Nevada Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Nevada?
- a.Nevada Division of Insurance✓
- b.Nevada Department of Motor Vehicles
- c.Nevada Gaming Control Board
- d.Nevada Secretary of State
Nevada regulates insurers and licenses P&C producers through the Nevada Division of Insurance (verified at doi.nv.gov), which operates within the Department of Business and Industry. The DMV enforces vehicle registration and continuous-insurance requirements but does not license producers.
A Nevada producer offers a client cash equal to part of the commission as an inducement to buy an auto policy. Under Nevada's unfair trade practices rules, this is:
- a.Permitted if disclosed to the insurer
- b.Permitted for renewals only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Rebating — giving any part of the premium or commission, or other valuable consideration, as an inducement to buy — is a prohibited unfair trade practice and can cause unfair discrimination among similar insureds. It is grounds for discipline by the Nevada Division of Insurance.
Under Nevada law, once a personal auto or homeowners policy has been in force beyond its initial period, mid-term cancellation by the insurer is generally allowed only:
- a.For any reason with no notice
- b.For specific statutory reasons such as nonpayment of premium, fraud, or a substantial increase in risk, with required advance written notice✓
- c.Only within 24 hours of issuance
- d.Never, because in-force policies can never be cancelled
Nevada restricts mid-term cancellation of seasoned personal-lines policies to defined grounds (for example nonpayment, fraud, or a material increase in the hazard) and requires advance written notice. Specific notice day-counts are set by statute; verify current figures with the Nevada Division of Insurance.