Nevada Property & Casualty Exam Verified Answers
Agreed value ️️Property policy with a provision agreed upon by the insurer and insured as to the
amount of insurance that represents a fair valuation for the property at the time the insurance is
written. At the time of a loss, the policy p...
Agreed value ✔️✔️Property policy with a provision agreed upon by the insurer and insured as to the
amount of insurance that represents a fair valuation for the property at the time the insurance is
written. At the time of a loss, the policy pays the agreed value as specific on the policy schedule,
regardless of the insured property's appreciation or depreciaion.
Describe the key components of a Nevada property and casualty insurance policy.
✔️✔️ Nevada property and casualty insurance policies typically include declarations, insuring
agreements, exclusions, conditions, and endorsements. The declarations page provides essential
information such as the policyholder’s name, coverage limits, and policy period. Insuring agreements
define what is covered, while exclusions list situations where coverage does not apply. Conditions set
the terms and obligations of both parties, and endorsements allow for custom modifications to the
policy.
What is a deductible, and how does it affect a Nevada property insurance claim?
✔️✔️ A deductible is the amount the policyholder must pay out of pocket before the insurance
company covers the remaining costs of a claim. In Nevada, higher deductibles can lower premium costs,
as the policyholder assumes more of the initial financial responsibility for any claims.
Explain the difference between actual cash value and replacement cost in Nevada property insurance.
✔️✔️ Actual cash value (ACV) reimburses the policyholder based on the depreciated value of the
property at the time of loss, considering wear and tear. Replacement cost coverage, however,
reimburses the full cost to replace the property with a new, similar item without factoring in
depreciation. Replacement cost coverage generally results in higher premiums.
In Nevada, how does liability coverage work in a casualty insurance policy?
✔️✔️ Liability coverage in Nevada provides financial protection if the insured is legally responsible for
bodily injury or property damage to a third party. This coverage helps pay for legal fees, settlements,
and judgments up to the policy limit, ensuring that the insured is protected against costly lawsuits and
claims.
What are some common exclusions in Nevada casualty insurance policies?
, ✔️✔️ Common exclusions in Nevada casualty insurance include intentional acts, criminal activities,
war, nuclear events, and damages due to normal wear and tear. Policies may also exclude certain high-
risk activities, so policyholders must review their exclusions closely.
Describe uninsured motorist (UM) and underinsured motorist (UIM) coverages in Nevada.
✔️✔️ Uninsured motorist (UM) coverage provides protection if the insured is in an accident caused by
a driver without insurance. Underinsured motorist (UIM) coverage applies when the other driver’s
liability limits are insufficient to cover the damages. Both coverages help fill gaps in compensation for
injury or property damage.
What is “peril” in the context of Nevada property insurance?
✔️✔️ A peril is a specific risk or cause of loss covered by the insurance policy, such as fire, theft, or
hail. Property policies in Nevada may offer named-perils or all-risk coverage. Named-perils policies cover
only listed risks, while all-risk policies provide coverage for all perils except those explicitly excluded.
How does Nevada law regulate cancellation and non-renewal of property and casualty policies?
✔️✔️ In Nevada, insurance companies must provide policyholders with a written notice before
canceling or non-renewing a policy. The notice period typically depends on the reason for cancellation,
with different requirements for non-payment versus other reasons. This allows policyholders time to
secure alternative coverage if needed.
Explain the concept of subrogation in Nevada casualty insurance.
✔️✔️ Subrogation is the legal process by which an insurer, after paying a claim to the insured,
acquires the insured's right to pursue recovery from the responsible third party. This allows the insurer
to recoup expenses and prevents the insured from collecting twice for the same loss.
What does "loss of use" coverage entail in Nevada property insurance?
✔️✔️ Loss of use coverage provides financial support for additional living expenses if a property
becomes uninhabitable due to a covered peril. In Nevada, this could include hotel costs, meals, or
temporary rental arrangements while the property is being repaired or rebuilt.
What are the duties of an insured after a loss occurs in Nevada?
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