Nevada Property & Casualty Exam questions |\ |\ |\ |\ |\ |\
with answers |\
Agreed value - CORRECT ANSWERS ✔✔Property policy with a
|\ |\ |\ |\ |\ |\ |\ |\ |\
provision agreed upon by the insurer and insured as to the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
amount of insurance that represents a fair valuation for the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
property at the time the insurance is written. At the time of a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
loss, the policy pays the agreed value as specific on the policy
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
schedule, regardless of the insured property's appreciation or
|\ |\ |\ |\ |\ |\ |\ |\
depreciaion.
Absolute liability - CORRECT ANSWERS ✔✔Any conduct that is
|\ |\ |\ |\ |\ |\ |\ |\ |\
inherently dangerous (swimming pools, explosives, wild animals)
|\ |\ |\ |\ |\ |\ |\
imposes absolute liability. |\ |\
Actual cash value - CORRECT ANSWERS ✔✔A loss valuation
|\ |\ |\ |\ |\ |\ |\ |\ |\
method used in many property forms is determined by today's
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
replacement cost - depreciation for age and obsolescence |\ |\ |\ |\ |\ |\ |\
Perils - CORRECT ANSWERS ✔✔The causes of loss insured against
|\ |\ |\ |\ |\ |\ |\ |\ |\
in an insurance policy
|\ |\ |\ |\
Speculative risk - CORRECT ANSWERS ✔✔Involves the chance of |\ |\ |\ |\ |\ |\ |\ |\ |\
gain or loss and is not insurable
|\ |\ |\ |\ |\ |\
Libel - CORRECT ANSWERS ✔✔A type of intentional tort; is NOT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
an element of negligence
|\ |\ |\
, 4 elements of negligence - CORRECT ANSWERS ✔✔Duty, breach,
|\ |\ |\ |\ |\ |\ |\ |\ |\
injury, unbroken chain |\ |\
Actual Cash Value (ACV) - CORRECT ANSWERS ✔✔Method of
|\ |\ |\ |\ |\ |\ |\ |\ |\
valuation that reinforces the principle of indemnity because it
|\ |\ |\ |\ |\ |\ |\ |\ |\
recognizes the reduction of value of property as it ages. |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
(Depreciation-current replacement cost) |\ |\
Per occurrence - CORRECT ANSWERS ✔✔A type of limit liability
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
that sets the amount for all claims that arise from a single
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
incident at a certain number |\ |\ |\ |\
Indemnity - CORRECT ANSWERS ✔✔Insurance principle that
|\ |\ |\ |\ |\ |\ |\
states that the insured can inly collect for the amount of the loss
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
even if the policy is written with greater benefit limits
|\ |\ |\ |\ |\ |\ |\ |\ |\
Agreed value - CORRECT ANSWERS ✔✔Works best for items
|\ |\ |\ |\ |\ |\ |\ |\ |\
whose calue does not fluctuate much; when a loss occurs, the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
policy pays the agreed value as specified on the policy schedule,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
regardless of the insured item's appreciation or depreciation
|\ |\ |\ |\ |\ |\ |\
Deductible - CORRECT ANSWERS ✔✔The amount of loss retained|\ |\ |\ |\ |\ |\ |\ |\ |\
by the insured (property); retention (liability). Most property
|\ |\ |\ |\ |\ |\ |\ |\
coverages include this; most liability policies do not include
|\ |\ |\ |\ |\ |\ |\ |\ |\
retention.
Stated value contract - CORRECT ANSWERS ✔✔Is used to pre-
|\ |\ |\ |\ |\ |\ |\ |\ |\
establish the amount of coverage available for property items
|\ |\ |\ |\ |\ |\ |\ |\ |\
with answers |\
Agreed value - CORRECT ANSWERS ✔✔Property policy with a
|\ |\ |\ |\ |\ |\ |\ |\ |\
provision agreed upon by the insurer and insured as to the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
amount of insurance that represents a fair valuation for the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
property at the time the insurance is written. At the time of a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
loss, the policy pays the agreed value as specific on the policy
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
schedule, regardless of the insured property's appreciation or
|\ |\ |\ |\ |\ |\ |\ |\
depreciaion.
Absolute liability - CORRECT ANSWERS ✔✔Any conduct that is
|\ |\ |\ |\ |\ |\ |\ |\ |\
inherently dangerous (swimming pools, explosives, wild animals)
|\ |\ |\ |\ |\ |\ |\
imposes absolute liability. |\ |\
Actual cash value - CORRECT ANSWERS ✔✔A loss valuation
|\ |\ |\ |\ |\ |\ |\ |\ |\
method used in many property forms is determined by today's
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
replacement cost - depreciation for age and obsolescence |\ |\ |\ |\ |\ |\ |\
Perils - CORRECT ANSWERS ✔✔The causes of loss insured against
|\ |\ |\ |\ |\ |\ |\ |\ |\
in an insurance policy
|\ |\ |\ |\
Speculative risk - CORRECT ANSWERS ✔✔Involves the chance of |\ |\ |\ |\ |\ |\ |\ |\ |\
gain or loss and is not insurable
|\ |\ |\ |\ |\ |\
Libel - CORRECT ANSWERS ✔✔A type of intentional tort; is NOT
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
an element of negligence
|\ |\ |\
, 4 elements of negligence - CORRECT ANSWERS ✔✔Duty, breach,
|\ |\ |\ |\ |\ |\ |\ |\ |\
injury, unbroken chain |\ |\
Actual Cash Value (ACV) - CORRECT ANSWERS ✔✔Method of
|\ |\ |\ |\ |\ |\ |\ |\ |\
valuation that reinforces the principle of indemnity because it
|\ |\ |\ |\ |\ |\ |\ |\ |\
recognizes the reduction of value of property as it ages. |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
(Depreciation-current replacement cost) |\ |\
Per occurrence - CORRECT ANSWERS ✔✔A type of limit liability
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
that sets the amount for all claims that arise from a single
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
incident at a certain number |\ |\ |\ |\
Indemnity - CORRECT ANSWERS ✔✔Insurance principle that
|\ |\ |\ |\ |\ |\ |\
states that the insured can inly collect for the amount of the loss
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
even if the policy is written with greater benefit limits
|\ |\ |\ |\ |\ |\ |\ |\ |\
Agreed value - CORRECT ANSWERS ✔✔Works best for items
|\ |\ |\ |\ |\ |\ |\ |\ |\
whose calue does not fluctuate much; when a loss occurs, the
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
policy pays the agreed value as specified on the policy schedule,
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
regardless of the insured item's appreciation or depreciation
|\ |\ |\ |\ |\ |\ |\
Deductible - CORRECT ANSWERS ✔✔The amount of loss retained|\ |\ |\ |\ |\ |\ |\ |\ |\
by the insured (property); retention (liability). Most property
|\ |\ |\ |\ |\ |\ |\ |\
coverages include this; most liability policies do not include
|\ |\ |\ |\ |\ |\ |\ |\ |\
retention.
Stated value contract - CORRECT ANSWERS ✔✔Is used to pre-
|\ |\ |\ |\ |\ |\ |\ |\ |\
establish the amount of coverage available for property items
|\ |\ |\ |\ |\ |\ |\ |\ |\
