PROPERTY AND CASUALTY INSURANCE EXAM
COMPREHENSIVE EXAM SCRIPT 2025 FULL
QUESTIONS AND ELABORATED ACCURATE
ANSWERS GRADED A+
◉ How is actual cash value (ACV) calculated? Answer: Replacement
cost minus depreciation.
◉ How does blanket property coverage differ from scheduled coverage?
Answer: Blanket coverage provides one limit for multiple locations or
items.
◉ What is the scheduled personal property endorsement typically used
for? Answer: Jewelry, fine arts, or collectibles.
◉ What is the purpose of coinsurance in property insurance? Answer:
Encourage adequate coverage relative to property value.
◉ What is the main purpose of a homeowners deductible? Answer:
Reduce premium by sharing minor losses with the insured.
◉ What does loss of use coverage in homeowners insurance pay for?
Answer: Temporary living expenses if the home is uninhabitable due to
a covered loss.
, ◉ What does Section II of a homeowners policy include? Answer:
Personal liability and medical payments to others.
◉ What does personal liability coverage in homeowners insurance
cover? Answer: Bodily injury and property damage to third parties.
◉ What does medical payments coverage in homeowners insurance
cover? Answer: Minor injuries to others on the property regardless of
fault.
◉ Which homeowners form is 'all risk' on dwelling and named perils on
personal property? Answer: HO-3.
◉ How does HO-5 differ from HO-3? Answer: It provides broader
coverage for both dwelling and personal property (open perils).
◉ What is the HO-8 homeowners policy typically used for? Answer:
Older homes with replacement cost exceeding market value.
◉ What does ordinance or law coverage in homeowners insurance pay
for? Answer: Building code upgrades after a covered loss.
COMPREHENSIVE EXAM SCRIPT 2025 FULL
QUESTIONS AND ELABORATED ACCURATE
ANSWERS GRADED A+
◉ How is actual cash value (ACV) calculated? Answer: Replacement
cost minus depreciation.
◉ How does blanket property coverage differ from scheduled coverage?
Answer: Blanket coverage provides one limit for multiple locations or
items.
◉ What is the scheduled personal property endorsement typically used
for? Answer: Jewelry, fine arts, or collectibles.
◉ What is the purpose of coinsurance in property insurance? Answer:
Encourage adequate coverage relative to property value.
◉ What is the main purpose of a homeowners deductible? Answer:
Reduce premium by sharing minor losses with the insured.
◉ What does loss of use coverage in homeowners insurance pay for?
Answer: Temporary living expenses if the home is uninhabitable due to
a covered loss.
, ◉ What does Section II of a homeowners policy include? Answer:
Personal liability and medical payments to others.
◉ What does personal liability coverage in homeowners insurance
cover? Answer: Bodily injury and property damage to third parties.
◉ What does medical payments coverage in homeowners insurance
cover? Answer: Minor injuries to others on the property regardless of
fault.
◉ Which homeowners form is 'all risk' on dwelling and named perils on
personal property? Answer: HO-3.
◉ How does HO-5 differ from HO-3? Answer: It provides broader
coverage for both dwelling and personal property (open perils).
◉ What is the HO-8 homeowners policy typically used for? Answer:
Older homes with replacement cost exceeding market value.
◉ What does ordinance or law coverage in homeowners insurance pay
for? Answer: Building code upgrades after a covered loss.
