Nevada Property and Casualty (P&C) Practice Exam

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• An insured has a condition in their casualty insurance policy that allows for inspection of financial records at the end of the term. What is this condition called?
• What type of compensatory damages are awarded for pain and suffering and disfigurement?
• If a property is left unattended in a commercial policy, what requirement can protect against a loss from theft?
• If the Commissioner denies an application for an insurance license, what happens regarding a hearing?
• What is the most straightforward definition of peril?
• Which coverage is typically excluded from a standard homeowners policy?
• Which of the following is NOT covered by the accounts receivable coverage form?
• What is the total reimbursement amount for an insured with a standard HO-4 policy who suffers a loss of $20,000 in valuables after depreciation?
• What method of valuation is used to insure the property described as costing $150,000 to rebuild but having an offer of only $80,000?
• Which type of insurance provides coverage for property damage and personal injuries to others?
• A commercial package policy (CPP) allows the insured to customize their coverage. What type of coverage can they NOT choose in a CPP?
• Which factor typically influences the cost of a property insurance premium?
• Which of the following best describes 'agreed value' coverage?
• What does the physicians and surgeons equipment floater cover?
• What is considered when a direct chain of events resulting from a negligent act leads to injury or damage?
• In an insurance context, what does the term "aggregate limit" refer to?
• What does the mobile home endorsement cover?
• What endorsement adds coverage for employee use of automobiles during business use of rented autos?
• What is the purpose of a Commercial Fine Arts Floater?
• How is replacement cost defined in property insurance?
• Individuals in the business of selling construction equipment and mobile equipment should be insured with which form?
• What type of damages may be awarded by the court to create disincentives that discourage behavior deemed highly undesirable by society?
• What unique feature does a bailee form provide regarding customer property?
• What principle aims to determine the cost of insurance based on large amounts of historical data?
• What is the term for the requirement that agents must account for all insurance funds collected?
• In a liability policy where the limit applies to both bodily injury and property damage from one accident, what type of limit does the insured have?
• What type of property does a Personal Floaters policy primarily cover?
• When a $24,000 loss occurs with coverage from two insurers using the pro rata method, how much will Company A pay if it has $100,000 in coverage?
• In which type of insurance policy are the damages capped based on the occurrence of each individual claim?
• All of the following are special personal property limits under a homeowners policy EXCEPT?
• Which situation is NOT covered by the basic Causes of Loss form in a commercial property policy?
• Which of the following is NOT required for an insurance contract to be legally binding?
• What is the term for damage that occurs suddenly and accidentally as opposed to gradual damage?
• When must insurable interest be proven in a property insurance policy?
• Who qualifies as an insured under a business auto coverage form?
• What must a policyowner establish to legally purchase insurance on a property?
• What happens if a claim is made after the limitations period specified in a policy?
• What is the main difference between an HO-4 policy and an HO-6 policy?
• What does the Garage Coverage Form provide protection for in commercial auto policies?
• What action by an insurance company will likely prompt an examination by the Commissioner?
• A person found guilty of insurance fraud is guilty of which classification of a crime?
• In what scenario would hazardous substance cleanup be covered under equipment breakdown?
• What is the contract for the transport of goods between the shipper and the carrier called?
• What is an excluded peril on most standard property forms that can be added by endorsement?
• What is the purpose of subrogation in insurance?
• Which method of loss valuation contradicts the principle of indemnity?
• An installation floater is typically used to insure which of the following?
• Which type of limit allows for coverage up to a specific limit per claim?
• What does it mean when insurance coverage is written as a stated amount?
• What does the term 'coverage limits' in an insurance policy refer to?
• Which of the following best describes the concept of coinsurance in property insurance?
• What signifies direct loss in an insurance policy?
• Under a regular bill of lading, who is responsible for the cost of damaged property?
• In a participation plan, the insured may be eligible for which of the following?
• How are state Insurance Guaranty Associations funded?
• Which of the following liability exposures is most likely for a small specialty clothing retail boutique?
• Which of the following terms does proximate cause refer to?
• How can the limits under a builders risk form be determined?
• What type of coverage might involve insuring multiple risks under one policy?
• A business income coverage form would cover all of the following situations EXCEPT?
• Which type of loss is typically excluded from most insurance policies?
• What term describes the reduction or disappearance of value of the person or property insured in a policy?
• What is the penalty for a surplus lines broker who fails to file a quarterly statement with the Commissioner?
• After three years of self-insurance, what is the minimum net worth an employer must maintain?
• What is the sublimit for hazardous substance cleanup or repair of contaminated property under equipment breakdown coverage?
• Under a dwelling policy, which of the following losses would NOT be covered if the dwelling has been vacant for over 60 days?
• What is the term for the process of determining the premium charged and how much insurance is required for a particular loss?
• When does coverage begin under the builders risk form?
• In a businessowners policy, if a building has a replacement cost of $300,000 and the company carries $150,000 of insurance, what happens if a loss occurs?
• Which type of insurance coverage typically includes personal property such as furniture and clothing?
• Which statement regarding fire department service charge coverage under the businessowners policy is false?
• How is coverage for earthquake typically treated in standard property forms?
• What does the coinsurance formula determine in relation to insurance payouts?
• In a watercraft policy, which coverage part responds to claims for damages arising from bodily injury or property damage due to a watercraft accident?
• All of the following describe strict liability EXCEPT?
• In the event of a $40,000 loss, how much will a policy pay if an insured's building with an actual cash value of $200,000 is insured for $120,000 with an 80% coinsurance clause?
• What must an insurer do after receiving a statement of charges regarding damage to a motor vehicle?
• What type of property is NOT covered under the dwelling policy special for Coverage A-Dwelling?
• In risk management, a situation where a person can only experience loss or no change is referred to as?
• During a policy renewal, what condition must an insured meet regarding previous claims?
• Which type of policy would offer coverage for a specialized collection such as art or antiques?
• Personal business property out in the open is covered under a commercial property policy only while?
• What is the primary aim of a deductible in an insurance policy?
• Which type of property valuation ensures the policy pays the full value as specified, regardless of market fluctuations?
• In the event of a loss, which duty is an insured required to fulfill according to policy conditions?
• What is the primary purpose of builders risk insurance?
• What type of coverage does Coverage E provide in homeowners policies?
• While cutting grass in your yard with your brother's borrowed lawnmower, the fuel line ruptures and the lawnmower is destroyed in the fire. How will your HO liability react?
• First aid costs for others injured on the insured's premises are treated how under liability insurance?
• Which types of property are covered by a standard builders risk form?
• Which type of insurance specifically covers damage to construction materials on site?
• In a watercraft policy, which coverage part responds to claims for damages from watercraft accidents?
• In the context of property coverage, what does the term 'building' encompass?
• When does coverage begin for a National Flood Insurance policy purchased after a community enters an emergency program?
• How does the mobilehome endorsement affect coverage for law or ordinance in a homeowners policy?
• The valuable papers and records form provides coverage for what type of documents?
• What is the part of an insurance contract that outlines the covered perils and nature of coverage?
• Which item is covered under the theatrical property floater of an Inland Marine policy?
• What constitutes a material misrepresentation in insurance?
• What must an individual obtain to function as an administrator in insurance?
• What does Coverage B - Other Structures in a homeowners policy specifically cover?
• What is the maximum time frame a policyholder has to cancel a policy without penalty if the insurer offers to renew it on different terms?
• What is the outcome when a mechanic's hoist collapses during work on a customer's car?
• What type of coverage is provided by a policy that insures a building for $100,000 and personal property for $50,000 at a single location?
• Which of the following refers to the situation where no reasonable person would expect a loss to occur?
• Which common policy condition prohibits the insured from changing the rights or duties under the policy to any other person without the written consent of the insurance company?
• What is defined as the maximum limit of coverage available under a liability policy during a policy year?
• The War, Military Act, and Terrorism Exclusion applies to terrorism incidents when damages exceed what amount?
• How can an insured's damaged accounts receivable records be covered?
• How is burglary defined in insurance terms?
• What type of property may be covered by an electronic data processing coverage form under an inland marine policy?
• What is the legal concept called when a parent is held liable for damages caused by their children?
• Which of the following is typically excluded from coverage in a standard homeowners insurance policy?
• In the event of a claim, which action should an insured take regarding the surrounding conditions?
• For which type of property is a mobilehome endorsement typically required?
• Which of the following locations would NOT be considered insured under a homeowners liability policy?
• What is the term for damages that are awarded for non-economic losses such as pain and suffering?
• What type of limit does an insured have when claims from a single incident are capped at a specific monetary amount?
• In property insurance, what does actual cash value account for?
• What is the maximum coverage for newly acquired property under the Commercial Fine Arts Floater?
• What is typically included in the insuring agreement of an insurance policy?
• According to the dwelling policy, how long does an insured have to bring a lawsuit against an insurer after a loss?
• What does Coverage D - Fair Rental Value cover in a homeowners policy?
• What is the minimum age requirement for a person seeking a bail agent's license?
• Which of the following circumstances typically requires insurance?
• What are insurance premiums based on?
• Which act protects consumers against the circulation of inaccurate or obsolete personal or financial information?
• What is the primary purpose of a uniform bill of lading in the transport of goods?
• What type of insurance coverage pays for damages to a property caused by conditions like fire or explosion?
• Which of the following statements concerning coinsurance is NOT true?
• What serves as the basis for a claim against an insurance policy?
• What type of limit does a liability policy have that sets the total must pay for a single incident at $50,000?
• If a $100,000 house has an 80% coinsurance requirement and suffers $40,000 in damage, how much can the owner collect with $60,000 coverage?
• What is the process of determining the premium charged and the required insurance amount for a loss called?
• What does the term "actual cash value" refer to in property insurance?
• In insurance terminology, what does a hazard refer to?
• How is negligence defined in legal terms?
• Which law serves as the foundation for calculating insurance rates based on the statistical prediction of loss?
• What are expenses that an organization wouldn't have incurred if there was no business interruption called?
• If an insurer intends to nonrenew a businessowners policy, how many days before expiration must they inform the mortgageholder?
• What is the role of the insurer in subrogation?
• What type of insurance policy covers all risks of loss that are not specifically excluded?
• In property insurance, what typically happens if the insured property is declared vacant?
• What term describes events or conditions that increase the chances of an insured loss occurring?
• What are common carriers required to issue to every shipper they transport goods for?
• What does the term "coinsurance" typically refer to in property insurance?
• Which of the following scenarios would likely trigger a claim under an equipment breakdown policy?
• Which statement regarding supplementary payments of a commercial general liability policy is NOT true?
• In a property insurance scenario, what is typically held accountable in a strict liability claim?
• An insured with a Homeowners policy has removed property from the insured location to protect it from loss that could occur from a covered peril. The removal coverage applies for how many days?
• Which item would NOT be covered under building coverage in a building and personal property policy?
• At what point is an offer usually made in the insurance process?
• What is the maximum coverage amount for an eligible single-family dwelling under the National Flood Insurance Program?
• An additional loss that results from a direct loss of property is referred to as what?
• If an insured's home is damaged by a fire and they need to rent an apartment until repairs are completed, which coverage applies?
• Which of the following is NOT an additional coverage in the builders risk form?
• What is the function of liability insurance in relation to claims made against an insured?
• What type of expenses might be covered by electronic data processing coverage?
• Which of the following is considered a peril covered under standard homeowners insurance?
• In property and casualty insurance, what is the term for the amount the insured must pay before the insurer covers additional loss?
• Which type of risk does not involve the possibility of profit, only the chance of loss?
• What typically happens when an insured's property policy has an agreed value clause?
• Which type of insurance policy would cover loss of income due to inability to operate a business?
• Which method of loss valuation is most likely to provide the highest payout to the insured?
• What policy should an insured condominium unit owner purchase for fire and liability coverage?
• In equipment breakdown coverage, all accidents would be considered a single accident if they occur?
• How is a businessowners policy best described?
• Which coverage form provides insurance for all incoming and outgoing shipments?
• What is a sworn written statement that must be furnished by the insured to the insurer before any loss can be paid called?
• If multiple people have an insurable interest in property covered under a dwelling policy, what is the insurer's liability?
• Under what condition is a liability policy considered to have been triggered?
• What term describes the legal process that allows an insurer to seek recovery from a third party after paying a loss?
• Which coverage protects contents from fire damage?
• What does the occurrence form trigger in terms of insurance policies?
• Professional photographers and musicians typically insure their equipment using which type of policy?
• Who has the authority to cancel a commercial package policy in writing and make changes with insurer consent?
• What endorsement provides coverage for losses arising from sudden collapse of earth due to underground limestone created by the action of water on rock formations?
• What is the most likely outcome if an insurance premium paid by an insured is determined to be too high during an audit?
• How does the mobilehome endorsement impact coverage of law or ordinance in a homeowners policy?
• What is true regarding the fire department service charge under the builders risk form?
• Which statement is true regarding single dwellings insured for at least 80% of their replacement value?
• If an insurance company claims that its policies are guaranteed by the Insurance Guaranty Association, this would be considered?
• At what point is a claim considered to have been made according to most insurance policies?
• What type of coverage would not be included in an annual transit policy?
• What does negligence refer to in the context of insurance?
• What is subrogation in the context of insurance contracts?
• Which of the following limitations is NOT specified by the broad theft coverage endorsement on the dwelling form?
• If a contract carrier's truck is broken into while the driver was away, is the carrier legally liable for the loss of cargo?
• Which of the following would be covered under the Film Coverage Form?
• Which type of property value assessment is best for properties with stable values?
• What does the term "actual cash value" refer to in property insurance?
• If an insured's house is unoccupied for 3 months while they work in another state, how is the house classified for insurance purposes?
• What term describes damage where the insured peril was the proximate cause of loss?
• If an insured owns multiple buildings each insured separately, what type of coverage do they have?
• What does robbery entail according to insurance definitions?
• What type of liability exposure concerns injuries occurring on a business's property?
• What loss valuation method does a property insurance policy use when it has a set amount scheduled for the property without coinsurance requirements?
• If an advertising company serves too much alcohol at a holiday party, will its businessowners policy provide coverage if a customer has an accident?
• Under which conditions would Coverage E be activated in a homeowners policy?
• What is typically included in a standard HO-4 policy?
• What type of loss would most likely NOT be covered under Coverage A in a dwelling policy?
• What is the primary purpose of a commercial package policy (CPP)?
• Which type of valuation is best for property whose value does not change significantly?
• What types of property does the business personal property coverage form include?
• If an insured purchased a $200,000 extra expense policy with limits of 40%, 80%, and 100%, what is the maximum payable for a 47-day loss?
• What type of policy would cover the insured against loss of rental income?
• Which factor is used in the formula for calculating the Actual Cash Value of a property?
• What type of liability limit is characterized by a total for bodily injury and property damage resulting from one accident?
• Which condition is typically NOT found in an insurance policy?
• Which policy provision in property insurance prevents double recovery for the same loss?
• Which type of Inland Marine policies become available after property is sold to the ultimate purchaser?
• Under a liability policy with split limits of 50/100/30, what is the maximum payout for injury to a single person?
• What type of liability is associated with owning wild animals?
• Which of the following is considered an additional coverage under the broad causes of loss form?
• In which scenario could a homeowner face a coinsurance penalty?
• In insurance terminology, what is a 'deductible'?
• Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?
• Which statement is true regarding the appointment of a broker by an insurance company?
• When property is lost to another through violence or the threat of violence, what is this termed in insurance?
• How can the risk of loss be classified?
• If an insured is found legally liable for the actions of their child who broke a neighbor's window, this is an example of what kind of liability?
• What is required for an insurer to process a loss claim under a policy?
• In which scenario does the jewelers block extension provide coverage?
• What type of damages may be awarded by the court to discourage undesirable behavior?
• How does the motorhome endorsement affect law or ordinance coverage in a homeowners policy?
• Which of the following is not covered under the Utility Services-Time Element endorsement?
• In a homeowners policy, which property is specifically excluded from the liability section?
• How does Coverage A - Dwelling differ from Coverage E - Additional Living Expense?
• What term describes losses from ongoing exposure to conditions that cause unintended injury or damage?
• Which of the following types of coverage protects a carrier for liability regarding lost cargo during transport?
• What is the purpose of the indemnity provision in insurance policies?
• Both the broad theft and limited theft endorsements on the dwelling program exclude all of the following types of property EXCEPT?
• Which term describes losses caused by continuous or repeated exposure resulting in injury or damage that is neither intended nor expected?
• Which location is NOT considered part of the insured location under a homeowners policy?
• What are payments for medical expenses and lost wages considered in terms of compensatory damages?
• The major portion of the premium for an equipment breakdown policy primarily covers what aspect?
• How much will an HO3 policy pay for additional living expenses if the insured's home was severely damaged by fire?
• Which coverage in a homeowners policy provides for indirect or consequential losses?
• Which definition best describes the term "accident"?
• In a commercial general liability (CGL) policy, who is NOT considered an employee?
• In the event of a fire destroying a beauty parlor, what type of loss does the owner experience?