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Nevada Property & Casualty Practice Exam

20 exam-style questions drawn from the same bank as our full Nevada Property & Casualty course (Nevada Insurance Producer — Property and Casualty — Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. A subcontractor provides a COI showing it is an 'additional insured' on the general contractor's policy. Upon investigating, the GC learns the COI is accurate but no additional-insured ENDORSEMENT was ever issued. What is the correct interpretation?
A COI cannot create coverage that doesn't exist in the policy, if no endorsement was issued, the GC is not an additional insured even if the COI says so.The GC is an additional insured only for defense costs, since a COI creates a duty to defend but never a duty to pay damages to the holder.The COI creates additional insured status by itself, because the certificate holder relied on it, so the GC must be treated as covered under the policy.The insurer must issue the missing endorsement retroactively once the error is discovered, so the GC is covered for any loss from the date of the COI.
2. Abandonment clauses generally state that:
The insured may NOT abandon damaged property to the insurer.Abandonment is permitted only after 90 days of negotiation.The insurer may abandon the loss investigation at any time.The insured may abandon damaged property to the insurer in exchange for a total-loss settlement.
3. An insured's DP-3 covers a rental property. The tenant's personal property is destroyed by a covered fire. Who, if anyone, will the DP-3 pay for the tenant's lost property?
No one, the tenant's personal property is not covered on the landlord's DP-3The tenant, Coverage C will pay up to the scheduled limitThe landlord, the landlord can claim the tenant's property under Coverage CThe mortgagee, under the loss payable clause
4. A personal umbrella typically provides 'Personal Injury' coverage (Coverage B-style). Which of the following is MOST likely included in that definition?
False arrest, libel, slander, and wrongful eviction by the insured.Pollution from the insured's lawn fertilizer.Intentional damage by the insured to a neighbor's fence.Bodily injury from a car accident caused by the insured.
5. Which of the following is a characteristic of an INSURABLE risk?
The loss must be intentional, so the insurer can verify the cause and amount of loss.The loss must be fortuitous (accidental), measurable, and not catastrophic to the insurer.The loss must be catastrophic, affecting many insureds at once so premiums can be pooled.The loss must be speculative, offering the insured a chance of gain or loss from the event.
6. A homeowners policy states: 'We will pay for direct physical loss to the dwelling.' This sentence most directly reflects which part of the policy?
The exclusions.The declarations.The conditions.The insuring agreement.
7. A subcontract requires the sub's CGL to add the general contractor as an additional insured for BOTH ongoing AND completed operations, with primary and non-contributory wording. Which combination of endorsements satisfies the contractual requirement?
CG 20 10 (ongoing operations) alone, because it automatically extends to completed operations and primary wordingCG 20 10 (ongoing operations) plus CG 20 37 (completed operations) plus CG 20 01 (primary and non-contributory)CG 20 26 (designated person) plus CG 24 04 (waiver of subrogation) plus CG 20 11 (managers or lessors)CG 20 37 (completed operations) alone, because it covers ongoing work and is primary over any other policy
8. For property and casualty risks, Nevada's unfair discrimination prohibition bars refusing to insure a person solely because of the person's:
Race, color, creed, religion, national origin, ancestry, or marital statusPrior paid claims, credit history, or years of continuous coverageBusiness occupancy, protection class, or age of the heating systemRoof age, wiring type, distance to a hydrant, or square footage
9. Commercial General Liability Coverage A responds to:
Medical expenses of persons injured on the insured's premises, paid without regard to whether the insured was legally liable.Damage to the insured's own buildings and business personal property caused by fire, windstorm, theft, or other covered perils.Personal and advertising injury offenses such as libel, slander, false arrest, and copyright infringement in the insured's advertising.Bodily injury and property damage liability arising from the insured's premises, operations, products, or completed operations.
10. Which of the following would typically be written on a dwelling policy (DP) rather than a homeowners policy?
An owner-occupied single-family home in good repairA tenant's personal property in a leased apartmentA condominium unit the insured lives in year-roundA rental house owned by the insured and occupied by tenants
11. How many continuing education hours must a Nevada-licensed producer complete during each 3-year license term, and how many of those must be ethics?
30 hours total, including 3 hours ethics24 hours total, including 3 hours ethics16 hours total, including 2 hours ethics20 hours total, including 3 hours ethics
12. An occurrence-form CGL in force from 1/1/2023 to 1/1/2024 is asked to respond to a suit filed in 2026 alleging bodily injury from an event that occurred in June 2023. Does the policy respond?
No, because the claim was filed more than two years after the policy expired, which exceeds the automatic tail on occurrence forms.No, because an occurrence policy responds only if the suit is filed during the same policy period in which the injury occurred.Yes, because an occurrence-form CGL responds based on when the injury or damage occurred, regardless of when the claim is made.Yes, but only if the insured purchased an extended reporting period endorsement before the occurrence policy expired.
13. On a commercial auto quote, the underwriter raises the premium because of the MVR (motor vehicle report) for the business's principal driver. What notice must be given to comply with FCRA?
A GLBA privacy notice describing the information collected and the driver's right to opt out of sharing with affiliated companies.A copy of the underwriter's rating worksheet showing the surcharge, delivered only if the driver submits a written request for it.No notice is required, because an MVR is a public driving record and not a consumer report, so FCRA rules do not apply to it.Adverse-action notice identifying the reporting agency and informing the consumer of the right to a free report and to dispute inaccuracies.
14. Which perils are automatically included in the DP-1 Basic Form WITHOUT adding the Extended Coverage (EC) endorsement?
Fire, lightning, windstorm, and hailFire, lightning, and internal explosionFire, lightning, and theftAll risk of direct physical loss except what is excluded
15. An insurer ends a Nevada producer's appointment for ordinary business reasons rather than for cause. What must the insurer do?
Take no action, because only for-cause terminations are ever reportedFile notice with the Commissioner within 30 days, without stating a reasonFile notice with the Commissioner within 30 days, and state the reasonFile notice with the Commissioner within 90 days, without stating a reason
16. Which of the following is a SPECULATIVE risk (and therefore not insurable by P&C insurers)?
Fire damage to a buildingSlip-and-fall on a customer's walkwayAuto accidentGain or loss from stock trading
17. A Commercial Package Policy (CPP) combines what, at minimum, under one policy number?
Auto and workers' compensation only, packaged together because both lines are commonly written on the same renewal cycle for fleet accountsAny two personal-lines policies issued to the same named insured, such as a homeowners and personal-auto combination under one accountExactly one commercial line, typically commercial property only, combined with the matching set of state-mandated forms and endorsementsTwo or more commercial coverage parts (e.g., property + CGL, property + crime, etc.) under common declarations and conditions
18. Under a standard mortgagee clause, who is entitled to receive payment for a total loss on a dwelling with a remaining mortgage balance?
The state insurance department, which holds the funds and then distributes them to the two parties.Only the mortgagee, which receives the full loss payment regardless of the remaining loan balance.Both, with the mortgagee paid up to the remaining balance and the insured receiving any surplus.Only the named insured, since the insurer has no direct contractual obligation to the mortgagee.
19. A landscaping company's Business Auto Policy lists only Symbol 7 (specifically described autos) for liability. An employee rents a pickup for a week to haul equipment and injures a pedestrian. Why is the rental not a covered auto for liability?
Rental vehicles are excluded from every Business Auto Policy regardless of the symbols shownSymbol 7 covers only autos owned for more than 30 days, and the rental was held for one weekSymbol 7 covers only autos listed on the schedule, and a rental needs Symbol 8 (hired autos) to qualifyLiability for rented vehicles is only ever covered under the renter's personal auto policy
20. Which of the following is NOT one of the four elements a plaintiff must prove to establish negligence?
Intent to harmBreach of dutyDutyProximate cause of damages

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