MARYLAND PROPERTY AND CASUALTY INSURANCE
EXAM 2024 NEWEST EXAM AND PRACTICE QUESTIONS
300 QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT) /A+ GRADE ASSURED
A)dwelling and detached structures on the insured's premises
B) Personal property of the insured
C) Loss of use
D) All of the answers listed - ANSWER: All of the answers listed
Section 2 of a homeowners policy provides
A) personal liability coverage
B) Medical payments to others coverage
C) Both personal liability and medical payments to others coverage
D) Coverage for personal property loss - ANSWER: Both personal liability and medical
payments to others coverage
The insured under an HO3 has to keep more than 80% of the replacement cost of
her insured
dwelling in force at the time of a covered loss. The ACV of the carpeting is $5000 It
can be
replaced for $3500 how much will the policy pay for the damaged carpeting? -
ANSWER: $3500
In a property Contract all the following may provide a form of coverage A except
A) H02
B) H05
C) HO4
D) H06 - ANSWER: HO4
Which of the following would be considered scheduled property under the
endorsement HO 04 61 - ANSWER: Fine art
H is reading through his HO4 policy and keeps seeing the language you and your.
under HO contract definition you and your refers to
A) The insured
B) The insured and any legal spouse
C) The insured and the spouse of the insured who lives at any address
D) The insured and the spouse of the insured who lives at the same address of the
insured - ANSWER: The insured and the spouse of the insured who lives at the same
address of the insured
.Which of the following losses would HO4 42 endorsement cover?
,A)bacteria coverage to an insureds home
B) An insured home office
C) Fraud identity
D) None of the answers listed - ANSWER: B. An insured home office
Bodily injury is defined as - ANSWER: bodily harm, sickness, and disease
Which of the following endorsements extends coverage to home daycare centers?
A) HO 04 97
B) HO 04 90
C) HO 04 55
D) HO 04 27 - ANSWER: A. HO 04 97
H has just closed on his new home and wants to have his possessions covered on a
replacement cost basis. When H calls her agent the agent explains she must pay
extra for an endorsement for such coverage. Hs agent must add which of the
following endorsements?
A) HO 04 26
B) HO 04 54
C) HO 04 55
D) HO 04 90 - ANSWER: D. HO 04 90
Which of the following statements are not true regarding the limited fungi, wet or
dry rot or, bacteria coverage - ANSWER: HO 04 26 endorsement is used with HO3
forms
Which of the following perils are covered by the HO3 and HO5 policies? - ANSWER:
An earth movement caused by an explosion
Jay has rented a room in his home to a tenant And it's helped furnish the rented
room with the carpet refrigerator and so far costing him $4000 less than one month
later is furnishings were destroyed in a small fire. How much will J collect from the
HO2 policy for his loss?
A) $0
B) $1000
C) $2500
D) $4,000 - ANSWER: C. $2500
Which of the following homeowners forms will cover structures on an open peril
basis but will cover personal property on a name perils basis?
A) HO 2
B) HO 3
C) HO 5
D) HO 6 - ANSWER: B. HO 3
Which of the following following objects causing loss would be covered by the
homeowners broad form policy?
,A) A plane part drops from the sky and crushes the insured outdoor patio furniture
B) Part of an old satellite flies through the earths atmosphere and lands on the
insured wooden fence damaging it
C) A meteor right hit the outside ham radio antenna of the insured destroying it
D) The propeller of a helicopter falls from the sky crashes through the roof of the
insured's home and destroys the dining room set - ANSWER: D. The propeller of a
helicopter falls from the sky crashes through the roof of the insured's home and
destroys the dining room set
R has endorsement HO 04 55 identity theft expense on her Homeowners policy and
has had identity theft issue pertinent to her business. Because of the events R has
lawyer expenses of $27,000 according to her policy how much her insurer pay?
A) $0
B) $10,000
C) $14,750
D) $15,000 - ANSWER: A. $0
Section 1 of our homeowners policy provides :
A)dwelling and detached structures on the insured's premises
B)Personal property of the insured
C) Loss of use
D) All of the answers listed - ANSWER: D. All of the answers listed
Section 2 of a homeowners policy provides
A) personal liability coverage
B) Medical payments to others coverage
C) Both personal liability and medical payments to others coverage
D) Coverage for personal property loss - ANSWER: C. Both personal liability and
medical payments to others coverage
Which of the following commercial building and business personal property form
perils is covered by the broad form but not by the basic form?
A) Weight of snow ice or sleet
B) Volcanic action
C) Sinkhole collapse
D) Sprinkler leakage - ANSWER: A. Weight of snow ice or sleet
The maximum amount paid by a commercial building and business personal property
form for pollution cleanup or removal is
A) $0
B) $1000
C) $2500
D) $10,000 - ANSWER: D. $10,000
, J's winter holiday decoration business has extreme fluctuations And his inventory
throughout the calendar year. As J's Agents which of the following endorsements
would you recommend J potentially add to his coverage? - ANSWER: Peak season
limit of insurance with value reporting form
Which of the following coverage concepts about extra expense insurance is
accurate?
A) all of the funds are paid out and equal installments for the first six months
following the cover loss which triggers the extra expense benefit
B) There is a 72 hour waiting period after a covered loss occurs before coverage
begins the same amount is found in business income coverage
C) An optional extension of coverage is available to the insured to cover newly
acquired locations up to $100,000
D) Extra expense coverage will not pay to research or replace the lost required
information - ANSWER: C. An optional extension of coverage is available to the
insured to cover newly acquired locations up to $100,000
The special form of commercial building and business personal property form
dishonest or criminal acts by employees is not covered. Which of the following is
most likely reason for this exclusion?
A) it is available as an endorsement to the special form
B) It is a cause of loss not meant to be covered under property insurance but is
instead a casualty policy loss
C) It is covered under the basic form
D) It is covered under the broad form - ANSWER: B. It is a cause of loss not meant to
be covered under property insurance but is instead a casualty policy loss
If a business is concerned with repetitive coverages and paying more than once for
the same coverage the commercial package policy solve this issue
A) by providing substantial discounts when coverage is duplicated
B) By recommending the business purchase a business owner policy instead
C) By removing the duplication with commercial floater coverage
D) Though interline endorsements - ANSWER: D. Though interline endorsements
. Which of the following is not a form of coverage available under a commercial
building in business personal property form?
A) Basic
B) Broad
C) Special
D) Earthquake - ANSWER: D. Earthquake
All of the following statements about extra expense coverage are true except
A) A Business that cannot be shut down even for a short time should purchased it
B) It can be purchased separately or together with business income coverage as an
endorsement
C) All businesses need it
EXAM 2024 NEWEST EXAM AND PRACTICE QUESTIONS
300 QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT) /A+ GRADE ASSURED
A)dwelling and detached structures on the insured's premises
B) Personal property of the insured
C) Loss of use
D) All of the answers listed - ANSWER: All of the answers listed
Section 2 of a homeowners policy provides
A) personal liability coverage
B) Medical payments to others coverage
C) Both personal liability and medical payments to others coverage
D) Coverage for personal property loss - ANSWER: Both personal liability and medical
payments to others coverage
The insured under an HO3 has to keep more than 80% of the replacement cost of
her insured
dwelling in force at the time of a covered loss. The ACV of the carpeting is $5000 It
can be
replaced for $3500 how much will the policy pay for the damaged carpeting? -
ANSWER: $3500
In a property Contract all the following may provide a form of coverage A except
A) H02
B) H05
C) HO4
D) H06 - ANSWER: HO4
Which of the following would be considered scheduled property under the
endorsement HO 04 61 - ANSWER: Fine art
H is reading through his HO4 policy and keeps seeing the language you and your.
under HO contract definition you and your refers to
A) The insured
B) The insured and any legal spouse
C) The insured and the spouse of the insured who lives at any address
D) The insured and the spouse of the insured who lives at the same address of the
insured - ANSWER: The insured and the spouse of the insured who lives at the same
address of the insured
.Which of the following losses would HO4 42 endorsement cover?
,A)bacteria coverage to an insureds home
B) An insured home office
C) Fraud identity
D) None of the answers listed - ANSWER: B. An insured home office
Bodily injury is defined as - ANSWER: bodily harm, sickness, and disease
Which of the following endorsements extends coverage to home daycare centers?
A) HO 04 97
B) HO 04 90
C) HO 04 55
D) HO 04 27 - ANSWER: A. HO 04 97
H has just closed on his new home and wants to have his possessions covered on a
replacement cost basis. When H calls her agent the agent explains she must pay
extra for an endorsement for such coverage. Hs agent must add which of the
following endorsements?
A) HO 04 26
B) HO 04 54
C) HO 04 55
D) HO 04 90 - ANSWER: D. HO 04 90
Which of the following statements are not true regarding the limited fungi, wet or
dry rot or, bacteria coverage - ANSWER: HO 04 26 endorsement is used with HO3
forms
Which of the following perils are covered by the HO3 and HO5 policies? - ANSWER:
An earth movement caused by an explosion
Jay has rented a room in his home to a tenant And it's helped furnish the rented
room with the carpet refrigerator and so far costing him $4000 less than one month
later is furnishings were destroyed in a small fire. How much will J collect from the
HO2 policy for his loss?
A) $0
B) $1000
C) $2500
D) $4,000 - ANSWER: C. $2500
Which of the following homeowners forms will cover structures on an open peril
basis but will cover personal property on a name perils basis?
A) HO 2
B) HO 3
C) HO 5
D) HO 6 - ANSWER: B. HO 3
Which of the following following objects causing loss would be covered by the
homeowners broad form policy?
,A) A plane part drops from the sky and crushes the insured outdoor patio furniture
B) Part of an old satellite flies through the earths atmosphere and lands on the
insured wooden fence damaging it
C) A meteor right hit the outside ham radio antenna of the insured destroying it
D) The propeller of a helicopter falls from the sky crashes through the roof of the
insured's home and destroys the dining room set - ANSWER: D. The propeller of a
helicopter falls from the sky crashes through the roof of the insured's home and
destroys the dining room set
R has endorsement HO 04 55 identity theft expense on her Homeowners policy and
has had identity theft issue pertinent to her business. Because of the events R has
lawyer expenses of $27,000 according to her policy how much her insurer pay?
A) $0
B) $10,000
C) $14,750
D) $15,000 - ANSWER: A. $0
Section 1 of our homeowners policy provides :
A)dwelling and detached structures on the insured's premises
B)Personal property of the insured
C) Loss of use
D) All of the answers listed - ANSWER: D. All of the answers listed
Section 2 of a homeowners policy provides
A) personal liability coverage
B) Medical payments to others coverage
C) Both personal liability and medical payments to others coverage
D) Coverage for personal property loss - ANSWER: C. Both personal liability and
medical payments to others coverage
Which of the following commercial building and business personal property form
perils is covered by the broad form but not by the basic form?
A) Weight of snow ice or sleet
B) Volcanic action
C) Sinkhole collapse
D) Sprinkler leakage - ANSWER: A. Weight of snow ice or sleet
The maximum amount paid by a commercial building and business personal property
form for pollution cleanup or removal is
A) $0
B) $1000
C) $2500
D) $10,000 - ANSWER: D. $10,000
, J's winter holiday decoration business has extreme fluctuations And his inventory
throughout the calendar year. As J's Agents which of the following endorsements
would you recommend J potentially add to his coverage? - ANSWER: Peak season
limit of insurance with value reporting form
Which of the following coverage concepts about extra expense insurance is
accurate?
A) all of the funds are paid out and equal installments for the first six months
following the cover loss which triggers the extra expense benefit
B) There is a 72 hour waiting period after a covered loss occurs before coverage
begins the same amount is found in business income coverage
C) An optional extension of coverage is available to the insured to cover newly
acquired locations up to $100,000
D) Extra expense coverage will not pay to research or replace the lost required
information - ANSWER: C. An optional extension of coverage is available to the
insured to cover newly acquired locations up to $100,000
The special form of commercial building and business personal property form
dishonest or criminal acts by employees is not covered. Which of the following is
most likely reason for this exclusion?
A) it is available as an endorsement to the special form
B) It is a cause of loss not meant to be covered under property insurance but is
instead a casualty policy loss
C) It is covered under the basic form
D) It is covered under the broad form - ANSWER: B. It is a cause of loss not meant to
be covered under property insurance but is instead a casualty policy loss
If a business is concerned with repetitive coverages and paying more than once for
the same coverage the commercial package policy solve this issue
A) by providing substantial discounts when coverage is duplicated
B) By recommending the business purchase a business owner policy instead
C) By removing the duplication with commercial floater coverage
D) Though interline endorsements - ANSWER: D. Though interline endorsements
. Which of the following is not a form of coverage available under a commercial
building in business personal property form?
A) Basic
B) Broad
C) Special
D) Earthquake - ANSWER: D. Earthquake
All of the following statements about extra expense coverage are true except
A) A Business that cannot be shut down even for a short time should purchased it
B) It can be purchased separately or together with business income coverage as an
endorsement
C) All businesses need it
