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Nevada Property and Casualty Final
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A insurance binder is effective for no more than - ✔✔ 90 Days Mr. Underwood gave his agent a down payment for the purchase of a business insurance policy. The insurance company issued a policy that promises to pay Mr. Underwood under terms and conditions stated in the policy. What specific term is used to refer to Mr. Underwood's payment and the insurance company's promise to pay? - ✔✔Consideration Which of the following structures is not eligible for flood insurance? A. Anita's mobile home B. Jed's new home, located on a pier C. Sophie's grain silo D. Abby's travel trailer - ✔✔B. Jed's new home, located on a pier EXPLANATION:Flood insurance may only be written on a structure with two or more outside rigid walls and a fully secured roof, if it's affixed to a permanent location. Manufactured or mobile homes along with travel trailers are eligible buildings if they meet certain other criteria. Silos and grain storage buildings are also eligible. Buildings entirely over water are eligible if they were built or substantially improved before Oct. 1, 1982. Atlas Insurance Company buys insurance for itself to transfer some of the risks involved in its insurance operations. In this situation, Atlas would typically buy insurance from what kind of insurance organization?
A. Captive insurance company.
$1,500 - ✔✔B. 1,
All of the shrubbery and plants on Tippi's front lawn were destroyed by a windstorm. Will this damage be covered by the Coverages A, B, or C of her HO 3 policy? A. No, because damage to trees, shrubs, plants, or lawns is excluded from coverage. B. Yes, damage to trees, shrubs, plants, or lawns is covered regardless of the source of the damage. C. Yes, damage to trees, shrubs, plants, or lawns is covered up to $500 regardless of the source of the damage. D. No, because damage to trees, shrubs, plants, or lawns is not covered if caused by a windstorm. - ✔✔C. No, because damage to trees, shrubs, plants, or lawns is not covered if caused by a windstorm. No, because damage to trees, shrubs, plants, or lawns is not covered if caused by a windstorm? A. Bill, who collects insurance premiums and delivers policies
B. Anna, who prepares advertisements for insurance products C. Jaclyn, who negotiates insurance contracts D. Petra, who makes insurance contracts - ✔✔B. Anna, who prepares advertisements for insurance products Donaldson Insurance Company wrote premiums of $100 million last year and incurred expenses of $40 million in that same time period. What is this insurer's expense ratio? 25% 40% 75% 66⅔% - ✔✔B. 40% Bob's careless driving causes an auto accident that results in a serious, traumatic injury to a passenger. The next morning, Dick is reading a newspaper account of the gruesome accident. He suffers a heart attack. He then sues Bob, claiming that Bob caused an accident that led to his heart attack. What are his chances of recovering from Bob? A.Good. Bob's negligence cause the accident that led to Dick's heart attack.
A. A broken leg sustained by an employee who fell while on the job B. A broken leg sustained by a customer who fell in the parking lot C. A sprained ankle sustained by the owner of Weingold Plumbing D. A sprained ankle sustained by a tenant of the building owned by Weingold Plumbing - ✔✔B. A broken leg sustained by a customer who fell in the parking lot Joseph is the newly appointed Commissioner of Insurance for Nevada. He has a reputation for being strict on law enforcement and is expected to implement regulations that will benefit consumers. As Commissioner, he can be expected to do all of the following EXCEPT: A. Investigate insurers and producers for compliance with the law B. Impose civil fines on those who break the law C. Seek injunctions against individuals who violate the Insurance Code D. Impose jail terms upon those who are convicted of violating the law - ✔✔D. Impose jail terms upon those who are convicted of violating the law Kyle owns an eighteen-wheeler and transports property for customers who enter into a contract with him. He charges a fee for these services. What term BEST describes Kyle?
A. Motor carrier Trucker Private carrier D. Mover - ✔✔B. Trucker Mr. Abramson is having a new house built. You tell him he can purchase a dwelling policy while the house is being built, but he needs to add an endorsement to the policy. What endorsement does he need to purchase? A. Broad Theft endorsement B. Dwelling under Construction C. Personal Liability Supplement D. Automatic Increase in Insurance - ✔✔B. Dwelling under Construction Emil, a producer licensed in Nevada, moves to California on April 30. He is required to notify the Nevada Commissioner of his change of address no later than A. May 7
No remaining coverage - ✔✔C. $25, How many days' notice of cancellation or termination must an insurance carrier give an insured before canceling or terminating a motor vehicle liability policy? 5 7 10 15 - ✔✔C. 10 Lisa lost one of her emerald earrings. The pair of earrings cost $15,000 and was recently valued at $20,000. Her jeweler will reproduce the lost earring for $10,000. The following options are available to the insurer EXCEPT: A. Replace the one earring so the value of the set is the same as it was prior to the loss
B. Pay the difference between the actual cash value of the earrings before and after the loss C. Pay the total cash value of the pair of earrings prior to the loss divided by two D. Pay the total cash value of the pair of earrings prior to the loss - ✔✔C. Pay the total cash value of the pair of earrings prior to the loss divided by two Transportation Expenses coverage provides up to what daily limit of coverage for temporary transportation expenses if a private passenger vehicle is stolen? $ $ $ $250 - ✔✔B. $ State Bank has a financial institution bond with seven separate insuring agreements. Which of these agreements is the bank's only source of recovery for money and securities lost in a fire, windstorm, or explosion? A. Fidelity insuring agreement
Masonry Superior (non-combustible or fire-resistive) - ✔✔C. Masonry A business insurance policy shows the following persons as named insured: Bernie Burns, Chet Cooper, and David Duffy. Which of the three named insureds is authorized to change or cancel the policy? Bernie Chet David Bernie, Chet, and David - ✔✔A. Bernie Bart suffered a serious work-related injury and receives workers' compensation benefits while he is unable to work. The injury leads to his death. His wife wants to sue Bart's employer, but her attorney tells her she is prevented from suing the employer because workers' compensation law contains a No-fault provision Exclusive remedy provision
Supplementary payments provision Occupational disease provision - ✔✔B. Exclusive remedy provision The condo association to which Walt belongs assessed him $2,500 for fire damage to a party room collectively owned by the condo's residents. Each of the association members was assessed $2,500 to cover repair costs. Will Walt's homeowners policy pay for his share of the loss assessment charged by the association? A. Yes, his policy will pay the entire assessment. B. Yes, his policy will pay, but only up to $1,000. C. No, his policy will not pay, coverage for loss assessments is excluded. D. No, his policy will not pay because Walt lives in a condo. - ✔✔B. Yes, his policy will pay, but only up to $1,000. Some employees do not receive workers' compensation benefits because they are exempted from the state's workers compensation statute due to the nature of their work. Which of the following would not be exempt? A. Edith, a maid in a house
B. Market value C. Actual cash value D. Agreed value - ✔✔C. Actual cash value Adam agreed to administer ABC Corporation's self-funded insurance program. What must Adam obtain in order to act as an administrator for ABC Corporation? A. Certificate of authority B. Certificate of registration C. Certificate of incorporation D. Certificate of listing - ✔✔B. Certificate of registration The primary insurance regulatory activities of state insurance departments include all of the following EXCEPT A. Insurer licensing requirements
B. Solvency regulation C. Imprisonment of unethical agents D. Market conduct regulation - ✔✔C. Imprisonment of unethical agents After Bertha fell and injured herself in the home of her nephew, Toby, she was unable to deal directly with Toby's insurer. However, she appointed a representative to act on her behalf. In order to expedite payment of her medical payments claim, she instructed her representative to do all of the following EXCEPT: A. Provide the insurer with written proof of her claim B. Make relevant medical reports and records available to the insurer C. notify the insurer she will not submit to a physical exam by a doctor selected by the insurer D. Provide all information and documentation as soon as practical - ✔✔C. notify the insurer she will not submit to a physical exam by a doctor selected by the insurer Which of the following is not a basic named peril on a property insurance policy? Fire Vehicles
C. The Germania House, a bed-and-breakfast inn D. Shady Grove nursing home - ✔✔A. The Metropole Apartments How is personal liability coverage provided on a dwelling fire policy? A. It's only included on the DP- 2 and DP- 3 B. It's included on all 3 dwelling forms C. It can't be provided by a dwelling policy D. It can only be provided by endorsement - ✔✔D. It can only be provided by endorsement Which legislation prevents a financial institution from disclosing a consumer's nonpublic personal information to an unaffiliated third party unless it provides notice to the consumer and allows the consumer an opportunity to stop this disclosure? A. Fair Credit Reporting Act (FCRA) B. Federal Trade Commission Act C. Health Insurance Portability and Accountability Act (HIPAA)
Gramm-Leach-Bliley Act (GLBA) - ✔✔D. Gramm-Leach-Bliley Act (GLBA) Which of the following is not a component of an insurance rate? A. Loss costs B. Expenses C. Premium D. Profit margin - ✔✔C. Premium Mrs. Olson is flying from Boston to Los Angeles when she is held against her will on the airline. Under what insuring agreement on the Kidnap/Ransom forms of her commercial crime policy will coverage be provided for the expenses related to her confinement? A. Political or Military Activity B. In Transit Delivery C. Detention or Hijacking
