Dwelling Policy Test Questions with Answers Graded A+
In which of the following situations would off- Which of the following additional perils is covered
premises coverage in a broad theft endorsement under both the basic form and broad form
apply? dwelling policies?
A The insured's live-in maid's quarters are A Freezing of plumbing, heating, or air
burglarized. conditioning systems
B The insured's jewelry is stolen from her B Internal explosion
vacation home after she returns home. C Falling objects
C The insured's vacuum cleaner is stolen from D Weight of ice, snow, or sleet - ANSWER -
her apartment. B Internal explosion
D The insured's camera is stolen from his
vacation home while he is there. - Correct! Internal explosion is included in all
ANSWER -D The insured's camera is forms.
stolen from his vacation home while he is there.
correct! Off-premises coverage through a broad
theft endorsement covers property that is either If an insurer makes a change to broaden
owned or used by the insured when he or she is coverage in a dwelling policy while it is in effect,
away from the described premises. the changes will apply
A Automatically.
B When the new policy is written.
C When the policy is up for renewal.
The broad theft coverage endorsement on the D Within 60 days. - ANSWER -A
dwelling form specifies all of the following Automatically.
limitations EXCEPT
A $1,000 on silverware. correct! Changes made to broaden coverage in a
B $200 on money. dwelling policy, if made while the policy is in
C $1,500 on securities. effect or 60 days before it goes into effect, will
D $1,500 on jewelry. - ANSWER -A $1,000 apply automatically and will not need to be
on silverware. endorsed to the policy.
correct! The limit on silverware is $2,500.
The limited theft endorsement is intended for
which type of property?
What is the maximum number of roomers or A An apartment building in which the owner does
boarders for properties insured under the not reside
dwelling policy? B A building used for commercial purposes in
A2 which the owner operates a business
B3 C A building used for commercial purposes which
C5 the owner rents to a business
D6- ANSWER -C 5 D A house in which the owner resides -
Correct! Dwelling policies may insure a property ANSWER -A An apartment building in
that allows up to 5 roomers or boarders. which the owner does not reside
Correct! The limited theft endorsement is
intended for property in which the owner does not
,Dwelling Policy Test Questions with Answers Graded A+
reside. C A camera the insured has with him on vacation
D A pedigreed show dog - ANSWER -C A
camera the insured has with him on vacation
Correct! All of these examples except the camera
Under the Dwelling policy form, what is the are types of property specifically excluded from
maximum time limit during which multiple coverage under the broad theft endorsement.
volcanic activities would be considered part of
one occurrence?
A 24 hours
B 36 hours An insured owns a large dog. The first day he
C 48 hours has to leave the dog home alone to go to work,
D 72 hours - ANSWER -D 72 hours the insured comes back to find his $400 couch
torn apart, his $100 coffee table chewed up, his
correct! All volcanic eruptions will be considered $50 window curtain shredded, and a $200
one occurrence if they occur within one 72-hour window pane shattered where his dog jumped
period. through. The insured has personal property
coverage under a special form dwelling policy.
How much of this loss will the policy cover?
A $0
Under which of the following circumstances B $200
would an insurer be allowed to cancel a dwelling C $250
policy midterm? D $750 - ANSWER -A $0
A The insured's claims have exceeded the
amount of coverage. correct! Damage that results from domestic
B The insured wants to make suspicious animals is excluded under the special form
increases to his or her coverage. dwelling policy.
C The insured reached his or her limit on the
number of claims.
D The insured knowingly lied about the year the
property was constructed. - ANSWER -D Replacement cost coverage is provided in both
The insured knowingly lied about the year the the broad and special form dwelling policies
property was constructed. when
A The amount of insurance on both the dwelling
Correct! The only way an insurer can cancel a and personal property is at least 80% of its
policy midterm is if there has been a replacement cost when the policy is written.
misrepresentation of a material fact or if the risk B The amount of insurance on the dwelling is at
has changed substantially from when it was first least 90% of its replacement cost when the policy
insured. is written.
C The dwelling is insured for 100% of its
replacement cost at the time of a loss.
D The amount of insurance on the dwelling is at
Which of the following would be covered by the least 80% of its replacement cost at the time of
broad theft endorsement on a dwelling policy? loss. - ANSWER -D The amount of
A Fabric and patterns in a clothing designer's insurance on the dwelling is at least 80% of its
studio at her home replacement cost at the time of loss.
B An antique car
, Dwelling Policy Test Questions with Answers Graded A+
Correct! It is always a requirement on property continued. - ANSWER -C Loss or expense
forms that provide replacement cost coverage caused by the cancellation of a lease is covered.
that insurance on the dwelling be at least 80% of
its replacement cost at the time of loss. Correct! The cause for the property not being
livable must be a covered peril.
In dwelling policies, automatic increase in
insurance is In which of the following situations would off-
A Coverage for newly acquired property. premises coverage in a broad theft endorsement
B Coverage by endorsement. apply?
C Automatic coverage. A The insured's vacuum cleaner is stolen from
D Coverage without additional premium. - her apartment.
ANSWER -B Coverage by endorsement. B The insured's camera is stolen from his
vacation home while he is there.
correct! Automatic increase in insurance is an C The insured's live-in maid's quarters are
endorsement that may be added to a DP to burglarized.
increase the amount of insurance by an annual D The insured's jewelry is stolen from her
percentage to offset the effects of inflation. This vacation home after she returns home. -
endorsement requires additional premium. ANSWER -B The insured's camera is stolen
from his vacation home while he is there.
Correct! Off-premises coverage through a broad
The broad theft coverage endorsement on the theft endorsement covers property that is either
dwelling form specifies all of the following owned or used by the insured when he or she is
limitations EXCEPT away from the described premises.
A $1,000 on silverware.
B $200 on money.
C $1,500 on securities.
D $1,500 on jewelry. - ANSWER -A$1,000 Under which of the following conditions can
on silverware. broad theft coverage be added to a dwelling
Correct! The limit on silverware is $2,500. policy?
A Broad theft coverage cannot be added to a
dwelling policy.
B If the policy has been in effect for 60 days
Which of the following is NOT true concerning C If the insured is owner-occupant of the dwelling
the fair rental value coverage provided in a D If permission is granted by the department of
dwelling policy? insurance - ANSWER -C If the insured is
A Coverage continues until repairs are owner-occupant of the dwelling
completed.
B The period of time to repair or replace is not Correct! Broad theft coverage can be added as
limited by the expiration date of the policy. an endorsement to a dwelling policy if the insured
C Loss or expense caused by the cancellation of is owner-occupant of the dwelling.
a lease is covered.
D It pays for the loss of rent you would have
collected less any expenses that would not have
In which of the following situations would off- Which of the following additional perils is covered
premises coverage in a broad theft endorsement under both the basic form and broad form
apply? dwelling policies?
A The insured's live-in maid's quarters are A Freezing of plumbing, heating, or air
burglarized. conditioning systems
B The insured's jewelry is stolen from her B Internal explosion
vacation home after she returns home. C Falling objects
C The insured's vacuum cleaner is stolen from D Weight of ice, snow, or sleet - ANSWER -
her apartment. B Internal explosion
D The insured's camera is stolen from his
vacation home while he is there. - Correct! Internal explosion is included in all
ANSWER -D The insured's camera is forms.
stolen from his vacation home while he is there.
correct! Off-premises coverage through a broad
theft endorsement covers property that is either If an insurer makes a change to broaden
owned or used by the insured when he or she is coverage in a dwelling policy while it is in effect,
away from the described premises. the changes will apply
A Automatically.
B When the new policy is written.
C When the policy is up for renewal.
The broad theft coverage endorsement on the D Within 60 days. - ANSWER -A
dwelling form specifies all of the following Automatically.
limitations EXCEPT
A $1,000 on silverware. correct! Changes made to broaden coverage in a
B $200 on money. dwelling policy, if made while the policy is in
C $1,500 on securities. effect or 60 days before it goes into effect, will
D $1,500 on jewelry. - ANSWER -A $1,000 apply automatically and will not need to be
on silverware. endorsed to the policy.
correct! The limit on silverware is $2,500.
The limited theft endorsement is intended for
which type of property?
What is the maximum number of roomers or A An apartment building in which the owner does
boarders for properties insured under the not reside
dwelling policy? B A building used for commercial purposes in
A2 which the owner operates a business
B3 C A building used for commercial purposes which
C5 the owner rents to a business
D6- ANSWER -C 5 D A house in which the owner resides -
Correct! Dwelling policies may insure a property ANSWER -A An apartment building in
that allows up to 5 roomers or boarders. which the owner does not reside
Correct! The limited theft endorsement is
intended for property in which the owner does not
,Dwelling Policy Test Questions with Answers Graded A+
reside. C A camera the insured has with him on vacation
D A pedigreed show dog - ANSWER -C A
camera the insured has with him on vacation
Correct! All of these examples except the camera
Under the Dwelling policy form, what is the are types of property specifically excluded from
maximum time limit during which multiple coverage under the broad theft endorsement.
volcanic activities would be considered part of
one occurrence?
A 24 hours
B 36 hours An insured owns a large dog. The first day he
C 48 hours has to leave the dog home alone to go to work,
D 72 hours - ANSWER -D 72 hours the insured comes back to find his $400 couch
torn apart, his $100 coffee table chewed up, his
correct! All volcanic eruptions will be considered $50 window curtain shredded, and a $200
one occurrence if they occur within one 72-hour window pane shattered where his dog jumped
period. through. The insured has personal property
coverage under a special form dwelling policy.
How much of this loss will the policy cover?
A $0
Under which of the following circumstances B $200
would an insurer be allowed to cancel a dwelling C $250
policy midterm? D $750 - ANSWER -A $0
A The insured's claims have exceeded the
amount of coverage. correct! Damage that results from domestic
B The insured wants to make suspicious animals is excluded under the special form
increases to his or her coverage. dwelling policy.
C The insured reached his or her limit on the
number of claims.
D The insured knowingly lied about the year the
property was constructed. - ANSWER -D Replacement cost coverage is provided in both
The insured knowingly lied about the year the the broad and special form dwelling policies
property was constructed. when
A The amount of insurance on both the dwelling
Correct! The only way an insurer can cancel a and personal property is at least 80% of its
policy midterm is if there has been a replacement cost when the policy is written.
misrepresentation of a material fact or if the risk B The amount of insurance on the dwelling is at
has changed substantially from when it was first least 90% of its replacement cost when the policy
insured. is written.
C The dwelling is insured for 100% of its
replacement cost at the time of a loss.
D The amount of insurance on the dwelling is at
Which of the following would be covered by the least 80% of its replacement cost at the time of
broad theft endorsement on a dwelling policy? loss. - ANSWER -D The amount of
A Fabric and patterns in a clothing designer's insurance on the dwelling is at least 80% of its
studio at her home replacement cost at the time of loss.
B An antique car
, Dwelling Policy Test Questions with Answers Graded A+
Correct! It is always a requirement on property continued. - ANSWER -C Loss or expense
forms that provide replacement cost coverage caused by the cancellation of a lease is covered.
that insurance on the dwelling be at least 80% of
its replacement cost at the time of loss. Correct! The cause for the property not being
livable must be a covered peril.
In dwelling policies, automatic increase in
insurance is In which of the following situations would off-
A Coverage for newly acquired property. premises coverage in a broad theft endorsement
B Coverage by endorsement. apply?
C Automatic coverage. A The insured's vacuum cleaner is stolen from
D Coverage without additional premium. - her apartment.
ANSWER -B Coverage by endorsement. B The insured's camera is stolen from his
vacation home while he is there.
correct! Automatic increase in insurance is an C The insured's live-in maid's quarters are
endorsement that may be added to a DP to burglarized.
increase the amount of insurance by an annual D The insured's jewelry is stolen from her
percentage to offset the effects of inflation. This vacation home after she returns home. -
endorsement requires additional premium. ANSWER -B The insured's camera is stolen
from his vacation home while he is there.
Correct! Off-premises coverage through a broad
The broad theft coverage endorsement on the theft endorsement covers property that is either
dwelling form specifies all of the following owned or used by the insured when he or she is
limitations EXCEPT away from the described premises.
A $1,000 on silverware.
B $200 on money.
C $1,500 on securities.
D $1,500 on jewelry. - ANSWER -A$1,000 Under which of the following conditions can
on silverware. broad theft coverage be added to a dwelling
Correct! The limit on silverware is $2,500. policy?
A Broad theft coverage cannot be added to a
dwelling policy.
B If the policy has been in effect for 60 days
Which of the following is NOT true concerning C If the insured is owner-occupant of the dwelling
the fair rental value coverage provided in a D If permission is granted by the department of
dwelling policy? insurance - ANSWER -C If the insured is
A Coverage continues until repairs are owner-occupant of the dwelling
completed.
B The period of time to repair or replace is not Correct! Broad theft coverage can be added as
limited by the expiration date of the policy. an endorsement to a dwelling policy if the insured
C Loss or expense caused by the cancellation of is owner-occupant of the dwelling.
a lease is covered.
D It pays for the loss of rent you would have
collected less any expenses that would not have
