Property and Casualty Chapter 5 Exam
Questions and Answers
The Inflation Guard endorsement automatically raises the Coverage A and B limits on a
_____ basis during the policy year. - Answer- Pro rata
HO Section II is a _____. - Answer- Personal Liability Policy
Personal Liability coverage provides protection to you and your family for your
negligence that results in the____ or _____ to a third party (The Other Guy). - Answer-
Bodily injury (BI) or Property damage (PD)
HO Section II also provides _______ coverage on a No Fault basis in an attempt to
avoid lawsuits. - Answer- Medical Payments to Others
Medical Payments coverage will not pay for the medical expenses of the Named
Insured or any regular resident of the Insured's household, except for a _____, such as
a paid nanny, valet or butler who ARE covered by Med Pay. - Answer- Residence
Employee
Anyone who RENTS an apartment or a house needs _____, which provides fire
protection for the property that is in their Care, Custody and Control but that they do not
own. All HO policies provide this protection. - Answer- Fire Legal Liability
A Mobile Home Endorsement can be added to an ____ or an ____ policy. - Answer-
HO-2 or HO-3
Again, Dwelling policies are available to homeowners who ____ their dwellings to
others. - Answer- Rent
DPs are very similar to the same numbered HO's except that they do not have ____ or
____ coverage's. However, these coverage's can be added by endorsement for an
____ in premium. - Answer- Theft or Liability, Increase
There are only three DP forms: ____, ____, and ____. - Answer- DP-1, DP-2 and DP-3
The DP-1 covers only three perils, ____, _____ and ____. However, essentially Basic
coverage's can be obtained by adding the Extended Coverage (EC) Endorsement and
the ________ endorsement. - Answer- Fire, Lightning, and Explosion. Vandalism and
Malicious Mischief (V&MM)
Questions and Answers
The Inflation Guard endorsement automatically raises the Coverage A and B limits on a
_____ basis during the policy year. - Answer- Pro rata
HO Section II is a _____. - Answer- Personal Liability Policy
Personal Liability coverage provides protection to you and your family for your
negligence that results in the____ or _____ to a third party (The Other Guy). - Answer-
Bodily injury (BI) or Property damage (PD)
HO Section II also provides _______ coverage on a No Fault basis in an attempt to
avoid lawsuits. - Answer- Medical Payments to Others
Medical Payments coverage will not pay for the medical expenses of the Named
Insured or any regular resident of the Insured's household, except for a _____, such as
a paid nanny, valet or butler who ARE covered by Med Pay. - Answer- Residence
Employee
Anyone who RENTS an apartment or a house needs _____, which provides fire
protection for the property that is in their Care, Custody and Control but that they do not
own. All HO policies provide this protection. - Answer- Fire Legal Liability
A Mobile Home Endorsement can be added to an ____ or an ____ policy. - Answer-
HO-2 or HO-3
Again, Dwelling policies are available to homeowners who ____ their dwellings to
others. - Answer- Rent
DPs are very similar to the same numbered HO's except that they do not have ____ or
____ coverage's. However, these coverage's can be added by endorsement for an
____ in premium. - Answer- Theft or Liability, Increase
There are only three DP forms: ____, ____, and ____. - Answer- DP-1, DP-2 and DP-3
The DP-1 covers only three perils, ____, _____ and ____. However, essentially Basic
coverage's can be obtained by adding the Extended Coverage (EC) Endorsement and
the ________ endorsement. - Answer- Fire, Lightning, and Explosion. Vandalism and
Malicious Mischief (V&MM)
