NV Property & Casualty flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

McCarran-Ferguson Act

A 1945 federal law that leaves regulation of the business of insurance to the states and grants insurers limited antitrust exemption for conduct state law regulates.

Fiduciary duty of producers

Producers hold collected premiums in a trust capacity; the funds must be accounted for and kept separate from personal funds, and commingling is prohibited.

Rebating

Offering cash, gifts, or other inducements not stated in the policy to persuade a buyer to purchase insurance; illegal in Nevada and most states.

Nevada Insurance Commissioner

Appointed by the Governor to head the Nevada Division of Insurance, enforcing NRS Title 57, issuing producer licenses, and disciplining producers and insurers.

Insurable interest

A financial stake in the person or property insured; property insurance requires it at policy inception, life insurance at the time of application.

Principle of indemnity

Restores the insured to approximately the same financial position held before the loss, without gain; it underlies actual cash value and limit of liability.

Subrogation

The insurer's right, after paying a claim, to pursue the legally liable third party and recover the amount paid, preventing double recovery by the insured.

Coinsurance formula

Payment equals insurance carried divided by insurance required, times the loss, minus the deductible; carrying less than the required percentage reduces recovery proportionally.

Replacement cost coverage

Pays the cost to repair or replace damaged property with new property of like kind and quality, with no deduction for depreciation.

Mortgagee clause

Gives the lender rights in the policy: loss payment to the extent of its interest, notice of cancellation, and the ability to pay premium.

Negligence elements

To recover, a claimant must prove a duty owed, breach of that duty, proximate cause linking the breach to injury, and actual damages.

Occurrence liability policy

Responds to injury or damage that happens during the policy period, whenever the claim is later filed; the trigger is the date of loss.

Claims-made policy

Responds to claims first made during the policy period, provided the injury occurred after the retroactive date; extended reporting periods can lengthen the reporting window.

Dwelling policy DP-1

Basic form covering the dwelling and personal property for named perils only, such as fire, lightning, windstorm, hail, and explosion.

Dwelling Coverage B

Other structures on the residence premises, such as detached garages and fences, typically insured for 10% of the Coverage A limit.

Dwelling policy eligibility

Insures one-to-four family dwellings that may be rented to others; unlike a homeowners policy, it contains no personal liability coverage.

HO-3 special form

Open-peril coverage on the dwelling and broad named-peril coverage on personal property; used for owner-occupied one-to-four family homes.

HO-4 tenant's form

Renters policy insuring personal property and liability only; the building is insured by the landlord, and improvements can be added by endorsement.

Coverage F medical payments

Pays reasonable medical expenses to others injured on the insured location or by the insured's activities, regardless of fault and without a lawsuit.

Nevada minimum auto limits

Financial responsibility limits of $25,000 per person and $50,000 per accident for bodily injury, plus $20,000 for property damage.

Part D coverage

Physical damage coverage on the insured auto, split into collision and other-than-collision coverage, each with its own deductible.

Uninsured motorist coverage

Pays the insured for bodily injury caused by a driver with no insurance, insufficient limits, or a hit-and-run driver, up to the stated limits.

Permissive use

A person operating the insured auto with the named insured's permission qualifies as an insured under Part A liability coverage.

Commercial package policy

A single policy combining two or more commercial coverage parts, such as property, general liability, auto, and crime, under common declarations.

CGL Coverage A

Pays sums the insured is legally obligated to pay as damages for bodily injury or property damage caused by an occurrence.

Special causes of loss form

Open-peril commercial property form covering risks of direct physical loss unless excluded; the insurer bears the burden of proving an exclusion applies.

Businessowners policy

A packaged property and general liability policy for eligible small businesses such as offices, retail stores, and apartments, with business income included.

BOP eligibility

Limited to qualifying small businesses such as offices, retail, and apartment buildings; manufacturing risks and auto dealers generally need a commercial package policy instead.

BOP business income

Included coverage paying net income plus continuing expenses for up to 12 months while the damaged property is being repaired or replaced.

Exclusive remedy doctrine

Workers compensation is the employee's sole remedy against the employer for a work-related injury, barring most tort suits in exchange for no-fault benefits.

Employers liability coverage

Part Two of a workers compensation policy pays damages the employer owes for injury claims that fall outside the statutory benefit system, up to stated limits.

Experience modification factor

A number derived from the employer's past loss history compared with the class average; above 1.00 increases premium and below 1.00 reduces it.