Tract 17

Question 1

Which of the following is not a type of insurance coverage that you would expect your agent to recommend to the common-interest community to purchase that are not normally required by the documents or Nevada law?
A. Non-owned auto and loss assessment coverage.
B. Boiler and Machinery
C. Earthquake and flood.
D. Personal auto liability coverage.

Answer 1

D. Personal auto liability coverage.

Question 2

Typical exclusions from common-interest liability policies might include which of the following except:
A. Building ordinance or law.
B. Nuclear hazard
C. Increased cost of construction
D. Liability coverage.

Answer 2

D. Liability coverage.

Question 3

Which of the following type(s) of insurance would you request to cover the wiring in a condominium project. But many not be covered by all companies for this coverage?
A. Workers compensation
B. Boiler (machinery & equipment)
C. Loss assessment
D. Directors and officers coverage

Answer 3

B. Boiler (machinery & equipment).

Question 4

The common-interest community industry recommends (and in some cases dictates by law) the following types(s) of insurance regardless of whether the association has or does not have employees:
A. Worker's compensation insurance.
B. Liability insurance
C. Property insurance
D. All of the above.

Answer 4

A. Worker’s compensation insurance.

Question 5

What purpose does insurance endorsements provide?
A. Take away coverage
B. Brings in more coverage, but could take away some coverage.
C. Endorsements play no part in insurance.
D. Provide coverage only for the directors in the association.

Answer 5

B. Brings in more coverage, but could take away some coverage.

Question 6

How much fidelity/crime insurance coverage must an association have? NRS 116.3113.
A. 3 months of combined assessments and the amount in the reserve accounts or up to $5,000,000.
B. Only as much as the board feels is necessary to protect their money?
C. Only the amount stated in the CC&R’s is required.
D. 1 month worth of operating expenses and the amount in the reserve accounts or up to 3,000.000.

Answer 6

A. 3 months of combined assessments and the amount in the reserve accounts or up to $5,000,000.

Question 7

If an insurance agent works for just one company and can only recommend what that one company has to offer,that agent is known as a what?
A. Captive agent.
B. Dedicated agent.
C. Broker.
D. Dedicated agent.

Answer 7

A. Captive agent.

Question 8

When talking about Cybercrime and Fidelity Insurance coverage, what is the best answer?
A. They are the same coverage and we don’t need separate polices?
B. They are two separate coverages and we need to talk with the age about coverage for both.
C. Cyber crime is always part of the Fidelity Insurance coverage policy.
D. The associations Fidelity and Crime insurance, both , will always cover the management company as well.

Answer 8

B. They are two separate coverages and we need to talk with the age about coverage for both.