Nevada Property & Casualty Exam Q&A
100% Solved | Graded A+
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
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, 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 limits
Agreed 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.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
100% Solved | Graded A+
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
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, 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 limits
Agreed 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.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
