenty days is a period the statute does not use.

Answer: D. At least $300,000 in money, cash equivalents or publicly traded securities, excluding the donor's transfer for this annuity

Nevada defines a qualified charitable-gift annuity partly by the issuer's finances on the date of issuance: the charity must own at least $300,000 in money, cash equivalents or publicly traded securities, not counting the amount transferred to it for the annuity. It must also have operated continuously for at least 3 years, or be a successor or affiliate of a charity that has. Counting the donor's own transfer is exactly what the definition leaves out. The test is $300,000 in those holdings, not $1,000,000 in assets of any kind, and it measures what the charity owns rather than a deposit held by the Commissioner.

Answer: D. Written notice, return receipt requested, at least 30 days before the transfer's effective date

NRS 686C.2245(3) requires the transferring party to give the affected reinsurer written notice, return receipt requested, no less than 30 days before the effective date of the transfer. Oral notice does not meet the writing requirement, notice sent after the transfer misses the advance deadline, and the section calls for notice to the reinsurer itself, not newspaper publication.

Answer: A. Once 60 days have passed since the filing, or earlier if the Commissioner gives written prior approval

Under Nev. Rev. Stat. Sec. 690A.085(2), a credit insurance item that must be filed with the Commissioner cannot be issued or put to use until 60 days have run from the filing, unless the Commissioner's written prior approval comes sooner. Issuing the certificate right away is wrong because the statute imposes that waiting period before any use. A 30-day review period is wrong: the review window in this section is 60 days, and the 30 days that appear in the section concern how soon a hearing is granted after an insurer asks for one in writing following a disapproval. A hearing is not a precondition to use; the section provides for a hearing only after a disapproval or when the Commissioner proposes to withdraw an approval.

Answer: A. Pass the information to the appropriate district attorney or the Attorney General

When the Commissioner has reason to believe a person violated the Insurance Code or other insurance law and believes criminal prosecution would be in order, Nevada law requires the Commissioner to give the information to the appropriate district attorney or to the Attorney General. The prosecutor then promptly brings whatever action or proceeding the prosecutor judges the information requires or justifies. The statute sets no condition that a license hearing finish first, it does not name the NAIC as the recipient, and it places the decision to bring criminal proceedings with the district attorney or Attorney General rather than with the Commissioner.

Answer: A. Within 30 days after the request

When the Commissioner issues an emergency cease and desist order against an insurer engaged in unauthorized insurance, the statute requires a hearing within 30 days after the insurer asks for one, conducted in accordance with the general hearing statute. The 60, 20 and 45 day answers each differ from the 30 days this provision sets for a hearing requested after an emergency cease and desist order.