AD Banker P&C Chapter 5 Test Questions Answered Correctly Latest Version 2025-2026
Coverage C - Answers Under Dwelling policies, household and personal property, including
property in transit between the insured's old and new residences, are covered under:
Fire damage to building materials on the insured premises - Answers Which of the following
losses would be covered under the DP-1?
$0 - Answers V has a three-unit dwelling. V lives in one unit, rents out the other two units, and
converted a detached garage at the location to use as a retail space for V's small business. The
dwelling is insured on a Broad Form Dwelling policy for $160,000. After a storm, the weight of
rain caused the roof of the detached garage to collapse, resulting in $10,000 in damage. How
much will V's insurer pay for the loss?
Smoke damage from agricultural smudging - Answers All of the following perils are included
under the Dwelling Program's Broad Form, except:
Theft loss - Answers Which of the following losses is not covered by an unendorsed Broad Form
Dwelling policy?
$300,000 - Answers L has a Basic Form Dwelling policy with a Coverage A limit of $300,000.
Following a severe storm, L sustains a covered loss to the dwelling of $275,000 and a covered
loss to a detached swimming pool of $30,000. How much will L's policy pay?
Governmental action - Answers A Dwelling policy written using the Special Form would exclude
which of the following perils?
No coverage is provided - Answers W has a Basic Form Dwelling policy with Extended Coverage
that insures a rental property for $80,000. Vandals attack a tree on the property, causing it to fall
and severely damage the dwelling. The tree is worth $500, and the dwelling sustained $25,000
of damage. How does W's policy provide coverage?
Water discharged by a plumbing failure - Answers Which of the following perils could be
covered by a Dwelling policy?
Is limited by the named exclusions - Answers Under the Dwelling Program, Special Form (DP-3)
dwelling coverage:
Collapse - Answers The abrupt falling down or caving in of a building disallowing it to be used
for its intended purpose is the definition of:
Vandalism coverage must be added by the VMM Endorsement - Answers Which of the following
is correct regarding damage caused by vandalism under the Basic Dwelling Form?
P's clothing and electronics in the dwelling under Coverage C - Answers P owns and occupies a
home insured on a Special Form Dwelling policy (DP-3). The property includes a newly repaired
Coverage C - Answers Under Dwelling policies, household and personal property, including
property in transit between the insured's old and new residences, are covered under:
Fire damage to building materials on the insured premises - Answers Which of the following
losses would be covered under the DP-1?
$0 - Answers V has a three-unit dwelling. V lives in one unit, rents out the other two units, and
converted a detached garage at the location to use as a retail space for V's small business. The
dwelling is insured on a Broad Form Dwelling policy for $160,000. After a storm, the weight of
rain caused the roof of the detached garage to collapse, resulting in $10,000 in damage. How
much will V's insurer pay for the loss?
Smoke damage from agricultural smudging - Answers All of the following perils are included
under the Dwelling Program's Broad Form, except:
Theft loss - Answers Which of the following losses is not covered by an unendorsed Broad Form
Dwelling policy?
$300,000 - Answers L has a Basic Form Dwelling policy with a Coverage A limit of $300,000.
Following a severe storm, L sustains a covered loss to the dwelling of $275,000 and a covered
loss to a detached swimming pool of $30,000. How much will L's policy pay?
Governmental action - Answers A Dwelling policy written using the Special Form would exclude
which of the following perils?
No coverage is provided - Answers W has a Basic Form Dwelling policy with Extended Coverage
that insures a rental property for $80,000. Vandals attack a tree on the property, causing it to fall
and severely damage the dwelling. The tree is worth $500, and the dwelling sustained $25,000
of damage. How does W's policy provide coverage?
Water discharged by a plumbing failure - Answers Which of the following perils could be
covered by a Dwelling policy?
Is limited by the named exclusions - Answers Under the Dwelling Program, Special Form (DP-3)
dwelling coverage:
Collapse - Answers The abrupt falling down or caving in of a building disallowing it to be used
for its intended purpose is the definition of:
Vandalism coverage must be added by the VMM Endorsement - Answers Which of the following
is correct regarding damage caused by vandalism under the Basic Dwelling Form?
P's clothing and electronics in the dwelling under Coverage C - Answers P owns and occupies a
home insured on a Special Form Dwelling policy (DP-3). The property includes a newly repaired
