CPCU 555 EXAM QUESTIONS AND ANSWERS
100% CORRECT
Coverage A - open perils - ANSWER Dwelling - 3 types
1. Residence premises (1,2,3,4 family/insured primary residence in at least one)
2. Structures Attached to dwelling - includes fixtures but not fence, utility line as
attachment
3. Construction Supplies/materials (for other structures also if on or next to residence)
Coverage B - open perils - ANSWER Other Structures covered unless perils excluded
1. Applies to other structures on the residence premises meeting the following:
b. They are not attached to the building
c. There is a clear space separating the structure from the dwelling
2. A structure is built and has a # of parts arranged in particular way or pattern
Coverage C - named perils - ANSWER Personal Property
1. Must be owned or used by persons qualifying as insureds (named insured, resident
relatives of named insured, and persons under 21 and in the care of the named insured
or a resident relative.) or
2. Includes property insured uses but is owned by someone else or
3. Full-time student who BEFORE entering school was a resident relative of named
insured (until 24) or under the care of the named insured or of a resident relative (until
21).
4. Coverage is worldwide
Coverage A Dwelling -Limits - ANSWER On Dec page - can be replacement cost
Coverage B - Other Structures Limits - ANSWER 10% of Coverage A and is in addition to
it.
Coverage C - Personal Property Limits - ANSWER 1. @ Insured's Residence Premises =
50% of A
if A has replacement then = 70%
2. @ Insured's Other Residences = 10% of C or $1,000 whichever is GREATER; except
100% CORRECT
Coverage A - open perils - ANSWER Dwelling - 3 types
1. Residence premises (1,2,3,4 family/insured primary residence in at least one)
2. Structures Attached to dwelling - includes fixtures but not fence, utility line as
attachment
3. Construction Supplies/materials (for other structures also if on or next to residence)
Coverage B - open perils - ANSWER Other Structures covered unless perils excluded
1. Applies to other structures on the residence premises meeting the following:
b. They are not attached to the building
c. There is a clear space separating the structure from the dwelling
2. A structure is built and has a # of parts arranged in particular way or pattern
Coverage C - named perils - ANSWER Personal Property
1. Must be owned or used by persons qualifying as insureds (named insured, resident
relatives of named insured, and persons under 21 and in the care of the named insured
or a resident relative.) or
2. Includes property insured uses but is owned by someone else or
3. Full-time student who BEFORE entering school was a resident relative of named
insured (until 24) or under the care of the named insured or of a resident relative (until
21).
4. Coverage is worldwide
Coverage A Dwelling -Limits - ANSWER On Dec page - can be replacement cost
Coverage B - Other Structures Limits - ANSWER 10% of Coverage A and is in addition to
it.
Coverage C - Personal Property Limits - ANSWER 1. @ Insured's Residence Premises =
50% of A
if A has replacement then = 70%
2. @ Insured's Other Residences = 10% of C or $1,000 whichever is GREATER; except
