State exam modules 4 and 5 Questions and
Verified Answers
WCSHAVER— Correct Answer: wind, civil commotion, smoke, hail, aircraft, vehicle,
explosion/eruption, riot.
BIGAFFECT— Correct Answer: burglars, ice/snow/sleet, glass, accidental discharge of water, falling
object, freezing pipes, collapse, electrical current, tearing
Purpose of homeowner's— Correct Answer: Homeowners insurance is property insurance that covers 1 -
4 family private owner-occupieddwelling. Homeowners insurance combines different personal insurance
protections including losses to an individual's residence, the contents, loss of its use (which could result
in additional living expenses) or loss of other personal property of the homeowner. automatically
includes Personal Liability Insurance and Medical Payments to Others.
multiline— Correct Answer: This means that the policy includes both property and liability coverage
with one premium covering all the risks listed on the contract. Similar to the Dwelling Policies, the
coverage is divided into coverage parts insuring the different property risks as well as the liability risks.
Homeowner's
Homeowners premium— Correct Answer: will depend on what amount it would cost to replace the
dwelling and any endorsements that are attached to the Homeowners Policy. The premium may also
reflect additional factors including the location of the insured property, the existence of firefighting
equipment such as fire hydrants and fire stations within a specific proximity to the dwelling. Other
items, such as burglar and fire alarms, deadbolt locks and storm shutters, may help to lower premium
costs.
Homeowner normal exclusions— Correct Answer: flood and war
Insured location— Correct Answer: 1. Residence Premises which is a owner-occupied dwelling, other
structure, grounds insured or the part of any other building where the insured resides that is defined in
the policy Declarations; 2. Premises acquired by the insured or spouse during the policy term and the
premises is used as a residence by the insured, 3. Non-owned premises where the insured temporarily
resides or occasionally rents but does not use for business, 4. Vacant land (other than farmland) that the
insured owns or rents, 5. Land that the insured owns or rents and is used for building a one-family or
two-family dwelling residence for the insured, and 6. The insured's individual or family cemetery or
burial plots (tombstone).
Residence Employee— Correct Answer: is the insured's domestic employee on or off the residence
premises (not related to a business operation). This excludes a person employed in the insured's business
who works at the insured's residence.
, Eligibility for the Homeowners Policy— Correct Answer: In order to be eligible for a Homeowners
Policy, the property owner must occupy (reside) in the dwelling to be insured. In policy language, the
dwelling is referred to as the "residence premises."The dwelling may be either a one-family or two-
family dwelling. In a two (2) family dwelling, such as a duplex dwelling, the property owner must live in
one (1) unit while renters may occupy the other unit.
Persons Considered Insured in the Homeowners Policy— Correct Answer: establish who is covered for
both property and liability losses. 1. The named listed on the Declarations page of the policy and his or
her spouse as long as the spouse lives in the same household with the named insured; 2. Any resident
relative of the named insured and spouse (The resident relative can be the relative of the named insured
and/or the spouse of the named insured. The relationship can be by "blood" (genetic) or by marriage. ; 3.
Students enrolled in school full-time which were residents of the named insured's household before
moving to attend school, provided the students are under the age of twenty-four (24); 4. Any person
under the age of twenty-one (21) living in the household who is in the care of the insured (i.e., a foreign
exchange student); 5. For liability purposes, coverage extends to any person employed by the insured at
the residence named in the Declarations such as a domestic or nanny.
HO-2 Broad Form— Correct Answer: designed for single or dual family dwellings covering perils on a
"named perils" basis.
HO-3 Special Form— Correct Answer: designed for single or dual family dwellings covering perils on an
"all risk" basis for Coverage A and Coverage B.
HO-5 Comprehensive Form— Correct Answer: designed for single or dual family dwellings covering
perils on an "all risk" basis for Coverage A, Coverage B and Coverage C.
HO-8 Modified Form— Correct Answer: designed for single or dual family dwellings that do not qualify
for an HO-2, HO-3 or HO-5 typically due to age or construction. Perils are covered on a specific named
basis. Most like a DP-1, specialized properties that don't qualify for a homeowners but need more than
dwelling. Ex- victorian homes. Slightly less coverage
HO-4 Contents Form— Correct Answer: designed for tenants or renters providing perils coverage on a
named basis for Coverage C losses. Could be called renters.
HO-6 Unit Owners— Correct Answer: designed to cover condominiums and owned apartments on a
"named perils" basis for Coverage A and Coverage C. think condo owners.
Homeowner's policies— Correct Answer: make a chart and check it!
Homeowner's part a— Correct Answer: DWELLING Coverage A insures the residence premises
(dwelling) and any attached structures such as a two (2) car garage. Included in the coverage is
equipment and fixtures permanently attached to the residence premises such as kitchen cabinets. Loss of
materials and supplies used in maintenance, repair or alteration is also insured. (Theft of material and
Verified Answers
WCSHAVER— Correct Answer: wind, civil commotion, smoke, hail, aircraft, vehicle,
explosion/eruption, riot.
BIGAFFECT— Correct Answer: burglars, ice/snow/sleet, glass, accidental discharge of water, falling
object, freezing pipes, collapse, electrical current, tearing
Purpose of homeowner's— Correct Answer: Homeowners insurance is property insurance that covers 1 -
4 family private owner-occupieddwelling. Homeowners insurance combines different personal insurance
protections including losses to an individual's residence, the contents, loss of its use (which could result
in additional living expenses) or loss of other personal property of the homeowner. automatically
includes Personal Liability Insurance and Medical Payments to Others.
multiline— Correct Answer: This means that the policy includes both property and liability coverage
with one premium covering all the risks listed on the contract. Similar to the Dwelling Policies, the
coverage is divided into coverage parts insuring the different property risks as well as the liability risks.
Homeowner's
Homeowners premium— Correct Answer: will depend on what amount it would cost to replace the
dwelling and any endorsements that are attached to the Homeowners Policy. The premium may also
reflect additional factors including the location of the insured property, the existence of firefighting
equipment such as fire hydrants and fire stations within a specific proximity to the dwelling. Other
items, such as burglar and fire alarms, deadbolt locks and storm shutters, may help to lower premium
costs.
Homeowner normal exclusions— Correct Answer: flood and war
Insured location— Correct Answer: 1. Residence Premises which is a owner-occupied dwelling, other
structure, grounds insured or the part of any other building where the insured resides that is defined in
the policy Declarations; 2. Premises acquired by the insured or spouse during the policy term and the
premises is used as a residence by the insured, 3. Non-owned premises where the insured temporarily
resides or occasionally rents but does not use for business, 4. Vacant land (other than farmland) that the
insured owns or rents, 5. Land that the insured owns or rents and is used for building a one-family or
two-family dwelling residence for the insured, and 6. The insured's individual or family cemetery or
burial plots (tombstone).
Residence Employee— Correct Answer: is the insured's domestic employee on or off the residence
premises (not related to a business operation). This excludes a person employed in the insured's business
who works at the insured's residence.
, Eligibility for the Homeowners Policy— Correct Answer: In order to be eligible for a Homeowners
Policy, the property owner must occupy (reside) in the dwelling to be insured. In policy language, the
dwelling is referred to as the "residence premises."The dwelling may be either a one-family or two-
family dwelling. In a two (2) family dwelling, such as a duplex dwelling, the property owner must live in
one (1) unit while renters may occupy the other unit.
Persons Considered Insured in the Homeowners Policy— Correct Answer: establish who is covered for
both property and liability losses. 1. The named listed on the Declarations page of the policy and his or
her spouse as long as the spouse lives in the same household with the named insured; 2. Any resident
relative of the named insured and spouse (The resident relative can be the relative of the named insured
and/or the spouse of the named insured. The relationship can be by "blood" (genetic) or by marriage. ; 3.
Students enrolled in school full-time which were residents of the named insured's household before
moving to attend school, provided the students are under the age of twenty-four (24); 4. Any person
under the age of twenty-one (21) living in the household who is in the care of the insured (i.e., a foreign
exchange student); 5. For liability purposes, coverage extends to any person employed by the insured at
the residence named in the Declarations such as a domestic or nanny.
HO-2 Broad Form— Correct Answer: designed for single or dual family dwellings covering perils on a
"named perils" basis.
HO-3 Special Form— Correct Answer: designed for single or dual family dwellings covering perils on an
"all risk" basis for Coverage A and Coverage B.
HO-5 Comprehensive Form— Correct Answer: designed for single or dual family dwellings covering
perils on an "all risk" basis for Coverage A, Coverage B and Coverage C.
HO-8 Modified Form— Correct Answer: designed for single or dual family dwellings that do not qualify
for an HO-2, HO-3 or HO-5 typically due to age or construction. Perils are covered on a specific named
basis. Most like a DP-1, specialized properties that don't qualify for a homeowners but need more than
dwelling. Ex- victorian homes. Slightly less coverage
HO-4 Contents Form— Correct Answer: designed for tenants or renters providing perils coverage on a
named basis for Coverage C losses. Could be called renters.
HO-6 Unit Owners— Correct Answer: designed to cover condominiums and owned apartments on a
"named perils" basis for Coverage A and Coverage C. think condo owners.
Homeowner's policies— Correct Answer: make a chart and check it!
Homeowner's part a— Correct Answer: DWELLING Coverage A insures the residence premises
(dwelling) and any attached structures such as a two (2) car garage. Included in the coverage is
equipment and fixtures permanently attached to the residence premises such as kitchen cabinets. Loss of
materials and supplies used in maintenance, repair or alteration is also insured. (Theft of material and
