NV Casualty Law
What are the two types of compensatory damages?
Special and general
Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called
Specific coverage.
Under the commercial property coverage program, the basic causes of loss form insures against loss caused by
Sprinkler leakage.
Excluded classification of employees under a Workers Compensation Policy are
Statutorily defined
What insurance provides coverage that indemnifies the insured against loss arising from the lack of integrity or fidelity of person holding positions of trust, from the insolvency of debtors, or from breaches of contract?
Surety insurance
What type of insurance indemnifies banks, financial corporations and others against loss of bills of exchange?
Surety insurance
A private passenger auto policy may be canceled more than sixty days after the effective date for which of the following reasons?
Suspension of the insured's driver's license
Who approves the form that states who may be excluded from a policy's coverage?
The Commissioner
An insurance agency could purchase an errors and omission insurance policy which would provide protection in the event of any of the following events EXCEPT
The agency loses commission income from policies that were not issued by the insurer.
The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. Which of the following terms best describes the nature of this type of coverage?
Time element
All of the following are essential elements of a commercial package policy (CPP) EXCEPT
Valuations and/or settlement provisions
Which of the following policies does NOT contain an automatic reinstatement provision?
General liability written with an aggregate limit
Insurance companies in Nevada must offer insureds under policies covering the used of passenger cars the option of purchasing how much coverage to pay for reasonable and necessary medical expenses resulting from an accident?
$1,000
Every owner of a motor vehicle registered in Nevada must continuously provide proof of financial responsibility to cove what amount for bodily injury to one person in one accident?
$15,000
What is the minimum required liability limit for property damage in an auto liability policy?
$15,000
During the first 3 years of an employer's tenure as a self insurer, it must maintain a net worth of at least
$2,500,000
An insurer cannot cancel a motor vehicle liability policy until how many days advance notice of cancellation is given to the policyholder?
10
The nonrenewal of an auto policy does not become effective until how many days after the insured receives notice from the insurance company?
10
What are the minimum required liability limits for auto insurance in Nevada?
15/30/10
If the actual values exceed the limit of insurance, the businessowners policy (BOP) contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by
25%
If a driver is required to provide proof of insurance, that proof must be maintained for
3 years
An insurer offering private passenger automobile policies recently increased an insured's premiums. This insurer must advise the insured of her right to request the reasons for this increase, within a few days of the expiration of her policy. How many days?
30 days
The removal coverage included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long?
30 days
After the first 3 years of an employer's tenure as a self insurer, it must maintain a net worth of at least
5 times the average claims paid for the previous year or $7,500,000 - whichever is less
What is the minimum age in Nevada that an insured can get reduced premiums for 3-year periods?
55
The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to
90 days.
Which of the following people is NOT considered an employee under Nevada law?
A full-time household employee
Which of the following statements regarding a motor vehicle physical damage appraiser is CORRECT?
A motor vehicle physical damage appraiser must be licensed by the state
What are common carriers required to issue to every shipper that it transports goods for?
A uniform bill of lading
With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto?
A vehicle that is titled to another person, but is being used with permission by an insured
What is a Certificate of Insurance?
A written document showing the types and amounts of insurance that have been issued to the insured
Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur?
Aggregate limit of liability
In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation?
Agreed value
Which of the following would NOT qualify as a hired auto?
An auto borrowed from an employee
Which of the following would be considered an insured under a business auto coverage form?
Anyone while using, with permission, a covered auto owned by the named insured
Which of the following describes the transfer of a legal right or interest in an insurance policy?
Assignment
Jim is 55 years old when he learns of a way to reduce his premium for 3-year periods. He complies and his premiums are reduced. What did Jim do?
He attended a traffic safety course approved by the Department of Motor Vehicles and Public Safety
Which of the following is NOT a primary property coverage in homeowners coverage?
Collapse
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions.
Which of the following is NOT an example of an uninsured motor vehicle?
Consuming one alcoholic beverage before driving home
All of the following are supplemental payments found in liability policies EXCEPT
Costs the insured incurred in hiring an attorney.
Which of the following statements is true concerning the special form dwelling policy?
Coverage A is for all-risk perils, and Coverage C is for the broad form perils.
In dwelling policies, automatic increase in insurance is
Coverage by endorsement.
The basic dwelling form (DP-1) provides all of the following coverages without endorsement EXCEPT
Coverage for additional living expense.
A beauty parlor burns to the ground. What type of loss is this to the owner?
Direct
In addition to the common policy conditions, all of the following conditions apply to liability coverage EXCEPT
Employers liability.
If a named insured commits bodily harm to another named insured, which course of action may the insurer take?
Exclude coverage for the injuring party Reduce or limit coverage for the injuring party Reduce coverage for the injuring party's family members
Which of the following is true of dwelling policy coverage?
Exclusions apply to all three policy forms.
According to the sole remedy provision in workers compensation insurance, the rights and remedies provided for an employee injured in the course of the employment must be
Exclusive of all other rights and remedies
The policy conditions define
How parties to the contract must act following a loss.
Casualty Insurance does NOT include which one of the following types of insurance?
Inland marine
All of the following are factors in the determination of actual cash value EXCEPT
Insurance premium paid.
The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the
Insuring agreement.
Sally is given a certificate of insurance as proof of financial responsibility. The minimum limit amount is $15,000. Which of the following policies most likely applies to Sally's situation?
It is for bodily injury or death to 1 person in an accident
All of the following are true of Coverage B - Other Structures EXCEPT
It must be added by endorsement to a homeowners policy.
Which of the following statements is CORRECT about Uninsured/Underinsured Motorists coverage in this state?
It must be issued at limits equal to the Bodily Injury/Physical Damage policy limits.
Coverage A - Bodily Injury and Property Damage in the commercial general liability policy will cover
Losses due to the insured's negligence.
Which type of policy for motor vehicle liability insurance does NOT cover damages sustained while a person other than the named insured is operating the motor vehicle?
Operator's policy
What type of property does a Personal Floaters policy cover?
Movable personal property, wherever it may be located
Which of the following does the term proximate cause refer to?
Negligence that leads to an injury
Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?
Occurrence
Which of the following statements about operator's policies is TRUE?
Operator's policies do not cover damages incurred while a person other than the named insured is operating the motor vehicle
Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is
Provided by the insured's policy on an excess basis.
All of the following are considered parts of the policy structure EXCEPT
Provisions.
Which method of loss valuation is contrary to the basic concept of indemnity?
Replacement cost
The causes of loss insured against in an insurance policy are known as
Perils
Every owner of a motor vehicle registered in Nevada must continuously provide
Proof of financial responsibility
The proof of liability to cover any liability on account of accidents arising out of the ownership, maintenance, or use of a motor vehicle within the United States or Canada is the definition of
Proof of financial responsibility
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
When a regular bill of lading is issued, who will be responsible for the invoice cost of any damaged property?
The carrier
Which of the following statements regarding worker's compensation insurance in Nevada is CORRECT?
The coverage may be purchased from any authorized insurer
Which of the following statements regarding insurance on an automobile being driven by a person whose job is parking automobiles is CORRECT?
The insurance on the parking business is primary and the insurance on the vehicle is excess
Losses that result from the freezing of a plumbing system while the dwelling is vacant would be EXCLUDED under a homeowners policy UNLESS
The insured had drained the plumbing system.
Insurance companies transacting automobile insurance in Nevada must offer Uninsured and Underinsured Motorist coverage that equals
The insured's coverage limits for bodily injury
Which of the following statements regarding uninsured and underinsured motorists coverage in Nevada is NOT correct?
The insurer is required to reoffer the coverage on any replacement or reinstatement
All of the following are true regarding physical damage coverage EXCEPT
The limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle.
The members of a limited liability company are insureds under a businessowners policy (BOP) if
The limited liability company is designated as the named insured
All of the following statements concerning liability coverage are true EXCEPT
The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met.
In Workers Compensation insurance, the employer agrees to provide medical expenses and lost wages to injured workers. The injured worker agrees that this will be the only compensation sought. What does the employee give up in this situation?
The right to sue the employer for the injury
What is continuous care coverage in this state?
Workers compensation coverage
Proof of financial responsibility for damages caused by an automobile accident may be shown by all of the following documents EXCEPT:
a deposit of securities
The Workers Compensation Act provides coverage for all of the following losses EXCEPT:
an on-the-job injury sustained by an employee who was intoxicated
The amount of an injured employee's Workers Compensation disability payments is based on the employee's:
average weekly wage
To be eligible to establish a self-insurance program for providing worker's compensation, a non-governmental employer must
be licensed to do business in Nevada
Proof of financial responsibility for motor vehicle liability can be given by filing a/an
certificate of self-insurance
An insurance company may deny an employee's claim for Workers Compensation benefits if the employee was:
drunk and caused the injury
Under Nevada law automobile policies may
exclude coverage for another named insured
The premium for a motor vehicle liability insurance policy can be reduced for a 55 year old who does all of the following EXCEPT
pass a written safety examination
An insurer may use claims made under the comprehensive portion of an automobile policy
to refuse to continue comprehensive coverage
Proof of Motor Vehicle Liability insurance is required of a driver:
when registering a vehicle
