NEVADA PROPERTY AND CASUALTY
EXAM LATEST ACTUAL EXAM 2025
QUESTIONS AND DETAILED CORRECT
ANSWERS (VERIFIED ANSWERS) | A+
GRADE GUARANTEED PASS
Johanna purchased a National Flood Insurance policy 10
days after her community entered an emergency program.
When would her coverage be effective?
a) 30 days after the application has been accepted
b) 12:01 pm on the 5th day after the endorsement request
has been mailed
c) 5 days after the application and premium payment are
mailed
d) 12:01 am the day after the application and premium
payment are mailed Correct Answer d) 12:01 am the day
after the application and premium payment are mailed
Surety bonds are written for a definite limit called
a) Loss costs.
b) The bond penalty.
c) Indemnity limit.
d) The limit of liability. Correct Answer b) The bond
penalty.
,Which of the following forms provides the broadest
coverage under an employee theft coverage form?
a) Position schedule
b) Name schedule
c) Individual
d) Blanket position Correct Answer d) Blanket position
The major portion of the premium for an equipment
breakdown policy pays
a) For repairs after a loss.
b) For coverage for bodily injury and property damage of
others.
c) For replacement parts.
d) For inspections and examinations. Correct Answer d)
For inspections and examinations.
When an insured makes truthful statements on the
application for insurance and pays the required premium,
it is known as which of the following?
a) Consideration
b) Legal purpose
c) Contract of adhesion
d) Acceptance Correct Answer a) Consideration
What do individuals use to transfer their risk of loss to a
larger group?
a) Indemnity
,b) Insurance
c) Insurable interest
d) Exposure Correct Answer b) Insurance
The insured's house is located one mile from the county's
new landfill and across the road from the entrance of a
rock quarry. It would cost $150,000 to rebuild the house if
something happened to it, but when the insured tried to
sell it, the best offer he received was $80,000. The
insurance company will insure the house for only $80,000.
What method of valuation is used to insure this property?
a) Replacement cost
b) Functional replacement cost
c) Market value
d) Actual cost value Correct Answer c) Market value
All of the following statements are true regarding fire
department service charge additional coverage under the
businessowners policy EXCEPT
a) This coverage is not subject to any deductible.
b) This coverage provides an additional $2,500 amount of
insurance.
c) This coverage limit pays in place of the limit of
insurance shown in the declarations.
d) This coverage limit is payable in addition to the limit of
insurance shown in the declarations. Correct Answer c)
This coverage limit pays in place of the limit of insurance
shown in the declarations.
, An insured has a liability policy that sets the amount for all
claims that arise from a single incident at $50,000. Which
type of limit of liability does this insured's policy have?
a) Aggregate
b) Split
c) Per occurrence
d) Per person Correct Answer c) Per occurrence
Under the dwelling policy, Coverage C - Personal Property
is
a) Automatically provided as 50% of Coverage A.
b) A prohibited coverage in the dwelling form.
c) Limited to 50% of the amount of insurance that is
written as Coverage A.
d) Limited to covering a servant's property while at the
insured location. Correct Answer d) Limited to covering a
servant's property while at the insured location.
The reduction, decrease, or disappearance of value of the
person or property insured in a policy by a peril insured
against is known as
a) Exposure.
b) Hazard.
c) Risk.
d) Loss. Correct Answer d) Loss.
Peril is most easily defined as
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