NEVADA PROPERTY & CASUALTY
ACCURATE 100%
risk - ANSWER Uncertainty of loss
insurance - ANSWER the transfer of RISK
pure risk - ANSWER lose or have no change - insurable
speculative risk - ANSWER NOT insurable. possibility to lose or gain
hazard - ANSWER something that increases risk
indemnity - ANSWER a payment for damage or loss; purpose is to restore the insured
to where they were prior to their loss.
tort - ANSWER A civil wrong
representation - ANSWER a substantial truth, true to the best of knowledge
concealment - ANSWER OMISSION of a material fact
Declarations, Insuring agreement, Conditions, and Exclusions (DICE) - ANSWER The
four parts of a policy are:
declaration section - ANSWER lists named insured, policy limits, and premium and
policy limits
insuring agreement - ANSWER describes the coverages provided
conditions part - ANSWER list the obligations of both parties, the insurer and insured
exlusions part - ANSWER list the perils that are not covered
arbitration - ANSWER A way to settle manners if the insurer and insured disagree that
the liability policy does or does not provide coverage. Each party pays for one and a half
persons involved
Pro Rata Liability Clause - ANSWER Provides that losses will be paid in the proportion
that the amount of the policy bears to the entire amount of insurance on all policies
covering the loss. This provides for insurance companies to appropriately share in the
loss when more than one policy exists, yet prevents the insured from collecting in total
from several insurance companies and making a profit.
,breakage of glass, freezing of plumbing - ANSWER DWELLING policies do NOT cover
_____ after 60 days of vacancy, and ______ unless the heat was left on.
homeowners policy - ANSWER This type of policy excludes coverage for flood,
landslides, or mudslides
NO - ANSWER Is the land on which a house sits on insurable in HOMEOWNER
policies?
HO-3 (Special Form) - ANSWER Which homeowners policy form is all-risk on a
dwelling, but named peril on its contents?
3 years after the policy expires - ANSWER How many years after policy expiration are
CPPs (Commercial Package Policy) subject to audit?
BOP (business owners policy) - ANSWER There is NO coverage for vandalism,
sprinkler leakage, glass breakage, water damage, or theft, if the building has been
vacant for more than 60 consecutive days on this type of policy.
Coverage D - ANSWER Fair Rental Value Coverage in the Dwelling Policy?
$100 - ANSWER Workers compensation rating is developed by applying a bureau job
classification rating to each $_____ of payroll
Subrogation - ANSWER The legal process that gives the insurer, after payment of a
loss, the right to seek recovery from a third party that was responsible for the loss is
known as
General liability written with an aggregate limit - ANSWER Which of the following
policies does NOT contain an automatic reinstatement provision?
A customer's camera left at a camera shop for repair - ANSWER Which of the following
is covered under the Camera and Musical Instruments Dealers floater?
Hired and nonowned auto liability - ANSWER Which endorsement adds coverage for
employee use of automobiles in the insured's business and the insured's use of rented
autos if no coverage is provided on a business auto policy?
Material misrepresentation - ANSWER An insured stated on her application for life
insurance that she had never had a heart attack, when in fact she had a series of minor
heart attacks last year for which she sought medical attention. Which of the following
will explain the reason a death benefit claim is denied?
Peril - ANSWER The cause of loss insured against.
, Stated amount. - ANSWER When the amount of insurance written in a property policy is
not subject to any coinsurance provision and that amount is paid in the event of a
covered loss, the coverage is said to be written as
Speculative risk - ANSWER Events in which a person has both the chance of winning or
losing are classified as
Pro-rata liability. - ANSWER The other insurance provision that limits the liability of the
insurer to a portion of the loss no greater than the amount the insurer bears to all the
insurance covering the property is called
Exclusions apply to all three policy forms. - ANSWER Which of the following is true of
dwelling policy coverage?
The insured will receive a return premium. - ANSWER Which of the following is most
likely to occur if it is determined by the audit that the deposit premium was too high?
Commercial blanket position - ANSWER Which employee fidelity bond pays no more
than its limit of liability for each separate occurrence no matter that several separately
identifiable employees were involved in a single loss?
A pickup or van titled to and used in the named insured's business. - ANSWER With
respect to auto insurance, the term owned autos includes all of the following EXCEPT
$10,000 for all expenses incurred during a 12-month period - ANSWER What is the
maximum amount an insurer will pay under the equipment dealers pollution cleanup and
removal extension of an inland marine policy?
Subrogation - ANSWER The transfer of an insured's right to seek damages from a
negligent party to the insurer is found in which of the following clauses?
$500 - ANSWER If an insured covered under a Mobile Homeowners Policy moves the
mobile home to protect it from a covered peril, the policy will pay up to
The application given to a prospective insured - ANSWER Which of the following is
NOT the consideration in a policy?
10 days - ANSWER Under businessowners policy Section I, if an insurer wants to
nonrenew a policy for nonpayment of premium, how many days before the expiration
date must the insurer notify the mortgageholder?
The accounts receivable coverage form. - ANSWER An insured's accounts receivable
records have been damaged. The loss may be covered with
ACCURATE 100%
risk - ANSWER Uncertainty of loss
insurance - ANSWER the transfer of RISK
pure risk - ANSWER lose or have no change - insurable
speculative risk - ANSWER NOT insurable. possibility to lose or gain
hazard - ANSWER something that increases risk
indemnity - ANSWER a payment for damage or loss; purpose is to restore the insured
to where they were prior to their loss.
tort - ANSWER A civil wrong
representation - ANSWER a substantial truth, true to the best of knowledge
concealment - ANSWER OMISSION of a material fact
Declarations, Insuring agreement, Conditions, and Exclusions (DICE) - ANSWER The
four parts of a policy are:
declaration section - ANSWER lists named insured, policy limits, and premium and
policy limits
insuring agreement - ANSWER describes the coverages provided
conditions part - ANSWER list the obligations of both parties, the insurer and insured
exlusions part - ANSWER list the perils that are not covered
arbitration - ANSWER A way to settle manners if the insurer and insured disagree that
the liability policy does or does not provide coverage. Each party pays for one and a half
persons involved
Pro Rata Liability Clause - ANSWER Provides that losses will be paid in the proportion
that the amount of the policy bears to the entire amount of insurance on all policies
covering the loss. This provides for insurance companies to appropriately share in the
loss when more than one policy exists, yet prevents the insured from collecting in total
from several insurance companies and making a profit.
,breakage of glass, freezing of plumbing - ANSWER DWELLING policies do NOT cover
_____ after 60 days of vacancy, and ______ unless the heat was left on.
homeowners policy - ANSWER This type of policy excludes coverage for flood,
landslides, or mudslides
NO - ANSWER Is the land on which a house sits on insurable in HOMEOWNER
policies?
HO-3 (Special Form) - ANSWER Which homeowners policy form is all-risk on a
dwelling, but named peril on its contents?
3 years after the policy expires - ANSWER How many years after policy expiration are
CPPs (Commercial Package Policy) subject to audit?
BOP (business owners policy) - ANSWER There is NO coverage for vandalism,
sprinkler leakage, glass breakage, water damage, or theft, if the building has been
vacant for more than 60 consecutive days on this type of policy.
Coverage D - ANSWER Fair Rental Value Coverage in the Dwelling Policy?
$100 - ANSWER Workers compensation rating is developed by applying a bureau job
classification rating to each $_____ of payroll
Subrogation - ANSWER The legal process that gives the insurer, after payment of a
loss, the right to seek recovery from a third party that was responsible for the loss is
known as
General liability written with an aggregate limit - ANSWER Which of the following
policies does NOT contain an automatic reinstatement provision?
A customer's camera left at a camera shop for repair - ANSWER Which of the following
is covered under the Camera and Musical Instruments Dealers floater?
Hired and nonowned auto liability - ANSWER Which endorsement adds coverage for
employee use of automobiles in the insured's business and the insured's use of rented
autos if no coverage is provided on a business auto policy?
Material misrepresentation - ANSWER An insured stated on her application for life
insurance that she had never had a heart attack, when in fact she had a series of minor
heart attacks last year for which she sought medical attention. Which of the following
will explain the reason a death benefit claim is denied?
Peril - ANSWER The cause of loss insured against.
, Stated amount. - ANSWER When the amount of insurance written in a property policy is
not subject to any coinsurance provision and that amount is paid in the event of a
covered loss, the coverage is said to be written as
Speculative risk - ANSWER Events in which a person has both the chance of winning or
losing are classified as
Pro-rata liability. - ANSWER The other insurance provision that limits the liability of the
insurer to a portion of the loss no greater than the amount the insurer bears to all the
insurance covering the property is called
Exclusions apply to all three policy forms. - ANSWER Which of the following is true of
dwelling policy coverage?
The insured will receive a return premium. - ANSWER Which of the following is most
likely to occur if it is determined by the audit that the deposit premium was too high?
Commercial blanket position - ANSWER Which employee fidelity bond pays no more
than its limit of liability for each separate occurrence no matter that several separately
identifiable employees were involved in a single loss?
A pickup or van titled to and used in the named insured's business. - ANSWER With
respect to auto insurance, the term owned autos includes all of the following EXCEPT
$10,000 for all expenses incurred during a 12-month period - ANSWER What is the
maximum amount an insurer will pay under the equipment dealers pollution cleanup and
removal extension of an inland marine policy?
Subrogation - ANSWER The transfer of an insured's right to seek damages from a
negligent party to the insurer is found in which of the following clauses?
$500 - ANSWER If an insured covered under a Mobile Homeowners Policy moves the
mobile home to protect it from a covered peril, the policy will pay up to
The application given to a prospective insured - ANSWER Which of the following is
NOT the consideration in a policy?
10 days - ANSWER Under businessowners policy Section I, if an insurer wants to
nonrenew a policy for nonpayment of premium, how many days before the expiration
date must the insurer notify the mortgageholder?
The accounts receivable coverage form. - ANSWER An insured's accounts receivable
records have been damaged. The loss may be covered with
