PERSONAL LINES LATEST 2026 QUESTIONS AND
SOLUTIONS GUARANTEE A+
✔✔Company A has issued a policy in the amount of $200,000, and company B has
issued a policy in the amount of $300,000. under the other insurance or pro rata liability
condition or provision, how much will company A pay of a $100,000 loss? - ✔✔$40,000
✔✔The _________ portion of the policy specifies the causes of loss perils not covered,
or property not covered. - ✔✔Exclusions
✔✔An amendment that is attached to a property insurance policy to broaden or restrict
coverage, or further define certain policy provisions is known as a(n) ___________. -
✔✔Endorsement
✔✔Under a commercial lines property policy, who is responsible for making the
premium payments in a timely manner? - ✔✔First Named Insured
✔✔Under a commercial lines property policy, who has the right to request changes to
the policy, and the right to recieve any return of premium? - ✔✔First Named Insured
✔✔Essentially, the higher the deductible that the insured chooses, the higher the
premium will be. True or False? - ✔✔False
✔✔Whenever a personal property policy is cancelled or surrendered the unearned
premium is to be tendered to the insured, or insurance agent of record for the
transmittal to the insured, within ____ days of the cancellation or surrender. - ✔✔25
✔✔A dwelling containing 5 apartment units would be eligible for coverage under a
dwelling policy. True or False? - ✔✔False
✔✔Losses to the dwelling, other structures, and contents are paid on an actual cash
value basis under a DP-1. - ✔✔True
✔✔Smoke damaged caused from nearby industrial operations is or is not covered
under a DP-2 broad form. - ✔✔Is Not
✔✔In the event of a loss, the DP-2 broad form pays for damage to the dwelling on a
___________ ____ basis. - ✔✔Replacement Cost
✔✔Under a DP-3 special form, fixtures that are apart of a dwelling which is not under
construction or that has not been vacant for more than 30 days are covered for theft.
True or False? - ✔✔True
,✔✔The covered causes of loss constitute the major differences between the dwelling
forms. True or False? - ✔✔True
✔✔The land under a dwelling is not covered as a part of coverage A (dwelling) under
the dwelling forms. True or False? - ✔✔True
✔✔Does a detached garage that is used to store commercial equipment qualify for
coverage under coverage B other structures of the dwelling forms? - ✔✔No
✔✔At the insured's request, coverage C ________ ________ will cover personal
property of a guest or servant while on described premises. - ✔✔Personal Property
✔✔Coverage C under the dwelling forms extends to include personal property of a
tenant or boarder of the insured. True or False? - ✔✔False
✔✔The DP-1 basic form applies coverage to property that is removed because it is
endangered by a covered peril. True or False? - ✔✔True
✔✔Under the DP-2, and DP-3, endangered property removed to another location is
covered for 30 days while at the removed location. True or False? - ✔✔True
✔✔Collapse of a structure due to hidden decay is covered under all dwelling forms.
True or False? - ✔✔False
✔✔The earth movement exclusion does not exclude damage by an explosion that
ensues from the earth movement. True or False? - ✔✔True
✔✔Water that backs up through sewers and drains causing damage is covered under a
DP-3. True or False? - ✔✔False
✔✔Under the HO-2, would the explosion of a hot water heater that causes major
damage to the house be covered? - ✔✔Yes
✔✔Under a homeowners policy, for a claim of more than $2,500 on the dwelling to be
paid on a replacement cost basis, the repairs must ____ __________. - ✔✔Be
Completed
✔✔Does an HO-3 policy provide coverage against damage caused by falling objects? -
✔✔Yes
✔✔The perils included in the HO-3 policy for coverages A and B are the special _____
perils. - ✔✔Open
, ✔✔The HO-4 policy provides _____ ____ peril coverage on the personal property. -
✔✔Broad Form
✔✔Does the HO-4 provide coverage for real property? - ✔✔No
✔✔A client desires open peril coverage on both their dwelling and personal property
under their homeowners policy. which homeowners form would give them this
coverage? - ✔✔Form 5
✔✔The main difference between an HO-3 and an HO-5 is that the HO-3 insures
personal property for broad form perils and the HO-5 insures personal properties for
open perils. - ✔✔True
✔✔The HO-6 provides _____ ____ _____ peril coverage on personal property. -
✔✔Broad Form Named
✔✔The HO-6 condominium unit-owners form provides coverage for common grounds
which are next to the insured's property. True or False? - ✔✔False
✔✔A homeowner has an insured loss of $10,000 damage to the home, $2,000 damage
to personal property and $2,000 additional living expenses. the policy carries a $100
deductible. how much will the policy pay? - ✔✔$13,900
✔✔The HO-3 policy provides theft coverage for building supplies that are next to the
house which are to be used in construction. True or False? - ✔✔False
✔✔Under the homeowners policy, vandalism and malicious mischief coverage is
excluded if the property is ______ for more than 60 days. - ✔✔Vacant
✔✔A homeowners policy that is written for $100,000, has the detached garage
completely destroyed by fire. what is the most the policy will pay? - ✔✔$10,000
✔✔What percentage of coverage A is allowed for coverage B (other structures) under a
homeowners policy? - ✔✔10
✔✔The territorial limits for personal property under the homeowners policy is
_________. - ✔✔Worldwide
✔✔Under section 1 of a homeowners policy, there is a special limit under coverage C
on watercraft of _____. - ✔✔$1,500
SOLUTIONS GUARANTEE A+
✔✔Company A has issued a policy in the amount of $200,000, and company B has
issued a policy in the amount of $300,000. under the other insurance or pro rata liability
condition or provision, how much will company A pay of a $100,000 loss? - ✔✔$40,000
✔✔The _________ portion of the policy specifies the causes of loss perils not covered,
or property not covered. - ✔✔Exclusions
✔✔An amendment that is attached to a property insurance policy to broaden or restrict
coverage, or further define certain policy provisions is known as a(n) ___________. -
✔✔Endorsement
✔✔Under a commercial lines property policy, who is responsible for making the
premium payments in a timely manner? - ✔✔First Named Insured
✔✔Under a commercial lines property policy, who has the right to request changes to
the policy, and the right to recieve any return of premium? - ✔✔First Named Insured
✔✔Essentially, the higher the deductible that the insured chooses, the higher the
premium will be. True or False? - ✔✔False
✔✔Whenever a personal property policy is cancelled or surrendered the unearned
premium is to be tendered to the insured, or insurance agent of record for the
transmittal to the insured, within ____ days of the cancellation or surrender. - ✔✔25
✔✔A dwelling containing 5 apartment units would be eligible for coverage under a
dwelling policy. True or False? - ✔✔False
✔✔Losses to the dwelling, other structures, and contents are paid on an actual cash
value basis under a DP-1. - ✔✔True
✔✔Smoke damaged caused from nearby industrial operations is or is not covered
under a DP-2 broad form. - ✔✔Is Not
✔✔In the event of a loss, the DP-2 broad form pays for damage to the dwelling on a
___________ ____ basis. - ✔✔Replacement Cost
✔✔Under a DP-3 special form, fixtures that are apart of a dwelling which is not under
construction or that has not been vacant for more than 30 days are covered for theft.
True or False? - ✔✔True
,✔✔The covered causes of loss constitute the major differences between the dwelling
forms. True or False? - ✔✔True
✔✔The land under a dwelling is not covered as a part of coverage A (dwelling) under
the dwelling forms. True or False? - ✔✔True
✔✔Does a detached garage that is used to store commercial equipment qualify for
coverage under coverage B other structures of the dwelling forms? - ✔✔No
✔✔At the insured's request, coverage C ________ ________ will cover personal
property of a guest or servant while on described premises. - ✔✔Personal Property
✔✔Coverage C under the dwelling forms extends to include personal property of a
tenant or boarder of the insured. True or False? - ✔✔False
✔✔The DP-1 basic form applies coverage to property that is removed because it is
endangered by a covered peril. True or False? - ✔✔True
✔✔Under the DP-2, and DP-3, endangered property removed to another location is
covered for 30 days while at the removed location. True or False? - ✔✔True
✔✔Collapse of a structure due to hidden decay is covered under all dwelling forms.
True or False? - ✔✔False
✔✔The earth movement exclusion does not exclude damage by an explosion that
ensues from the earth movement. True or False? - ✔✔True
✔✔Water that backs up through sewers and drains causing damage is covered under a
DP-3. True or False? - ✔✔False
✔✔Under the HO-2, would the explosion of a hot water heater that causes major
damage to the house be covered? - ✔✔Yes
✔✔Under a homeowners policy, for a claim of more than $2,500 on the dwelling to be
paid on a replacement cost basis, the repairs must ____ __________. - ✔✔Be
Completed
✔✔Does an HO-3 policy provide coverage against damage caused by falling objects? -
✔✔Yes
✔✔The perils included in the HO-3 policy for coverages A and B are the special _____
perils. - ✔✔Open
, ✔✔The HO-4 policy provides _____ ____ peril coverage on the personal property. -
✔✔Broad Form
✔✔Does the HO-4 provide coverage for real property? - ✔✔No
✔✔A client desires open peril coverage on both their dwelling and personal property
under their homeowners policy. which homeowners form would give them this
coverage? - ✔✔Form 5
✔✔The main difference between an HO-3 and an HO-5 is that the HO-3 insures
personal property for broad form perils and the HO-5 insures personal properties for
open perils. - ✔✔True
✔✔The HO-6 provides _____ ____ _____ peril coverage on personal property. -
✔✔Broad Form Named
✔✔The HO-6 condominium unit-owners form provides coverage for common grounds
which are next to the insured's property. True or False? - ✔✔False
✔✔A homeowner has an insured loss of $10,000 damage to the home, $2,000 damage
to personal property and $2,000 additional living expenses. the policy carries a $100
deductible. how much will the policy pay? - ✔✔$13,900
✔✔The HO-3 policy provides theft coverage for building supplies that are next to the
house which are to be used in construction. True or False? - ✔✔False
✔✔Under the homeowners policy, vandalism and malicious mischief coverage is
excluded if the property is ______ for more than 60 days. - ✔✔Vacant
✔✔A homeowners policy that is written for $100,000, has the detached garage
completely destroyed by fire. what is the most the policy will pay? - ✔✔$10,000
✔✔What percentage of coverage A is allowed for coverage B (other structures) under a
homeowners policy? - ✔✔10
✔✔The territorial limits for personal property under the homeowners policy is
_________. - ✔✔Worldwide
✔✔Under section 1 of a homeowners policy, there is a special limit under coverage C
on watercraft of _____. - ✔✔$1,500
