CISR PERSONAL LINES MISCELLANEOUS EXAM ACTUAL
EXAM 100 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES |AGRADE
What is a trade? - ANSWER: Skilled manual or mechanical work.
Examples: Painter, Carpenter, Electrician, etc.
What is a profession? - ANSWER: A vocation requiring advanced education and
training.
Examples: Physician, Dentist, Attorney, Veterinarian, etc.
What is an occupation? - ANSWER: An activity or pursuit in which a person is
engaged; a person's usual or principal work or business.
What are the two parts of the definition of "Business"? - ANSWER: Part 1 - A
business includes a trade, profession, or occupation engaged in on a full-time, part-
time, or occasional basis.
Part 2 - A business is any activity that is engaged in for money or other compensation
unless it is one of four cited activities.
What are the four cited activities that can void the definition of business? - ANSWER:
1 - One or more activities for which no "insured" received more than $2,000 in the
12 months prior to the beginning of the policy period.
2 - Volunteer activities where no compensation is received other than
reimbursement of expenses.
3 - Home day care provided without compensation even if there is a mutual
exchange of day care services.
4 - Home day care to a relative of an "insured" even if receiving compensation for
the services.
Is coverage for a loss to the Coverage A - Dwelling effected by "business" use? -
ANSWER: No - there is not a limitation or exclusion for a dwelling with a "business"
exposure.
What does the Homeowners 3 - Special Form policy automatically include in regards
to Coverage A - Dwelling & Coverage B - Other Structures? - ANSWER: It
automatically includes Coverage B - Other Structures coverage up to 10% of
Coverage A - Dwelling limit.
, Under the Homeowners 3 - Special Form policy, what three exclusions apply to an
other structure? - ANSWER: 1 - An other structure that is rented or held for rental to
anyone not a tenant of the dwelling unless for use solely as a private garage.
2 - An other structure with a business conducted in it.
3 - An other structure used to store "business" property unless the property is both:
(1) Owned solely by an "insured" or tenant of the dwelling & (2) The "business"
property is not gaseous or liquid fuel unless it is in a permanently installed fuel tank
of a vehicle or craft parked or stored in the structure.
What is the Structures Rented to Others - Residence Premises HO 04 40
endorsement used to obtain? - ANSWER: Used to obtain coverage for an other
structure that is rented to others for use as a private residence.
The other structure is described in the Schedule with a Limit of Liability.
What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 used
for? - ANSWER: An other structure with an eligible incidental "business" exposure
typically offices, schools, or studios.
The Limit of Liability & Description of Other Structure must be shown in the
Schedule.
Under a standard ISO Homeowners policy, what are the two Coverage C - Personal
Property Special Limits of Liability that apply to property used primarily for business?
- ANSWER: 1 - $2,500.00 for personal property used primarily for "business" while on
the "residence premises."
2 - $1,500.00 for personal property used primarily for "business" while away from
the "residence premises"
*The limitations do not apply to property used occasionally for "business."
What is the Increased Limits on Business Property HO 04 12 endorsement used for? -
ANSWER: To increase the Special Limit of Liability for "business" (personal) property
on the "residence premises" to a maximum of $10,000.00.
What limit is the Special Limit of Liability automatically set to for property away from
the "residence premises" under the Increased Limits on Business Property HO 04 12?
- ANSWER: 60% of the limit of property on the "residence premises."
What does the Increased Limits on Business Property HO 04 12 not provide coverage
on? - ANSWER: 1 - "Business" property that pertains to a "business" actually
conducted on the "residence premises."
EXAM 100 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES |AGRADE
What is a trade? - ANSWER: Skilled manual or mechanical work.
Examples: Painter, Carpenter, Electrician, etc.
What is a profession? - ANSWER: A vocation requiring advanced education and
training.
Examples: Physician, Dentist, Attorney, Veterinarian, etc.
What is an occupation? - ANSWER: An activity or pursuit in which a person is
engaged; a person's usual or principal work or business.
What are the two parts of the definition of "Business"? - ANSWER: Part 1 - A
business includes a trade, profession, or occupation engaged in on a full-time, part-
time, or occasional basis.
Part 2 - A business is any activity that is engaged in for money or other compensation
unless it is one of four cited activities.
What are the four cited activities that can void the definition of business? - ANSWER:
1 - One or more activities for which no "insured" received more than $2,000 in the
12 months prior to the beginning of the policy period.
2 - Volunteer activities where no compensation is received other than
reimbursement of expenses.
3 - Home day care provided without compensation even if there is a mutual
exchange of day care services.
4 - Home day care to a relative of an "insured" even if receiving compensation for
the services.
Is coverage for a loss to the Coverage A - Dwelling effected by "business" use? -
ANSWER: No - there is not a limitation or exclusion for a dwelling with a "business"
exposure.
What does the Homeowners 3 - Special Form policy automatically include in regards
to Coverage A - Dwelling & Coverage B - Other Structures? - ANSWER: It
automatically includes Coverage B - Other Structures coverage up to 10% of
Coverage A - Dwelling limit.
, Under the Homeowners 3 - Special Form policy, what three exclusions apply to an
other structure? - ANSWER: 1 - An other structure that is rented or held for rental to
anyone not a tenant of the dwelling unless for use solely as a private garage.
2 - An other structure with a business conducted in it.
3 - An other structure used to store "business" property unless the property is both:
(1) Owned solely by an "insured" or tenant of the dwelling & (2) The "business"
property is not gaseous or liquid fuel unless it is in a permanently installed fuel tank
of a vehicle or craft parked or stored in the structure.
What is the Structures Rented to Others - Residence Premises HO 04 40
endorsement used to obtain? - ANSWER: Used to obtain coverage for an other
structure that is rented to others for use as a private residence.
The other structure is described in the Schedule with a Limit of Liability.
What is the Permitted Incidental Occupancies - Residence Premises HO 04 42 used
for? - ANSWER: An other structure with an eligible incidental "business" exposure
typically offices, schools, or studios.
The Limit of Liability & Description of Other Structure must be shown in the
Schedule.
Under a standard ISO Homeowners policy, what are the two Coverage C - Personal
Property Special Limits of Liability that apply to property used primarily for business?
- ANSWER: 1 - $2,500.00 for personal property used primarily for "business" while on
the "residence premises."
2 - $1,500.00 for personal property used primarily for "business" while away from
the "residence premises"
*The limitations do not apply to property used occasionally for "business."
What is the Increased Limits on Business Property HO 04 12 endorsement used for? -
ANSWER: To increase the Special Limit of Liability for "business" (personal) property
on the "residence premises" to a maximum of $10,000.00.
What limit is the Special Limit of Liability automatically set to for property away from
the "residence premises" under the Increased Limits on Business Property HO 04 12?
- ANSWER: 60% of the limit of property on the "residence premises."
What does the Increased Limits on Business Property HO 04 12 not provide coverage
on? - ANSWER: 1 - "Business" property that pertains to a "business" actually
conducted on the "residence premises."
