PERSONAL LINES FINAL 2026/27 EXAM QUESTIONS WITH 100% CORRECT ANSWERS!
On a HO ('00) policy, coverage for personal property applies:
A) On premises only
B) Within the U.S Only
C) In North America Only
D) Anywhere in the world ✔️D) Anywhere in the world
On a Property policy, the exclusion on earth movement excludes all EXCEPT:
A) Earthquake
B) Explosion
C) Landslide
D) Mud flow ✔️B) Explosion
On a HO-3 ('00), rain damage to contents is covered:
A) Never, since contents coverage is named peril
B) Always, since rain damage is coverage peril
C) Always, since the HO-3 is all-risk
D) If the wind damages the dwelling allowing the rain to enter ✔️D) If the wind damages the dwelling allowing the rain to enter
All are true about an HO-4 ('00) policy EXCEPT:
A) It is often sold to those who rent apartments
B) It is also known as "contents broad form" coverage
C) It does not cover theft of personal liability
D) It covers both personal property and personal liability ✔️C) It does not cover theft of personal liability
An insured w/ a HO-3 ('00) policy covering his dwelling for $100,000 rents out his garage to a friend for his wood-working business. In the event
the garage burns down, what is the most the policy will pay:
A) Zero
B) $10,000
C) $10,000 plus loss of rental income
D) $10,000 plus the value of the friend's woodworking equipment ✔️A) Zero
On a DP policy, which provision applies to a loss when two or more policies are in force:
A) Co-insurance
B) Other insurance
C) Liberalization
D) Subrogation ✔️B) Other insurance
On an all-risk HO-3 ('00), which of the following is fully covered:
A) Theft of your outboard motor from your boat at the marine
, B) Your canoe is stolen from your unattached garage
C) Dropping and breaking your $2,500 camera
D) Theft of your $2,500 Rolex ✔️B) Your canoe is stolen from your unattached garage
A fire totally destroys your home. Your HO-3 ('00) policy would cover all of the following EXCEPT:
A) Your $2,500 Rolex
B) Your motor vehicle in the garage
C) Your riding lawn mower in the garage
D) Your antique furniture ✔️B) Your motor vehicle in the garage
A DP-2 Broad form dwelling fire policy will cover all of the following EXCEPT:
A) Replacement cost on building structures
B) Theft of personal property
C) Damage to roof caused by weight of ice, snow, or sleet
D) Vandalism after 60 days unoccupancy ✔️B) Theft of personal property
In liability policies, Supplement Payments:
A) Are subject to the overall policy limit
B) Have their own separate limits
C) Are payable in addition to the policy limit
D) Are limited to 10% of the overall policy limit ✔️C) Are payable in addition to the policy limit
On a HO ('00) policy, which of the following is considered to ne a "residence employee":
A) A day nurse caring for your mother
B) A plumber called to fix your sink
C) A household domestic doing your grocery shopping
D) The neighbor boy mowing your lawn ✔️C) A household domestic doing your grocery shopping
The primary difference between the various types of HO ('00) forms is the:
A) Causes of Loss
B) Liability coverage
C) Theft coverage
D) Deductible ✔️A) Causes of Loss
The transfer of the insured's rights to the insurer after a loss is known as:
A) Appraisal
B) Assignment
C) Subrogation
D) Arbitration ✔️C) Subrogation
Liability without fault or negligence is defined as:
A) Contributory
On a HO ('00) policy, coverage for personal property applies:
A) On premises only
B) Within the U.S Only
C) In North America Only
D) Anywhere in the world ✔️D) Anywhere in the world
On a Property policy, the exclusion on earth movement excludes all EXCEPT:
A) Earthquake
B) Explosion
C) Landslide
D) Mud flow ✔️B) Explosion
On a HO-3 ('00), rain damage to contents is covered:
A) Never, since contents coverage is named peril
B) Always, since rain damage is coverage peril
C) Always, since the HO-3 is all-risk
D) If the wind damages the dwelling allowing the rain to enter ✔️D) If the wind damages the dwelling allowing the rain to enter
All are true about an HO-4 ('00) policy EXCEPT:
A) It is often sold to those who rent apartments
B) It is also known as "contents broad form" coverage
C) It does not cover theft of personal liability
D) It covers both personal property and personal liability ✔️C) It does not cover theft of personal liability
An insured w/ a HO-3 ('00) policy covering his dwelling for $100,000 rents out his garage to a friend for his wood-working business. In the event
the garage burns down, what is the most the policy will pay:
A) Zero
B) $10,000
C) $10,000 plus loss of rental income
D) $10,000 plus the value of the friend's woodworking equipment ✔️A) Zero
On a DP policy, which provision applies to a loss when two or more policies are in force:
A) Co-insurance
B) Other insurance
C) Liberalization
D) Subrogation ✔️B) Other insurance
On an all-risk HO-3 ('00), which of the following is fully covered:
A) Theft of your outboard motor from your boat at the marine
, B) Your canoe is stolen from your unattached garage
C) Dropping and breaking your $2,500 camera
D) Theft of your $2,500 Rolex ✔️B) Your canoe is stolen from your unattached garage
A fire totally destroys your home. Your HO-3 ('00) policy would cover all of the following EXCEPT:
A) Your $2,500 Rolex
B) Your motor vehicle in the garage
C) Your riding lawn mower in the garage
D) Your antique furniture ✔️B) Your motor vehicle in the garage
A DP-2 Broad form dwelling fire policy will cover all of the following EXCEPT:
A) Replacement cost on building structures
B) Theft of personal property
C) Damage to roof caused by weight of ice, snow, or sleet
D) Vandalism after 60 days unoccupancy ✔️B) Theft of personal property
In liability policies, Supplement Payments:
A) Are subject to the overall policy limit
B) Have their own separate limits
C) Are payable in addition to the policy limit
D) Are limited to 10% of the overall policy limit ✔️C) Are payable in addition to the policy limit
On a HO ('00) policy, which of the following is considered to ne a "residence employee":
A) A day nurse caring for your mother
B) A plumber called to fix your sink
C) A household domestic doing your grocery shopping
D) The neighbor boy mowing your lawn ✔️C) A household domestic doing your grocery shopping
The primary difference between the various types of HO ('00) forms is the:
A) Causes of Loss
B) Liability coverage
C) Theft coverage
D) Deductible ✔️A) Causes of Loss
The transfer of the insured's rights to the insurer after a loss is known as:
A) Appraisal
B) Assignment
C) Subrogation
D) Arbitration ✔️C) Subrogation
Liability without fault or negligence is defined as:
A) Contributory
