PILB - Private Investigators Licensing Board Licensing and Business Operations Questions and Answers — Questions and Answers
Question 1: According to NRS Chapter 648, what is the primary purpose of the liability insurance that a private investigator licensee must maintain?
- To cover operational expenses in case of business failure.
- To act as a form of professional errors and omissions coverage for the investigator.
- To provide financial protection for third persons against liability. (Correct answer)
- To ensure payment of state licensing fees and taxes.
Correct answer: To provide financial protection for third persons against liability.
NRS 648.135 requires licensees to be covered by a policy of insurance for protection against liability to third persons. This is a general liability policy designed to protect the public from potential harm caused by the licensee's actions, not to cover the licensee's own business expenses, professional errors, or fees.
Question 2: A newly licensed private investigator in Nevada creates a website and business cards to advertise their services. Which of the following pieces of information MUST be included in all advertisements according to PILB regulations?
- A list of all past clients served.
- A guarantee of confidentiality for all cases.
- The physical address of the investigator's home office.
- The license number issued by the PILB. (Correct answer)
Correct answer: The license number issued by the PILB.
According to NRS 648.148 and NAC 648.525, every advertisement by a licensee soliciting or advertising business must contain the licensee's name and license number as they appear in the records of the Board. This allows potential clients to verify the investigator's credentials.
Question 3: A licensed private investigator employs a registered employee. The employee, while conducting surveillance, commits an act that violates Nevada law. Which of the following statements best describes the licensee's responsibility in this situation?
- The licensee and the employee are both held responsible for the violation by the PILB. (Correct answer)
- The licensee is only responsible if they directly ordered the employee to commit the illegal act.
- Only the employee is responsible, as they are a registered adult who committed the act.
- The licensee is not responsible as long as the employee has signed a company policy agreement.
Correct answer: The licensee and the employee are both held responsible for the violation by the PILB.
NRS 648.140 makes it clear that the licensee is responsible for the conduct of their employees. A violation of the chapter by an employee is grounds for disciplinary action against the licensee. The PILB holds the primary license holder accountable for the actions of those they employ.
Question 4: A licensed Nevada private investigator moves their primary business office from one street to another within the same city. What is the investigator's obligation to the PILB regarding this change?
- They have no obligation to notify the PILB as long as the move is within the same city.
- They must provide written notice to the PILB within 30 days. (Correct answer)
- They must surrender their license and reapply for a new one for the new location.
- They must notify the PILB after the next license renewal period.
Correct answer: They must provide written notice to the PILB within 30 days.
Per NRS 648.142, a licensee must notify the Board in writing of any and all changes of his or her address within 30 days after such change. Failure to do so can result in disciplinary action.
Question 5: A private investigator's corporate license is contingent upon having a qualifying agent. If the qualifying agent unexpectedly resigns, what is the maximum amount of time the corporation may continue to operate while seeking a replacement?
- 30 days
- 60 days
- 90 days
- 120 days (Correct answer)
Correct answer: 120 days
According to NAC 648.520, if a corporation loses its qualifying agent, it may continue its operations for no more than 120 days. Within this timeframe, the corporation must submit an application for a new qualifying agent to the Board.
Question 6: Which of the following is a mandatory element that must be included in a written service agreement or contract between a private investigator and a client in Nevada?
- The signatures of the client and the licensee or their representative. (Correct answer)
- A clause guaranteeing a specific outcome for the investigation.
- The client's social security number for identity verification.
- A notarized statement from a third-party witness.
Correct answer: The signatures of the client and the licensee or their representative.
NAC 648.300 outlines the requirements for contracts, specifying they must be in writing and include the date, fee structure, nature of the investigation, and the signature of the client and the licensee or the licensee's authorized representative. The signatures are essential for making the agreement valid.
PILB - Private Investigators Licensing Board Licensing and Business Operations Questions and Answers
According to NRS Chapter 648, what is the primary purpose of the liability insurance that a private investigator licensee must maintain?