CISR - Personal Lines Miscellaneous Exam Questions
and Answers | Verified 2025
/ .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."
2 - "Business" property in storage or held as a sample or for sale or delivery after a sale.
and Answers | Verified 2025
/ .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."
2 - "Business" property in storage or held as a sample or for sale or delivery after a sale.
