PERSONAL LINES INSURANCE STUDY GUIDE EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔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
,✔✔Under section 1 of a homeowners policy, there is a special limit for the theft of
firearms. True or False? - ✔✔True
✔✔Is there coverage for windstorm damage under a homeowners policy on personal
property contained in the building unless an opening is caused by a covered peril? -
✔✔No
✔✔An insured's camera that is stolen by a visitor would be covered under the
homeowners policy. True or False? - ✔✔True
✔✔Additional living expense under a homeowners policy is found in coverage ___. -
✔✔D
✔✔An insured has a homeowners policy and suffers a direct loss causing the insured to
seek other living arrangements. the insured's normal househould expense is $500 per
month. however the new arrangements cost is $700 per month. how much will the
insured collect monthly from the homeowners policy? - ✔✔$200
✔✔Do payments under coverage D of the homeowners policy affect the policies liability
limits? - ✔✔No
✔✔When a covered loss exhausts the applicable coverage limit, debris removal
coverage will pay up to an additional ___% of coverage A. - ✔✔5
✔✔Under a HO-3 policy, the maximum amount for any one tree, shrub or plant is $___.
- ✔✔500
✔✔when an insured removes insured property from the premises because it is
endangered by a covered peril, the homeowners policy provides coverage for ____
days at the location the property is removed to. - ✔✔30
✔✔The HO-2 policy will cover the collapse of a patio that is caused by the weight of
water that has collected on the roof. True Or False? - ✔✔False
✔✔Under a homeowners policy, landslides would be covered. True or False? -
✔✔False
✔✔Ensuing loss by fire, explosion or glass breakage resulting from earth movement is
covered under a homeowners policy even though the earth movement itself is excluded.
True or False? - ✔✔False
✔✔Is the backing up of sewers covered under a homeowners policy? - ✔✔No
, ✔✔If an insured has maintained heat in an unoccupied dwelling, damaged caused by
freezing of the plumbing system would be covered under the HO-3 policy. True or
False? - ✔✔True
✔✔Would a television set be covered on a replacement cost basis under the
replacement cost endorsement? - ✔✔Yes
✔✔Under the homeowners policy, the personal property replacement cost endorsement
would provide replacement cost on an insured's pet. True or False? - ✔✔False
✔✔Under the scheduled personal property endorsement, newly aquired fine arts need
to be reported to the insurer within ____ days. - ✔✔90
✔✔The california residential property insurance disclosure form is required by california
law and becomes an actual part of an insured's homeowners policy. True or False? -
✔✔False
✔✔____ insurance includes physical damage to machinery and fitting of the vessel. -
✔✔Hull
✔✔Ocean marine hull insurance is typically written to cover a particular voyage or for
one year. True or False? - ✔✔True
✔✔If cargo is shipped FOB point of destination, the seller retains the cost of
transportation and insurance during shipping. True or False? - ✔✔True
✔✔What basis of valuation is typically used when writing hull and cargo insurance? -
✔✔Valued
✔✔The fine arts floater provides automatic coverage for ____ days for newly acquired
items. - ✔✔90
✔✔Under a musical instrument floater, how many days is there automatic coverage for
newly acquired musical instruments? - ✔✔30
✔✔Most boat owners policies provide physical damage coverage on an open peril
basis. True or False? - ✔✔True
✔✔A yacht policy is an inland marine form and provides property hull coverage only.
True or False? - ✔✔False
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔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
,✔✔Under section 1 of a homeowners policy, there is a special limit for the theft of
firearms. True or False? - ✔✔True
✔✔Is there coverage for windstorm damage under a homeowners policy on personal
property contained in the building unless an opening is caused by a covered peril? -
✔✔No
✔✔An insured's camera that is stolen by a visitor would be covered under the
homeowners policy. True or False? - ✔✔True
✔✔Additional living expense under a homeowners policy is found in coverage ___. -
✔✔D
✔✔An insured has a homeowners policy and suffers a direct loss causing the insured to
seek other living arrangements. the insured's normal househould expense is $500 per
month. however the new arrangements cost is $700 per month. how much will the
insured collect monthly from the homeowners policy? - ✔✔$200
✔✔Do payments under coverage D of the homeowners policy affect the policies liability
limits? - ✔✔No
✔✔When a covered loss exhausts the applicable coverage limit, debris removal
coverage will pay up to an additional ___% of coverage A. - ✔✔5
✔✔Under a HO-3 policy, the maximum amount for any one tree, shrub or plant is $___.
- ✔✔500
✔✔when an insured removes insured property from the premises because it is
endangered by a covered peril, the homeowners policy provides coverage for ____
days at the location the property is removed to. - ✔✔30
✔✔The HO-2 policy will cover the collapse of a patio that is caused by the weight of
water that has collected on the roof. True Or False? - ✔✔False
✔✔Under a homeowners policy, landslides would be covered. True or False? -
✔✔False
✔✔Ensuing loss by fire, explosion or glass breakage resulting from earth movement is
covered under a homeowners policy even though the earth movement itself is excluded.
True or False? - ✔✔False
✔✔Is the backing up of sewers covered under a homeowners policy? - ✔✔No
, ✔✔If an insured has maintained heat in an unoccupied dwelling, damaged caused by
freezing of the plumbing system would be covered under the HO-3 policy. True or
False? - ✔✔True
✔✔Would a television set be covered on a replacement cost basis under the
replacement cost endorsement? - ✔✔Yes
✔✔Under the homeowners policy, the personal property replacement cost endorsement
would provide replacement cost on an insured's pet. True or False? - ✔✔False
✔✔Under the scheduled personal property endorsement, newly aquired fine arts need
to be reported to the insurer within ____ days. - ✔✔90
✔✔The california residential property insurance disclosure form is required by california
law and becomes an actual part of an insured's homeowners policy. True or False? -
✔✔False
✔✔____ insurance includes physical damage to machinery and fitting of the vessel. -
✔✔Hull
✔✔Ocean marine hull insurance is typically written to cover a particular voyage or for
one year. True or False? - ✔✔True
✔✔If cargo is shipped FOB point of destination, the seller retains the cost of
transportation and insurance during shipping. True or False? - ✔✔True
✔✔What basis of valuation is typically used when writing hull and cargo insurance? -
✔✔Valued
✔✔The fine arts floater provides automatic coverage for ____ days for newly acquired
items. - ✔✔90
✔✔Under a musical instrument floater, how many days is there automatic coverage for
newly acquired musical instruments? - ✔✔30
✔✔Most boat owners policies provide physical damage coverage on an open peril
basis. True or False? - ✔✔True
✔✔A yacht policy is an inland marine form and provides property hull coverage only.
True or False? - ✔✔False
