Property & Casualty Insurance Practice Test
P&C Insurance Dwelling & Homeowners Practice Questions
Dwelling & Homeowners makes up 9 of every 50 questions on a Tigertest P&C Insurance practice test. Here are 10 of the 36 questions on it, each with the answer and the reason.
Updated by the Tigertest team. Based on the general (national) portion of the property and casualty producer exam outlines. State laws and the state portion are not covered.
1. Which perils are covered by the unendorsed DP-1 Basic Form?
- A.Fire, windstorm, hail, vandalism and theft
- B.Fire, lightning and internal explosion
- C.Fire, vandalism and water damage
- D.Open perils on the dwelling
Answer: B. The DP-1 base form covers only fire, lightning and internal explosion. Extended coverage perils and vandalism must be added for additional premium.
2. Which dwelling form covers the dwelling on an open perils basis and personal property on a named perils basis?
- A.DP-2 Broad Form
- B.DP-4 Tenant Form
- C.DP-1 Basic Form
- D.DP-3 Special Form
Answer: D. The DP-3 is the broadest dwelling form, with open perils on the dwelling and other structures and broad named perils on contents. DP-2 is named perils throughout.
3. Under the unendorsed dwelling forms, theft of personal property (contents) is:
- A.Not covered without an endorsement
- B.Covered up to $1,500
- C.Covered only while the dwelling is owner-occupied
- D.Covered only off premises
Answer: A. The dwelling forms are often used for rental property and do not cover theft of contents; a Broad Theft or Limited Theft endorsement adds it. Occupancy does not create theft coverage, and $1,500 is the homeowners jewelry theft sublimit, not a dwelling form figure.
4. Personal liability coverage under a dwelling policy is:
- A.Included automatically at $100,000
- B.Included under Coverage E of the form
- C.Added only by a separate supplement
- D.Not available with any dwelling form
Answer: C. The dwelling forms are property-only; liability is added by the Personal Liability Supplement or an endorsement. Homeowners forms include liability as Coverage E.
5. A tenant-occupied dwelling becomes uninhabitable after a covered fire. The owner's lost rent is paid under:
- A.Coverage E, Additional Living Expense
- B.Coverage C, Personal Property
- C.Coverage D, Fair Rental Value
- D.Coverage B, Other Structures
Answer: C. Fair rental value reimburses the landlord for rent lost while the dwelling cannot be rented. Additional living expense (Coverage E in DP forms) applies when the owner lives there.
6. Unendorsed DP-1 dwelling losses are settled on a(n):
- A.Actual cash value basis
- B.Replacement cost basis
- C.Functional replacement basis
- D.Agreed value basis
Answer: A. DP-1 pays actual cash value for the dwelling. The DP-2 and DP-3 pay replacement cost on the dwelling if the 80 percent coinsurance-type requirement is met.
7. Under a homeowners policy, the dwelling and structures attached to it are covered under:
- A.Coverage D
- B.Coverage B
- C.Coverage C
- D.Coverage A
Answer: D. Coverage A is the dwelling, including attached structures and materials on site for construction. Coverage B is other structures separated by clear space.
8. A detached garage is covered under Coverage B, Other Structures, at what default limit?
- A.50 percent of Coverage A
- B.10 percent of Coverage A
- C.A flat $10,000
- D.20 percent of Coverage A
Answer: B. Coverage B is automatically 10 percent of Coverage A as an additional amount of insurance. Coverage C, not B, is 50 percent.
9. Coverage B of a homeowners policy does not apply to an other structure that is:
- A.Used to store the insured's lawn equipment
- B.Rented to someone who is not a tenant
- C.Larger than 500 square feet in area
- D.Built after policy inception
Answer: B. Other structures rented to someone who is not a tenant of the dwelling, or used for business, are excluded unless used solely as a private garage. Size and construction date do not matter.
10. Under an HO-3, Coverage C, Personal Property, is automatically written at what percent of Coverage A?
- A.75 percent
- B.10 percent
- C.25 percent
- D.50 percent
Answer: D. Coverage C defaults to 50 percent of the dwelling limit and may be increased. Coverage B is the 10 percent figure.
Practice all 36 dwelling & homeowners questions, and the rest of the 200-question bank, in the free P&C Insurance training sets. Questions you miss come back until you have mastered them.
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