2024 Nevada Property & Casualty Exam Questions With 100% Correct Answers!!

Agreed value - 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 depreciaion. Absolute liability - Any conduct that is inherently dangerous (swimming pools, explosives, wild animals) imposes absolute liability. Actual cash value - A loss valuation method used in many property forms is determined by today's replacement cost - depreciation for age and obsolescence Perils - The causes of loss insured against in an insurance policy Speculative risk - Involves the chance of gain or loss and is not insurable Libel - A type of intentional tort; is NOT an element of negligence 4 elements of negligence - Duty, breach, injury, unbroken chain Actual Cash Value (ACV) - 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 - A type of limit liability that sets the amount for all claims that arise from a single incident at a certain number Indemnity - 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 limitsAgreed value - 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 Deductible - The amount of loss retained by the insured (property); retention (liability). Most property coverages include this; most liability policies do not include retention. Stated value contract - Is used to pre-establish the amount of coverage available for property items that are difficult to value. The value of the insured items is determined at the time the policy is written, not at the time of loss.