Nebraska P&C Exam 2024/2025 with 100% Accurate Solutions, Exams of Business Economics

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NEBRASKA P AND C EXAM 2024/

WITH 100% ACCURATE SOLUTIONS

Subrogation - Precise Answer ✔✔Prevents the insured from collecting twice for the same loss by transfering insured's right to collect. And allows the insurer to indemnify the insurance company. Sound Reproduction equipment permanently installed in the covered auto if installed by the manufacturer. - Precise Answer ✔✔Is included under the physical damage coverage of a personal auto policy Market Value when the property was first purchased. - Precise Answer ✔✔What is not a consideration when paying inland marine claim? 10 days. BOP Section I. - Precise Answer ✔✔BOP Section I if an insurer wants to non renew a policy how many days before must the insurer notify the mortgage holder/. HomeOwners Earthquake Endorsement. - Precise Answer ✔✔One or more earthquakes occurring within 72 hr period are considered one occurrence. Nonrenewal. - Precise Answer ✔✔When insurance policy don't offer a continuation or replacement at its expiration date.

Personal Property classification. - Precise Answer ✔✔Personal Property is property that is moveable. Which is false regarding agricultural machinery and equipment coverage? - Precise Answer ✔✔a. it relates to devices used in everyday farm operation. b. it covers detached parts and accessories of mobile devices. c. it insures eligible equipment for open perils. d. this coverage must be written as part of farm coverage. d. Mobile agriculture machinery and equipment coverage may also be written on a separate stand alone policy. Personal auto policy full coverage transportation expenses. - Precise Answer ✔✔The policy will pay daily expense after 48 yrs. not to exceed 30 days in total. Negligence may be defined as. - Precise Answer ✔✔The failure to use proper care results in injury or damage. Which of the following is true of dwelling policy coverage? - Precise Answer ✔✔Exclusions apply to all three policy forms. Several insureds have become liable because of a single loss. How will the policy's limit of liability be affected? - Precise Answer ✔✔No more than the per occurrence limit applies. This condition does not increase the insurers liability for any one occurrence.

An insurer typically will grant its producers or agents the authority to. - Precise Answer ✔✔Select applicants. A store employee discovers a large shortage taking inventory. Under an unendorsed Business owners policy the loss. - Precise Answer ✔✔Is excluded under the limitations section of the policy. Endorsements to change the terms of a Business owners policy must be approved by. - Precise Answer ✔✔The insurer. Changing conditions for an insurance policy currently in force requires. - Precise Answer ✔✔An endorsement or rider attached to the policy. Insurance is an appropriate device to. - Precise Answer ✔✔Transfer risk. Under a Homeowners Policy, the definition of an insured includes which of the following? - Precise Answer ✔✔An uncle who resides with the insured. Fraternal. - Precise Answer ✔✔A social organization which is licensed to issue insurance only to its members is a BLANK insurer. A Basic form Dwelling Policy provides. - Precise Answer ✔✔Coverage on a named peril basis.

Under a homeowners policy the insured location includes all of the following EXCEPT. - Precise Answer ✔✔A. Cemetery plot. B. A secondary location used by the insured for a business. C. Vacant land on which the insured plans to build a house. D. A motel room in which the insured is residing temporarily. B. A secondary location used by the insured for a business. Which of the following is not used in determining the amount an insured can receive under the Personal Property Replacement Coverage Endorsement to a Homeowners Policy? - Precise Answer ✔✔Depreciated market Value. Standard Time. - Precise Answer ✔✔The policy period of a property policy is based on. A licensed producer or agent may receive commission compensation for all of the following services EXCEPT: - Precise Answer ✔✔Acting as a consultant to provide insurance advice. Medical Payments to Others under the Homeowners Policy will cover an accident that injures a. - Precise Answer ✔✔A. Residence Employee during the course of employment. The liability section of the Garage Coverage Form includes all of the following EXCEPT. - Precise Answer ✔✔D. Contractual Liability.

Under the Farm Policy, losses which qualify for payment on a replacement cost basis is limited to the actual cash value until. - Precise Answer ✔✔The actual repairs or replacement are completed. Risk Retention Group. - Precise Answer ✔✔A group owned insurer whose primary activity consists of assuming and spreading the liability risks of its members. Unintentional torts. - Precise Answer ✔✔An unendorsed liability insurance policy provides coverage for. Which is an exclusion under part two of the Workers Compensation and Employers Liability Policy? - Precise Answer ✔✔Injury occurring to an employee who is permanently assigned to work outside of the State. Which of the following is a major section of a liability insurance policy?

• Precise Answer ✔✔Conditions. Which one of the following is covered under the Liability Coverage of the Business Auto Coverage Form? - Precise Answer ✔✔An Explosion. A driver of a vehicle failed to stop at red light and hit a pole but did not hit a nearby vehicle. Which element of negligence is missing for legal action to be taken by the driver of a nearby vehicle? - Precise Answer ✔✔Actual Damage.

Who would be covered under the medical payments section of the Commercial General Liability Policy if injured on the insured's premises? - Precise Answer ✔✔A customer of the named insured. Under a Business Owners Coverage Form if an insured violates a condition the insurer may. - Precise Answer ✔✔Deny coverage for a loss at the involved locations. Common Law defenses for negligent liability. - Precise Answer ✔✔Contributory. Intervening Cause. Assumption of Risk. Not strict liability. Insurance contract offered for acceptance or rejection without negotiation. - Precise Answer ✔✔Contract of adhesion. Under the other structures coverage of Broad Form Dwelling all are true EXCEPT. - Precise Answer ✔✔A. It provides a 10 percent extension. B. It provides coverage for a tool shed. C. It does not provide an additional amount of insurance. D. It covers a private garage. C. It does not provide an additional amount of insurance. Federal flood insurance covers. - Precise Answer ✔✔Power tools stored in an attached garage.

Employers liability insurance coverage which accompanies a workers compensation policy covers. - Precise Answer ✔✔Damages under the doctrine of dual capacity. Coverage A limit for a dwelling under construction is the. - Precise Answer ✔✔Actual cash value on the date of completion. Builders risk does not cover. - Precise Answer ✔✔An occupied building. Home owners two policy does not cover. - Precise Answer ✔✔Farm outbuildings. If policy A states that it will pay after payment by other applicable policies. Policy A is. - Precise Answer ✔✔Excess. In the cause of loss. Basic form of Commercial Property policy the explosion coverage includes damage from. - Precise Answer ✔✔Sonic boom of an aircraft. Mutual Companies. - Precise Answer ✔✔Owned by Policy Owners, issue participating policies, which pay policy dividends to their policy owners. They may sell any type of Insurance!.

Stock Companies. - Precise Answer ✔✔Do NOT issue participating polices and pay stock dividends to stockholders. They may sell any type of insurance. County mutuals. - Precise Answer ✔✔Mutual companies that operate in a limited geographical area. They originally only sold property insurance, but now offer other types also. Lloyd's Associations. - Precise Answer ✔✔Are groups of members, individuals or companies, that write mainly fire and auto physical damage coverage. Federal Government Insurance Programs. - Precise Answer ✔✔Federal. Examples are National Flood Insurance Program, Crop insurance, Social Security, & Medicare. State Government Insurance Programs. - Precise Answer ✔✔State. Examples are Workers compensation, unemployment, Medicaid, FAIR plans. Admitted vs. non-admitted. - Precise Answer ✔✔A certificate of Authority is required for a company to be "admitted" in a state. Unauthorized insurer. - Precise Answer ✔✔A fake insurer.

Domestic, foreign, alien insurance. - Precise Answer ✔✔Is primarily regulated at the state level. Reciprocals. - Precise Answer ✔✔An unincorporated group of individuals or organizations (subscribers) that agree to pool risks for the purpose of paying the cost of retained losses and purchasing reinsurance. Also known as interinsurance exchanges, they are managed by an attorney-in-fact. Subscribers have contingent liability (several and proportionate) for paying the losses of the reciprocal, but if adequate capital exists, nonassessable policies may be issued. Under federal tax law, subscribers' surplus is not taxed; income is taxed when distributed. Self insurance. - Precise Answer ✔✔self-insurance A system whereby a firm sets aside an amount of its monies to provide for any losses that occur—losses that could ordinarily be covered under an insurance program. The monies that would normally be used for premium payments are added to this special fund for payment of losses incurred. Self-insurance is a means of capturing the cash flow benefits of unpaid loss reserves and offers the possibility of reducing expenses typically incorporated within a traditional insurance program. It involves a formal decision to retain risk rather than insure it and is distinguished from noninsurance or retention of risks through deductibles by a formalized plan or system to pay losses as they occur. Risk retention groups. - Precise Answer ✔✔Risk retention Planned acceptance of losses by deductibles, deliberate noninsurance, and loss-sensitive plans where some, but not all, risk is consciously retained rather than transferred.

Risk purchasing groups. - Precise Answer ✔✔ captive insurance company. - Precise Answer ✔✔An insurance company that has as its primary purpose the financing of the risks of its owners or participants. Typically licensed under special purpose insurer laws and operated under a different regulatory system than commercial insurers. The intention of such special purpose licensing laws and regulations is that the captive provides insurance to sophisticated insureds that require less policyholder protection than the general public. Reinsurance companies. - Precise Answer ✔✔A transaction in which the "reinsurer," in consideration of a premium paid to it, agrees to indemnify another party, the "reinsured," for part or all of the liability assumed by the reinsured under a policy of insurance that it has issued. The reinsured may also be referred to as the "original" or "primary" insurer or the "ceding company." Agent and or producer. - Precise Answer ✔✔Acts on behalf of the principal insurer. Captive vs. independent agent. - Precise Answer ✔✔independent agency system A system of marketing insurance through independent contractors (agents) who sell insurance on a commission or fee basis with one or more insurers. In contrast to the direct marketing system, the independent agent retains ownership, use, and control of policy records and expiration data.

Producer's Authority. - Precise Answer ✔✔Express, implied, and apparent authority. Express authority. - Precise Answer ✔✔Rights and powers of an agent explicitly provided in the agency contract. Implied authority. - Precise Answer ✔✔Actions of an agent that may extend beyond the rights and powers explicitly provided in the agency contract. If these actions result in no response from the insurer, authority is extended as if these fall within the agency contract. Apparent authority. - Precise Answer ✔✔A legal doctrine applied in connection with estoppel stating that an agent has whatever power a reasonable person would assume that agent to have. Producers responsibilities to applicants and insureds. - Precise Answer ✔✔Full Disclosure, honest representation, suitable recommendations. Reciprocal insurance. - Precise Answer ✔✔Insurance written through a reciprocal exchange. Reciprocity. - Precise Answer ✔✔The exchanging of reinsurance between two reinsurers, frequently in equal amounts. The purpose of such transactions is to balance underwriting results for both companies.

Absolute exclusions. - Precise Answer ✔✔Exclusions found within certain insurance policy forms, precluding coverage for claims that are remotely but not directly related to the actual nature of the exclusion. The effect is to defeat coverage in situations where it could be reasonably expected that coverage would apply. For example, "This Policy does not apply to any Claim against the Insured. Aleatory contract - Precise Answer ✔✔Contract where the exchange is uneven. The most common type of aleatory contract is an insurance policy.