Nevada Property & Casualty ExamFx Simulation
An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of
his insurance policy, how much should he insure the property for?
a) 80% of the property's replacement cost or more
b) 100% of the market value...
An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of
his insurance policy, how much should he insure the property for?
a) 80% of the property's replacement cost or more
b) 100% of the market value
c) $400,000
d) $32,000 ✔️✔️A
What is "commercial general liability" (CGL) insurance in Nevada, and what does it cover?
✔️✔️ Commercial general liability (CGL) insurance in Nevada covers businesses against claims of
bodily injury, property damage, and personal injury (like defamation or slander) that occur as a result of
business operations. It helps cover legal fees, medical expenses, and settlements, providing essential
protection for companies facing lawsuits.
What is "insurance fraud" in the context of Nevada property and casualty insurance?
✔️✔️ Insurance fraud occurs when a policyholder or a third party intentionally provides false or
misleading information to an insurance company to obtain benefits or coverage they are not entitled to.
In Nevada, both individuals and insurance providers are subject to legal penalties for committing fraud,
and insurers may deny claims or terminate policies as a result of fraud.
What does "medical expense coverage" in Nevada homeowners insurance include?
✔️✔️ Medical expense coverage in Nevada homeowners insurance helps pay for medical treatment if
a guest is injured on the insured’s property, regardless of fault. It generally covers minor medical bills
like doctor visits or hospital stays and is distinct from liability coverage, which applies if the homeowner
is legally responsible for the injury.
What is "hazard insurance" in Nevada, and how does it differ from homeowners insurance?
✔️✔️ Hazard insurance is a type of property insurance that covers damages to the physical structure
of a home caused by specific perils, such as fire or vandalism. In Nevada, hazard insurance is often
included in a standard homeowners policy but is a narrower form of coverage, which does not typically
cover personal property or liability.
, What is a "rider" in Nevada property insurance, and how does it differ from an endorsement?
✔️✔️ A rider is a type of insurance clause added to a standard policy to provide additional coverage or
modify the terms. In Nevada, a rider typically offers specific coverage for items like jewelry, fine art, or
collectibles that exceed standard policy limits. It differs from an endorsement, which is a broader
modification of the policy terms or conditions.
How does "coverage for other structures" work in Nevada homeowners insurance?
✔️✔️ Coverage for other structures in Nevada homeowners insurance typically covers detached
structures on the insured property, such as a garage, shed, or fence, in case of a covered loss. The
coverage limit is usually a percentage of the dwelling coverage limit and can be adjusted based on the
needs of the policyholder.
What does "loss of rent" coverage include in Nevada landlord insurance?
✔️✔️ Loss of rent coverage in Nevada landlord insurance helps cover lost rental income if a rental
property becomes uninhabitable due to a covered peril, such as a fire or severe storm. This coverage
ensures that landlords are not financially burdened by property damage that temporarily stops tenants
from occupying the property.
What is "equipment breakdown coverage" in Nevada commercial insurance?
✔️✔️ Equipment breakdown coverage in Nevada commercial insurance protects businesses against
the cost of repairing or replacing essential equipment that breaks down unexpectedly, such as HVAC
systems, machinery, or computers. This coverage is often added as an endorsement to a standard
property policy to address risks not covered by basic policies.
How do "caps" on medical payments affect Nevada auto insurance policies?
✔️✔️ Medical payments caps in Nevada auto insurance policies limit the amount that will be
reimbursed for medical expenses after an accident. These caps can vary by policy, and understanding
the limit is important to ensure that medical bills are adequately covered, especially in cases of severe
injury.
What does "fire legal liability" cover in Nevada commercial property insurance?
✔️✔️ Fire legal liability in Nevada commercial property insurance covers damage to property owned
by others caused by a fire that started on the insured's property. This type of coverage is important for
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