Chapter 22 RSM Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
Homeowners insurance Homeowners insurance is a package
policy, widely
used in the United States, designed
primarily for
owner-occupants of family dwellings. It can
provide coverage for the dwelling itself,
other
structures, personal property, additional
living
expenses, personal liability claims, and
medical
payments to
others.:contentReference[oaicite:1]
{index=1}
ISO homeowners forms The homeowners insurance forms are
drafted by
the Insurance Services Office (ISO) and
are
standardized forms used broadly in the
insurance
market for residential risks.
:contentReference[oaicite:2]{index=2}
,Six homeowners forms available The notes identify six homeowners forms:
HO-2,
HO-3, HO-4, HO-5, HO-6, and HO-8.
These forms
differ mainly in what property is covered
and
whether the coverage applies on a named
perils
basis or an open perils basis.
:contentReference[oaicite:3]{index=3}
Named perils coverage Named perils coverage means the policy
covers
losses only if they are caused by a peril
specifically
listed in the policy. If the cause of loss is
not
named, there is no coverage.
:contentReference[oaicite:4]{index=4}
Open perils coverage Open perils coverage, also described in
the notes
as risk-of-direct-physical-loss or all-risks
coverage,
covers all direct physical losses unless the
policy
specifically excludes them. This approach
is
broader than named perils coverage.
:contentReference[oaicite:5]{index=5}
, HO-2 broad form The HO-2 broad form covers the dwelling,
other
structures, and personal property on a
named
perils basis. Coverage exists only when
the loss is
caused by one of the perils specifically
listed in the
policy.:contentReference[oaicite:6]{index=
6}
Perils covered under HO-2 The HO-2 covers fire or lightning,
windstorm or
hail, explosion, riot or civil commotion,
aircraft,
vehicles, smoke, vandalism or malicious
mischief,
theft, falling objects, weight of ice snow or
sleet,
accidental discharge or overflow of water
or
steam, sudden and accidental tearing
apart
cracking burning or bulging of certain
systems or
appliances, freezing of plumbing heating
air
conditioning or sprinkler systems or
household
appliances, sudden and accidental
damage from
artificially generated electrical current, and
volcanic
eruption.:contentReference[oaicite:7]
{index=7}
Answers with Verified Solutions | Latest
Updated 2026
Homeowners insurance Homeowners insurance is a package
policy, widely
used in the United States, designed
primarily for
owner-occupants of family dwellings. It can
provide coverage for the dwelling itself,
other
structures, personal property, additional
living
expenses, personal liability claims, and
medical
payments to
others.:contentReference[oaicite:1]
{index=1}
ISO homeowners forms The homeowners insurance forms are
drafted by
the Insurance Services Office (ISO) and
are
standardized forms used broadly in the
insurance
market for residential risks.
:contentReference[oaicite:2]{index=2}
,Six homeowners forms available The notes identify six homeowners forms:
HO-2,
HO-3, HO-4, HO-5, HO-6, and HO-8.
These forms
differ mainly in what property is covered
and
whether the coverage applies on a named
perils
basis or an open perils basis.
:contentReference[oaicite:3]{index=3}
Named perils coverage Named perils coverage means the policy
covers
losses only if they are caused by a peril
specifically
listed in the policy. If the cause of loss is
not
named, there is no coverage.
:contentReference[oaicite:4]{index=4}
Open perils coverage Open perils coverage, also described in
the notes
as risk-of-direct-physical-loss or all-risks
coverage,
covers all direct physical losses unless the
policy
specifically excludes them. This approach
is
broader than named perils coverage.
:contentReference[oaicite:5]{index=5}
, HO-2 broad form The HO-2 broad form covers the dwelling,
other
structures, and personal property on a
named
perils basis. Coverage exists only when
the loss is
caused by one of the perils specifically
listed in the
policy.:contentReference[oaicite:6]{index=
6}
Perils covered under HO-2 The HO-2 covers fire or lightning,
windstorm or
hail, explosion, riot or civil commotion,
aircraft,
vehicles, smoke, vandalism or malicious
mischief,
theft, falling objects, weight of ice snow or
sleet,
accidental discharge or overflow of water
or
steam, sudden and accidental tearing
apart
cracking burning or bulging of certain
systems or
appliances, freezing of plumbing heating
air
conditioning or sprinkler systems or
household
appliances, sudden and accidental
damage from
artificially generated electrical current, and
volcanic
eruption.:contentReference[oaicite:7]
{index=7}
