Section 5- Dwelling Policy

Which of the following uses of a detached garage is permissible under the terms of Coverage B in a Dwelling Policy? A. A non-tenant of the insured uses the garage as a small industrial shop employing ten people B. A tenant of the insured uses the garage as a small industrial shop employing ten people C. A non-tenant of the insured rents the structure as a private garage D. A tenant of the dwelling uses the garage as a manufacturing business

A. A non-tenant of the insured uses the garage as a small industrial shop employing ten people

The usual deductible on an earthquake policy is: A. A percentage of the coverage limit B. 500 C. 250 D. 1000

A. A percentage coverage limit

Each of the following is an "other coverage" that is included in a Dwelling Property form, EXCEPT: A. Additional living expenses B. Debris removal C. Collapse coverage D. Fire department service charges

A. Additional living expenses

Which of the following coverage parts may be included in a Dwelling Property Special form but is not available to be added to a Dwelling Property Basic form? A. Additional living expenses B. Other structures C. Contents coverage D. Fair rental value

A. Additional living expenses

Which of the following is an additional coverage included on the DP-2 and DP-3 but NOT on the DP-1? A. Collapse of the structure B. World-wide coverage C. Debris removal D. Removal to protect

A. Collapse of the structure

How are Coverage D and Coverage E paid in both the Broad and Special forms under the Dwelling Program? A. Coverage D and E are paid up to 20% for both combined, not each separately, of the dwelling coverage amount B. In DP-2, up to 20% of the Coverage A amount can be applied only at the maximum rate of 1/12 per month, if the lost rental value warrants it C. Every dollar paid reduces the dwelling coverage amount dollar for dollar D. In DP-3, up to 20% of the Coverage A amount can be applied only at the maximum rate of 1/12 per month, if the lost rental value warrants it

A. Coverage D and E are paid up to 20% for both combined, not each separately, of the dwelling coverage amount

Which of the following dwelling property forms offers the most comprehensive coverage? A. DP-03 B. DP-04 C. DP-02 D. DP-01

A. DP-03

What is NOT an exclusion under the personal liability endorsement for a dwelling property policy? A. Injuries caused by animals owned by the insured B. Any bodily injury sustained business engaged in by the insured C. Any occurrence expected or intended by the insured D. Rendering or failure to render professional services

A. Injuries caused by animals owned by the insured

The Dwelling program has three coverage forms. Which of the following is NOT one of them? A. Modified B. Special C. Broad D. Basic

A. Modified

Extended Coverages under a DP-1 Basic Form Policy includes all of the following parts, EXCEPT: A. Vandalism B. Aircraft C. Civil commotion D. Riot

A. Vandalism

An insured who wishes to take legal action against an insurer because of a perceived unfair claim settlement must take such action within what period of time? A. Within two years of the date of the loss B. Within three years of the date of the loss C. Within one year of the date of the loss D. Within five years of the date of the loss

A. Within two years of the date of the loss

A Dwelling Property Basic form provides coverage for property removed. This means that the insurer will cover insured property against direct loss from any cause of loss when such property is removed from the dwelling when endangered by fire or any other covered peril for up to: A. 20 days B. 5 days C. 90 days D. 30 days

B. 5 days

The replacement cost provision included in a Dwelling Property Special form encourages an insured to carry insurance to value. To be insured to value, the insured typically must carry in insurance coverage what percentage in relation to the replacement value of the dwelling? A. 100% B. 80% C. 70% D. 90%

B. 80%

Which of the following risks would be the MOST likely candidates for a dwelling property form? A. A newly constructed single family home B. A summer home the insured only occupies one month of the year C. A pickup used as a residence D. A utility shed used to store lumber located on a lot owned by an insured

B. A summer home the insured only occupies one month of the year

Damage to insured property as a result of the weight of ice, snow, or sleet is a covered peril in which of the following dwelling property policies? A. Dwelling Property Basic Form B. Dwelling Property Broad Form C. Dwelling Property Comprehensive Form D. Dwelling Property Replacement Form

B. Dwelling Property Broad Form

Which of the following perils is not covered under a Basic Form (DP-1)? A. Internal explosion B. Explosion C. Lightning D. Fire

B. Explosion

Replacement cost coverage for dwellings under a Dwelling Property (DP) policy is available under: A. All dwelling policy forms B. Only broad and special forms C. Only special dwelling forms D. Only basic and broad forms

B. Only broad and special forms

Which of the following types of damage would be covered by a Dwelling Property Special form? A. Ice damage to a fence B. Wind damage to a rowboat in the backyard C. Cracking of the dwelling's foundation D. Accidental damage from an artificially generated electrical current

B. Wind damage to a rowboat in the backyard

What is the minimum dollar coverage amount requirement for Basic form coverage in a Dwelling policy? A. $5000 B. $10000 C. $0 D. $1000

C. $0

The minimum deductible on an earthquake policy is: A. A percentage of the coverage limit B. $500 C. $250 D. $1000

C. $250

The coverage limit for a dwelling under construction is the: A. Replacement cost of the date of completion B. Actual value at specified periods during construction C. Actual value on the date of completion D. Average value during the period of construction

C. Actual value on the date of completion

Under which dwelling form can the insured collect for the replacement cost when the dwelling is destroyed? A. All dwelling forms B. DP-1 only C. DP-2 and DP-3 D. DP-3 only

C. DP-2 and DP-3

Which of the following Dwelling Property forms insures against loss to dwelling on an open perils basis? A. DP-2 B. Basic form C. DP-3 D. Broad form

C. DP-3

Following a loss covered by a dwelling fire policy, an insured is NOT required to A. Separate damaged and undamaged personal property B. File a proof of loss within 60 days C. File notice of loss by certified mail D. Protect the property from further damage

C. File notice of loss by certified mail

A Dwelling Property Basic form is named peril policy. All of the following choices are covered perils in the standard policy, EXCEPT: A. Loss caused by a lightning strike B. Damage as a result of an internal explosion C. Loss as a result of a windstorm D. Damage resulting from hostile fire

C. Loss as a result of a windstorm

Insurers will determine the value of a dwelling or building before insuring it. All of the following factors are used in determining the replacement value of a structure, EXCEPT: A. Type of construction B. Location of the property C. Market value of the property D. Square footage of the area

C. Market value of the property

A personal liability supplement added to a dwelling property policy: A. Covers any liability that can be incurred by an insured B. Is written as an "add on" to a dwelling policy for third-party losses on the premises C. Provides liability coverage for occurrences happening both on and off the premises D. Covers third-party medical expenses incurred within 12 months of a covered occurrence

C. Provides liability coverage for occurrences happening both on and off the premises

What is NOT an additional coverage included in all dwelling forms? A. Debris removal B. Fire department service charges C. Trees, shrubs, and other plants D. Reasonable repairs

C. Trees, shrubs, and other plants

Earthquake coverage considers any aftershocks to be a single occurrence as long as they occur: A. Within 168 hours of the initial shock B. Within 24 hours of the initial shock C. Within 72 hours of the initial shock D. Within 48 hours of the initial shock

C. Within 72 hours of the initial shock

An insured who owns a Dwelling Property policy may use up to 10% of the personal property coverage amount carried for loss to contents away from the premises according to which of the following extensions of coverage? A. Property removed B. Rental value C. World-wide coverage D. Improvements and betterments

C. World-wide coverage

Replacement cost coverage on contents on all dwelling policies A. is now covered without charge B. is not provided C. can be added by endorsement D. is only available on DP-3

C. can be added by endorsement

The standard deductible of a Dwelling Policy is: A. $1000 B. $750 C. $250 D. $500

D. $500

Property removed under a Dwelling Property Special form is provided for n more than: A. 20 days B. 5 days C. 60 days D. 30 days

D. 30 days

Which of the following incidents would be covered under the Vehicles peril under a Dwelling policy? A. An insured's foot accidentally slips off the brake when turning into a gym's parking lot and hits two parked cars B. An insured's car is stolen from a supermarket parking lot C. An insured's vehicle strikes a pedestrian at a busy public intersection D. An insured's foot accidentally slips off the brake when turning into their driveway and the car takes out half of the home's living room

D. An insured's foot accidentally slips off the brake when turning into their driveway and the car takes out half of the home's living room

Which of the following choices is an endorsement that may be added to a Dwelling Property form that helps coverage on a residential structure keep pace with inflation? A. Personal property supplement B. Replacement cost C. Permitted incidental occupancy D. Automatic increase in insurance

D. Automatic increase in insurance

All of the following are other coverages automatically part of a Dwelling Property form, EXCEPT: A. Fire department service charges B. Improvements, alterations, and additions C. Reasonable repairs D. Can be added by endorsements

D. Can be added by endorsements

Coverage A in a Dwelling Property Policy provides all of the following coverage, EXCEPT: A. Covering any supplies or materials in the dwelling intended to be used for construction B. Covering all structures attached to the dwelling C. Covering any supplies or materials in the dwelling intended to be used for repair of the dwelling D. Covering any damage or loss to the land itself

D. Covering any damage or loss to the land itself

Under the Loss Settlement clause of a DP policy, which of the following policies provides dwelling and contents on an ACV basis? A. DP-2 B. DP-3 C. DP-2 and DP-3 D. DP-1

D. DP-1

Which of the following coverage forms ONLY settles losses on an actual cash value (ACV) basis? A. DP-3 B. DP-4 C. DP-2 D. DP-1

D. DP-1

Which of the following losses can be covered by the DP-1 form without adding an endorsement? A. Damage caused by war B. Damage caused by vandalism C. Water damage D. Damage caused by vehicles

D. Damage caused by vehicles

Which of the following perils is covered by a Dwelling Property Basic form? A. Damage caused by a falling object B. Loss caused by bursting pipes C. Loss caused by the weight of ice, snow, and sleet D. Destruction of property caused by lightning

D. Destruction of property caused by lightning

Which of the following is a peril that is covered under a standard DP-02 policy, but is not covered under a standard DP-01 policy? A. Fire B. Lightning C. Internal explosion D. Falling objects

D. Falling objects

Worldwide coverage and debris removal on a dwelling property form are both types of : A. Other structures B. Coverage parts C. Other insurance D. Other coverages

D. Other coverages

What is true regarding broad theft coverage on a dwelling property form? A. It is available for owner occupant insureds only B. It automatically covers property of a roomer or boarder C. Animals, birds, and fish are covered for theft, but only up to $1,000 per loss D. The insured is required to notify the police if a theft loss occurs

D. The insured is required to notify the police if a theft loss occurs

What is true regarding broad theft coverage on a dwelling property policy? A. It is available for owner occupant insureds only B. There is limited coverage for animals, birds, and fish are covered for theft, but only up to $1,000 per loss C. It automatically covers property of roomers and boarders D. The insured is required to notify the police if a theft loss occurs

D. The insured is required to notify the police if a theft loss occurs

Extended coverages may be added to a Dwelling Property Basic form for an additional premium. Each of the following is covered by extended coverages, EXCEPT: A. Damage caused by riot B. Windstorm damage C. Damage caused by explosion D. Vandalism damage

D. Vandalism damage