Nevada Property & Casualty Insurance License Exam — All Questions

What are Nevada's minimum auto liability limits for a registered private passenger vehicle?

• a.$15,000 / $30,000 / $10,000
• b.$25,000 / $50,000 / $20,000✓
• c.$25,000 / $50,000 / $25,000
• d.$50,000 / $100,000 / $50,000

Per the Nevada Division of Insurance (doi.nv.gov), the minimum is $25,000 bodily injury per person, $50,000 per accident, and $20,000 property damage (25/50/20), effective July 1, 2018. These are minimums that can be raised by law, so confirm current figures with the state.

In Nevada, uninsured/underinsured motorist (UM/UIM) coverage:

• a.Pays the other driver's damages when your client is at fault
• b.Is prohibited by state law
• c.Is available to protect the insured when an at-fault driver is uninsured or has too little insurance✓
• d.Replaces the client's collision coverage

The Nevada Division of Insurance describes UM/UIM as coverage that applies when the other (at-fault) driver either has no insurance or not enough. It protects the policyholder and covered occupants, not the at-fault driver. Whether it is mandatory or offered, and at what limits, is set by statute — verify current rules with the Division of Insurance.

Nevada requires that every active vehicle registration be continuously covered by liability insurance. What commonly happens if that coverage lapses?

• a.The DMV can flag the registration and impose reinstatement fees or suspension until coverage is restored✓
• b.Nothing, because insurance is optional in Nevada
• c.The producer, not the owner, is fined
• d.The vehicle is automatically re-registered in another state

The Nevada Division of Insurance notes that all active vehicle registrations must have continuous liability insurance. A lapse can trigger a DMV insurance-lapse notice, fees, and possible registration suspension until the owner shows current coverage. Producers should warn clients not to cancel until replacement coverage is in force.