NPCI - Nevada Property and Casualty Insurance Exam

Question 21: Commercial general liability can be written on two different coverage triggers, and the distinction controls which policy responds to a given loss. An occurrence-form policy is triggered by injury or damage that takes place during the policy period. What triggers coverage under a claims-made form instead?

A claim first made during the period

The premium being fully paid

A loss reported after expiration

The retroactive date passing by

Question 22: A claims-made commercial general liability policy uses a specific date to determine how far back covered occurrences may reach in time. An injury that leads to a claim is covered only if the occurrence took place on or after this date shown in the declarations. What is this date called?

The expiration date

The retroactive date

The anniversary date

The grace period date

Question 23: The commercial general liability coverage form is divided into three insuring agreements, each labeled with a letter and each responding to a different kind of claim that a business may face. Which of the following correctly matches one of the three commercial general liability coverages?

Coverage B workers compensation benefits

Coverage A only property of the insured

Coverage A bodily injury and property damage

Coverage C a punitive damages fund

Question 24: Coverage C of the commercial general liability policy pays medical expenses for a member of the public injured on the insured's premises or by the insured's operations, without regard to fault. Within how long after the accident must those medical expenses be incurred and reported to the insurer?

Within five years

Within three years

Within thirty days

Within one year

Question 25: The commercial general liability policy contains more than one aggregate limit, and one category of losses is deliberately kept separate from the general aggregate. Losses arising out of the insured's products and completed work are capped by which limit rather than by the general aggregate limit?

The products-completed operations aggregate

The general aggregate limit

The each-occurrence limit only

The fire legal liability limit

Question 26: Coverage A of the commercial general liability policy is triggered by an occurrence, and the policy defines that term more broadly than just a single sudden mishap on one day. According to the standard definition, an occurrence includes an accident and what additional situation beyond a sudden event?

A breach of a written contract

Any intentional act by the insured

Continuous or repeated exposure to conditions

A criminal act by an employee

Question 27: The commercial general liability insurer has a duty to defend the insured against covered suits, and the cost of that defense is treated in a particular way relative to the policy limits. How are defense costs handled, and when does the insurer's duty to defend eventually end?

Paid only after liability is established

Deducted from the limits as incurred

Never provided by the insurer

Paid above limits; ends at exhaustion

Question 28: The products-completed operations hazard in the commercial general liability policy describes a particular category of covered bodily injury and property damage. Generally, for a loss to fall within this hazard, where must the injury or damage occur relative to the premises the insured owns or rents?

Only inside the insured's building

Away from the insured's own premises

Only while the product is being made

Only on public streets and sidewalks

Question 29: The business auto coverage form uses numbered symbols on the declarations to show which autos are covered for each coverage the business selects. One symbol provides the broadest possible coverage by including owned, leased, hired, rented, and borrowed autos alike. Which covered-auto symbol provides that broadest coverage?

Symbol 1, any auto

Symbol 7, described autos

Symbol 8, hired autos only

Symbol 9, nonowned autos only

Question 30: A business wants to insure physical damage on only a few specific vehicles from its larger fleet rather than on every auto it owns outright. The business auto symbol that limits coverage strictly to the autos listed in the declarations, giving the narrowest coverage, is which of the following?

Symbol 2, owned autos only

Symbol 1, any auto

Symbol 7, described autos

Symbol 8, hired autos only

Question 31: A business auto policy uses symbol 9 to cover nonowned autos used in the business by the insured. One important and frequently tested feature is exactly which category of vehicles this nonowned-autos symbol actually reaches. What does symbol 9, nonowned autos, notably include for the business?

Only trailers with heavy load capacity

All vehicles the insured owns outright

Autos the insured leased long term

Autos owned by the insured's employees

Question 32: A commercial business auto policyholder acquires an additional vehicle during the policy term and wants it to continue to be covered. Compared with the personal auto policy, the business auto policy allows a different amount of time to report the new auto. Within how many days must the business report it?

Within thirty days

Within fourteen days

Within five days

Within ninety days

Question 33: Supplementary payments under a liability policy are paid in addition to the limits, and the bail bond amount differs between the personal auto policy and the business auto policy. Under the business auto coverage form, up to what amount will the insurer pay for bail bonds from a covered accident?

Up to 500 dollars

Up to 250 dollars

Up to 2,000 dollars

Up to 5,000 dollars

Question 34: A business buys a standard business auto coverage form providing liability and physical damage on its fleet. The owner is surprised that certain protections are not automatically included and must be requested separately. Which of the following must be added to the business auto policy by endorsement?

Liability coverage for owned autos

Uninsured motorists and medical payments

Collision coverage on scheduled autos

Comprehensive coverage on owned autos

Question 35: The standard workers compensation and employers liability policy filed by the rating organization is organized into several parts, three of which provide the main coverages a business needs. Which of the following correctly identifies those three coverage parts of the standard workers compensation policy?

Building, business income, extra expense

Bodily injury, property damage, medical

Liability, physical damage, uninsured motorists

Workers compensation, employers liability, other states

Question 36: Part One of the standard workers compensation policy provides the benefits required by the applicable state workers compensation law for injured employees. Regarding the dollar limit that applies to those statutory benefits under Part One, which of the following statements is correct?

No dollar limit on statutory benefits

Capped at a fixed policy limit

Limited to medical costs only

Benefits stop after thirty days

Question 37: Modern workers compensation laws provide statutory benefits to injured workers on a no-fault basis, and in exchange the worker generally gives up something valuable in return. What is the worker's workers compensation benefit generally understood to be with respect to the employer for a work injury?

Available only if the employer was negligent

One of several combinable remedies

The exclusive remedy against the employer

Payable only after a court suit

Question 38: Workers compensation laws provide several broad categories of benefits to an injured employee and, in the event of a work-related death, to the employee's dependents. Which of the following is one of the standard categories of benefits provided under workers compensation laws to an injured worker?

Replacement of the employee's vehicle

Punitive damages against the employer

Pain and suffering awards

Medical benefits for the work injury

Question 39: Among the benefit categories in a typical workers compensation law, the medical benefit has a particular reputation for its breadth when compared with ordinary group health coverage. How are basic medical benefits under workers compensation generally provided to the injured worker for a covered injury?

Generally unlimited, with no deductibles

Subject to a low annual cap

Only after a large deductible

Limited to emergency room visits

Question 40: States fund workers compensation in different ways, and one key distinction concerns whether an employer may buy coverage from a private insurer or must instead use a state-run fund. In a monopolistic state fund arrangement, from whom must an employer obtain its workers compensation coverage?

From the state or a private insurer

Only from the state fund

Only from a federal program

From any out-of-state insurer

NPCI Nevada Property and Casualty Insurance Exam - Set 4 - Part 2

Question 22: A claims-made commercial general liability policy uses a specific date to determine how far back covered occurrences may reach in time. An injury that leads to a claim is covered only if the occurrence took place on or after this date shown in the declarations. What is this date called?

Question 27: The commercial general liability insurer has a duty to defend the insured against covered suits, and the cost of that defense is treated in a particular way relative to the policy limits. How are defense costs handled, and when does the insurer's duty to defend eventually end?

Question 36: Part One of the standard workers compensation policy provides the benefits required by the applicable state workers compensation law for injured employees. Regarding the dollar limit that applies to those statutory benefits under Part One, which of the following statements is correct?

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