Nevada Property and Casualty exam questions |\ |\ |\ |\ |\
with answers
|\ |\
A insurance binder is effective for no more than - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔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? - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔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%
|\
with answers
|\ |\
A insurance binder is effective for no more than - CORRECT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔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? - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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. - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔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%
|\
