Nevada Property and Casualty 2024 (Questions with 100% correct answers)

A insurance binder is effective for no more than correct answers 90 Days Mr. Underwood gave his agent a down payment for the purchase of a business insurance policy. The insurance company issued a policy that promises to pay Mr. Underwood under terms and conditions stated in the policy. What specific term is used to refer to Mr. Underwood's payment and the insurance company's promise to pay? correct answers Consideration Which of the following structures is not eligible for flood insurance? A. Anita's mobile home B. Jed's new home, located on a pier C. Sophie's grain silo D. Abby's travel trailer correct answers B. Jed's new home, located on a pier EXPLANATION:Flood insurance may only be written on a structure with two or more outside rigid walls and a fully secured roof, if it's affixed to a permanent location. Manufactured or mobile homes along with travel trailers are eligible buildings if they meet certain other criteria. Silos and grain storage buildings are also eligible. Buildings entirely over water are eligible if they were built or substantially improved before Oct. 1, 1982. Atlas Insurance Company buys insurance for itself to transfer some of the risks involved in its insurance operations. In this situation, Atlas would typically buy insurance from what kind of insurance organization? A. Captive insurance company. B. Self-insurance company. C. Reinsurance company. D. Lloyd's association. correct answers C. Reinsurance company. How is the relationship between an insurance company and the individual who sells their insurance policies defined? A. Vicarious liability B. Risk C. Agency D. Bailment correct answers C. Agency