NPCI - Nevada Property and Casualty Insurance Exam

Question 1: To recover in a negligence lawsuit, an injured claimant generally must establish several distinct legal elements, and the failure to prove any one of them defeats the whole claim entirely. Which set correctly lists the four elements of negligence that a claimant must prove?

Offer, acceptance, consideration, capacity

Intent, motive, harm, and profit

Duty, breach, proximate cause, damages

Peril, hazard, loss, and reserve

Question 2: Liability insurance is chiefly concerned with unintentional wrongs rather than deliberate ones, and the central concept lying at its very core is negligence. Which of the following best states the legal definition of negligence as it applies to liability insurance and casualty claims generally?

Any accident that causes a loss

A deliberate act intended to harm

A crime prosecuted by the state

Failure to use reasonable care

Question 3: In a liability insurance claim, three parties are usually involved: the insured, the insurance company, and the outside person who was harmed by the insured. When a liability policy actually pays a claim, which of those three parties receives the payment for the injury or damage?

The harmed third party

The first party, the insured

The second party, the insurer

Whichever party files first

Question 4: In a state that follows the strict contributory negligence doctrine, a court finds that an injured claimant was thirty percent responsible for causing the very accident in which the claimant was hurt. Under that doctrine, how much can the claimant recover from the other at-fault party?

Seventy percent of the damages

Nothing at all

Thirty percent of the damages

The full amount of damages

Question 5: A driver is injured in a crash and a court determines that this driver was twenty-five percent at fault for the accident while the other motorist was seventy-five percent at fault. In a comparative negligence state, how does the driver's own fault affect the recovery amount?

The award is doubled for the driver

The driver recovers nothing at all

The award is reduced twenty-five percent

Fault has no effect on recovery

Question 6: A participant is hurt after voluntarily joining a clearly dangerous activity that he knew carried a real chance of injury, such as playing in a rough contact sport. The defense that bars or reduces his recovery because he knowingly accepted the danger is known by what name?

Subrogation

Vicarious liability

Proximate cause

Assumption of risk

Question 7: Some activities are considered so inherently dangerous, and some products so potentially defective, that the law will hold a party responsible for the resulting harm even without any proof of negligence. What is this legal responsibility imposed without regard to fault commonly called in casualty insurance?

Absolute or strict liability

Vicarious liability

Contributory negligence

Contractual liability

Question 8: An employer is held legally responsible for bodily injury that one of its employees negligently caused to a customer while the employee was performing assigned job duties. The legal principle that makes one party answerable for the negligent acts of another party is known as what?

Assumption of risk

Absolute liability

Vicarious liability

Comparative negligence

Question 9: After an injury caused by grossly reckless and malicious conduct, a court decides to award the victim a sum beyond reimbursing actual losses, specifically to punish the wrongdoer and to deter similar conduct by others in the future. What are these additional damages called?

Compensatory damages

Special damages

General damages

Punitive damages

Question 10: A liability policy defines property damage broadly so that it reaches beyond just the cost to repair or replace a damaged item that was harmed. In addition to physical injury to or destruction of tangible property, what else does the standard definition of property damage include?

The owner's emotional distress

Loss of use of the property

Punitive damages awarded later

Lost business profits only

Question 11: The personal auto policy is organized into several separate coverage parts, each with its own insuring agreement, exclusions, and conditions, so an insured can see exactly what each part does. Which of the following correctly identifies the four principal coverage parts of the personal auto policy?

Liability, medical, uninsured motorists, physical damage

Building, contents, loss of use, liability

Bodily injury, property, theft, and flood

Bid, performance, payment, and license

Question 12: Under Part D of the personal auto policy, physical damage is split between collision coverage and other-than-collision coverage, and knowing which perils fall on each side is heavily tested. Which of the following losses is covered under other-than-collision, sometimes called comprehensive, rather than under collision?

Striking another car at an intersection

Overturning the vehicle in a ditch

Fire, theft, and hitting an animal

Colliding with a metal guardrail

Question 13: When an insured buys collision coverage under Part D of the personal auto policy, that coverage responds to a specific category of physical damage losses to the insured's covered auto. Which of the following correctly describes what collision coverage insures against for that vehicle?

Only damage caused by an animal

Only fire and theft of the auto

Any loss except impact with objects

Impact with an object, or overturn

Question 14: A personal auto liability policy is written with split limits shown on the declarations as the numbers one hundred, three hundred, and fifty thousand dollars for that insured. In this common split-limit format, what does the first number, the one hundred thousand, represent for a covered accident?

Bodily injury per person

Bodily injury per accident

Property damage per accident

A combined single limit

Question 15: Instead of using separate split limits for bodily injury and property damage, some auto policies express liability coverage as one single amount that applies to both kinds of harm combined in any one accident. What is this single-amount approach to stating liability limits called?

A per-person limit

An aggregate limit

A combined single limit

A coverage sublimit

Question 16: Part B of the personal auto policy pays reasonable medical and funeral expenses for a covered person hurt in an auto accident, and it does so on a no-fault basis. Within how long after the accident must the expenses be incurred for Part B to pay them?

Within one year

Within three years

Within thirty days

Within six months

Question 17: Part C of the personal auto policy protects an insured who is injured by another driver who carries no liability insurance at all, or who cannot be identified after fleeing the scene of the crash. What is this Part C coverage that responds to such at-fault drivers called?

Liability coverage

Collision coverage

Medical payments coverage

Uninsured motorists coverage

Question 18: An insured suffers sixty-five thousand dollars in bodily injury damages in a crash caused by another driver whose liability policy pays only its fifty-thousand-dollar limit. If the insured carries underinsured motorists coverage with a one-hundred-thousand-dollar limit, how does that coverage generally respond here?

It pays the fifteen-thousand-dollar difference

It pays the full sixty-five thousand

Nothing, since the driver was insured

It pays the entire one hundred thousand

Question 19: The personal auto policy uses defined terms to decide who is protected, and the words you and your carry a specific meaning throughout the entire policy. Under the personal auto policy, whom do the terms you and your refer to as the named insured for coverage purposes?

Any licensed driver in the state

Only whoever signed the application

The named insured and resident spouse

The insurer that issued the policy

Question 20: A personal auto policyholder buys an additional car and wants the new vehicle to have the same coverage the policy already provides on the existing autos. Generally, within how many days must the insured notify the insurer about the newly acquired auto to keep that coverage in force?

Within ninety days

Within thirty days

Within five days

Within fourteen days

NPCI Nevada Property and Casualty Insurance Exam - Set 4 - Part 1

Question 1: To recover in a negligence lawsuit, an injured claimant generally must establish several distinct legal elements, and the failure to prove any one of them defeats the whole claim entirely. Which set correctly lists the four elements of negligence that a claimant must prove?

Question 3: In a liability insurance claim, three parties are usually involved: the insured, the insurance company, and the outside person who was harmed by the insured. When a liability policy actually pays a claim, which of those three parties receives the payment for the injury or damage?

Question 4: In a state that follows the strict contributory negligence doctrine, a court finds that an injured claimant was thirty percent responsible for causing the very accident in which the claimant was hurt. Under that doctrine, how much can the claimant recover from the other at-fault party?

Question 5: A driver is injured in a crash and a court determines that this driver was twenty-five percent at fault for the accident while the other motorist was seventy-five percent at fault. In a comparative negligence state, how does the driver's own fault affect the recovery amount?

Question 6: A participant is hurt after voluntarily joining a clearly dangerous activity that he knew carried a real chance of injury, such as playing in a rough contact sport. The defense that bars or reduces his recovery because he knowingly accepted the danger is known by what name?

Question 8: An employer is held legally responsible for bodily injury that one of its employees negligently caused to a customer while the employee was performing assigned job duties. The legal principle that makes one party answerable for the negligent acts of another party is known as what?

Question 9: After an injury caused by grossly reckless and malicious conduct, a court decides to award the victim a sum beyond reimbursing actual losses, specifically to punish the wrongdoer and to deter similar conduct by others in the future. What are these additional damages called?

Question 10: A liability policy defines property damage broadly so that it reaches beyond just the cost to repair or replace a damaged item that was harmed. In addition to physical injury to or destruction of tangible property, what else does the standard definition of property damage include?

Question 13: When an insured buys collision coverage under Part D of the personal auto policy, that coverage responds to a specific category of physical damage losses to the insured's covered auto. Which of the following correctly describes what collision coverage insures against for that vehicle?

Question 15: Instead of using separate split limits for bodily injury and property damage, some auto policies express liability coverage as one single amount that applies to both kinds of harm combined in any one accident. What is this single-amount approach to stating liability limits called?

Question 16: Part B of the personal auto policy pays reasonable medical and funeral expenses for a covered person hurt in an auto accident, and it does so on a no-fault basis. Within how long after the accident must the expenses be incurred for Part B to pay them?

Question 17: Part C of the personal auto policy protects an insured who is injured by another driver who carries no liability insurance at all, or who cannot be identified after fleeing the scene of the crash. What is this Part C coverage that responds to such at-fault drivers called?

Question 19: The personal auto policy uses defined terms to decide who is protected, and the words you and your carry a specific meaning throughout the entire policy. Under the personal auto policy, whom do the terms you and your refer to as the named insured for coverage purposes?

Question 20: A personal auto policyholder buys an additional car and wants the new vehicle to have the same coverage the policy already provides on the existing autos. Generally, within how many days must the insured notify the insurer about the newly acquired auto to keep that coverage in force?

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