Nevada Property and Casualty Exam Questions and Answers 100% Correct

Nevada Property and Casualty Exam Questions and Answers 100% Correct A insurance binder is effective for no more than - Answer- 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? - Answer- 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 - Answer- 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. B. Self-insurance company. C. Reinsurance company. D. Lloyd's association. - Answer- C. Reinsurance company. How is the relationship between an insurance company and the individual who sells their insurance policies defined? A. Vicarious liability B. Risk C. Agency D. Bailment - Answer- C. Agency A person who acts as a motor vehicle physical damage appraiser in Nevada without a license, unless exempt, may be fined up to what amount for each violation? A. $500 B. $1,000 C. $1,250 D. $1,500 - Answer- B. 1,000 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. - Answer- 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 - Answer- 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 i