Free Nevada P&C Exam Flashcards

The dwelling and other structures are generally covered on an open-peril basis, while personal property is generally covered for named perils. Exclusions and policy conditions still apply to every coverage.

It is a renters form. It primarily covers the tenant's personal property, loss of use, personal liability, and medical payments rather than the building owned by the landlord.

It is designed for a condominium unit owner. It can cover personal property, unit improvements or interior items assigned to the owner, loss of use, liability, and certain loss assessments, subject to the policy and association master policy.

DP-1 provides basic named-peril coverage, DP-2 expands the named perils, and DP-3 generally covers the dwelling on an open-peril basis. Personal property remains subject to the form's listed coverage and exclusions.

It combines common declarations and common policy conditions with two or more commercial coverage parts, such as commercial property and commercial general liability. The selected parts determine the actual protection.

A BOP packages property and liability protection for eligible businesses in a standardized form. Eligibility rules and endorsements matter because it is not intended for every size or type of operation.

It commonly covers movable property, property in transit, and specialized property that may not fit well in a fixed-location property form. Coverage is defined by the particular inland marine form or floater.

Standard homeowners policies generally exclude flood. Eligible property owners obtain flood protection through an NFIP policy or qualifying private flood coverage rather than assuming homeowners coverage applies.

The insured must have an insurable interest at the time of loss. The person must face a genuine economic loss if the property is damaged, even if that person is not the sole owner.

A moral hazard involves dishonesty or intent, a morale hazard involves careless indifference, and a physical hazard is a tangible condition that increases the chance or severity of loss.

A direct loss is immediate physical damage caused by a covered peril. An indirect or consequential loss results from that damage, such as lost rental income while the property is repaired.

Actual cash value is commonly expressed as replacement cost minus depreciation. It aims to reflect the damaged property's value immediately before the loss rather than the full cost of a new replacement.

It compares the amount of insurance carried with the amount required, then applies that ratio to the covered loss. The result remains subject to the policy limit, deductible, valuation terms, and other conditions.

Declarations identify the parties, property, limits, dates, and other policy-specific facts. The insuring agreement states the insurer's central promise of coverage, subject to the rest of the contract.

A condition states duties or rules that affect how coverage operates. An exclusion removes a person, property, peril, or type of loss from coverage unless another provision restores it.

It gives the listed mortgagee an independent contractual interest. Coverage for the mortgagee may survive certain acts of the insured if the mortgagee satisfies its own duties under the clause.

Appraisal is intended to resolve disagreement about the amount of a covered property loss. It does not by itself decide whether the policy provides coverage for the loss.

The insurer acquires, to the extent of its payment, the insured's right to pursue a responsible third party. The insured must not impair that recovery right after a loss.

Coverage A addresses bodily injury and property damage liability, Coverage B addresses personal and advertising injury, and Coverage C provides limited medical payments without requiring proof of negligence, subject to their terms and exclusions.

An occurrence form is triggered by covered injury or damage during the policy period, even if the claim comes later. A claims-made form focuses on when the claim is first made and may also depend on a retroactive date and reporting rules.

Liability coverage responds to an insured's covered legal obligation for injury or damage to others. Collision and other-than-collision coverage address covered damage to the insured auto itself.

Uninsured motorist coverage addresses a liable driver with no applicable liability insurance, including qualifying hit-and-run situations. Underinsured motorist coverage applies when the liable driver's limit is insufficient for covered damages.

Part One pays benefits required by workers compensation law. Part Two provides employers liability coverage for covered employee-injury claims that fall outside the exclusive statutory-benefit obligation, subject to limits and exclusions.

The symbols define which categories of autos are insured for a particular coverage, such as owned, hired, or nonowned autos. A vehicle can qualify for one coverage but not another because each coverage has its own symbol.

The principal promises performance, the obligee receives that promise, and the surety guarantees it. If the surety pays because the principal defaults, the surety generally seeks reimbursement from the principal.

Both can add limits above underlying insurance, but an umbrella may also cover some exposures not insured by the underlying policies, often subject to a self-insured retention. The contract controls whether broader coverage exists.

The claimant must establish a duty, breach of that duty, causation, and legally recognized damages. Failure to prove any required element defeats the negligence claim.

It is legal responsibility imposed on one party for another party's conduct because of their relationship, such as an employer's liability for an employee acting within the scope of employment.

General damages compensate non-economic harm, special damages compensate measurable economic loss, and punitive damages are intended to punish and deter especially wrongful conduct rather than compensate the claimant.

It provides evidence or a summary of coverage in force on the date issued. It is not the insurance contract and does not independently amend coverage, exclusions, limits, or cancellation rights.

Misrepresentation is a false statement of a material fact; concealment is withholding a material fact that should be disclosed. Materiality turns on whether the fact would affect the insurer's underwriting decision.

Prompt notice lets the insurer investigate and defend, while cooperation gives access to facts, documents, and proceedings. Failure to satisfy a material duty can prejudice claim handling and may affect coverage under governing law.

They are specified defense-related expenses the insurer may pay in addition to covered damages, such as certain court costs or bond expenses. Whether they erode the liability limit depends on the policy wording.

It coordinates payment when more than one policy applies to the same loss by specifying whether coverage is primary, excess, or shared. It does not simply allow the insured to collect the same damages twice.

It addresses whether the insurer needs the insured's consent before settling a covered claim and what may happen if consent is withheld. The precise consequence must be read from the policy.

The Commissioner administers and enforces Nevada insurance law through powers that include examinations, investigations, notices, hearings, and authorized regulatory action. Pearson VUE's outline places these powers in the common state-law section.

An authorized insurer holds authority from Nevada to transact the kinds of insurance permitted by its certificate. An unauthorized insurer lacks that authority, though Nevada law separately regulates permissible nonadmitted placements.

A license establishes the person's state authority for listed lines. An appointment creates the producer's authority to act as an agent of a particular insurer. Passing the exam alone creates neither the license nor the appointment.

Misrepresentation uses materially false or misleading insurance statements. Twisting is the replacement-focused form of misconduct that induces a policyholder to change coverage through misleading comparisons or statements.

It offers an inducement not stated in the insurance contract and can cause similarly situated buyers to receive unequal terms. Nevada's outline groups rebating and inducements with prohibited marketing practices.

Premiums and other money received in an insurance transaction must be handled, accounted for, and remitted as funds held for their proper owner, not treated as the producer's unrestricted personal money.

It provides a statutory mechanism for certain covered claims when a member property-casualty insurer becomes insolvent. Protection is limited by the governing law and is not a substitute for coverage the policy never provided.

Cancellation ends a policy before its stated expiration; nonrenewal declines to continue it for a new term. Nevada law applies distinct notice, timing, and permissible-reason rules, so the two actions are not interchangeable.

Rates are evaluated so they are not excessive, inadequate, or unfairly discriminatory. A rate difference must rest on a lawful risk classification rather than an arbitrary distinction.

It provides a regulated path to place qualifying risks with nonadmitted insurers when coverage cannot be procured in the authorized market under Nevada's conditions. The licensed surplus-lines broker must follow placement, filing, and payment duties.

A binder is temporary evidence of coverage pending issuance of the policy. It remains subject to the scope, limits, duration, and legal requirements that govern the authorized coverage; it is not a promise of unlimited protection.

NRS 681A.060 describes insurance on real or personal property and interests in it against loss, damage, and resulting consequential loss, excluding noncontractual legal liability and title insurance. Marine and transportation risks are separately defined in NRS 681A.050.

For a covered passenger car or motorcycle, the insurer generally must offer uninsured and underinsured motorist coverage on an approved form in an amount equal to the bodily-injury liability limits sold. Each renewal must include a copy of the offer form.

The minimum limits are $25,000 for bodily injury or death of one person, $50,000 for bodily injury or death of two or more people in one accident, and $20,000 for property damage in one accident: 25/50/20.

Covered employers must secure workers compensation for covered employees, subject to statutory exceptions. In return for defined no-fault benefits, the workers compensation system generally supplies the employee's exclusive remedy against the employer for a covered occupational injury.