Nevada P & C Exam Simulator
Questions and Answers 100% Pass
The process of determining the premium charged and how much insurance is required
for a particular loss is called - ✔✔Loss Valuation
What type of compensatory damages will pay for pain and suffering and
disfigurement? - ✔✔General
For insurance purposes, when an insured loses property to another because the person
used violence or threat of violence to gain the property, this is defined as - ✔✔Robbery
What type of insurance policy insures against all risks of loss that are not specifically
excluded by the policy? - ✔✔Open Peril Policy
An insured relocated to another state for work. However, she still owns and insures a
house in this state, but has had no one living in it for 3 months. She is also storing some
of furniture and clothes in the house. From an insurance standpoint, the insured's house
is considered - ✔✔Unoccupied
When a parent is required to pay for damages caused by his or her children, this is an
example of - ✔✔Vicarious Liability
A beauty parlor burns to the ground. What type of loss is this to the owner? - ✔✔Direct
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,When the amount of insurance written in a property policy is not subject to any
coinsurance provision and that amount is paid in the event of a covered loss, the
coverage is said to be written - ✔✔Stated amount
Replacement cost is defined as - ✔✔Full replacement of property at its current cost, new
and without reduction for depreciation.
The policy provision found in property insurance policies that prevents the insured
from collecting twice for the same loss is called - ✔✔Subrogation
Which of the following term does proximate cause refer to - ✔✔Negligence that leads to
an injury
The insured's house is located one mile from the county's new landfill and across the
road from the entrance of a rock quarry. It would cost $150,000 to rebuild the house if
something happened to it, but when the insured tried to sell it, the best offer he received
was $80,000. The insurance company will insure the house for only $80,000. What
method of valuation is used to insure this property? - ✔✔Market value
Which of the following is used in the formula for calculating the Actual Cash Value of a
property? - ✔✔Replacement Cost
Events or conditions that increase the chances of an insured loss occurring are referred
to as - ✔✔Hazards
Which of these is defined as the maximum limit of coverage available under a liability
policy during a policy year, regardless of the number of claims that may be made or the
number of accidents that may occur? - ✔✔Aggregate limit of liability
Peril is most easily defined as - ✔✔The cause of loss insured against
Which of the following is the basis for a claim against an insurance policy? - ✔✔Loss
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
, The legal process that gives the insurer, after payment of a loss, the right to seek
recovery from a third party that was responsible for the loss is known as -
✔✔Subrogation
A situation in which a person can only lose or have no changes represents - ✔✔Pure
Risk
Which of the following definitions best defines the term "accident"? - ✔✔A sudden,
unplanned and unexpected event, not under the control of the insured, resulting in
injury or damage neither expected nor intended.
An additional loss that results from a direct loss of property is called a/an - ✔✔Indirect
loss
What type of damages may be awarded by the court to create disincentives that
discourage behavior that is deemed highly undesirable by society? - ✔✔Punitive
A policy that insures all property at multiple locations for a single amount is referred to
as - ✔✔Blanket
In property and casualty insurance, what is the term for the amount of a loss that the
insured must cover out of pocket, and the insurer will only pay for the additional
amount of the loss above this limit? - ✔✔Deductible
Which of the following types of valuation works best for property whose value does not
fluctuate much? - ✔✔Agreed value
Which method of loss valuation is contrary to the basic concept of indemnity? -
✔✔Replacement Cost
Losses caused by continuous or repeated exposure to conditions resulting in injury
persons or damage to property that is neither intended nor expected is the definition of
which of the following terms? - ✔✔Occurrence
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 3
Questions and Answers 100% Pass
The process of determining the premium charged and how much insurance is required
for a particular loss is called - ✔✔Loss Valuation
What type of compensatory damages will pay for pain and suffering and
disfigurement? - ✔✔General
For insurance purposes, when an insured loses property to another because the person
used violence or threat of violence to gain the property, this is defined as - ✔✔Robbery
What type of insurance policy insures against all risks of loss that are not specifically
excluded by the policy? - ✔✔Open Peril Policy
An insured relocated to another state for work. However, she still owns and insures a
house in this state, but has had no one living in it for 3 months. She is also storing some
of furniture and clothes in the house. From an insurance standpoint, the insured's house
is considered - ✔✔Unoccupied
When a parent is required to pay for damages caused by his or her children, this is an
example of - ✔✔Vicarious Liability
A beauty parlor burns to the ground. What type of loss is this to the owner? - ✔✔Direct
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
,When the amount of insurance written in a property policy is not subject to any
coinsurance provision and that amount is paid in the event of a covered loss, the
coverage is said to be written - ✔✔Stated amount
Replacement cost is defined as - ✔✔Full replacement of property at its current cost, new
and without reduction for depreciation.
The policy provision found in property insurance policies that prevents the insured
from collecting twice for the same loss is called - ✔✔Subrogation
Which of the following term does proximate cause refer to - ✔✔Negligence that leads to
an injury
The insured's house is located one mile from the county's new landfill and across the
road from the entrance of a rock quarry. It would cost $150,000 to rebuild the house if
something happened to it, but when the insured tried to sell it, the best offer he received
was $80,000. The insurance company will insure the house for only $80,000. What
method of valuation is used to insure this property? - ✔✔Market value
Which of the following is used in the formula for calculating the Actual Cash Value of a
property? - ✔✔Replacement Cost
Events or conditions that increase the chances of an insured loss occurring are referred
to as - ✔✔Hazards
Which of these is defined as the maximum limit of coverage available under a liability
policy during a policy year, regardless of the number of claims that may be made or the
number of accidents that may occur? - ✔✔Aggregate limit of liability
Peril is most easily defined as - ✔✔The cause of loss insured against
Which of the following is the basis for a claim against an insurance policy? - ✔✔Loss
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
, The legal process that gives the insurer, after payment of a loss, the right to seek
recovery from a third party that was responsible for the loss is known as -
✔✔Subrogation
A situation in which a person can only lose or have no changes represents - ✔✔Pure
Risk
Which of the following definitions best defines the term "accident"? - ✔✔A sudden,
unplanned and unexpected event, not under the control of the insured, resulting in
injury or damage neither expected nor intended.
An additional loss that results from a direct loss of property is called a/an - ✔✔Indirect
loss
What type of damages may be awarded by the court to create disincentives that
discourage behavior that is deemed highly undesirable by society? - ✔✔Punitive
A policy that insures all property at multiple locations for a single amount is referred to
as - ✔✔Blanket
In property and casualty insurance, what is the term for the amount of a loss that the
insured must cover out of pocket, and the insurer will only pay for the additional
amount of the loss above this limit? - ✔✔Deductible
Which of the following types of valuation works best for property whose value does not
fluctuate much? - ✔✔Agreed value
Which method of loss valuation is contrary to the basic concept of indemnity? -
✔✔Replacement Cost
Losses caused by continuous or repeated exposure to conditions resulting in injury
persons or damage to property that is neither intended nor expected is the definition of
which of the following terms? - ✔✔Occurrence
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 3
