Property Insurance Practice Quiz
1 Under the standard unendorsed HO3 policy, if the insured complies with the policy's 80%
coinsurance requirement for coverage A, dwelling losses are settled on which valuation basis?
A. Actual cash value
B. Replacement cost without deduction for depreciation
C. Market value at the time of loss
D. Replacement cost less depreciation
2 Under an HO3 policy, what is the standard limit for coverage B (Other Structures) in relation to the
coverage A limit?
A. 5% of the coverage A limit
B. 10% of the coverage A limit
C. 25% of the coverage A limit
D. 100% of the coverage A limit
3 Under the standard HO3 policy, what is the maximum limit for theft of firearms under coverage C
special limits?
A. $1,500
B. $2,500
C. $5,000
D. $10,000
4 Under the standard HO3 policy, what is the default limit for coverage D (Loss of Use) expressed as
a percentage of the coverage A limit?
, A. 10%
B. 20%
C. 30%
D. 40%
Question 5 Which homeowner policy form provides open perils coverage for both the dwelling and
personal property?
A. HO2 Broad Form
B. HO3 Special Form
C. HO4 Contents Broad Form
D. HO5 Comprehensive Form
Question 6 A tenant named Sarah lives in a 4-unit apartment building and has a partial ownership
interest in the building as part of a housing cooperative. She wants to purchase an HO4 renters
policy. Which eligibility requirement for HO4 policies would disqualify her from obtaining coverage?
A. The dwelling must be occupied by no more than four families
B. The dwelling must be a single family home
C. The insured must occupy the premises as a principal residence
D. The insured must not own any part of the dwelling
Question 7 A homeowner with an HO8 policy insures a 100-year-old historic cottage. After a
windstorm destroys the original plaster walls, the insurer agrees to replace them using modern
drywall rather than matching the original plaster style. Which valuation method is the insurer applying
under the HO8 policy?
A. Actual cash value
B. Extended replacement cost
C. Market value
D. Functional replacement cost
1 Under the standard unendorsed HO3 policy, if the insured complies with the policy's 80%
coinsurance requirement for coverage A, dwelling losses are settled on which valuation basis?
A. Actual cash value
B. Replacement cost without deduction for depreciation
C. Market value at the time of loss
D. Replacement cost less depreciation
2 Under an HO3 policy, what is the standard limit for coverage B (Other Structures) in relation to the
coverage A limit?
A. 5% of the coverage A limit
B. 10% of the coverage A limit
C. 25% of the coverage A limit
D. 100% of the coverage A limit
3 Under the standard HO3 policy, what is the maximum limit for theft of firearms under coverage C
special limits?
A. $1,500
B. $2,500
C. $5,000
D. $10,000
4 Under the standard HO3 policy, what is the default limit for coverage D (Loss of Use) expressed as
a percentage of the coverage A limit?
, A. 10%
B. 20%
C. 30%
D. 40%
Question 5 Which homeowner policy form provides open perils coverage for both the dwelling and
personal property?
A. HO2 Broad Form
B. HO3 Special Form
C. HO4 Contents Broad Form
D. HO5 Comprehensive Form
Question 6 A tenant named Sarah lives in a 4-unit apartment building and has a partial ownership
interest in the building as part of a housing cooperative. She wants to purchase an HO4 renters
policy. Which eligibility requirement for HO4 policies would disqualify her from obtaining coverage?
A. The dwelling must be occupied by no more than four families
B. The dwelling must be a single family home
C. The insured must occupy the premises as a principal residence
D. The insured must not own any part of the dwelling
Question 7 A homeowner with an HO8 policy insures a 100-year-old historic cottage. After a
windstorm destroys the original plaster walls, the insurer agrees to replace them using modern
drywall rather than matching the original plaster style. Which valuation method is the insurer applying
under the HO8 policy?
A. Actual cash value
B. Extended replacement cost
C. Market value
D. Functional replacement cost
