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76 Cards in this Set
- Front
- Back
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Which of the following is true of Dwelling Form coverage for lawns, plants, shrubs and trees? A) All 3 forms provide this coverage, for up to $500 per plant, shrub or tree. B) Coverage is intended to insure against loss to plants grown for commercial purposes. C) Coverage is on an all-risk (open perils) basis. D) When provided, coverage is for up to 5% of the Coverage A limit and claims paid do not reduce the coverage "A" limit |
D) When provided, coverage is for up to 5% of the Coverage A limit and claims paid do not reduce the coverage "A" limit |
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Additional living expense (Coverage E) is provided automatically in which dwelling form(s)? A) Special form only B) Basic and broad forms only C) Broad and special forms only D) Basic, broad and special forms |
C) Broad and special forms only |
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Which HO policy covers the dwelling for specified (named) perils? A) HO 00 02 B) HO 00 03 C) HO 00 04 D) HO 00 06 |
A) HO 00 02 |
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Which HO coverage covers materials and supplies used for repair and construction of the dwelling? A) Coverage A B) Coverage B C) Coverage C D) Coverage D |
A) Coverage A |
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Which HO policy provides open peril coverage for the dwelling and Broad Form coverage for contents? A) HO 00 02 B) HO 00 03 C) HO 00 04 D) HO 00 06 |
B) HO 00 03 |
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The additional coverage for debris removal under Building and Personal Property Coverage is _____% of the amount of the direct damage to the covered property. A) 10 B) 25 C) 40 D) 50 |
B) 25 |
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All of the following are true of coverage under the extension of coverage for outdoor property under a Building and Personal Property Coverage Form EXCEPT A) Coverage applies to outdoor fences, radio and TV antennas and signs. B) There is no coverage for trees, shrubs, or plants. C) Coverage only applies to losses caused by fire, lightning, explosion, aircraft, riot and civil commotion. D) The limit of recovery is $1,000 per occurrence. |
B) There is no coverage for trees, shrubs, or plants. |
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Under the National Flood Insurance Program A) Replacement cost is available for all structures. B) Coverage for removal of property to protect it from flood is provided for up to 15 days. C) Coverage is provided for building additions, permanent fixtures and service-related equipment. D) All of the above. |
C) Coverage is provided for building additions, permanent fixtures and service-related equipment. |
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The Business owners Policy covers the cost of fire department service charges for up to $_____. A) 500 B) 1,000 C) 2,500 D) 5,000 |
B) 1,000 |
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The per occurrence deductible in a Business owners Policy applies to A) Employee dishonesty optional coverage. B) Business income coverage. C) Extra expense coverage. D) Fire department service charges. |
A) Employee dishonesty optional coverage. |
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The claims-made general liability form is triggered at the time A) Any claim is made during the policy period. B) A claim is first made during the policy period or during an extended reporting period. C) The damage or injury occurs during the policy period. D) Medical payments are incurred. |
B) A claim is first made during the policy period or during an extended reporting period. |
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Which of the following agreements might be an insured contract? A) Agreement to assume tort liability for damages after an injury has occurred B) Agreement to indemnify an architect for failure to give instructions C) Agreement to indemnify the owner of property the insured rents for any fire damage D) Written hold harmless agreement |
D) Written hold harmless agreement |
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HO liability coverage does NOT apply to bodily injury or property damage arising from A) a vehicle not subject to licensing requirements which is in dead storage on the insured location, or is used exclusively to service the insured location. B) a motorized golf cart when used on a golf course. C) a recreational vehicle not subject to licensing requirements which is not owned by an insured, or if owned by an insured is on an insured location. D) use of a motor vehicle subject to licensing requirements owned, rented or loaned to an insured. |
D) use of a motor vehicle subject to licensing requirements owned, rented or loaned to an insured. |
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Coverage E in the Homeowners Policy provides which of the following coverages? A) Personal liability B) Medical payments C) Additional living expense D) Supplemental coverage |
A) Personal liability |
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All of the following are additional coverages in Section II of the Homeowners Policy, which are payable in addition to the limits of liability, EXCEPT A) claim expenses. B) first aid expenses. C) loss assessment. D) medical payments. |
D) medical payments. |
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Section II of an HO policy covers A) first aid expenses. B) property damage arising out of a business engaged in by an insured. C) bodily injury arising out of premises that is not an insured location, rented to an insured. D) bodily injury arising out of use of aircraft. |
A) first aid expenses. |
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HO personal liability coverage will apply to A) liability under a written contract relating to the use of an insured location. B) damage to property owned by the insured. C) damage to property rented to, occupied or used by, or in the care of the insured unless the damage was caused by other than fire, smoke or explosion. D) liability arising out of premises owned by, rented to, or rented to others by an insured, when the premises are not an insured location. |
A) liability under a written contract relating to the use of an insured location. |
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The general aggregate limit in general liability policies applies A) regardless of when an occurrence happens. B) per occurrence. C) to all losses occurring within each 12-month portion of the policy period, except those arising from products and completed operations. D) to all losses which occur within the policy period. |
C) to all losses occurring within each 12-month portion of the policy period, except those arising from products and completed operations. |
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Personal Auto Policy medical payments coverage applies to expenses incurred within what period after the accident date? A) 90 days B) 1 year C) 2 years D) 3 years |
D) 3 years |
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PAP automobile medical payments coverage will pay for injuries to which of the following, if sustained in a covered auto? A) All parties. B) Third parties only. C) The named insured only. D) The named insured and family members only. |
A) All parties. |
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Features of PAP Transportation Expenses coverage include all of the following EXCEPT A) no deductible. B) a daily maximum. C) a total maximum. D) coverage for repairs resulting from theft of a covered auto. |
D) coverage for repairs resulting from theft of a covered auto. |
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All of the following are considered PAP comprehensive ("other than collision") losses EXCEPT A) overturn of the vehicle B) glass breakage. C) falling objects. D) earthquake. |
A) overturn of the vehicle |
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A Personal Umbrella policy can provide excess insurance over all of the following EXCEPT A) Dwelling Personal Liability Endorsement. B) Personal Auto collision coverage. C) Personal Auto liability coverage. D) Section II of the Homeowners Policy. |
B) Personal Auto collision coverage. |
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To cancel producer T's surety bond, the surety company must first give ______ notice to T. A) 10 days B) prompt C) 15 days D) 30 days |
D) 30 days |
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The business auto form provides that an "accident"
A) includes continuous or repeated exposure to substantially the same conditions. B) must be sudden and unexpected. C) must be unexpected and unpreventable. D) is an event that causes property damage. |
A) includes continuous or repeated exposure to substantially the same conditions.
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HO 00 03 includes coverage for A) basic coverage for contents. B) special coverage for structures and personal property. C) broad form coverage for personal property D) broad form coverage for structures and personal property. |
C) broad form coverage for personal property. |
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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? A) Additional B) Consequential C) Direct D) Special |
B) Consequential |
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All of the following statements concerning coinsurance are true, EXCEPT A) The coinsurance formula also will be applied to total losses. B) It is used to help adequacy and equity in rates. C) The insured agrees to maintain insurance equal to some specified percentage of the value of the property. D) If the insurance carried is less than required, the insurance may not cover the whole loss. |
A) The coinsurance formula also will be applied to total losses. |
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Events or conditions that increase the chances of an insured loss occurring are referred to as A) Hazards. B) Exposures. C) Risks. D) Perils. |
A) Hazards. |
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All of the following are conditions commonly found in the insurance policy EXCEPT A) Insuring agreement. B) Cancellation and nonrenewal. C) Subrogation. D) Appraisal. |
A) Insuring agreement. |
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An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following terms best describes what the insurer has violated? A) Adhesion B) Consideration C) Good Faith D) Representation |
B) Consideration |
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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, how much will each insurer pay? A) Company A will pay $20,000; Company B will pay $4,000 B) Company A will pay $12,000; Company B will pay $12,000 C) Company A will pay $24,000; Company B will pay $0 D) Company A will pay $16,000; Company B will pay $8,000 |
D) Company A will pay $16,000; Company B will pay $8,000 |
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Which of the following would NOT be considered a source of insurability information by an insurer? A) Motor vehicle records B) Insurance history C) The applicant's marital status D) Interviews with the applicant's neighbors and friends |
C) The applicant's marital status |
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The part of the policy that sets forth the rules of conduct, duties, and obligations of the parties is called the A) Insuring clause. B) Conditions. C) Exclusions. D) Declarations. |
B) Conditions. |
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The Gramm-Leach-Bliley Act was passed to A) Allow consumers access to credit and private consumer reports. B) Allow insurance companies access to medical information for underwriting purposes. C) Protect private customer information filed with a financial institution. D) Define insurance as interstate commerce. |
C) Protect private customer information filed with a financial institution. |
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What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? A) $10,000 for all expenses incurred during a 12-month period B) $15,000 all expenses incurred during a 12-month period C) $20,000 all expenses incurred during a 12-month period D) $5,000 for all expenses incurred during a 12-month period |
A) $10,000 for all expenses incurred during a 12-month period |
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Valuable papers and records form provides coverage for the reconstruction of all of the following types of records EXCEPT A) Blueprints. B) Deeds. C) Historical records. D) Prepackaged software. |
D) Prepackaged software. |
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All of the following coverages are included in the BOP without requesting coverage extensions EXCEPT A) Debris removal. B) Newly acquired or constructed property. C) Pollutant cleanup and removal. D) Civil authority. |
B) Newly acquired or constructed property. |
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An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover? A) $0 B) $200 C) $250 D) $750 |
A) $0 Damage that results from domestic animals is excluded under the special form dwelling policy. |
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When other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover A) All of the loss. B) The loss on an excess basis. C) The loss on a primary basis. D) A share of the loss. |
D) A share of the loss. |
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Under Coverage C of a homeowners policy, the amount of insurance provided to cover personal property of the insured is A) 50% of the amount provided as Coverage A. B) Equal to the amount provided as Coverage B. C) Equal to the amount provided as Coverage A. D) 50% of the amount provided as Coverage B. |
A) 50% of the amount provided as Coverage A. |
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When an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays A) The amount specified in the policy under the additional coverage provisions. B) The amount in excess of the underlying policy deductible. C) A percentage of the loss as described on the declarations. D) The excess over the self-insured retention. |
D) The excess over the self-insured retention. |
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Which of the following statements would be an example of a product liability claim? A) An insured, while delivering product to a customer, hits another car with the delivery truck causing bodily injury and property damage. B) Someone tampers with the insured’s product causing the insured to have to recall all products that are on the shelf. C) The insured's product has to be recalled because of an expiration date. D) Faulty packaging of a cereal caused spoilage that resulted in someone getting sick. |
D) Faulty packaging of a cereal caused spoilage that resulted in someone getting sick. |
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In a personal umbrella, the amount paid by the insured for certain losses not covered under the primary coverage is called A) Participation requirement. B) Self-insured retention. C) Stop-loss. D) Coinsurance. |
B) Self-insured retention. |
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Which would NOT be covered by the inside the premises - robbery or safe burglary of other property coverage? A) A store clerk is forced into the storage room and locked in while the intruder steals high-value merchandise. B) An employee is caught stealing cash from the register. C) Two men break a window during an attempted robbery. D) Someone breaks in after business hours, pries open a wall vault and steals several valuable paintings. |
B) An employee is caught stealing cash from the register. |
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An uninsured motor vehicle includes all of the following EXCEPT A) The insurance company denies coverage. B) The vehicle has no liability bond or insurance enforce. C) A vehicle being used for public livery. D) The accident was a hit-and-run. |
C) A vehicle being used for public livery. |
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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 A) The agency negligently fails to renew a policy causing a client to suffer a financial loss. B) The agency loses commission income from policies that were not issued by the insurer. C) The agency negligently fails to offer an increased limit of coverage or benefit under a policy. D) The agency is sued by an insured for giving incorrect advice. |
B) The agency loses commission income from policies that were not issued by the insurer. |
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The party to a surety or fidelity bond who promises to fulfill the obligation is the A) Obligee. B) Principal. C) Custodian. D) Surety. |
B) Principal. |
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The Commissioner must give reasonable notice to all interested parties as to the time, place and purpose of a hearing within the minimum of how many days of the hearing?
A) 10 days B) 15 days C) 20 days D) 30 days |
C) 20 days |
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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 A) Every year. B) Every two years. C) Every three years. D) Every five years. |
D) Every five years. |
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The duties of a managing general agent may include all of the following EXCEPT A) Adjusting claims. B) Negotiating reinsurance contracts. C) Issuing binders. D) Altering policies. |
D) Altering policies. |
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Surplus Lines insurance usually involves insurance for which type of individuals? A) High-risk individuals B) Standard risk individuals C) Low-risk individuals D) All of these qualify for surplus lines insurance. |
A) High-risk individuals |
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How much notice must an insurer give to an insured when canceling a personal policy that was issued for a 3 year term? A) 30 days before the expiration date B) 60 days before any anniversary C) 60 days before the expiration date D) 30 days before any anniversary |
D) 30 days before any anniversary |
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Which of the following policies are NOT listed as available after property is sold to the ultimate purchaser? A) Camera dealers policies B) Furrier dealers policies C) Confectionary dealers policies D)Musical instrument dealers policies |
C) Confectionary dealers policies |
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All Inland Marine policies must A) Include coverage of money and securities. B) Exclude improvements of the building. C) Exclude coverage of money and securities. D) Be approved by the Commissioner. |
C) Exclude coverage of money and securities. |
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All Inland Marine policies must exclude coverage of money and securities, but musical instrument dealers, camera dealers and equipment dealers policies may include coverage of A) The tenant's interest in personally owned autos. B) The landlord's interest in the tenant's property. C) The tenant's mortgage. D) The tenant’s interest in improvements of the building, furniture, fixtures, tools, machinery, patterns, molds and dies. |
D) The tenant’s interest in improvements of the building, furniture, fixtures, tools, machinery, patterns, molds and dies. |
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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 A) Unique for each employee. B) The same as all other rights and remedies. C) Exclusive of all other rights and remedies. D) Inclusive with all other rights and remedies. |
C) Exclusive of all other rights and remedies. |
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What is the minimum required liability limit for property damage in an auto liability policy? A) $15,000 B) $30,000 C) $40,000 D) $10,000 |
D) $10,000 |
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Insurance companies transacting automobile insurance in Nevada must offer Uninsured and Underinsured Motorist coverage that equals A) The insured's coverage limits for personal injury protection. B) The insured's coverage limits for property damage. C) The insured's coverage limits for bodily injury. D) The insured's coverage limits for physical damage. |
C) The insured's coverage limits for bodily injury. |
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After the first 3 years of an employer’s tenure as a self insurer, it must maintain a net worth of at least A) Twice the average claims paid for the previous year or $2,500,000 – whichever is greater. B) 5 times the average claims paid for the previous year or $7,500,000 – whichever is less. C) 5 times the average claims paid for the previous year or $7,500,000 – whichever is greater. D) Twice the average claims paid for the previous year or $2,500,000 – whichever is less. |
B) 5 times the average claims paid for the previous year or $7,500,000 – whichever is less. |
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Property insurance does not A) Include damage from hazards. B) Include contractual legal liability for any loss. C) Include title insurance. D) Apply to personal property. |
C) Include title insurance. |
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If a driver is required to provide proof of insurance, that proof must be maintained for A)1 year. B) 3 years. C) 5 years. D) 10 years. |
B) 3 years. |
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A policy that is issued to replace a binder must include A) Limits of coverage that are less than the limits of the binder. B) An effective date that is the same as the expiration date of the binder. C) Limits of coverage that are equal to the limits stated in the binder and an effective date for the policy that is the same as the effective date of the initial binder. D) Limits of coverage that are more than the limits stated in the binder and an effective date that is the same as the expiration date of the binder. |
C) Limits of coverage that are equal to the limits stated in the binder and an effective date for the policy that is the same as the effective date of the initial binder. |
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Which of the following statements is FALSE? A) Motor vehicle physical damage appraisers must post a bond of $2,500 in favor of the people of the State of Nevada. B) Anyone acting as a motor vehicle physical damage appraiser is subject to a fine of up to $1,000 for each violation. C) Motor vehicle physical damage appraisers do not have to be employed by any one insurance company. D) Motor vehicle physical damage appraisers must be licensed by the Commissioner. |
C) Motor vehicle physical damage appraisers do not have to be employed by any one insurance company. |
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Which of the following types of insurance policies must adhere to the Code requirements for countersigning of policies? A) Casualty insurance policies B) Reinsurance contracts C) Policies covering property in transit by a common carrier D) Bid bonds |
A) Casualty insurance policies |
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How many days after cancellation of a license in another state does a new resident agent have to apply for Nevada producer license without having to fulfill licensing examination and education requirements? A) 10 B) 30 C) 60 D) 90 |
D) 90 |
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Producers must complete how many hours of continuing education on the subject of ethics every licensing period? A) 1 hour B) 3 hours C) 5 hours D) 10 hours |
B) 3 hours |
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Surety bonds are written for a definite limit called A) The bond penalty. B) Indemnity limit. C) The limit of liability. D) Loss costs. |
A) The bond penalty. |
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In the event of a claim under a commercial general liability policy, the insured has all the following duties to the insurer EXCEPT A) Furnishing the insurer with copies of any demands, notices, or other legal papers received in connection with a claim or suit. B) Assisting the insurer upon request in the enforcement of any right against any person or organization that may be liable to the insured. C) Submitting to a medical exam when requested. D) Providing prompt written notice of any claim or suit actually filed against the insured. |
C) Submitting to a medical exam when requested. |
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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 A) The agency loses commission income from policies that were not issued by the insurer. B) The agency negligently fails to offer an increased limit of coverage or benefit under a policy. C) The agency is sued by an insured for giving incorrect advice. D) The agency negligently fails to renew a policy causing a client to suffer a financial loss. |
A) The agency loses commission income from policies that were not issued by the insurer |
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An insured has a special form dwelling policy written for $100,000 on a dwelling. The dwelling's replacement cost is $115,000. Fire causes $75,000 in damage to the dwelling, $15,000 damage to a separate garage, and kills 10 trees valued at $600 each. How much will the policy pay for the trees? A) $5,000 B) $10,000 C) $60,000 D)$75,000 |
A) $5,000 |
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The difference in the contents coverage on an HO-3 and HO-5 is which of the following? A) Contents are covered open peril on HO-3, and named peril on HO-5. B) Contents are covered for replacement cost on HO-5, and ACV on HO-3. C) Contents are covered for replacement cost on HO-3, and ACV on HO-5. D) Contents are covered open peril on HO-5, and named peril on HO-3. |
D) Contents are covered open peril on HO-5, and named peril on HO-3. |
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A commercial property special form covers property in transit up to A) $500. B) Full replacement cost. C) $5,000. D) ACV. |
C) $5,000. |
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Homeowners policies provide coverage for A) The land under the residence. B) Property of tenants, roomers, or boarders not related to any insured. C) Business property while on the residence premises. D) Losses caused by off-premises power failure. |
C) Business property while on the residence premises. |
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Which of the following dwelling policies insures a structure on an actual cash value basis? A) DP-2 B) DP-3 C) DP-6 D) DP-1 |
D) DP-1 |
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What is the limit for the forgery or alteration coverage in the businessowners policy? A) $1,000 B) $2,500 C) $500 D) $5,000 |
B) $2,500 |
