NC PERSONAL LINES LICENSE ACTUAL
TEST PAPER 2026 FULL ANSWERS GRADED
A+
⩥ Liberalization.
Answer: broadening of coverage requiring no additional premium
⩥ Homeowners policies.
Answer: -may be issued to the owner/occupant of residential property
containing up to 4 units
-multi-line policy (has both property and liability coverage)
-divided into two coverage sections: Section 1: property coverage and
section 2: liability coverage
⩥ Homeowner's Broad From (HO2).
Answer: -fire/lightning
-EC Perils (WHARVES)
-VMM
-Theft
-Volcanic eruption (airborne only)
-falling objects
-weight of ice, snow, sleet
,-overflow of water with plumbing, heating or air unit, or appliance
tearing apart, cracking, burning or bulging of hot water heater, AC, or
appliance for heating water
-freezing of plumbing, heating or air unit, or appliance
-damage caused by power surge (artificially generate electrical current)
-damage by burglars
⩥ Homeowners Special Form (HO3).
Answer: -provides open peril coverage on dwelling and other structures
and broad form, named perils on the contents
-same perils as HO2
⩥ Homeowners Contents Broad Form (HO4).
Answer: -provides broad form, named perils direct loss coverage for
contents only
-renter's insurance
-no structure coverage
-perils are the same as HO2
⩥ Homeowners Comprehensive form (HO5).
Answer: -provides open peril coverage on both structure and content
-theft includes mysterious disappearance of personal property
, ⩥ Homeowners Unit Owner form (HO6).
Answer: -provides broad form, named perils coverage (same as HO2)
and is similar to HO-4 in that the primary purpose is to provide contents
coverage for condos
-provides $1,000 for structure coverage to cover improvements to the
unit
⩥ Coverage Parts (Insuring Agreements).
Answer: -similar to dwelling policy
-coverage A= dwelling not available in H0-4 $1000 flat amount on HO-
6
-coverage B= other structures (10% off A) not available on ho-4 and ho-
6
-coverage C=personal property (50% of A on H0-2 and H0-3 and ho-5)
"C" is the primary
-coverage D= loss of use (20% of A on ho-2,h0-3,ho-5 20% of h0-4 and
40% of C on ho-6)
⩥ dwelling structure (coverage A).
Answer: -must be shown on the HO2, HO3, and HO5
-insures the structure and equipment permanently affixed to the service
of the structure (ex: heat pumps, cabinets, AC)
-materials for repair are covered except for theft loss
-in HO6 coverage is expressed as $1000 for improvements or additions
TEST PAPER 2026 FULL ANSWERS GRADED
A+
⩥ Liberalization.
Answer: broadening of coverage requiring no additional premium
⩥ Homeowners policies.
Answer: -may be issued to the owner/occupant of residential property
containing up to 4 units
-multi-line policy (has both property and liability coverage)
-divided into two coverage sections: Section 1: property coverage and
section 2: liability coverage
⩥ Homeowner's Broad From (HO2).
Answer: -fire/lightning
-EC Perils (WHARVES)
-VMM
-Theft
-Volcanic eruption (airborne only)
-falling objects
-weight of ice, snow, sleet
,-overflow of water with plumbing, heating or air unit, or appliance
tearing apart, cracking, burning or bulging of hot water heater, AC, or
appliance for heating water
-freezing of plumbing, heating or air unit, or appliance
-damage caused by power surge (artificially generate electrical current)
-damage by burglars
⩥ Homeowners Special Form (HO3).
Answer: -provides open peril coverage on dwelling and other structures
and broad form, named perils on the contents
-same perils as HO2
⩥ Homeowners Contents Broad Form (HO4).
Answer: -provides broad form, named perils direct loss coverage for
contents only
-renter's insurance
-no structure coverage
-perils are the same as HO2
⩥ Homeowners Comprehensive form (HO5).
Answer: -provides open peril coverage on both structure and content
-theft includes mysterious disappearance of personal property
, ⩥ Homeowners Unit Owner form (HO6).
Answer: -provides broad form, named perils coverage (same as HO2)
and is similar to HO-4 in that the primary purpose is to provide contents
coverage for condos
-provides $1,000 for structure coverage to cover improvements to the
unit
⩥ Coverage Parts (Insuring Agreements).
Answer: -similar to dwelling policy
-coverage A= dwelling not available in H0-4 $1000 flat amount on HO-
6
-coverage B= other structures (10% off A) not available on ho-4 and ho-
6
-coverage C=personal property (50% of A on H0-2 and H0-3 and ho-5)
"C" is the primary
-coverage D= loss of use (20% of A on ho-2,h0-3,ho-5 20% of h0-4 and
40% of C on ho-6)
⩥ dwelling structure (coverage A).
Answer: -must be shown on the HO2, HO3, and HO5
-insures the structure and equipment permanently affixed to the service
of the structure (ex: heat pumps, cabinets, AC)
-materials for repair are covered except for theft loss
-in HO6 coverage is expressed as $1000 for improvements or additions
