Iowa Personal Lines Exams with
Complete Solutions
DP-1 - ANS-Basic Form Dwelling Policy: Provides coverage on a named peril basis.
DP-1 - ANS-Losses are paid actual cash value
Extended Coverage Perils - ANS-W.C. SHAVVER: Wind, Civil Commotion, Smoke,
Hail, Aircraft, Vehicles, Volcanic Eruption, Explosion, and Riot
DP-2 - ANS-Broad Form Dwelling Policy: Provides replacement cost coverage on
dwellings & buildings on a "named peril" basis, contents are actual cash value
Uninsurable (excluded) losses - ANS-Under the open- peril insuring agreement include
damage caused by rust, mold, wear and tear, birds, insects, vermin, domestic animals,
and continuous or repeated seepage from water systems
DP-3 - ANS-Special Form Dwelling Policy: Provides replacement cost coverage on the
dwelling and other structures on an "open peril" basis, contents are on a named peril
basis
Exclusions to all Dwelling forms - ANS-Ordinance or law, earth movement, water
damage, power failure, neglect, war, nuclear hazard, intentional loss, and governmental
action
"Other Insurance" clause of Dwelling Property - ANS-Provides for distributing insurance
among two or more insurers on a pro-rata basis
"Loss Payment" condition - ANS-The loss will be paid within 30 days following
agreement with the insured
Automatic increase in insurance - ANS-An endorsement used to provide an annual
increase of 4%, 6% or 8% in coverage A of the dwelling property forms
Broad Theft coverage - ANS-Covers theft of personal property for any dwelling policy
written on a dwelling, co-op, or condominium unit that is owner-occupied, or a tenant in
an apartment
Dwelling under construction - ANS-Insures the named insured while the dwelling is
under construction. The limit of liability is a percentage of the value of the partially
completed home at any given time
, Dwelling: Coverage A - ANS-Dwelling
Dwelling: Coverage B - ANS-Other Structures
Dwelling: Coverage C - ANS-Personal Property
Dwelling: Coverage D - ANS-Fair Rental Value
Dwelling: Coverage E - ANS-Additional Living Expense
Other Structures - ANS-Structures on the premises set apart from the dwelling by a
clear space such as detached garages and swimming pools (sheds, kids playhouse,
etc)
Fair Rental Value - ANS-Provides for the loss of rental income when a loss under
Coverages A, B, or C makes property that is rented or held for rental "unfit for normal
use"
The Dwelling Property Covers - ANS-Property Coverage Only
Insurance - ANS-A contract or device for transferring the risk of loss from a person,
business or organization to an insurance company that agrees, in exchange for a
premium, to pay for losses through an accumulation of premiums
Law of Large Numbers - ANS-The larger the number of insureds, the greater the
probability that actual loss experience will equal expected loss experience
Insurable interest - ANS-Occurs when a person stands to lose life or property. An
insurable interest must exist at the time of loss.
Risk - ANS-The uncertainty or chance of loss.
Pure Risk - ANS-Involves only the possibility of loss or no loss
Risk Management - ANS-A scientific approach to the problem of dealing with pure risk.
Example: the elimination of a hazard
Hazard - ANS-A condition that creates or increase the probability of a loss
Physical Hazard - ANS-Those that increase the possibility of a loss such as flammable
substances
Moral Hazard - ANS-Dishonesty, lack of integrity
Morale Hazard - ANS-Careless attitude, indifference, failure to care
Complete Solutions
DP-1 - ANS-Basic Form Dwelling Policy: Provides coverage on a named peril basis.
DP-1 - ANS-Losses are paid actual cash value
Extended Coverage Perils - ANS-W.C. SHAVVER: Wind, Civil Commotion, Smoke,
Hail, Aircraft, Vehicles, Volcanic Eruption, Explosion, and Riot
DP-2 - ANS-Broad Form Dwelling Policy: Provides replacement cost coverage on
dwellings & buildings on a "named peril" basis, contents are actual cash value
Uninsurable (excluded) losses - ANS-Under the open- peril insuring agreement include
damage caused by rust, mold, wear and tear, birds, insects, vermin, domestic animals,
and continuous or repeated seepage from water systems
DP-3 - ANS-Special Form Dwelling Policy: Provides replacement cost coverage on the
dwelling and other structures on an "open peril" basis, contents are on a named peril
basis
Exclusions to all Dwelling forms - ANS-Ordinance or law, earth movement, water
damage, power failure, neglect, war, nuclear hazard, intentional loss, and governmental
action
"Other Insurance" clause of Dwelling Property - ANS-Provides for distributing insurance
among two or more insurers on a pro-rata basis
"Loss Payment" condition - ANS-The loss will be paid within 30 days following
agreement with the insured
Automatic increase in insurance - ANS-An endorsement used to provide an annual
increase of 4%, 6% or 8% in coverage A of the dwelling property forms
Broad Theft coverage - ANS-Covers theft of personal property for any dwelling policy
written on a dwelling, co-op, or condominium unit that is owner-occupied, or a tenant in
an apartment
Dwelling under construction - ANS-Insures the named insured while the dwelling is
under construction. The limit of liability is a percentage of the value of the partially
completed home at any given time
, Dwelling: Coverage A - ANS-Dwelling
Dwelling: Coverage B - ANS-Other Structures
Dwelling: Coverage C - ANS-Personal Property
Dwelling: Coverage D - ANS-Fair Rental Value
Dwelling: Coverage E - ANS-Additional Living Expense
Other Structures - ANS-Structures on the premises set apart from the dwelling by a
clear space such as detached garages and swimming pools (sheds, kids playhouse,
etc)
Fair Rental Value - ANS-Provides for the loss of rental income when a loss under
Coverages A, B, or C makes property that is rented or held for rental "unfit for normal
use"
The Dwelling Property Covers - ANS-Property Coverage Only
Insurance - ANS-A contract or device for transferring the risk of loss from a person,
business or organization to an insurance company that agrees, in exchange for a
premium, to pay for losses through an accumulation of premiums
Law of Large Numbers - ANS-The larger the number of insureds, the greater the
probability that actual loss experience will equal expected loss experience
Insurable interest - ANS-Occurs when a person stands to lose life or property. An
insurable interest must exist at the time of loss.
Risk - ANS-The uncertainty or chance of loss.
Pure Risk - ANS-Involves only the possibility of loss or no loss
Risk Management - ANS-A scientific approach to the problem of dealing with pure risk.
Example: the elimination of a hazard
Hazard - ANS-A condition that creates or increase the probability of a loss
Physical Hazard - ANS-Those that increase the possibility of a loss such as flammable
substances
Moral Hazard - ANS-Dishonesty, lack of integrity
Morale Hazard - ANS-Careless attitude, indifference, failure to care
