CISR - Personal Lines Miscellaneous
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What is a trade? - CORRECT ANSWER - Skilled manual or mechanical work.
Examples: Painter, Carpenter, Electrician, etc.
What is a profession? - CORRECT ANSWER - A vocation requiring advanced education
and training.
Examples: Physician, Dentist, Attorney, Veterinarian, etc.
What is an occupation? - CORRECT ANSWER - An activity or pursuit in which a person
is engaged; a person's usual or principal work or business.
What are the two parts of the definition of "Business"? - CORRECT ANSWER - Part 1 -
A business includes a trade, profession, or occupation engaged in on a full-time, part-time, or
occasional basis.
Part 2 - A business is any activity that is engaged in for money or other compensation unless it is
one of four cited activities.
What are the four cited activities that can void the definition of business? - CORRECT
ANSWER - 1 - One or more activities for which no "insured" received more than $2,000
in the 12 months prior to the beginning of the policy period.
2 - Volunteer activities where no compensation is received other than reimbursement of
expenses.
,3 - Home day care provided without compensation even if there is a mutual exchange of day care
services.
4 - Home day care to a relative of an "insured" even if receiving compensation for the services.
Is coverage for a loss to the Coverage A - Dwelling effected by "business" use? - CORRECT
ANSWER - No - there is not a limitation or exclusion for a dwelling with a "business"
exposure.
What does the Homeowners 3 - Special Form policy automatically include in regards to
Coverage A - Dwelling & Coverage B - Other Structures? - CORRECT ANSWER - It
automatically includes Coverage B - Other Structures coverage up to 10% of Coverage A -
Dwelling limit.
Under the Homeowners 3 - Special Form policy, what three exclusions apply to an other
structure? - CORRECT ANSWER - 1 - An other structure that is rented or held for rental
to anyone not a tenant of the dwelling unless for use solely as a private garage.
2 - An other structure with a business conducted in it.
3 - An other structure used to store "business" property unless the property is both: (1) Owned
solely by an "insured" or tenant of the dwelling & (2) The "business" property is not gaseous or
liquid fuel unless it is in a permanently installed fuel tank of a vehicle or craft parked or stored in
the structure.
What is the Structures Rented to Others - Residence Premises HO 04 40 endorsement used to
obtain? - CORRECT ANSWER - Used to obtain coverage for an other structure that is
rented to others for use as a private residence.
The other structure is described in the Schedule with a Limit of Liability.
, What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 used for? -
CORRECT ANSWER - An other structure with an eligible incidental "business" exposure
typically offices, schools, or studios.
The Limit of Liability & Description of Other Structure must be shown in the Schedule.
Under a standard ISO Homeowners policy, what are the two Coverage C - Personal Property
Special Limits of Liability that apply to property used primarily for business? - CORRECT
ANSWER - 1 - $2,500.00 for personal property used primarily for "business" while on the
"residence premises."
2 - $1,500.00 for personal property used primarily for "business" while away from the "residence
premises"
*The limitations do not apply to property used occasionally for "business."
What is the Increased Limits on Business Property HO 04 12 endorsement used for? -
CORRECT ANSWER - To increase the Special Limit of Liability for "business"
(personal) property on the "residence premises" to a maximum of $10,000.00.
What limit is the Special Limit of Liability automatically set to for property away from the
"residence premises" under the Increased Limits on Business Property HO 04 12? - CORRECT
ANSWER - 60% of the limit of property on the "residence premises."
What does the Increased Limits on Business Property HO 04 12 not provide coverage on? -
CORRECT ANSWER - 1 - "Business" property that pertains to a "business" actually
conducted on the "residence premises."
2 - "Business" property in storage or held as a sample or for sale or delivery after a sale.
What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 endorsement used
for? - CORRECT ANSWER - Applies to personal property used in the "business"
UPDATED ACTUAL Exam Questions and
CORRECT Answers
What is a trade? - CORRECT ANSWER - Skilled manual or mechanical work.
Examples: Painter, Carpenter, Electrician, etc.
What is a profession? - CORRECT ANSWER - A vocation requiring advanced education
and training.
Examples: Physician, Dentist, Attorney, Veterinarian, etc.
What is an occupation? - CORRECT ANSWER - An activity or pursuit in which a person
is engaged; a person's usual or principal work or business.
What are the two parts of the definition of "Business"? - CORRECT ANSWER - Part 1 -
A business includes a trade, profession, or occupation engaged in on a full-time, part-time, or
occasional basis.
Part 2 - A business is any activity that is engaged in for money or other compensation unless it is
one of four cited activities.
What are the four cited activities that can void the definition of business? - CORRECT
ANSWER - 1 - One or more activities for which no "insured" received more than $2,000
in the 12 months prior to the beginning of the policy period.
2 - Volunteer activities where no compensation is received other than reimbursement of
expenses.
,3 - Home day care provided without compensation even if there is a mutual exchange of day care
services.
4 - Home day care to a relative of an "insured" even if receiving compensation for the services.
Is coverage for a loss to the Coverage A - Dwelling effected by "business" use? - CORRECT
ANSWER - No - there is not a limitation or exclusion for a dwelling with a "business"
exposure.
What does the Homeowners 3 - Special Form policy automatically include in regards to
Coverage A - Dwelling & Coverage B - Other Structures? - CORRECT ANSWER - It
automatically includes Coverage B - Other Structures coverage up to 10% of Coverage A -
Dwelling limit.
Under the Homeowners 3 - Special Form policy, what three exclusions apply to an other
structure? - CORRECT ANSWER - 1 - An other structure that is rented or held for rental
to anyone not a tenant of the dwelling unless for use solely as a private garage.
2 - An other structure with a business conducted in it.
3 - An other structure used to store "business" property unless the property is both: (1) Owned
solely by an "insured" or tenant of the dwelling & (2) The "business" property is not gaseous or
liquid fuel unless it is in a permanently installed fuel tank of a vehicle or craft parked or stored in
the structure.
What is the Structures Rented to Others - Residence Premises HO 04 40 endorsement used to
obtain? - CORRECT ANSWER - Used to obtain coverage for an other structure that is
rented to others for use as a private residence.
The other structure is described in the Schedule with a Limit of Liability.
, What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 used for? -
CORRECT ANSWER - An other structure with an eligible incidental "business" exposure
typically offices, schools, or studios.
The Limit of Liability & Description of Other Structure must be shown in the Schedule.
Under a standard ISO Homeowners policy, what are the two Coverage C - Personal Property
Special Limits of Liability that apply to property used primarily for business? - CORRECT
ANSWER - 1 - $2,500.00 for personal property used primarily for "business" while on the
"residence premises."
2 - $1,500.00 for personal property used primarily for "business" while away from the "residence
premises"
*The limitations do not apply to property used occasionally for "business."
What is the Increased Limits on Business Property HO 04 12 endorsement used for? -
CORRECT ANSWER - To increase the Special Limit of Liability for "business"
(personal) property on the "residence premises" to a maximum of $10,000.00.
What limit is the Special Limit of Liability automatically set to for property away from the
"residence premises" under the Increased Limits on Business Property HO 04 12? - CORRECT
ANSWER - 60% of the limit of property on the "residence premises."
What does the Increased Limits on Business Property HO 04 12 not provide coverage on? -
CORRECT ANSWER - 1 - "Business" property that pertains to a "business" actually
conducted on the "residence premises."
2 - "Business" property in storage or held as a sample or for sale or delivery after a sale.
What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 endorsement used
for? - CORRECT ANSWER - Applies to personal property used in the "business"
