The plan of operation of the Nevada Insurance Guaranty Association must give a member insurer a route to challenge a final action or decision of the Association. To whom, and within what time, may an aggrieved member insurer appeal?

To the Commissioner of Insurance, within 30 days after the action or decision

An insurer ends a Nevada producer's appointment because the insurer is withdrawing from a line of business, not because of any misconduct. What must the insurer do with respect to the Commissioner?

Notify the Commissioner within 30 days after the termination takes effect

The Nevada Commissioner of Insurance schedules an examination of an authorized alien insurer. Unless the Commissioner requires otherwise, what is the scope of that examination?

Its insurance business, assets and trust deposits within the United States

To be a qualified financial institution in the United States under NRS 681A.140, an institution must meet several elements, one of which concerns its financial condition and standing. Which of the following satisfies that element?

The Commissioner determines that it meets the financial condition and standing standards the Commissioner prescribes.

A court enters a liquidation order against an insolvent insurer and sets a final date for filing claims against the liquidator that falls 20 months after the order. A Nevada resident files a general liability claim with Nevada's insurance guaranty association 22 months after the order. Under Nevada's definition of a covered claim, how is this claim treated?

Excluded, because it came in after the court's final filing date, the earlier of the two deadlines

During one fiscal year, two claims of $4,000 each are approved for payment from Nevada's Insurance Recovery Account, both against the same licensed producer. What is the most the account can pay on claims against that producer for that fiscal year?

$5,000, because the limit applies per licensee per fiscal year

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1.A Nevada producer placed a homeowners policy that took effect June 1, 2021 and expired June 1, 2022, with no renewal. Under Nevada law, what is the earliest date on which the producer may destroy the records of that policy?
Answer: B. June 1, 2025
Nevada allows a producer to destroy the records of a particular policy 3 years after the policy expires. This policy expired June 1, 2022, so the earliest date is June 1, 2025. June 1, 2024 counts the 3 years from the date the policy took effect instead of from its expiration, June 1, 2023 is only one year after expiration, and June 1, 2027 adds two years the statute does not require. Until the records may be destroyed, they must be open to the Commissioner's examination at all times, and they may be kept electronically if they are retained as the section requires.
Source
Nev. Rev. Stat. Sec. 683A.351(3) (Records of transactions: maintenance; examination by Commissioner; destruction)
Choose an answer to see the explanation.
2.A Nevada insurer wants to cancel, midterm, a policy of industrial insurance that has been in force for eight months because the policyholder failed to pay a premium when it was due. What is the minimum written notice the insurer must give the policyholder?
Answer: B. 10 days' written notice
Nevada limits midterm cancellation of an industrial insurance policy to a list of grounds, and the notice the insurer owes depends on which ground it relies on. When the ground is the policyholder's failure to pay a premium when due, the insurer must give at least 10 days' written notice, sent by first-class mail to the policyholder's address shown in the policy. The 30-day period is wrong here because it applies to the other listed grounds, such as failing to report payroll or allow a payroll audit, a material misrepresentation, or failing to cooperate in a claim investigation. Neither 15 days nor 60 days is a notice period this section sets for a cancellation sent to the policyholder.
Source
Nev. Rev. Stat. Sec. 687B.325(2) (Industrial insurance policies: Grounds for midterm cancellation; notice to policyholder)
Choose an answer to see the explanation.
3.The plan of operation of the Nevada Insurance Guaranty Association must give a member insurer a route to challenge a final action or decision of the Association. To whom, and within what time, may an aggrieved member insurer appeal?
Answer: B. To the Commissioner of Insurance, within 30 days after the action or decision
Nev. Rev. Stat. Sec. 687A.070(3)(g) requires the plan of operation to let any member insurer aggrieved by a final action or decision of the Association take an appeal to the Commissioner, and the appeal must be made within 30 days after that action or decision. The Association's own Board of Directors is not the appeal forum the section names, 90 days is longer than the period the section allows, and the section sends the appeal to the Commissioner rather than to a federal court.
Source
Nev. Rev. Stat. Sec. 687A.070(3)(g) (Plan of operation: Submission; amendments; approval by Commissioner; compliance; contents)
Choose an answer to see the explanation.
4.An insurer ends a Nevada producer's appointment because the insurer is withdrawing from a line of business, not because of any misconduct. What must the insurer do with respect to the Commissioner?
Answer: C. Notify the Commissioner within 30 days after the termination takes effect
An insurer that ends a producer's appointment, employment or other relationship for any reason must report it to the Commissioner no later than 30 days after the termination takes effect, using a form the Commissioner prescribes. The duty is not limited to terminations for cause. The 15 day period in the same section is a later step: within 15 days after notifying the Commissioner, the insurer must mail the producer a copy of the notification. The producer's written comments come after that, within 30 days after the producer receives the notification, so they are not a precondition to the insurer's report.
Source
Nev. Rev. Stat. Sec. 683A.331(1) (Termination of appointment, employment or other relationship of producer to insurer)
Choose an answer to see the explanation.
5.A Nevada surplus lines broker wrote coverage during the calendar quarter ending December 31 for insureds whose home state is Nevada. By what date must the broker submit that quarter's tax filing and payment?
Answer: D. February 15
Nevada sets four quarterly due dates for a surplus lines broker's tax filing and payment: February 15 for the quarter ending December 31, May 15 for the quarter ending March 31, August 15 for the quarter ending June 30, and November 15 for the quarter ending September 30. For the quarter ending December 31, the filing and payment are due February 15. January 15 and January 31 are earlier than the date the statute sets, and March 31 is the end of the next quarter in the schedule rather than a due date.
Source
Nev. Rev. Stat. Sec. 685A.175(2)(a) (Quarterly report and payment of tax by certain brokers)
Choose an answer to see the explanation.
6.The Nevada Commissioner of Insurance schedules an examination of an authorized alien insurer. Unless the Commissioner requires otherwise, what is the scope of that examination?
Answer: D. Its insurance business, assets and trust deposits within the United States
Nev. Rev. Stat. Sec. 679B.230(3) confines the examination of an alien insurer to its insurance transactions, assets, trust deposits and affairs in the United States, unless the Commissioner requires otherwise. A worldwide examination goes beyond that default limit. Restricting the examination to Nevada business alone is narrower than the statute, which reaches the insurer's affairs throughout the United States. The section does not make the scope depend on what a foreign regulator chooses to disclose.
Source
Nev. Rev. Stat. Sec. 679B.230(3) (Examination of insurers)
Choose an answer to see the explanation.
7.An insurer domiciled in Nevada asks the Commissioner to designate it as a domestic surplus lines insurer. Absent an affirmative finding of acceptability by the Commissioner, what minimum capital and surplus must the insurer possess?
Answer: B. $15,000,000
Nevada allows the Commissioner to designate an insurer domiciled in this State as a domestic surplus lines insurer if it has capital and surplus of at least $15,000,000, or if the Commissioner makes a separate affirmative finding of acceptability. The designation must be in writing. Five million and ten million dollars fall below the statutory figure, and $25,000,000 overstates it.
Source
Nev. Rev. Stat. Sec. 685A.072(1)(a) (Domestic surplus lines insurer: Designation; authority)
Choose an answer to see the explanation.
8.To be a qualified financial institution in the United States under NRS 681A.140, an institution must meet several elements, one of which concerns its financial condition and standing. Which of the following satisfies that element?
Answer: B. The Commissioner determines that it meets the financial condition and standing standards the Commissioner prescribes.
Under Nev. Rev. Stat. Sec. 681A.140(3)(a), the financial condition and standing element is met when the Commissioner determines the institution meets standards the Commissioner prescribes; paragraph (b) offers the alternative of a determination by the National Association of Insurance Commissioners against its own standards. An institution's own sworn statement is neither route. A board resolution fails because the NAIC route requires the NAIC itself to make the determination. A foreign regulator's certificate does not satisfy the element, and the definition separately requires organization or licensing under United States or state law and regulation by federal or state banking authorities.
Source
Nev. Rev. Stat. Sec. 681A.140(3)(a) (Qualified financial institution in the United States defined)
Choose an answer to see the explanation.
9.A court enters a liquidation order against an insolvent insurer and sets a final date for filing claims against the liquidator that falls 20 months after the order. A Nevada resident files a general liability claim with Nevada's insurance guaranty association 22 months after the order. Under Nevada's definition of a covered claim, how is this claim treated?
Answer: B. Excluded, because it came in after the court's final filing date, the earlier of the two deadlines
Nevada excludes from the definition of a covered claim any claim filed with the guaranty association more than 25 months after the liquidation order, or after the court's final date for filing claims against the liquidator or receiver, "whichever is earlier." Here the court's date came first, at 20 months, and the claim arrived at 22 months, so it is excluded. Treating the claim as covered because it beat the 25-month mark ignores the earlier court date, and saying the 25 months always overrides the court date reverses the earlier-deadline rule. A 12-month limit does not appear in the provision; its outer limit is 25 months. The provision carves out reopened workers' compensation claims, and this general liability claim is not one of them.
Source
Nev. Rev. Stat. Sec. 687A.033(2)(e) (Covered claim defined)
Choose an answer to see the explanation.
10.During one fiscal year, two claims of $4,000 each are approved for payment from Nevada's Insurance Recovery Account, both against the same licensed producer. What is the most the account can pay on claims against that producer for that fiscal year?
Answer: B. $5,000, because the limit applies per licensee per fiscal year
Nev. Rev. Stat. Sec. 679B.305(4) sets the limit of liability of the Insurance Recovery Account at $5,000 per fiscal year for any one licensee. The two claims total $8,000, but the account can pay no more than $5,000 on claims against that producer in that fiscal year. The limit is stated per licensee per fiscal year, not per claim, so paying $8,000 is wrong. The section does not restrict payment to the first claim filed. The $40,000 figure is the minimum balance subsection 2 requires the account to maintain, not the liability limit for one licensee.
Source
Nev. Rev. Stat. Sec. 679B.305(4) (Insurance Recovery Account: limit of liability)
Choose an answer to see the explanation.

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1.A Nevada producer placed a homeowners policy that took effect June 1, 2021 and expired June 1, 2022, with no renewal. Under Nevada law, what is the earliest date on which the producer may destroy the records of that policy?

2.A Nevada insurer wants to cancel, midterm, a policy of industrial insurance that has been in force for eight months because the policyholder failed to pay a premium when it was due. What is the minimum written notice the insurer must give the policyholder?

3.The plan of operation of the Nevada Insurance Guaranty Association must give a member insurer a route to challenge a final action or decision of the Association. To whom, and within what time, may an aggrieved member insurer appeal?

4.An insurer ends a Nevada producer's appointment because the insurer is withdrawing from a line of business, not because of any misconduct. What must the insurer do with respect to the Commissioner?

5.A Nevada surplus lines broker wrote coverage during the calendar quarter ending December 31 for insureds whose home state is Nevada. By what date must the broker submit that quarter's tax filing and payment?

6.The Nevada Commissioner of Insurance schedules an examination of an authorized alien insurer. Unless the Commissioner requires otherwise, what is the scope of that examination?

7.An insurer domiciled in Nevada asks the Commissioner to designate it as a domestic surplus lines insurer. Absent an affirmative finding of acceptability by the Commissioner, what minimum capital and surplus must the insurer possess?

8.To be a qualified financial institution in the United States under NRS 681A.140, an institution must meet several elements, one of which concerns its financial condition and standing. Which of the following satisfies that element?

10.During one fiscal year, two claims of $4,000 each are approved for payment from Nevada's Insurance Recovery Account, both against the same licensed producer. What is the most the account can pay on claims against that producer for that fiscal year?

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