NEVADA PROPERTY & CASUALTY
EXAM QUESTIONS & VALID CORRECT
ANSWERS ALL PASSED
Agreed value - Correct Answer ✔✔ 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 depreciation.
Absolute liability - Correct Answer ✔✔ Any conduct that is inherently dangerous
(swimming pools, explosives, wild animals) imposes absolute liability.
Actual cash value - Correct Answer ✔✔ A loss valuation method used in many property
forms is determined by today's replacement cost - depreciation for age and
obsolescence
Perils - Correct Answer ✔✔ The causes of loss insured against in an insurance policy
Speculative risk - Correct Answer ✔✔ Involves the chance of gain or loss and is not
insurable
Libel - Correct Answer ✔✔ A type of intentional tort; is NOT an element of negligence
4 elements of negligence - Correct Answer ✔✔ Duty, breach, injury, unbroken chain
Actual Cash Value (ACV) - Correct Answer ✔✔ Method of valuation that reinforces the
principle of indemnity because it recognizes the reduction of value of property as it
ages. (Depreciation-current replacement cost)
Per occurrence - Correct Answer ✔✔ A type of limit liability that sets the amount for all
claims that arise from a single incident at a certain number
Indemnity - Correct Answer ✔✔ Insurance principle that states that the insured can inly
collect for the amount of the loss even if the policy is written with greater benefit limits
Agreed value - Correct Answer ✔✔ Works best for items whose calue does not
fluctuate much; when a loss occurs, the policy pays the agreed value as specified on
the policy schedule, regardless of the insured item's appreciation or depreciation
EXAM QUESTIONS & VALID CORRECT
ANSWERS ALL PASSED
Agreed value - Correct Answer ✔✔ 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 depreciation.
Absolute liability - Correct Answer ✔✔ Any conduct that is inherently dangerous
(swimming pools, explosives, wild animals) imposes absolute liability.
Actual cash value - Correct Answer ✔✔ A loss valuation method used in many property
forms is determined by today's replacement cost - depreciation for age and
obsolescence
Perils - Correct Answer ✔✔ The causes of loss insured against in an insurance policy
Speculative risk - Correct Answer ✔✔ Involves the chance of gain or loss and is not
insurable
Libel - Correct Answer ✔✔ A type of intentional tort; is NOT an element of negligence
4 elements of negligence - Correct Answer ✔✔ Duty, breach, injury, unbroken chain
Actual Cash Value (ACV) - Correct Answer ✔✔ Method of valuation that reinforces the
principle of indemnity because it recognizes the reduction of value of property as it
ages. (Depreciation-current replacement cost)
Per occurrence - Correct Answer ✔✔ A type of limit liability that sets the amount for all
claims that arise from a single incident at a certain number
Indemnity - Correct Answer ✔✔ Insurance principle that states that the insured can inly
collect for the amount of the loss even if the policy is written with greater benefit limits
Agreed value - Correct Answer ✔✔ Works best for items whose calue does not
fluctuate much; when a loss occurs, the policy pays the agreed value as specified on
the policy schedule, regardless of the insured item's appreciation or depreciation
