Advice from commissioner: Use experts, ask questions

At the Nevada Division of Insurance we always recommend that businesses utilize the expertise of their agents or brokers and communicate their concerns and questions about their policies.

When you're purchasing insurance, your broker works for you, and your agent represents your insurance company. You should feel comfortable asking either your broker or your agent any question. Businesses need to understand their policies and should make sure that their agents or brokers explain the coverage being provided. Some important questions to ask include:

* Is this policy subject to audit at expiration? If so, would you be entitled to receive a premium refund or be required to pay additional premium if justified by the audit?

* If the policy or one of the coverages on the policy is cancelled midterm, what proportion of the premium are you entitled as a refund? Nevada does not typically permit premiums to be considered "fully earned," however there are certain exceptions.

* What are the requirements for reporting a claim?

* What coverage exclusions create a potential problem for your business operations?

As always, the division encourages businesses to verify that the insurance company, broker, or agent they are doing business with are licensed and authorized to conduct business in the state of Nevada. This can be done on the web at DOI.NV.GOV or by calling (888) 872-3234.

Scott Kipper is commissioner of the Nevada Division of Insurance. Contact him at 687-0700 or through www.doi.nv.gov.