Nevada Property & Casualty ExamFx Simulation 2 Questions With Complete Solutions

Duties of the insurer found in property policy conditions include all of the following EXCEPT a) Return any premiums to the insured. b) Notify the insured in the event of financial difficulty. c) Pay covered losses. d) Provide advance notice of cancellation. correct answer: B According to the appraisal condition of a homeowners policy, what procedure may be followed if the insurer and insured do not agree as to the size of a loss? a) The policyholder is allowed to hire an appraiser, and the insurer will pay the amount determined. b) Each side selects its own appraiser, and the appraisers select an umpire to settle any differences between the appraisers. c) The insured is required to accept what the insurer is willing to pay. d) The parties must pursue a lawsuit. correct answer: B In a participation plan, the insured may be eligible for which of the following? a) An increase in insurance over time b) Lower premiums c) Guaranteed dividends d) A partial premium refund correct answer: D Bob insists that the insurer owes him $10,000 for liability damages, while his insurer asserts that they owe him no more than $7,000. Which of the following would most likely describe the type of claim settlement that they might pursue? a) Independent audit b) Appraisal hearing c) Arbitration d) Small claims court correct answer: C An insured is driving her automobile and strikes a large pothole that causes a flat tire. Which coverage of the insured's personal auto policy will pay for the repair? a) Comprehensive b) Collision c) Transportation expenses d) Loss is not covered. correct answer: D Which of the following would be the insured's duty in the event of a loss according to the duties in event of occurrence, claim, or suit condition?