Nevada Property and Casualty Correct
100%
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 insurer's expense ratio?
A. 25%
,B. 40%
C. 75%
D. 66⅔% - ANSWER 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.
B. Poor Dick's heart attack was too remote to be considered a result of Bob's
negligence.
C. Good, if Dick's heart attack after reading the account can be verified by an
independent witness.
D. Poor. Dick must have known the passenger to recover. - ANSWER B. Poor Dick's
heart attack was too remote to be considered a result of Bob's negligence.
Donovan's Supply Company is constructing an additional building to house its
equipment and supplies. While the building is being constructed, Mr. Donovan wants
assurances from his agent that the building, building materials and supplies, and
temporary structures used to erect the building, are all covered. What type of insurance
should he consider?
A. Business income and extra expense coverage
B. Businessowners coverage
C. Builders risk coverage
D. Property off premises coverage - ANSWER C. Builders risk coverage
The Medical Payments Coverage on Weingold Plumbing's business owners policy will
pay for which of the following injuries?
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
- ANSWER 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 - ANSWER 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
B. Trucker
C. Private carrier
D. Mover - ANSWER B. Trucker
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
B. In-transit insuring agreement
C. On-premises insuring agreement
D.Securities insuring agreement - ANSWER C. On-premises insuring agreement
Donaldson Insurance Company had earned premiums of $100 million last year and
incurred losses of $75 million in that same time period. What is this insurer's loss ratio?
A. 75%
100%
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 insurer's expense ratio?
A. 25%
,B. 40%
C. 75%
D. 66⅔% - ANSWER 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.
B. Poor Dick's heart attack was too remote to be considered a result of Bob's
negligence.
C. Good, if Dick's heart attack after reading the account can be verified by an
independent witness.
D. Poor. Dick must have known the passenger to recover. - ANSWER B. Poor Dick's
heart attack was too remote to be considered a result of Bob's negligence.
Donovan's Supply Company is constructing an additional building to house its
equipment and supplies. While the building is being constructed, Mr. Donovan wants
assurances from his agent that the building, building materials and supplies, and
temporary structures used to erect the building, are all covered. What type of insurance
should he consider?
A. Business income and extra expense coverage
B. Businessowners coverage
C. Builders risk coverage
D. Property off premises coverage - ANSWER C. Builders risk coverage
The Medical Payments Coverage on Weingold Plumbing's business owners policy will
pay for which of the following injuries?
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
- ANSWER 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 - ANSWER 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
B. Trucker
C. Private carrier
D. Mover - ANSWER B. Trucker
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
B. In-transit insuring agreement
C. On-premises insuring agreement
D.Securities insuring agreement - ANSWER C. On-premises insuring agreement
Donaldson Insurance Company had earned premiums of $100 million last year and
incurred losses of $75 million in that same time period. What is this insurer's loss ratio?
A. 75%
