NPCI - Nevada Property and Casualty Insurance Exam

Question 21: Nevada defines a binder as a form of temporary insurance used when a policy is not immediately issued, evidencing that coverage attaches at a stated time and continues until the policy issues or the risk is declined. According to that definition, a binder may take what form?

Either oral or written

Written and notarized only

Written and Commissioner-approved only

Electronic and signed only

Question 22: When a Nevada binder is written, the statute requires copies to be delivered to the proper parties promptly after the binder takes effect. Within what time must a copy of a written binder be delivered to the insured and to the insurer?

Within 72 hours

Within 24 hours

Within 10 days

Within 30 days

Question 23: In Nevada a valid binder is treated as a policy for proving that a person has insurance coverage. If a party to a contract refuses to accept such a binder as proof of insurance, the statute imposes a penalty. What penalty does NRS 687B.186 provide?

License revocation only

A fine up to 5,000 dollars

Up to 500 dollars plus damages

No penalty at all

Question 24: Nevada licenses motor vehicle physical damage appraisers, but the definition turns on a particular phrase that distinguishes an appraiser from an adjuster performing appraisal as part of adjusting. What element makes a person a motor vehicle physical damage appraiser under NRS 684B.010?

Membership in a trade group

Holding an adjuster's license

Employment by a body shop

Appraising for a separate fee

Question 25: A person in Nevada acts as a motor vehicle physical damage appraiser on behalf of an insurance company without first obtaining the license the law requires. Under NRS 684B.020, what is the maximum administrative fine that may be imposed for each such violation?

Not more than 1,000 dollars

Not more than 500 dollars

Not more than 5,000 dollars

Not more than 10,000 dollars

Question 26: Nevada's insurance code defines both marine and transportation insurance and the narrower term wet marine and transportation insurance. Understanding the relationship between the two matters because certain exemptions hinge on it. How does wet marine and transportation insurance relate to marine and transportation insurance?

It is a synonym for it

It is an unrelated separate line

It is a defined subset of it

It is broader than it

Question 27: Nevada's code defines property insurance broadly as coverage on real or personal property against loss or damage from virtually any cause, but it draws a specific line by excluding one named line of insurance from the definition. Which line does NRS 681A.060 expressly exclude?

Flood insurance

Inland marine insurance

Boiler and machinery insurance

Title insurance

Question 28: Nevada added NRS 691A.035 in 2025 to address how property insurers may treat the peril of wildfire. Contrary to what many candidates expect, the statute does not mandate wildfire coverage. What does NRS 691A.035 actually permit an insurer to do with the peril of wildfire?

Charge unlimited wildfire premiums freely

Exclude wildfire from a property policy

Cancel any policy after a wildfire

Deny all claims in fire zones

Question 29: Nevada requires an insurer that writes a personal property policy on a manufactured or mobile home to offer replacement-value coverage in the event of a total loss, but only for homes of a certain recent vintage. A home must have been manufactured within how many years?

15 years

10 years

20 years

5 years

Question 30: Every Nevada motor vehicle liability policy must include uninsured motorist coverage for the protection of insured persons unless the named insured affirmatively declines it in a particular manner. Apart from government-owned policies, how must an insured reject the otherwise-required uninsured motorist coverage?

By simply not paying for it

By an oral request to the agent

In writing, on the insurer's form

Only through a court filing

Question 31: When uninsured motorist coverage is provided on a Nevada auto policy, the statute sets a floor on the amount of that coverage. Notably, NRS 690B.020 itself states no dollar figure. To what minimum must the uninsured motorist coverage amount conform?

Twice the policy's liability limits

A flat hundred thousand per person

The property damage minimum only

The chapter 485 bodily injury minimums

Question 32: Nevada treats a hit-and-run vehicle as an uninsured motor vehicle for coverage purposes, but only if a particular factual element is present in addition to timely reporting of the crash. What additional element does NRS 690B.020 require for a hit-and-run claim?

Physical contact with the vehicle

A police officer as witness

Property damage over 750 dollars

Identification of the driver

Question 33: After a Nevada crash resulting in bodily injury or death, a vehicle may be presumed to be an uninsured motor vehicle if certain proof is never supplied to the Department of Motor Vehicles. After how long without that evidence does the presumption arise?

10 days after the crash

30 days after the crash

60 days after the crash

90 days after the crash

Question 34: Separate from the uninsured motorist coverage that Nevada requires unless rejected, insurers must also make an offer regarding underinsured coverage. For a passenger car or motorcycle, what must the insurer offer, and in what amount, under NRS 687B.145?

A flat 15,000 dollars of coverage

Coverage equal to the bodily injury limits

Coverage the insured must accept

Only property damage protection

Question 35: Nevada handles subrogation differently depending on whether a payment is made under uninsured or underinsured motorist coverage. An insurer pays an injured insured under the underinsured motorist coverage of the policy. What does NRS 687B.145 say about the insurer's subrogation rights here?

It must sue the insured

It may subrogate fully

It may subrogate for half

It has no right of subrogation

Question 36: Nevada's Motor Vehicle Safety and Responsibility Act sets the minimum liability limits every owner must carry. These limits are stated as three figures, for bodily injury per person, bodily injury per crash, and property damage. What are Nevada's required minimum limits?

25, 50, and 20 thousand dollars

25, 50, and 25 thousand dollars

15, 30, and 10 thousand dollars

50, 100, and 25 thousand dollars

Question 37: Candidates frequently transpose Nevada's minimum property damage liability limit because it does not match the per-person bodily injury figure. Isolating just the property damage component, what is the minimum property damage liability limit an owner must carry under NRS 485.185?

10,000 dollars

25,000 dollars

20,000 dollars

15,000 dollars

Question 38: Nevada's compulsory insurance duty requires owners of registered motor vehicles to maintain liability coverage continuously, but the statute carves out one type of vehicle from that duty. Which of the following is expressly exempt from the compulsory insurance requirement of NRS 485.185?

A rideshare vehicle

A motorcycle

A pickup truck

A moped

Question 39: When a Nevada auto policy has been filed as a certificate of insurance to prove financial responsibility, the insurer cannot simply drop it without warning the state. How far in advance must the carrier notify the Department of Motor Vehicles before cancelling or terminating such a certified policy?

At least 10 days before

At least 30 days before

At least 60 days before

At least 5 days before

Question 40: Nevada's compulsory insurance statute describes not only that an owner must maintain coverage but also the kind of insurer that coverage must come from. Under NRS 485.185, an owner must continuously provide insurance issued by an insurer holding what status?

Domiciled within Nevada's borders

Licensed by the Division of Insurance

Rated highly by a rating agency

Owned by Nevada residents

NPCI Nevada Property and Casualty Insurance Exam - Set 2 - Part 2