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Nevada Property and Casualty/LATEST
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A unique feature in a bailee form is that it covers A. A loss that has no exclusions B. The building occupied by the insured whether it is owned or leased C. Customers property whether or not the insured has been negligent D. Fire and theft losses to the insured stock held for sale without any deductibles. - ✔✔C What is a certificate of insurance A. Written document allowing the insured to inspect the insured's books B. A written document showing to types and amounts of insurance that have been issued to the insured C. A written document obligating the insured to the person to the witch the insurance was issued D. Written document naming the insurance beneficiary - ✔✔B An insured intentionally did not disclose material fact on the application for insurance this would be considered Coercion Avoidance Misrepresentation Concealment - ✔✔D
In a personal auto policy the term you refers to
D. 60 days - ✔✔C Which of the following closet establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of property or amount of loss A. Valuation clause B. Loss Settlement clause C. Appraisal clause D. Loss payment clause - ✔✔C What type of damages may be awarded by the court to create disincentives that discourage behavior that is deemed a highly undesirable by society General Compensatory Specific Punitive - ✔✔D Professional liability coverage protects against liability resulting from misrepresentation unethical conduct Errors and omissions warranties - ✔✔C
What term best describes the act of withholding material information that could be crucial to an underwriting decision leading breach of warranty concealment withholding - ✔✔C Which of the following liability exposures is most likely for a small specialty clothing retail boutique A. completed operations liability exposure B. premises liability exposure C. operations liability exposure D. product liability exposure - ✔✔B Franks steaks furnishes meat to steakhouses. An accident on the premises cause the building to lose refrigeration for 32 hours. The state inspectors will not allow the meat in the refrigerating units to be sold for human consumption and Frank loses $18,500 in disposing of the meat. What coverage under Frank's BOP policy will cover the loss? A. Utility service - time element B. extra expense C. protective safeguards D. utility service - direct image - ✔✔D In forming an insurance contract when does except Ince usually occur
blueprints deeds - ✔✔B Which of the following is used in the formula for calculating the actual cash value of a property? A. Stated value B. fair market value C. agreed value D. replacement cost - ✔✔D The pro rata liability clause is designed to protect of the principle of A. Insurable interest B. Waiver and estoppel Indemnity Subrogation - ✔✔C A claim is considered to have been made A. When I notice received and recorded by any insured or the insurer, whichever comes first B. When received in writing or telephonically by the insurer C. When notice is received by any insured D. When notice is received and recorded by the insurer - ✔✔A In the event of a claim under a comercial general liability policy the insured has all of the following duties to the insurer EXCEPT
A. Submitting to a medical exam when requested B. Providing prompt written notice of any claim or suit actually filed against the insured. C. Furnishing the insurer with copies of any demands, notices, or other legal papers received in connection with a claim or suit D. Assisting the insurer upon request in the enforcement of any right against any person or organization that may be liable to the insured. - ✔✔A Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? A. Representation Warranty Concealment Indemnity - ✔✔B The policy conditions define A. How parties to the contract must act following a loss B. The basic underwriting information C. The excluded perils D. The amount of coverage - ✔✔A In liability insurance policies, supplementary payments are made A. At the option of the insurer B. In addition to the limit of liability
A. The market value of like kind and quality B. Full replacement of property with like kind and quality, less an allowance for physical deterioration and depreciation. C. Payment of full policy limits in the event of a loss D. Full replacement Of the property at its current cost new and without reduction for depreciation - ✔✔D 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 as she signs all of the paperwork and that she will receive a new policy in the mail in five business days. Even though the policy is not issued the applicants home is temporarily covered until then. Which of the following makes that possible? A. Notice of claim Binder Loss settlement provision Mortgagee clause - ✔✔B Property insurance policy that is not subject to any coinsurance requirements but has a set amount of insurance schedule for the property would use white loss evaluation method? A. Reproduction cost B. Stated amount C. Actual cash value D. Replacement cost - ✔✔B Which of the following is most likely to occur if it is determined by the audit that the deposit premium was too high?
A. Nothing the premium cannot be adjusted B. The insured will receive a return premium C. Additional premium will be collected D. The insurer will pay a fine - ✔✔B Part of the policy that sets forth the rules of conduct duties and obligations of the parties is called the Exclusions Declarations Insuring clause Conditions - ✔✔D All of the following are true regarding physical damage coverage except A. The policy will pay up to $20 per day up to a maximum of $600 for rental transportation B. The insurer will pay for direct and accidental loss to the covered auto minus any applicable deductible C. The limit of liability is the greater of the actual cash value of the vehicle at the time of the loss or the amount necessary to repair or replace the vehicle D. Losses to nonowned autos will be covered the same as the broadest coverage available for the any covered auto except nonowned trailers are limited to $1500 - ✔✔C All of the following statements are false regarding garage physical damage coverage except A. No coverage is provided for any auto stored more than 45 days at a location not shown in the declarations
Johanna purchased the national flood insurance policy 10 days after community entered an emergency program. When would her coverage be effective A. Five days after the application and premium payment are mailed B. 12:01 AM the day after the application and premium payment are mailed C. 30 days after the application has been accepted D. 12:01 PM the day after the endorsement request has been mailed - ✔✔B A policy condition that states if the policy is broadened with no additional premium then the expanded coverage will be automatically apply to all policies of the same type is known as A. Maximum indemnity clause B. The loss control clause C. Limit of insurance clause D. Liberalization clause - ✔✔D 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 Binder Proof of loss Notice of claim Claim report - ✔✔B If the actual values exceed the limit of insurance the business owners policy contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by
50% - ✔✔B
In the event of a loss covered by the policy if the insured request a signed sworn proof of loss the named insured is required to submit within A. One year B. Five business days C. 30 days D. Specified time - ✔✔D An insured is driving her car through a residential area when she loses control and crashes into a neighbors front porch. The neighbor, who was sitting on the porch, is injured. The insurance 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? Aggregate Per occurrence Combined single Split - ✔✔C Which of the following is considered a work related injury/compensational disease under Worker's Compensation law?
A. Consumer privacy act B. The fair credit reporting act C. Unfair trade practices law D. The guaranty Association - ✔✔B For the purpose of insurance, risk is defined as A. The certainty of loss B. The cause of loss C. The event that increases the amount of loss D. The uncertainty or chance of loss - ✔✔D A liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called A. Bodily injury/property damage form B. Occurrence form C. Premises coverage D. Claims made form - ✔✔D Under the additional coverages of business owners policy property removed to protect it from loss will be covered at another location for up to A. 10 days B. 14 days
C. 30 days D. 45 days - ✔✔C Both the broad theft and limited theft endorsements on the dwelling program exclude all of the following types of property except Aircraft Watercraft Credit cards Motor vehicles license for the road - ✔✔B A start up used car dealership buys cars at auto auctions in 30 states. It wants to be certain that damage coverage is provided when the cars are driven or transported from the auctions to the dealership. In regard to the business auto physical damage coverage which is true? A. Coverage is provided for the wholesale and now only B. Coverage is not provided under this form C. Coverage is provided if dealership employees are in possession of the subject automobile D. Coverage is provided an additional premium - ✔✔D 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 A. Five days B. 15 days C. 30 days D. 60 days - ✔✔C
B. $6000 would be paid under other than collision coverage C. $3000 will be paid under other than collision and $3000 would be paid under collision coverage D. $6000 will be paid under collision coverage - ✔✔B What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? A. Primary and excess B. Other insurance C. Valid insurance D. Non-concurrency - ✔✔B The insured has violated the contract without the knowledge of the mortgage holder. After a loss A. The insured cannot collect but the mortgage holder will still be paid B. Neither the insured nor the mortgage holder will be paid C. Both the insured and mortgage holder will be paid D. The pro rata liability clause applies - ✔✔A Representations are written or oral statements made by the applicant that are A. Immaterial to the actual except ability of the insurance contract B. considered true to the best of the applicants knowledge C. Guaranteed to be true D. Found to be false after further investigation - ✔✔B And insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy has room 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 ensure pay?
A. The first policy written will pay $75,000, and the other three policies will contribute proportionately to pay for the remaining $25,000. B. The policy with the earliest effective date will pay the entire laws, and the other policies will pay nothing C. Each policy will pay $25,000 of the loss D. Each policy will pay the total policy limits of $100,000 - ✔✔C What do individuals use to transfer the risk of loss to a larger group A. Insurable interest Exposure Indemnity Insurance - ✔✔D 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. Retro period B. A look back period C. Discovery period D. Indemnity period - ✔✔C All of the following are additional causes of loss included in the broad form of a commercial property policy except A. Water damage
