Study Guide - Property and Casualty | Questions
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Terms in this set (120)
1. HO-2, HO-3, HO-4, HO-5, HO-6, B: HO-4 and HO-6 are not designed to be
and HO-8 are all types of exclusive for owner-occupied dwellings. HO-4 was
homeowners policies. Which two formed to cover a tenant's personal property. An
sets of policies are not solely HO-6 provides personal property coverage for an
designed for owner-occupied owner-occupied condominium, and also can
dwellings? provide coverage for co-owners of this
a. HO-2 and HO-8 condominium who reside there.
b. HO-4 and HO-6
c. HO-3 and HO-4
d. HO-5 and HO-8
,2. The HO-8, also known as the C: The HO-8 policy form. This policy form is
modified coverage form, is designed designed to provide dwelling, personal property,
to meet the needs of what type of and other structures coverage for an owner-
insured? occupied dwelling. The dwellings eligible for an
a. Subsidized housing owners. HO-8 do not meet the standards that insurers
b. Owners of seasonal rental require for the other five policy forms.
locations where the value of the
dwelling exceeds the replacement
cost value.
c. Owners of a historic home whose
replacement cost value exceeds the
value of the home itself.
d. Tenant-occupied locations in a
poor protection class area.
3. A tenant who does not need to A: HO-4. An HO-4 is designed to cover a tenant's
buy coverage for the dwelling itself personal property, but does not cover the dwelling
but would like to cover his own itself. This coverage is provided on a named-perils
personal property should obtain basis.
which type of homeowners policy?
a. HO-4
b. HO-2
c. HO-5
d. HO-6
4. To obtain the broadest coverage A: HO-5 provides dwelling, other structures, and
available for an owner-occupied coverage on an open-perils basis. The HO-5
dwelling, the insured should provides the broadest coverage form of all the HO
purchase which type of homeowner's policy forms.
policy?
a. HO-5 comprehensive form
b. HO-2 broad form
c. HO-6 unit-owners form
d. HO-8 modified coverage form
,5. Broad form provides coverage for B: Glass breakage is a peril that is covered on a
which of the following perils? broad-perils-form basis. Additional perils covered
a. Theft on broad form include ice and snow weight,
b. Glass breakage freezing of pipes, collapse, falling objects, and
c. Smoke electrical damage.
d. Riot
6. An unendorsed DP-3 policy does D: Theft is not covered on an unendorsed DP-3.
not provide coverage for which of Garages and storage sheds fit under the "other
the following exposures? structures" definition if they are on the insured's
a. Garages premises. Debris removal is paid in the limit
b. Storage sheds assigned to the property that sustained the loss.
c. Debris removal
d. Theft
7. The DP-3 Dwelling Form contains A: Coverage A - Land is not a coverage under a
all of the following coverages DP-3. The dwelling form includes five coverages:
EXCEPT: Coverage A - Dwelling, Coverage B - Other
a. Coverage A - Land Structures, Coverage C - Personal Property,
b. Coverage B - Other Structures Coverage D - Fair Rental Value, and Coverage E -
c. Coverage C - Personal Property Additional Living Expense.
d. Coverage D - Fair Rental Value
8. Special forms coverage is B: Special forms coverage is coverage on a DP
coverage on a DP policy form that policy form that combines broad-form perils and
combines broad form perils with open perils. The open perils are for the dwelling
what other form of perils? and other structures while the broad form is
a. Basic form perils provided for personal property.
b. Open perils
c. Special perils
d. Modified perils
, 9. Coverage C - Personal Property B: Coverage C - Personal Property covers personal
provides coverage for the insured's property while at the location listed on the
personal property under what DP-3 policy. This does not provide full coverage or
circumstance? coverage at all for personal property while
a. While in the possession of the away from the location on the policy.
insured
b. While on the covered premises
c. Worldwide coverage
d. When the insured knowingly loans
the property to a family member off
premises
10. Risks can be classified as pure or C: Pure risk. Pure risk is always undesirable to an
speculative. Which of the two, pure investor. A pure risk results in either a loss
or speculative, is always undesirable or no loss. A speculative risk has the chance there
from an investor's point of view? will be a gain.
a. Speculative
b. Speculative and pure
c. Pure
d. Neither
11. Which hazard is defined as A: Moral hazard. A moral hazard is defined as
intentionally causing, fabricating, or intentionally causing, fabricating, or exaggerating
exaggerating a loss? a loss. An example of a moral hazard is someone
a. Moral hazard exaggerating the extent of damage from an
b. Morale hazard accident in order to receive more money from the
c. Physical hazard at-fault parties' insurance carrier.
d. Legal hazard
with 100% Correct Answers | Verified | Latest
Update 2026
Save
Terms in this set (120)
1. HO-2, HO-3, HO-4, HO-5, HO-6, B: HO-4 and HO-6 are not designed to be
and HO-8 are all types of exclusive for owner-occupied dwellings. HO-4 was
homeowners policies. Which two formed to cover a tenant's personal property. An
sets of policies are not solely HO-6 provides personal property coverage for an
designed for owner-occupied owner-occupied condominium, and also can
dwellings? provide coverage for co-owners of this
a. HO-2 and HO-8 condominium who reside there.
b. HO-4 and HO-6
c. HO-3 and HO-4
d. HO-5 and HO-8
,2. The HO-8, also known as the C: The HO-8 policy form. This policy form is
modified coverage form, is designed designed to provide dwelling, personal property,
to meet the needs of what type of and other structures coverage for an owner-
insured? occupied dwelling. The dwellings eligible for an
a. Subsidized housing owners. HO-8 do not meet the standards that insurers
b. Owners of seasonal rental require for the other five policy forms.
locations where the value of the
dwelling exceeds the replacement
cost value.
c. Owners of a historic home whose
replacement cost value exceeds the
value of the home itself.
d. Tenant-occupied locations in a
poor protection class area.
3. A tenant who does not need to A: HO-4. An HO-4 is designed to cover a tenant's
buy coverage for the dwelling itself personal property, but does not cover the dwelling
but would like to cover his own itself. This coverage is provided on a named-perils
personal property should obtain basis.
which type of homeowners policy?
a. HO-4
b. HO-2
c. HO-5
d. HO-6
4. To obtain the broadest coverage A: HO-5 provides dwelling, other structures, and
available for an owner-occupied coverage on an open-perils basis. The HO-5
dwelling, the insured should provides the broadest coverage form of all the HO
purchase which type of homeowner's policy forms.
policy?
a. HO-5 comprehensive form
b. HO-2 broad form
c. HO-6 unit-owners form
d. HO-8 modified coverage form
,5. Broad form provides coverage for B: Glass breakage is a peril that is covered on a
which of the following perils? broad-perils-form basis. Additional perils covered
a. Theft on broad form include ice and snow weight,
b. Glass breakage freezing of pipes, collapse, falling objects, and
c. Smoke electrical damage.
d. Riot
6. An unendorsed DP-3 policy does D: Theft is not covered on an unendorsed DP-3.
not provide coverage for which of Garages and storage sheds fit under the "other
the following exposures? structures" definition if they are on the insured's
a. Garages premises. Debris removal is paid in the limit
b. Storage sheds assigned to the property that sustained the loss.
c. Debris removal
d. Theft
7. The DP-3 Dwelling Form contains A: Coverage A - Land is not a coverage under a
all of the following coverages DP-3. The dwelling form includes five coverages:
EXCEPT: Coverage A - Dwelling, Coverage B - Other
a. Coverage A - Land Structures, Coverage C - Personal Property,
b. Coverage B - Other Structures Coverage D - Fair Rental Value, and Coverage E -
c. Coverage C - Personal Property Additional Living Expense.
d. Coverage D - Fair Rental Value
8. Special forms coverage is B: Special forms coverage is coverage on a DP
coverage on a DP policy form that policy form that combines broad-form perils and
combines broad form perils with open perils. The open perils are for the dwelling
what other form of perils? and other structures while the broad form is
a. Basic form perils provided for personal property.
b. Open perils
c. Special perils
d. Modified perils
, 9. Coverage C - Personal Property B: Coverage C - Personal Property covers personal
provides coverage for the insured's property while at the location listed on the
personal property under what DP-3 policy. This does not provide full coverage or
circumstance? coverage at all for personal property while
a. While in the possession of the away from the location on the policy.
insured
b. While on the covered premises
c. Worldwide coverage
d. When the insured knowingly loans
the property to a family member off
premises
10. Risks can be classified as pure or C: Pure risk. Pure risk is always undesirable to an
speculative. Which of the two, pure investor. A pure risk results in either a loss
or speculative, is always undesirable or no loss. A speculative risk has the chance there
from an investor's point of view? will be a gain.
a. Speculative
b. Speculative and pure
c. Pure
d. Neither
11. Which hazard is defined as A: Moral hazard. A moral hazard is defined as
intentionally causing, fabricating, or intentionally causing, fabricating, or exaggerating
exaggerating a loss? a loss. An example of a moral hazard is someone
a. Moral hazard exaggerating the extent of damage from an
b. Morale hazard accident in order to receive more money from the
c. Physical hazard at-fault parties' insurance carrier.
d. Legal hazard
