Property & Casualty
If a person is charged with a category D felony for committing insurance fraud, what would be the maximum time of imprisonment?
4 years
Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is
50% of the amount provided as Coverage A
Another person has alleged that you are responsible for damage to their property. You notify your homeowners insurer. The insurer will
Either pay or defend as it decides.
The policy conditions define
How parties to the contract must act following a loss.
Which of the following statements is NOT true regarding a personal umbrella liability policy?
It provides errors and omissions coverage for an agency.
Which of the following is NOT an element of negligence?
Libel
To perform work on a customer's car, a mechanic in an auto shop had to put the vehicle on a service hoist. The hoist collapsed, damaging the vehicle and injuring the mechanic. In regard to the garage coverage form, which of the following statements is true?
No coverage is applicable
In personal auto policies, the term "you" refers to
The named insured.
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of
Twisting
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?
Twisting
In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for
Uninsured motorist coverage
The bankruptcy provision found in the personal auto policy states that bankruptcy of the insured
Will not relieve the insurer of its policy obligations.
Which of the following is NOT an optional coverage available in a businessowners policy?
Workers compensation
The proof of loss statement must be
In writing
Which of the following additional perils is covered under both the basic form and broad form dwelling policies?
Internal explosion
Duties of the insurer found in property policy conditions include all of the following EXCEPT
Notify the insured in the event of financial difficulty.
All of the following are considered parts of the policy structure EXCEPT
Provisions.
All of the following statements concerning coinsurance are true EXCEPT
The coinsurance formula will also be applied to total losses.
Insurance companies in Nevada must offer insureds under policies covering the use of passenger cars the option of purchasing how much coverage to pay for reasonable and necessary medical expenses resulting from an accident?
$1,000
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy?
$10,000 for all expenses incurred during a 12-month period
Should any person willfully engage in an unauthorized insurance transaction, the Commissioner may impose an administrative fine or penalty of up to
$10,000 for each and every act.
Workers compensation rating is developed by applying a rating bureau job classification rate to each
$100 of payroll
Super Value Store has a commercial general liability policy written with a general aggregate limit of $300,000 and an occurrence limit of $100,000. A customer injured on the premises was awarded $45,000 for medical expenses and loss of earnings, and $60,000 for pain and suffering. The court costs and attorney fees were $15,000. How much will the CGL policy pay?
$115,000
An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?
$14,000
The insured purchased a $200,000 extra expense policy. If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47-day loss?
$160,000
If an employer chooses to become a self-insurer, during the first 3 years the employer must maintain a net worth of at least
$2,500,000.
Each licensed motor vehicle physical damage appraiser must obtain a surety bond in favor of the people of the State of Nevada and conditioned for the faithful performance of required duties in the amount of
$2,500.
The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to
$250,000.
A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss?
$30,000
An insured has a personal auto policy with both comprehensive (other-than-collision) and collision coverage. His car is stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay?
$60 The policy will pay $20 per day after 48 hours, not to exceed 30 days in total.
The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?
1 year
What are the minimum required liability limits for auto insurance in Nevada?
15/30/10
Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to
2 weeks.
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%.
How many hours of approved continuing education within a 3-year period are required?
30
When requested by a person aggrieved by an act, a hearing must be held within how many days after the Commissioner receives the written demand?
30 days
According to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss?
60 days
Losses caused by vandalism and malicious mischief are excluded under a homeowners policy if the dwelling had been vacant for more than
60 days
Coverage under the builders risk form will end in all of the following situations EXCEPT
60 days after the construction has ended.
Accident and health producers may qualify to sell continuous care coverage if they complete a minimum of how many hours of approved instruction in workers compensation and employer liability insurance?
8 hours
What is the maximum time a binder can be effective without approval by the Commissioner?
90 days
Which of the following Employee Fidelity Bonds would cover all employees?
A blanket position bond
Most fidelity bonds have a period of time in which losses which occurred while the bond was in force are covered even though not found until after the coverage has terminated. This is known as
A discovery period.
In a participation plan, the insured may be eligible for which of the following?
A partial premium refund
Which of the following statements is true regarding the premium computation for workers compensation insurance?
A premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the actual premium basis
In the event of a loss covered by the policy, if the insurer requests a signed sworn proof of loss, the named insured is required to submit it withina
A specified time
What is a material misrepresentation?
A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company
The declarations page of the homeowners policy provides all of the following information EXCEPT
A statement that earthquake damage is not covered.
What's the difference between a fidelity bond and a surety bond?
A surety bond guarantees something will happen; a fidelity bond guarantees something will not happen.
An insured owns and operates a ranch. The insured has several vehicles that are used in the ranching operation and for personal use. Which of the following could NOT be insured under a personal auto policy?
A two-ton grain truck with a 6,500-pound capacity
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
What type of liability would a person who owns a swimming pool have?
Absolute
Which of the following coverages is NOT included in the basic form dwelling policy?
Additional living expenseb
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 types of valuation works best for property whose value does not fluctuate much?
Agreed value
How much is covered for debris removal under the HO property additional coverages?
All reasonable costs
The duties of a managing general agent may include all of the following EXCEPT
Altering policies.
Which coverage form would provide coverage for all incoming and outgoing shipments?
Annual transit
Which of the following is NOT covered under accounts receivable coverage form?
Any loans required to offset uncollectible amounts
If the Commissioner fails to approve or disapprove a proposed rate within 60 days, the proposal can be considered
Approved.
Which of the following is a method of claim settlement used when the insured and insurer cannot agree on how to settle a claim?
Arbitration
When a disagreement occurs as to how to settle a loss in a "fender bender" between two cars, what procedure is followed?
Arbitration through the court
Which of the following is an example of a protective safeguard in a businessowners policy?
Automatic sprinkler system
An insurance contract must contain all of the following to be considered legally binding EXCEPT
Beneficiary's consent.
An employee is injured while visiting the employer's out-of-state site. How will the workers compensation benefits be determined?
Benefits will be provided if the state was listed on the policy information page.
In life insurance, agents are permitted to share or split commissions, provided that
Both are properly licensed for the line of insurance.
Which of the following types of insurance policies must adhere to the Code requirements for countersigning of policies?
Casualty insurance policies
The document that indicates that an insurer has been approved and is authorized to transact insurance in a particular state is known as
Certificate of Authority.
Which of the following must be obtained by someone who intends to function as an administrator?
Certificate of registration
The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay?a)Company A will pay $24,000; Company B will pay $0
Company A will pay $16,000; Company B will pay $8,000.
What term best describes the act of withholding material information that would be crucial to an underwriting decision?
Concealment
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of
Concealment.
When applying for an individual life insurance policy, an applicant states that he went to the doctor for nausea, but fails to mention that he was also having severe chest pains. This is an example of
Concealment.
The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the
Conditions.
Which of the following risks is eligible for coverage under a businessowners policy?
Condominiums
All of the following are supplemental payments found in liability policies EXCEPT
Costs the insured incurred in hiring an attorney
The basic dwelling form (DP-1) provides all of the following coverages without endorsement EXCEPT
Coverage for additional living expense
Which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if is sent by registered mail?
Currency and unsold travelers checks
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?
Defamation
Which of the following is NOT a duty of the Commissioner?
Develop insurance rates
Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?
Directors and officers liability
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer.
An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay?
Each policy will pay $25,000 of the loss.
What is the purpose of the coinsurance clause found in property insurance policies?
Encourage the insured to insure the property closer to its full value
How often are producers required to complete continuing education requirements to keep the license in force?
Every 3 years
Which of the following would be named on the declarations page of a property or liability policy?
First named insured
An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?
Foreign
Which of the following policies does NOT contain an automatic reinstatement provision?
General liability written with an aggregate limit
Events or conditions that increase the chances of an insured loss occurring are referred to as
Hazards
Property insurance does not
Include title insurance.
The pro rata liability clause is designed to protect the principle of
Indemnity.
What do individuals use to transfer their risk of loss to a larger group?
Insurance
All of the following are factors in the determination of actual cash value EXCEPT
Insurance premium paid
Who is responsible for filling out a notice of claim form?
Insured
Which of the following best describes a misrepresentation?
Issuing sales material with exaggerated statements about policy benefits
How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?
It removes the coverage
For a contract to be enforceable by law, the purpose of the contract must be
Legal and not against public policy.
Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss?
Liability coverage
Which of the following is the basis for a claim against an insurance policy?
Loss
Which of the following coverages in dwelling and homeowners policies is for indirect losses?
Loss of use
Coverage A - Bodily Injury and Property Damage in the commercial general liability policy will cover
Losses due to the insured's negligence.
A restaurant is out of business for 3 days after an insured's automobile hits an electrical pole. The pole falls and hits the building, knocking out all electrical power supply. Which of the following is NOT covered under the insured driver's auto policy?
Lost revenues from the restaurant
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?
Making comparisons between different policies
The type of professional liability coverage a medical doctor needs is
Malpractice coverage.
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
Misrepresentation.
Which of the following statements is FALSE?
Motor vehicle physical damage appraisers do not have to be employed by any one insurance company.
When Joe was shopping for property insurance for his mobile home, the company he looked at had outrageously high premiums. Joe was told that they
No insurers are required to offer insurance on mobile homes for premiums that are not fair and adequate.
Workers compensation benefits are provided for an employee injury or death that arises out of the course of normal employment in all of the following situations EXCEPT
On his evening stroll, an employee of an advertising company is injured while watching a competitor's billboard sign being removed from an advertising site.
If three insurers jointly issue a single policy, the policy may be countersigned by
One appointed agent on behalf of all insurers.
When is a hired and nonowned auto liability endorsement available in a businessowners policy (BOP)?
Only if the insured does not have commercial auto coverage
Coverage for all of the following is found in Section I of a homeowners policy EXCEPT
Personal liability.
A customer was injured in a supermarket parking lot when a grocery cart collided with the customer's leg. Coverage for this claim would be provided undera)Completed operations.
Premises and operations
Which of the following liability exposures is most likely for a small specialty clothing retail boutique?
Premises liability exposure
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
Pro rata liability.
The proof of ability 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.
A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called
Proof of loss
While an insured was towing a utility trailer with his auto, the trailer came loose and ran into a store front. What part of the insured's auto policy would pay for the damage to the store?
Property damage liability
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
Who represents the insured in the work of investigating a claim?
Public adjuster
What type of damages may be awarded by the court to create disincentives that discourage behavior that is deemed highly undesirable by society?
Punitive
The risk of loss may be classified as
Pure risk and speculative risk.
Which method of loss valuation is contrary to the basic concept of indemnity?
Replacement cost
If an employer in a state with elective workers compensation laws chooses not be to subject to those laws, what does the employer lose?
Replacement cost at the time of the loss, less depreciation
In property insurance, actual cash value is defined as which of the following?
Replacement cost at the time of the loss, less depreciationd
All of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT
Replacement cost.
An insured owns several buildings, each at a different location and insured on a separate policy. What type of coverage does the insured
Specific
Events in which a person has both the chance of winning or losing are classified as
Speculative risk.
A property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance scheduled for the property would use what loss valuation method?
Stated amount
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
Stated amount.
Excluded classification of employees under a Workers Compensation Policy are
Statutorily defined.
The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called
Subrogation
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?
Subrogation
Which one of the following symbols used in business auto coverage is correctly described?
Symbol 9 - nonowned autos only
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchased the insurance policy today
Who is covered by an HO-4 policy?
Tenants
Which situation would NOT be covered by the basic Causes of Loss form under a commercial property policy?
The Surf Side Club Waterfront Restaurant is damaged when flood waters rise and seep into the restaurant.
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
In insurance, an offer is usually made when
The completed application is submitted.
Which of the following statements is true regarding the commercial general liability policy's Coverage C - Medical Payments?
The coverage is considered good will because payments are made without regard to fault.
The common policy condition is a modular part combined with other parts to create the contract. The common policy condition section contains provisions that are applicable to all lines of coverage that may be included in the policy. Which of the following provisions would be found in the common policy conditions section of the policy?
The first named insured may cancel the policy at any time by giving written notice to the insurer.
The insured has violated the contract without the knowledge of the mortgage holder. After a loss
The insured cannot collect but the mortgage holder will still be paid.
Which of the following losses would be covered under the property damage liability coverage of a personal auto policy?
The insured damages a rented garage when he failed to stop in time.
Which of the following circumstances would be EXCLUDED under medical payments coverage of a personal auto policy?
The insured is injured while driving his motorcycle on his resident premises
Who is NOT an insured for liability on a BAP?
The owner of a car the insured borrows
In terms of parties to a contract, which of the following does NOT describe a competent party?
The person must have at least completed secondary education
In terms of parties to a contract, which of the following does NOT describe a competent party
The person must have at least completed secondary education.
All of the following statements concerning liability coverage are true EXCEPTa)Liability policies defend the insured against claims, real or alleged
The policyholder can sue the insurer whether or not all conditions and provisions of the policy have been met
Which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value?
They are automatically provided with replacement cost coverage.
All of the following are true statements regarding the supplementary payments of a commercial general liability policy EXCEPT
They pay defense costs even after the aggregate limit has been reached.
The type of insurance used to cover goods for one specific trip is called
Trip transit
An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some of furniture and clothes in the house. From an insurance standpoint, the insured's house is considered
Unoccupied
Motor vehicle physical damage appraisers must secure a surety bond in the amount of $2,500. How long must this bond remain in force?
Until the surety is released from liability by the Commissioner or the bond is cancelled by the surety.
All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT
Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident.
Uncle Billy's Burger Bar was forced to close for 10 days in August when the power company's transformer was destroyed by lightning, and Uncle Billy was without electricity. Which of the following endorsements could be added to Billy's businessowners policy that would provide protection against loss of income from such events?
Utility services - time element endorsement
A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty of any furniture or personal belongings. From an insurance standpoint, the building is considered
Vacant
Which of the following is NOT one of the available additional coverages in the builders risk form?
Vandalism
Which of the following losses would NOT be covered by the dwelling policy if the dwelling is vacant for over 60 days?
Vandalism
An insured's 9-year-old son threw a ball, accidentally breaking a neighbor's plate glass window. The insured was found legally liable for the cost of replacing the window. This is an example of
Vicarious liability
When a parent is required to pay for damages caused by his or her children, this is an example of
Vicarious liability
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
Warranty
An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?
$30,000
The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage?
$48,000
A covered watercraft was damaged in an accident. The actual cash value of the damaged property was assessed at $10,000. The cost of repairs for the watercraft was assessed at $5,000. The insured's watercraft policy is written with a $25,000 limit. How much will the insurer pay for coverage to damage to the watercraft?
$5,000
A premium discount is the term that describes when an insured owes a total standard premium greater than
$5,000.
Under additional coverages for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services?
$500
How long is the waiting period after the application has been accepted before flood coverage goes into effect?
30 days
How much notice must an insurer give to an insured when canceling a personal policy that was issued for a 3 year term?
30 days before any anniversary
What is the coinsurance requirement for a theatrical property floater under an Inland Marine policy?
80%
Which of the following would be required to be licensed as an insurance producer?
A salaried employee who advertises and solicits insurance
Which of the following may be covered by electronic data processing coverage form under an inland marine policy?
All of these are covered.
An applicant is purchasing a homeowners policy. A producer comes to her home, fills out the paperwork, and tells the applicant that her home will be covered as soon she signs all of the paperwork, and that she will receive a new policy in the mail in 5 business days. Even though the policy is not issued, the applicant's home is temporarily covered until then. Which of the following makes that possible?
Binder
A policy that insures all property at multiple locations for a single amount is referred to as
Blanket.
The crime of forced entry into the premises of another by a person or persons with felonious intent is defined as a
Burglary
Which of the following is issued by the state Department of Insurance to show that the insurer has power to write insurance contracts in that state?
Certificate of Authority
An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile?
Collision
An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?
Combined single
A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?
Completed operations
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 policies are NOT listed as available after property is sold to the ultimate purchaser?
Confectionary dealers policies
An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
Consequential
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
Something of value exchanged between the insurer and the insured is considered an
Consideration.
The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is
Considered underinsured.
Costs the insured incurred in hiring an attorney.
Costs the insured incurred in hiring an attorney.
Which of the following is NOT an essential element of an insurance contract?
Counteroffer
Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss?
Coverage D
A unique feature in a bailee form is that it covers
Customers' property whether or not the insured has been negligent.
Which of the following dwelling policy forms primarily insures a structure on an actual cash value basis?
DP-1
The part of a policy that clarifies terms in the policy is the
Definitions
An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure. Which condition is part of the insured's policy?
Deposit premium audit
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
Which of the following would modify the original insurance contract by either adding or removing coverage?
Endorsement
For purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with Nevada law, the Commissioner will examine the affairs of each insurer as often as deemed necessary. Each domestic insurer must be examined at least
Every five years.
The section of an insurance policy that details what perils are not insured against and what persons are not insured is known as the
Exclusions.
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.
All of the following are excluded in the equipment breakdown basic policy EXCEPT
Explosion of steam boilers
In liability insurance policies, supplementary payments are made
In addition to the limit of liability.
Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?
Indemnity
Which of the following licensees are not compensated directly related to the amount of insurance sold?
Insurance consultant
Persons covered under an insurance policy, whether named or not, are known as the
Insureds.
All of the following are conditions commonly found in the insurance policy EXCEPT
Insuring agreement.
Under a dwelling policy, which of the following clauses applies if an insured has lost one of two matching silver candlesticks?
Pair or set
Who would participate in a Write Your Own (WYO) flood insurance program?
Private insurers that wish to write and service National Flood Insurance policies on a no risk-bearing basis
Giving a client an inducement to a sale not stated in the policy is an unlawful practice known as
Rebating.
The Federal Fair Credit Reporting Act
Regulates consumer reports.
In case of a loss, the indemnity provision in insurance policies
Restores an insured person to the same financial state as before the loss.
Insurance is the transfer of
Risk.
Which of the following kinds of property would be covered under a dwelling policy?
Rowboats
What are the two types of compensatory damages?
Special and general
An insured owns several buildings, each at a different location and insured on a separate policy. What type of coverage does the insured have?
Specific
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
Which of the following is NOT an eligibility requirement for a bail enforcement agent license?
State residency
The Nevada Insurance Guaranty Association has a legal right to seek damages from third parties after having reimbursed the insured for the loss. This is known as
Subrogation.
A nonadmitted insurer who provides insurance coverages that are not available from an admitted insurer is called
Surplus lines insurer.
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.
Which item would NOT be covered under building coverage in a building and personal property policy?
The bulldozer being used as part of a business addition under construction that is parked 500 feet from the building
Joe received a notice from his insurer that his policy would be cancelled in 30 days. The notice did not give any reason for the cancellation and did not tell Joe any way to obtain that information. When will this cancellation be effective?
The cancellation is not effective
Negligence is defined as
The failure to do what a reasonable prudent person would do under given circumstances.
According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three - other states' insurance of the workers compensation and employers liability policy when
The insured expects to extend operations to that state.
Insurance companies transacting automobile insurance in Nevada must offer Uninsured and Underinsured Motorist coverage that equals
The insured's coverage limits for bodily injury.
The most the insurer will pay for a loss under a businessowners policy is
The limit of insurance after the deductible is paid.
On a DP-3 Dwelling Property Special Form policy, the coverage provided for personal property is
The same as provided on the DP-2 Broad Form
For the purpose of insurance, risk is defined as
The uncertainty or chance of loss.
Which of the following losses would most likely NOT be covered under Coverage A in the dwelling policy?
Theft of a renter's lawnmower used to service the premises
A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean?
There is no coverage.
When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy?
They do not change.
