Kentucky Property/Casualty State Exam
Questions and Answers Graded A+
Dwelling- Coverage A (Dwelling) - Correct answer-Covers Dwelling
Structures attached to the dwelling
Materials and Supplies used for the repair of dwelling.
Dwelling- Coverage B (Other Structures) - Correct answer-Insures buildings on
premises separated from dwelling by a clear space.
Dwelling- Coverage C (Personal Property) - Correct answer-Covers insured's
personal property that is at the described location and is usual to the dwelling
occupancy.
Dwelling- Coverage D (Fair Rental Value) - Correct answer-Available if a covered
property loss to the dwelling or other structure makes the building uninhabitable
and the insured can't collect the rent they would have if this not occurred.
DP-1 - Correct answer-Provides automatic coverage for the following perils; fire,
lightening, and internal explosion
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,DP-2 - Correct answer-"Broad Form"
A named peril policy that lists the perils that dwellings, other structures and
personal property are insured against.
DP-3 - Correct answer-"Special Form"
Provides open peril coverage on the dwelling and other structures, insuring against
all risks of direct physical loss that are not specifically excluded in the policy.
Personal property is covered on a named basis.
Coverage E - Correct answer-Additional Living Expense. Included under DP-2 and
DP-3.
Commercial Property Conditions Form - Correct answer-Includes conditions that
apply specifically to the commercial property coverage forms.
Causes of Loss Form - Correct answer-Lists the perils that the property is insured
against. There are 3 causes of loss forms...
Basic
Broad
Special
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Building and Personal Property Coverage Form - Correct answer-Covers building,
the insured's personal property and the personal property of others location at the
business premises. Personal Property is covered in the building, in the open or in a
vehicle within 100 ft of the premises. Also includes debris removal, pollutant clean
up, fire dept. service charges.
Builders Risk Coverage Form - Correct answer-covers commercial, residential, or
farm buildings that are under construction; written for one year; the most that will
be paid is $5000.
Builders Risk Reporting Form - Correct answer-Provides another option with
regard to the amount of insurance that must be carried. When this form is attached
to the Builders Risk Coverage Form, the insured is allowed to purchase a smaller
amount of insurance that gradually increases when the value of the building under
construction's value increases.
Business Income Coverage Form - Correct answer-Pays for loss of business
income during the period of restoration, while operations are suspended due to a
direct physical loss of or damage to property at the insured premises, caused by a
covered cause of loss.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Questions and Answers Graded A+
Dwelling- Coverage A (Dwelling) - Correct answer-Covers Dwelling
Structures attached to the dwelling
Materials and Supplies used for the repair of dwelling.
Dwelling- Coverage B (Other Structures) - Correct answer-Insures buildings on
premises separated from dwelling by a clear space.
Dwelling- Coverage C (Personal Property) - Correct answer-Covers insured's
personal property that is at the described location and is usual to the dwelling
occupancy.
Dwelling- Coverage D (Fair Rental Value) - Correct answer-Available if a covered
property loss to the dwelling or other structure makes the building uninhabitable
and the insured can't collect the rent they would have if this not occurred.
DP-1 - Correct answer-Provides automatic coverage for the following perils; fire,
lightening, and internal explosion
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,DP-2 - Correct answer-"Broad Form"
A named peril policy that lists the perils that dwellings, other structures and
personal property are insured against.
DP-3 - Correct answer-"Special Form"
Provides open peril coverage on the dwelling and other structures, insuring against
all risks of direct physical loss that are not specifically excluded in the policy.
Personal property is covered on a named basis.
Coverage E - Correct answer-Additional Living Expense. Included under DP-2 and
DP-3.
Commercial Property Conditions Form - Correct answer-Includes conditions that
apply specifically to the commercial property coverage forms.
Causes of Loss Form - Correct answer-Lists the perils that the property is insured
against. There are 3 causes of loss forms...
Basic
Broad
Special
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Building and Personal Property Coverage Form - Correct answer-Covers building,
the insured's personal property and the personal property of others location at the
business premises. Personal Property is covered in the building, in the open or in a
vehicle within 100 ft of the premises. Also includes debris removal, pollutant clean
up, fire dept. service charges.
Builders Risk Coverage Form - Correct answer-covers commercial, residential, or
farm buildings that are under construction; written for one year; the most that will
be paid is $5000.
Builders Risk Reporting Form - Correct answer-Provides another option with
regard to the amount of insurance that must be carried. When this form is attached
to the Builders Risk Coverage Form, the insured is allowed to purchase a smaller
amount of insurance that gradually increases when the value of the building under
construction's value increases.
Business Income Coverage Form - Correct answer-Pays for loss of business
income during the period of restoration, while operations are suspended due to a
direct physical loss of or damage to property at the insured premises, caused by a
covered cause of loss.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
