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Practice Questions for Chapter 6a - Homeowners

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P & C Exam Prep: Ch 6 Homeowners Insurance Practice Quiz 6a

Question 1 of 15

6

Which of the following coverage provisions would not be found in an unendorsed Dwelling policy from?

Select one of the following:

  • Dwelling

  • Other Structures

  • Liability

  • Personal Property

Explanation

Question 2 of 15

6

Myrtle has a Dwelling policy with Broad Theft coverage applicable both on and off her premises. Which of the following theft losses would be covered?

Select one of the following:

  • A $400 handgun taken from a bureau in her home

  • Theft of personal property owned by a boarder who rents a room in Myrtle's home

  • Two credit cards taken from her desk in her home

  • A tape player removed from the dashboard of her car that was parked in her garage

Explanation

Question 3 of 15

6

Which of the following would not be covered under Coverage A or Coverage B of a Dwelling policy?

Select one of the following:

  • A water heater located in the insured's attached garage

  • A stack of lumber placed at the edge of the insured's property that will be used to construct a storage shed

  • A detached garage that has been altered to house a manufacturing operation

  • A storage shed 100 feet in back of the insured's dwelling where she keeps various yard tools

Explanation

Question 4 of 15

6

Which of the following could not be covered under a Dwelling policy?

Select one of the following:

  • A mobile home that is not permanently located

  • A single family home that is under construction

  • A three-unit townhouse

  • A home that is rented to another person

Explanation

Question 5 of 15

6

An insured has a DP-3 covering a home that has a replacement value of $100,000. The insured carries $60,000 of insurance. Following a loss, the determination is made that it would cost $12,000 to replace the damaged portion of the home. How much could the insured collect, assuming the ACV of the loss is $6,000?
A. B. (Missed) C. D.

Select one of the following:

  • $12,000

  • $9,000

  • $6,000

  • Nothing

Explanation

Question 6 of 15

6

The Johnsons' home is covered by a Special Dwelling policy. When a fire damages the home, the family is forced to stay at a motel for a month while repairs are made. What coverage might reimburse them for these expenses?
A. B. C. D.
Explanation
B is correct.

Select one of the following:

  • Dwelling coverage

  • Additional living expenses

  • Personal property coverage

  • Fair rental value coverage

Explanation

Question 7 of 15

6

Which of these items of personal property would be covered under a Dwelling policy when Coverage C is written?
A. B. C. D.

Select one of the following:

  • A motorcycle

  • A pet poodle

  • A pool table

  • A sailboat

Explanation

Question 8 of 15

6

A Basic Dwelling policy form automatically provides coverage for losses caused by each of the following perils except which one?

Select one of the following:

  • Fire

  • Lightning

  • Internal explosion

  • Vandalism and malicious mischief

Explanation

Question 9 of 15

6

The Special Dwelling policy form provides which of the following?

Select one of the following:

  • Basic coverage for the dwelling and broad coverage for personal property

  • Broad coverage for the dwelling and basic coverage for personal property

  • Open peril coverage for the dwelling and broad coverage for personal property

  • Open peril coverage for both the dwelling and personal property

Explanation

Question 10 of 15

6

Under which of the Dwelling policy forms may the insured be reimbursed for the replacement cost when the dwelling is destroyed?

Select one of the following:

  • All Dwelling forms

  • The Basic form only

  • The Broad and Special forms

  • The Special form only

Explanation

Question 11 of 15

6

Which of the following is true regarding tenants of rented apartment units?

Select one of the following:

  • Tenants have no need for Homeowners insurance.

  • Tenants must insure both the apartment building and their personal property.

  • Tenants are eligible for Homeowners insurance using HO-3 (the Special Form).

  • Tenants are eligible for Homeowners insurance using HO-4 (the Contents Broad
    Form).

  • Tenants are eligible for Homeowners insurance using HO-8 (the Modified
    Coverage Form).

Explanation

Question 12 of 15

6

Spencer has a Homeowners HO-3 policy that provides $320,000 of insurance on his
dwelling, which has a current replacement value of $500,000. Ignoring any deductible,
how much will Spencer collect if his kitchen with a replacement value of $30,000 but an
actual cash value of $26,000 is destroyed in a fire?

Select one of the following:

  • $20,800

  • $24,000

  • $26,000

  • $28,000

  • $30,000

Explanation

Question 13 of 15

6

Which of the following is NOT an exclusion in Section II of the Homeowners HO-3
policy?

Select one of the following:

  • Business activities.

  • The gradual yet accidental seepage of pollutants from the insured’s septic system
    into the neighborhood water supply.

  • Transmission of a communicable disease.

  • Injuries caused by operation of a motor vehicle registered for use on public roads.

  • Intentional injuries.

Explanation

Question 14 of 15

6

Which of the following statements regarding the “severability of insurance” condition in
the HO-3 Special Form insurance policy is true?
I. The condition applies insurance separately to each insured.
II. The condition does not increase the insurer’s limit of liability for any one
occurrence.
III. The condition allows the policy to cover a claim brought by one insured
against another insured.

Select one of the following:

  • I only.

  • I and II only.

  • I and III only.

  • II and III only.

  • I, II, and III.

Explanation

Question 15 of 15

6

Which of the following motor vehicles is NOT covered under Section II – Liability
coverage in the ISO HO-3 policy?

Select one of the following:

  • Motor vehicle in dead storage on an insured location.

  • Motor vehicle powered by one or more batteries that cannot exceed five miles per
    hour on level ground that is designed as a toy for use by children under the age of
    seven.

  • Motor vehicle used solely to service a residence.

  • Motor vehicle used for snow removal on public roads within one mile of an
    insured location.

  • Motor vehicle designed for assisting people who are handicapped.

Explanation

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