NPCI Nevada Property and Casualty Insurance Exam - Set 5 - Part 3
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 41: An agency relationship exists when one party is authorized to act on behalf of another. In the ordinary insurance agency relationship, the producer acts on behalf of the insurance company. In that relationship, which party is properly regarded as the principal?
Question 42: Insurance policies are generally organized into several standard parts, and one memory device for the core parts is the acronym DICEE. Which of the following is one of those core parts of an insurance policy, describing the section that lists the named insured, the property, the limits, and the premium?
Question 43: Within an insurance policy, one core section contains the insurer's central promise, describing the perils or risks that are covered and, in liability coverage, the promise to defend the insured against suits. This section is often called the heart of the policy. What is it called?
Question 44: Every insurance policy contains a section that carves certain things out of the coverage otherwise granted, listing the property, perils, hazards, or losses the policy will not cover, such as flood in a standard policy. What is this section of the policy called?
Question 45: After an insurer pays its insured for a loss caused by a negligent third party, the insurer often steps into the insured's shoes to pursue that at-fault party for reimbursement. This transfer to the insurer of the insured's right of recovery against others is known by which term?
Question 46: When an insurance policy is canceled before its expiration, the way the unearned premium is refunded depends on who cancels. If the insurer cancels the policy midterm, on what basis is the unearned premium returned to the policyholder?
Question 47: Property insurance policies commonly include a deductible, an amount the insured must pay out of pocket on a covered loss before the insurer pays the rest. Regarding how a deductible affects the premium, which of the following statements is generally correct?
Question 48: Insurance is often divided by whether the policy pays the insured for the insured's own loss or pays an outside person the insured has harmed. Property insurance, which pays the insured for damage to the insured's own property, is therefore said to cover which kind of loss?
Question 49: There is an important difference between an insurer stopping a policy in the middle of its term and an insurer simply declining to continue the policy when its term ends. When an insurer chooses not to continue a policy at its expiration date, this action is properly called which of the following?
Question 50: Sometimes a customer needs insurance coverage to begin immediately, before the insurer has formally issued the policy. A temporary oral or written agreement, given by an agent, that provides immediate coverage for a limited time until the policy is issued is known by which of the following terms?
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