AD Banker Dwelling Policy Flashcards
1
Q
The Limited Theft Coverage endorsement to the DP is used under which of the following circumstances?
A
Coverage is desired for off-premises property
B
The dwelling has been vacant for more than 60 days
C
The insured dwelling is owner-occupied
D
The insured dwelling is tenant-occupied
A
D (The Limited Theft Coverage endorsement may only be used if the dwelling is tenant occupied. Owner-occupied dwellings should use the Broad Theft endorsement.)
2
Q
The Basic (DP-1) Dwelling Form does not include which coverage?
A
Property removed to a newly acquired residence
B
Additional living expenses
C
Fair rental value
D
Worldwide coverage on personal property with a limit up to 10% of Coverage C
A
B (Coverage for Additional Living Expenses is only available under the DP-2 and DP-3 forms.)
3
Q
Which of the following statements about Fire Department Service Charge coverage is not correct?
A
The policy will pay up to $1,000 for Fire Department Service Charge coverage
B
Coverage does not apply if the property is located within the limits of the jurisdiction furnishing the fire department response
C
Fire Department Service Charge coverage is included under all Dwelling policy forms
D
The policy deductible does not apply to this coverage
A
A (A typical dwelling policy will pay up to $500 for liability assumed for fire department charges when the fire department is called to save or protect covered property from an insured peril. Coverage does not apply if the property is located within the limits of the jurisdiction furnishing the fire department response.)
4
Q
The Dwelling Broad Form (DP-2) insures against all of the following perils, except:
A
Damage caused by burglars
B
Breakage of glass that is a part of a building, storm door or window
C
Accidental discharge or overflow
D
Theft
A
D (There is no theft coverage in a Dwelling broad Form policy.)
5
Q
Which form would not insure against external explosion?
A
DP-3
B
Unendorsed DP-1
C
Endorsed DP-1
D
DP-2
A
B (The basic perils covered by the DP-1 form (without the extended coverage perils endorsement) are: fire, lightning, and internal explosion.)
6
Q
Under a dwelling policy, an insured tenant may use up to what percentage of the Coverage C limit of insurance for a covered loss to improvements, alterations, and additions made at the insured’s expense to that part of the described location occupied by the named insured?
A
10%
B
5%
C
0%
D
20%
A
A (An insured tenant may use up to 10% of the Coverage C limit for a covered loss to improvements, alterations, and additions made at the insured’s expense to that part of the described location occupied by the named insured.)
7
Q
The abrupt falling down or caving in of a building disallowing it to be used for its intended purpose is the definition of:
A
Defective planning
B
Earth movement
C
Collapse
D
Settling
A
C (Collapse is defined as the abrupt falling down or caving in of a building, but only if it cannot be occupied for its current intended purpose. If a building, or any portion of a building, is in danger of falling down or caving in – or if it’s standing, it is not in a state of collapse.)
8
Q
Water damage caused by which of the following is a covered loss under the Dwelling policy?
A
Discharge caused by a plumbing failure
B
Overflow of water from a sump pump
C
Water below the surface of the ground
D
Leaks through a driveway
A
A (Water damage is excluded if caused by surface water, tidal water, and leakage through a building, foundation, or other structure.)
9
Q
Which of the following is covered under Coverage E of the Dwelling Policy?
A
Other Structures damaged by fire
B
Additional living expenses incurred after a covered direct loss
C
Property removed to a newly acquired principal residence
D
Removal of debris of damaged covered property
A
B (The additional living expenses incurred by the insured while the insured’s home is uninhabitable because of a direct loss are provided by Coverage E.)
10
Q
All of the following are true regarding Dwelling policy eligibility, except:
A
Farm dwellings are not eligible
B
Some incidental business occupancies are permitted
C
The dwelling must be used for seasonal or secondary purposes
D
Mobile homes are eligible if written on a DP-1
A
C (The dwelling must be used principally for residential dwelling purposes and MAY be occupied on a seasonal or secondary basis, but it is not required.)
11
Q
Where in the Dwelling policy is it stated that earth movement, landslide, mine subsidence, and mudflow are not covered unless resulting from direct loss by fire or explosion?
A
Endorsements
B
General Exclusions
C
Insuring Agreement
D
Other Coverages
A
B (The perils of earth movement, landslide, mine substance, and mudflow are perils that, because of their catastrophic nature, are not insured under the Dwelling policy.)
12
Q
Which of the following losses would be covered under all dwelling forms?
A
Damage caused by a sewer or drain backup
B
Collapse due to settling
C
Damage caused by subsidence of land the dwelling is sitting on
D
Fire damage to building materials and supplies that are located on the insured premises
A
D (Loss caused by fire is covered under all forms.)
13
Q
The Personal Liability endorsement does not provide coverage for which of the following?
A
Medical payments to others
B
Injury caused to a regular resident of the dwelling
C
Defense costs
D
First aid expenses
A
B (Coverage does apply to expenses incurred by residence employees but not the named insured or regular residents of the named insured’s household.)
14
Q
All of the following are true about liability, except:
A
The burden of proof is on the injured party to prove that the other party was negligent
B
Breach of contract is not considered an act of negligence
C
Liability policies pay costs incurred by an insured to sue negligent third parties
D
A loss may take place over a period of time rather than all at once
A
C (Liability policies pay the cost to defend the insured against suits by third parties. They do not cover the costs of lawsuits initiated by the insured against negligent third parties.)
15
Q
Which of the following is true regarding coverage of trees, shrubs or plants under the Dwelling policies?
A
Theft of shrubs and plants is covered
B
Damage to plants by wind, hail, weight of ice, snow or sleet is not covered
C
All vehicle damage to trees, shrubs, or plants is covered
D
The Limit of Liability is $1,000 for any tree, shrub, or plant
A
B (Damage to outdoor plants by forces of nature other than lightning are so common that such damage is considered uninsurable. Coverage for certain other perils is provided, with a limit of $500 for any one tree, shrub, or plant. Only damage from vehicles unowned by the insured is covered.)
16
Q
Under the Basic Dwelling Form, when is damage caused by vandalism included as covered peril?
A
This coverage is not available in the Basic Dwelling Policy
B
When under the unendorsed DP-1
C
When the Extended Coverage perils are added to the DP-1
D
When the V&MM endorsement is added to the DP-1
A
D (The DP-1 provides coverage against three perils: fire, lightning, and internal explosion. The Vandalism and Malicious Mischief endorsement adds coverage for damage caused by vandalism.)
17
Q
Sudden and accidental damage from artificially generated electrical current best describes a(n):
A
Mechanical breakdown
B
Internal explosion
C
Power surge
D
Power failure
A
C (Sudden and accidental damage from artificially generated electrical current is caused by man-made electricity or power surge.)
18
Q
All of the following statements are correct regarding the Fire Department Service Charge in Dwelling Policies, except:
A
Coverage is not provided if the premises is within the same jurisdiction as the fire department
B
The policy deductible does not apply to this coverage
C
The policy will pay up to $1,000
D
The coverage is additional insurance
A
C (A typical Dwelling policy will pay up to $500 for liability assumed for fire department charges when the fire department is called to save or protect covered property from an insured peril. Coverage does not apply if the property is located within the limits of the city, municipality, or protection district furnishing the fire department response. This is additional insurance and the policy deductible does not apply.)
19
Q
The Dwelling Broad Form (DP-2) insures against all of the following perils, except:
A
Damage caused by burglars
B
Breakage of glass that is a part of a building, storm door or window
C
Accidental discharge or overflow
D
Theft
A
D (There is no theft coverage in a Dwelling broad Form policy.)
20
Q
Which of the following losses would be covered under the Dwelling Policy DP-1?
A
Fire damage to building materials on the insured premises
B
Damage caused by a backup of the sewer pipes
C
Collapse caused by insect damage
D
Land subsidence of the insured’s land
A
A (Coverage A includes materials and supplies located on or next to the Described Location used to construct, alter, or repair the dwelling on the Location.)
21
Q
An insured looking to cover the dwelling against damage from hail would need to purchase which dwelling form?
A
DP-3
B
Any form except for the unendorsed DP-1
C
DP-1
D
DP-2
A
B (Hail is a covered peril under the DP-3, the DP-2, and the DP-1 if purchased with the Extended Coverage endorsement.)
22
Q
Of the Dwelling Policy forms, which one would cover an owned mobile home permanently affixed to a foundation?
A
DP-2
B
DP-1, 2, or 3
C
DP-1
D
DP-3
A
C (A mobile home is only eligible for coverage under the DP-1.)
23
Q
Policyholder L has a DP-1 with a Coverage A amount of $300,000. Following a severe storm, she suffers a covered loss to the dwelling of $275,000 and a covered loss to a detached swimming pool of $30,000. How much will L’s policy pay?
A
$250,000
B
$300,000
C
$275,000
D
$305,000
A
B (The pool is covered under Coverage B, which pays up to 10% of Coverage A, or $30,000. However, because L’s policy is written on the DP-1 form, the Coverage B limit is included in, not additional to, the Coverage A limit. Therefore, the most the policy will pay is $300,000.)
24
Q
Under Coverage C of the Special Dwelling Form, all of the following are included, except:
A
Property of others that is in the care, custody, and control of the insured
B
Household and personal property
C
Pets belonging to the insured
D
At the insured’s option, property of guests and servants
A
C (The policy does not cover animals or pets.)
25
All of the following are covered perils under the Extended Coverage Endorsement to the DP-1, except:
A
Windstorm
B
Vehicles
C
Weight of ice, snow or sleet
D
Volcanic eruption
C (Weight of ice, snow or sleet is not part of the EC perils.)
26
Which of the following claims would be covered under the DP-3?
A
Damage to a fence due to freezing and thawing of ice due to a winter storm
B
Damage by vandalism to a dwelling vacant for 30 days before the loss
C
Theft to a dwelling under construction
D
Wind damage to TV antennas
B (Loss from vandalism and malicious mischief is excluded if the dwelling has been vacant for more than 60 consecutive days immediately before a loss. A dwelling vacant for only 30 days would still be covered.)
27
An insured looking to cover the dwelling against an intentional loss would need to purchase which dwelling form?
A
DP-2
B
No Dwelling form offers this coverage
C
DP-1
D
DP-3
B (Intentional acts are excluded under all 3 DP forms.)
28
All of the following are true of the Dwelling Special Form, except:
A
Losses to the dwelling are paid on a replacement cost basis
B
The dwelling must be used principally for residential dwelling purposes
C
Mobile homes are not eligible
D
Both the dwelling and contents are covered on an open perils basis
D (Only the dwelling is covered on an open perils basis.)
29
All of the following are covered perils under the Extended Coverage Endorsement to the DP-1, except:
A
Vehicles
B
Weight of ice, snow or sleet
C
Windstorm
D
Volcanic eruption
B (Weight of ice, snow or sleet is not part of the EC perils.)
30
Which of the following is false regarding dwelling policies?
A
Mobile homes are eligible if written on a DP-1
B
Incidental business occupancies are permitted
C
Farm dwellings are not eligible
D
Trees, shrubs and plants are covered for up to $2,500 total
D (The limit for trees, shrubs and plants is $500 for any 1 item or 5% of Coverage A.)
31
The Personal Liability endorsement does not provide coverage for which of the following?
A
First aid expenses
B
Injury caused to a regular resident of the dwelling
C
Medical payments to others
D
Defense costs
B (Coverage does apply to expenses incurred by residence employees but not the named insured or regular residents of the named insured's household.)
32
Water damage caused by which of the following is a covered loss under the Dwelling policy?
A
Discharge caused by a plumbing failure
B
Water below the surface of the ground
C
Leaks through a driveway
D
Overflow of water from a sump pump
A (Water damage is excluded if caused by surface water, tidal water, and leakage through a building, foundation, or other structure.)
33
Under the Basic Dwelling Form, losses are paid on which basis?
A
Actual Cash Value
B
Replacement Cost
C
Market Value
D
Agreed Value
A (The DP-1 pays on an actual cash value, rather than replacement cost basis.)
34
Which statement is true concerning Dwelling policies?
A
The Basic Form pays for losses to the dwelling on a replacement cost basis
B
The Special Form automatically covers the contents against the peril of theft
C
The Special Form insures the dwelling on an open perils basis, and insures the contents against the broad form perils
D
100% of Coverage C applies to worldwide coverage
C (The Special Form insures the dwelling on an open perils basis, and insures the contents against the broad form perils. Theft is excluded. The Basic Form settles losses to the dwelling on an ACV basis. Up to 10% of the Coverage C limit may be applied to covered property anywhere in the world.)
35
Which of the following property is not covered under Coverage A of a Dwelling Policy?
A
The land on which the dwelling is located
B
Outdoor equipment on the location used to service the dwelling
C
Fire or lightning damage to outdoor television antennas
D
Materials for repairing the dwelling, located on the described location
A (Land is not covered under the Dwelling program.)
36
Which form would not insure against external explosion?
A
Endorsed DP-1
B
DP-3
C
DP-2
D
Unendorsed DP-1
D (The basic perils covered by the DP-1 form (without the extended coverage perils endorsement) are: fire, lightning, and internal explosion.)
37
Under the Dwelling Policy, household and personal property, including property in transit between the insured's old and new residences, are covered under:
A
Coverage B
B
Coverage A
C
Coverage C
D
Coverage D
C (Coverage C is the coverage for Personal Property. 10% of the Coverage C limits apply to the Insured's Personal Property away from the premises anywhere in the world.)
38
# Choose the true statement about the Basic Dwelling Form.
A
The Basic Form covers loss to trees, shrubs and plants
B
The Basic Form automatically covers contents for theft
C
The Basic Form covers internal explosion
D
The Basic Form covers contents on an open perils basis
C (The Basic Form is written on a named perils basis and does not cover theft, or loss to trees, shrubs, and plants.)
39
Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy?
A
Replacement cost up to the Coverage A limit
B
Actual cash value of the dwelling up to the Coverage A limit
C
Replacement cost up to the Coverage B limit
D
Actual cash value of the dwelling up to the Coverage B limit
A (The dwelling is covered under Coverage A. Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to personal property are paid on an actual cash value basis.)
40
Damaged household and personal property in transit between the insured's old and new residences is covered by the Dwelling Policy under:
A
Coverage C
B
Coverage A
C
Coverage B
D
Coverage D
A (Coverage C is the coverage for Personal Property. 10% of the Coverage C limits apply to the Insured's Personal Property away from the premises anywhere in the world.)
41
Sudden and accidental damage from artificially generated electrical current best describes a(n):
A
Mechanical breakdown
B
Power failure
C
Power surge
D
Internal explosion
C (Sudden and accidental damage from artificially generated electrical current is caused by man-made electricity or power surge.)
42
Which is true of Coverage C of the Dwelling Policy?
A
Coverage C provides coverage for the personal property of a guest
B
Coverage C provides coverage for grave markers
C
Coverage C provides coverage for a car stereo owned by the insured
D
Coverage C provides coverage for pets
A (At the insured's request, Coverage C will apply to personal property of a guest or servant while located on the described location. Personal property of a tenant or boarder is not covered.)
43
Which of the following coverages is not provided by the Personal Liability endorsement?
A
Injury caused to a regular resident of the dwelling
B
First aid expenses
C
Medical payments to others
D
Defense costs
A (Liability coverage applies to expenses incurred by residence employees, but not the named insured or regular residents of the named insured's household.)
44
Which of the following property is not covered under Coverage A of a Dwelling Policy?
A
Materials for repairing the dwelling, located on the described location
B
The land on which the dwelling is located
C
Fire or lightning damage to outdoor television antennas
D
Outdoor equipment on the location used to service the dwelling
B (Land is not covered under the Dwelling program.)
45
Which of the following is true regarding Coverage A under the Dwelling Policy?
A
Coverage for land is restricted to the land upon which the dwelling is sitting
B
The policy does not include coverage for wind loss of television antennas
C
Outdoor equipment is not covered
D
Coverage A includes a detached carport
B (Wind loss of television antennas is so common the coverage is available only through attachment of an endorsement providing this coverage for an additional premium.)
46
Which of the following claims would be covered under the DP-3?
A
Damage by vandalism to a dwelling vacant for 30 days before the loss
B
Damage to a fence due to freezing and thawing of ice due to a winter storm
C
Wind damage to TV antennas
D
Theft to a dwelling under construction
A (Loss from vandalism and malicious mischief is excluded if the dwelling has been vacant for more than 60 consecutive days immediately before a loss. A dwelling vacant for only 30 days would still be covered.)
47
# Choose the claim that is not covered under the Dwelling Broad Form (DP-2).
A
Glass that is a part of a storm door
B
Damage caused by burglars
C
Theft of personal property at the insured premises
D
Accidental discharge or overflow of water from a household appliance
C (There is no theft coverage in a dwelling policy.)
48
All of the following are true of the Dwelling Special Form, except:
A
Both the dwelling and contents are covered on an open perils basis
B
Mobile homes are not eligible
C
Losses to the dwelling are paid on a replacement cost basis
D
The dwelling must be used principally for residential dwelling purposes
A (Only the dwelling is covered on an open perils basis.)
49
All of the following perils are included under the Dwelling Broad Form, except:
A
Volcanic Eruption
B
Falling Objects
C
Smoke damage from industrial operations
D
Burglary Damage
C (Smoke damage is a covered peril of the Dwelling Broad Form. However, the description of the peril specifically excludes smoke from agricultural smudging or industrial operations.)
50
All of the following statements are correct regarding Coverage E, except:
A
Coverage E is available under all Dwelling policy forms
B
Additional living expense coverage is available if the dwelling is uninhabitable
C
Coverage applies to the extent of the insured's normal standard of living
D
Additional living expenses include the boarding of pets
A (Coverage E - Additional Living Expense is not included on the DP-1 form.)
51
Under the Basic Dwelling Form, losses are paid on which basis?
A
Actual Cash Value
B
Replacement Cost
C
Agreed Value
D
Market Value
A (The DP-1 pays on an actual cash value, rather than replacement cost basis.)
52
The DP-3 insures personal property against the same perils as:
A
The DP-2 Personal Property Coverage
B
The DP-1 Dwelling Coverage
C
The DP-3 Dwelling coverage
D
The DP-1 Personal Property Coverage
A (The DP-3 covers the dwelling against open perils, and personal property against the broad (DP-2) perils.)
53
Which of the following is not covered under the Dwelling Broad Form (DP-2)?
A
Artificial electric current
B
Theft
C
Falling objects
D
Accidental discharge
B (Theft coverage is only available by endorsement.)
54
Which of the following statements about the Dwelling Special Form is true?
A
It will cover the cracking of walls
B
Losses to the dwelling are paid on an actual cash value basis
C
Contents are covered on an actual cash value basis
D
It will automatically cover the theft of contents
C (Cracking of walls and theft are exclusions to this policy. Losses to the dwelling are paid on a replacement cost basis, while the contents are paid on an actual cash value basis.)
55
All of the following are true regarding the Broad Theft Endorsement on a Dwelling policy, except:
A
Only on-premises coverage is available
B
It may be added to any of the Dwelling forms
C
It also includes vandalism resulting from theft
D
It applies only to owner-occupied structures
A (The Broad Form Theft endorsement is attached to owner-occupied Dwelling policies to provide theft coverage for the owner-occupant's Personal Property. On-premises and off-premises coverage is available.)
56
# Choose the true statement about the Basic Dwelling Form.
A
The Basic Form covers loss to trees, shrubs and plants
B
The Basic Form covers internal explosion
C
The Basic Form covers contents on an open perils basis
D
The Basic Form automatically covers contents for theft
B (The Basic Form is written on a named perils basis and does not cover theft, or loss to trees, shrubs, and plants.)
57
Under the Basic Dwelling Form, losses are paid on which basis?
A
Agreed Value
B
Replacement Cost
C
Actual Cash Value
D
Market Value
C (The DP-1 pays on an actual cash value, rather than replacement cost basis.)
58
All of the following statements are correct regarding Coverage E, except:
A
Additional living expenses include the boarding of pets
B
Additional living expense coverage is available if the dwelling is uninhabitable
C
Coverage E is available under all Dwelling policy forms
D
Coverage applies to the extent of the insured's normal standard of living
C (Coverage E - Additional Living Expense is not included on the DP-1 form.)
59
Under the Broad Form Dwelling Policy (DP-2), which peril is not included for coverage without an endorsement?
A
Volcanic Eruption
B
Falling Objects
C
Theft
D
Damage to appliances by artificially generated electricity
C (Theft Coverage for the Broad Form Dwelling Policy (DP-2) is available only through attachment of the Limited Theft or the Broad Theft endorsements.)
60
Which coverage applies to the building described in the Dwelling policy Declarations?
A
Coverage E
B
Coverage B
C
Coverage A
D
Coverage C
C (Coverage A applies to the Dwelling at the described location; Coverage B, to Other Structures; Coverage C, to Personal Property; Coverage D, to Fair Rental Value; and Coverage E to Additional Living Expenses.)
61
All of the following are true about liability, except:
A
A loss may take place over a period of time rather than all at once
B
Breach of contract is not considered an act of negligence
C
The burden of proof is on the injured party to prove that the other party was negligent
D
Liability policies pay costs incurred by an insured to sue negligent third parties
D (Liability policies pay the cost to defend the insured against suits by third parties. They do not cover the costs of lawsuits initiated by the insured against negligent third parties.)
62
Under a Dwelling Policy, the coverage extension of Debris Removal will pay for:
A
The removal of the debris from an automobile accident on the insured location
B
The removal of the debris caused by an insured peril
C
The removal of debris resulting from the action of a civil authority
D
The removal of debris resulting from demolition required by an ordinance or law
B (This coverage pays the insured's reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril.)
63
Which statement is true regarding the Personal Liability Supplement to the Dwelling policy?
A
The Limit of Liability is the same as the Coverage A amount
B
The supplement provides coverage for claim expenses
C
The supplement covers professional services rendered by the insured
D
The supplement covers damage to the insured's personal autos
B (The liability supplement provides coverages for claim expenses, first aid expenses, and damage to the property of others. Limits of liability are provided under Coverage L and Coverage M, to whatever limits the insured wishes to be indemnified for. Professional services are excluded.)
64
Under the property removed coverage extension of a Dwelling Policy, which of the following is incorrect?
A
The property is covered against direct loss from any peril
B
The extension does not change the Limit of Liability that applies to the property
C
Coverage applies up to 5 days under the DP-1, and up to 30 days in the DP-2 and DP-3 forms
D
The policy will not provide any coverage while insured property is being removed from endangered property
D (The function of the Property Removed extension is to reimburse the insured for any damage to the property occasioned by its removal from premises endangered by an insured peril.)
65
All of the following are eligible for coverage under the Dwelling Program, except:
A
A vacation home used as a secondary residence
B
A beauty shop with a small bedroom attached
C
A duplex
D
A single-family home in the suburbs
B (A dwelling used primarily for business is not eligible.)
66
All of the following perils are included under the Dwelling Broad Form, except:
A
Volcanic Eruption
B
Falling Objects
C
Smoke damage from industrial operations
D
Burglary Damage
C (Smoke damage is a covered peril of the Dwelling Broad Form. However, the description of the peril specifically excludes smoke from agricultural smudging or industrial operations.)
67
Of the Dwelling Policy Forms, which one does not cover damage by burglars?
A
None of the Dwelling Policies cover Damage done by Burglars
```
B
Special Form (DP-3)
```
```
C
Broad Form (DP-2)
```
```
D
Basic Form (DP-1)
```
D (Damage by Burglars is covered only in the broader Forms DP-2 and DP-3.)
68
Which of the following is true of a Dwelling Form?
A
The Basic Form covers the contents on an open perils basis
B
The Basic Form covers the contents against theft
C
The Broad Form covers the cost to repair defective plumbing
D
The Special Form covers the building and other structures on an open perils basis
D (The Basic Form does not offer open-peril coverage for contents. The Special Form does have open-peril coverage for the dwelling and structures.)
69
Which DP form does not cover burglar damage?
```
A
Basic Form (DP-1)
```
```
B
Special Form (DP-3)
```
```
C
Broad Form (DP-2)
```
D
None of the Dwelling Policies cover damage done by burglars
A (Damage by burglars is covered only in the broader Forms DP-2 and DP-3.)
70
Which of the following is not covered under the Dwelling Broad Form (DP-2)?
A
Falling objects
B
Artificial electric current
C
Accidental discharge
D
Theft
D (Theft coverage is only available by endorsement.)
71
Dwelling Coverage D covers which of the following losses?
A
Access prevented by a civil authority because of a neighboring location's direct loss by a peril covered under the insured's policy
B
Additional Living Expense
C
Loss of rental income due to the cancellation of a lease
D
Damage to a swimming pool
A (Coverage D, Fair Rental Value, includes coverage for the indirect loss of access prevented by a civil authority due to the direct loss of a neighboring property by a covered peril.)
72
Under the property removed coverage extension of a Dwelling Policy, which of the following is incorrect?
A
The policy will not provide any coverage while insured property is being removed from endangered property
B
Coverage applies up to 5 days under the DP-1, and up to 30 days in the DP-2 and DP-3 forms
C
The extension does not change the Limit of Liability that applies to the property
D
The property is covered against direct loss from any peril
A (The function of the Property Removed extension is to reimburse the insured for any damage to the property occasioned by its removal from premises endangered by an insured peril.)
73
The Personal Liability endorsement does not provide coverage for which of the following?
A
Medical payments to others
B
First aid expenses
C
Defense costs
D
Injury caused to a regular resident of the dwelling
D (Coverage does apply to expenses incurred by residence employees but not the named insured or regular residents of the named insured's household.)
74
After a lightning storm, the electrical transformer in B's town fails and she has no electricity for 3 days. The damage caused by the loss of electricity:
A
Is not covered
B
Is provided as 10% of Coverage C
C
Is limited to 10% of Coverage A
D
Is covered for the Coverage A amount
A (Damage from power failure that takes place away from the insured premises is excluded under the dwelling forms.)
75
Water damage caused by which of the following is a covered loss under the Dwelling policy?
A
Water below the surface of the ground
B
Overflow of water from a sump pump
C
Discharge caused by a plumbing failure
D
Leaks through a driveway
C (Water damage is excluded if caused by surface water, tidal water, and leakage through a building, foundation, or other structure.)
76
The DP-3 provides what coverage for damage to the insured's dwelling due to a power failure when lightning strikes a power transformer 2 miles away?
A
No coverage
B
10% of Coverage A
C
10% of Coverage C
D
Coverage A amount
A (Damage from power failure that takes place away from the insured premises is excluded under the Dwelling forms.)
77
Which of the following is true of a Dwelling Form?
A
The Basic Form covers the contents against theft
B
The Special Form covers the building and other structures on an open perils basis
C
The Basic Form covers the contents on an open perils basis
D
The Broad Form covers the cost to repair defective plumbing
B (The Basic Form does not offer open-peril coverage for contents. The Special Form does have open-peril coverage for the dwelling and structures.)
78
Which statement is true concerning Dwelling policies?
A
100% of Coverage C applies to worldwide coverage
B
The Special Form automatically covers the contents against the peril of theft
C
The Special Form insures the dwelling on an open perils basis, and insures the contents against the broad form perils
D
The Basic Form pays for losses to the dwelling on a replacement cost basis
C (The Special Form insures the dwelling on an open perils basis, and insures the contents against the broad form perils. Theft is excluded. The Basic Form settles losses to the dwelling on an ACV basis. Up to 10% of the Coverage C limit may be applied to covered property anywhere in the world.)
79
Under which form is the Coverage B limit included in the overall policy limit represented by Coverage A?
A
DP-3
B
DP-4
C
DP-1
D
DP-2
C (Under the DP-2 and DP-3, the Coverage B amount is paid in addition to the limits represented by Coverage A. Under the DP-1 form, the Coverage B amount is included in the limit represented by Coverage A. There is no DP-4 policy.)
80
Which of the following are eligible to be insured under a Dwelling Policy?
A
Dwellings used for incidental business
B
Dwellings with any type of business in them
C
Farms
D
Mobile homes on wheels
A (Farm property is not eligible, mobile homes must be permanently attached to the foundation, and only incidental business are covered if dwelling is primarily residential.)
81
Which of the following coverages is not included in the Basic Dwelling Form?
A
Property moved to a Newly Acquired Residence
B
Personal Property Coverage on a World-Wide basis
C
Additional Living Expenses
D
Fair Rental Value
C (The Basic Dwelling Form (DP-1) does not provide Coverage for Additional Living Expenses unless added by endorsement.)
82
Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy?
A
Replacement cost up to the Coverage A limit
B
Actual cash value of the dwelling up to the Coverage B limit
C
Actual cash value of the dwelling up to the Coverage A limit
D
Replacement cost up to the Coverage B limit
A (The dwelling is covered under Coverage A. Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to personal property are paid on an actual cash value basis.)
83
Under the Basic Dwelling Form, losses are paid on which basis?
A
Actual Cash Value
B
Replacement Cost
C
Agreed Value
D
Market Value
A (The DP-1 pays on an actual cash value, rather than replacement cost basis.)
84
Which of the following is TRUE of the Dwelling Under Construction Endorsement of a Dwelling Policy?
A
The premium is a percentage of the Coverage A limit
B
The insurer does not need to be notified of building completion
C
The insured has up to 90 days to notify the company that the dwelling is occupied
D
The liability limit is a percentage of the finished building's value
D (The limit of insurance at any given time prior to completion is a percentage of the Coverage A limit that equals the proportion the actual value bears to the value on the date of completion. The insurer must be notified of completion so coverage may be adjusted.)
85
Which of the following is true regarding the Personal Liability Supplement?
A
It covers the insured's personal autos
B
It provides coverage for claim expenses, first aid expenses and damage to property of others
C
It covers Professional Services rendered by the insured
D
The Limit of Liability is the same as the Coverage A amount
B (The Claim Expenses, First Aid Expenses, and Damage to Property of Others are Additional Coverages that supplement Coverage L, Personal Liability, and Coverage M, Medical Payments.)
86
Under the property removed coverage extension of a Dwelling Policy, which of the following is incorrect?
A
Coverage applies up to 5 days under the DP-1, and up to 30 days in the DP-2 and DP-3 forms
B
The policy will not provide any coverage while insured property is being removed from endangered property
C
The property is covered against direct loss from any peril
D
The extension does not change the Limit of Liability that applies to the property
B (The function of the Property Removed extension is to reimburse the insured for any damage to the property occasioned by its removal from premises endangered by an insured peril.)
87
Policyholder L owns a dwelling, and rents the detached garage to tenants. The premises are insured under a DP-3 with a Coverage A limit of $100,000. How much is the detached garage insured for if damaged by a covered claim?
A
$20,000
B
$10,000
C
$5,000
D
$50,000
B (The Coverage B limit of insurance is 10% of the Coverage A limit.)
88
Under which form is the Coverage B limit included in the overall policy limit represented by Coverage A?
A
DP-2
B
DP-4
C
DP-1
D
DP-3
C (Under the DP-2 and DP-3, the Coverage B amount is paid in addition to the limits represented by Coverage A. Under the DP-1 form, the Coverage B amount is included in the limit represented by Coverage A. There is no DP-4 policy.)
89
# Choose the true statement about the Basic Dwelling Form.
A
The Basic Form automatically covers contents for theft
B
The Basic Form covers loss to trees, shrubs and plants
C
The Basic Form covers contents on an open perils basis
D
The Basic Form covers internal explosion
D (The Basic Form is written on a named perils basis and does not cover theft, or loss to trees, shrubs, and plants.)
90
Which of the following is true under the Dwelling policy?
A
The Special Form covers contents on an open perils basis
B
The Basic Form covers loss to trees, shrubs and plants
C
The Broad Form automatically covers contents against theft
D
The Basic Form covers the perils of fire, lightning and internal explosion
D (The Special Form (DP3) offers open-peril coverage for the dwelling and structures, but NOT for contents. The Basic Form (DP1) covers fire, lightning, and internal explosion.)
91
Where in the Dwelling policy is it stated that earth movement, landslide, mine subsidence, and mudflow are not covered unless resulting from direct loss by fire or explosion?
A
Endorsements
B
General Exclusions
C
Insuring Agreement
D
Other Coverages
B (The perils of earth movement, landslide, mine substance, and mudflow are perils that, because of their catastrophic nature, are not insured under the Dwelling policy.)
92
Which of the following properties is ineligible to be insured under a Dwelling Policy?
A
Dwellings with any type of business in them
B
Farms
C
Dwellings containing three apartment units
D
Mobile homes
B (Dwellings located on farms are not eligible. Dwellings must be used principally for residential dwelling purposes and cannot have more than 4 dwelling units. Incidental business occupancies, such as schools, studios, and offices, are permitted if the primary use of the dwelling is as a personal residence.)
93
The Basic (DP-1) Dwelling Form does not include which coverage?
A
Additional living expenses
B
Fair rental value
C
Worldwide coverage on personal property with a limit up to 10% of Coverage C
D
Property removed to a newly acquired residence
A (Coverage for Additional Living Expenses is only available under the DP-2 and DP-3 forms.)
94
All of the following are true of the Dwelling Policy Broad Form, except:
A
The broad form covers dwellings located on farms
B
The broad form automatically covers incidental business occupancies
C
Losses to the dwelling are paid on a replacement cost basis
D
The dwelling and contents are covered for the broad form perils
A (Dwellings located on farms are not eligible for the Dwelling program.)
95
Policyholder N insures his owner-occupied home under a dwelling property policy (DP-3) with a limit of $100,000. If the dwelling is damaged in a fire, what is the limit of insurance that will apply to Coverage E, Additional Living Expense?
A
$50,000
B
$40,000
C
$10,000
D
$20,000
D (The Coverage E is 20% of Coverage A.)
96
Which statement is true regarding the Personal Liability Supplement to the Dwelling policy?
A
The supplement provides coverage for claim expenses
B
The supplement covers damage to the insured's personal autos
C
The supplement covers professional services rendered by the insured
D
The Limit of Liability is the same as the Coverage A amount
A (The liability supplement provides coverages for claim expenses, first aid expenses, and damage to the property of others. Limits of liability are provided under Coverage L and Coverage M, to whatever limits the insured wishes to be indemnified for. Professional services are excluded.)
97
Under a Dwelling Policy, the coverage extension of Debris Removal will pay for:
A
The removal of debris resulting from the action of a civil authority
B
The removal of the debris from an automobile accident on the insured location
C
The removal of debris resulting from demolition required by an ordinance or law
D
The removal of the debris caused by an insured peril
D (This coverage pays the insured's reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril.)
98
Which of the following is true regarding the Personal Liability Supplement?
A
The Limit of Liability is the same as the Coverage A amount
B
It covers the insured's personal autos
C
It provides coverage for claim expenses, first aid expenses and damage to property of others
D
It covers Professional Services rendered by the insured
C (The Claim Expenses, First Aid Expenses, and Damage to Property of Others are Additional Coverages that supplement Coverage L, Personal Liability, and Coverage M, Medical Payments.)
99
Which of the following statements about the Dwelling Special Form is true?
A
It will cover the cracking of walls
B
It will automatically cover the theft of contents
C
Contents are covered on an actual cash value basis
D
Losses to the dwelling are paid on an actual cash value basis
C (Cracking of walls and theft are exclusions to this policy. Losses to the dwelling are paid on a replacement cost basis, while the contents are paid on an actual cash value basis.)
100
Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy?
A
Replacement cost up to the Coverage B limit
B
Actual cash value of the dwelling up to the Coverage A limit
C
Replacement cost up to the Coverage A limit
D
Actual cash value of the dwelling up to the Coverage B limit
C (The dwelling is covered under Coverage A. Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to personal property are paid on an actual cash value basis.)
101
Under which of the following circumstances would the Limited Theft Coverage endorsement be used?
A
The insured dwelling is tenant-occupied
B
Coverage is desired for off-premises property
C
Coverage against vandalism is needed for a dwelling vacant more than 60 days
D
The insured dwelling is owner-occupied
A (The Limited Theft Coverage endorsement must be used if the dwelling is tenant occupied. No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss. There is no off-premises coverage under this endorsement.)
102
Which statement is true concerning Dwelling policies?
A
The Basic Form pays for losses to the dwelling on a replacement cost basis
B
100% of Coverage C applies to worldwide coverage
C
The Special Form insures the dwelling on an open perils basis, and insures the contents against the broad form perils
D
The Special Form automatically covers the contents against the peril of theft
C (The Special Form insures the dwelling on an open perils basis, and insures the contents against the broad form perils. Theft is excluded. The Basic Form settles losses to the dwelling on an ACV basis. Up to 10% of the Coverage C limit may be applied to covered property anywhere in the world.)
103
Which of the following is true under the Dwelling policy?
A
The Broad Form automatically covers contents against theft
B
The Basic Form covers loss to trees, shrubs and plants
C
The Basic Form covers the perils of fire, lightning and internal explosion
D
The Special Form covers contents on an open perils basis
C (The Special Form (DP3) offers open-peril coverage for the dwelling and structures, but NOT for contents. The Basic Form (DP1) covers fire, lightning, and internal explosion.)
104
Which of the following is false regarding dwelling policies?
A
Incidental business occupancies are permitted
B
Mobile homes are eligible if written on a DP-1
C
Farm dwellings are not eligible
D
Trees, shrubs and plants are covered for up to $2,500 total
D (The limit for trees, shrubs and plants is $500 for any 1 item or 5% of Coverage A.)
105
Under a Dwelling Policy, the coverage extension of Debris Removal will pay for:
A
The removal of the debris from an automobile accident on the insured location
B
The removal of debris resulting from the action of a civil authority
C
The removal of debris resulting from demolition required by an ordinance or law
D
The removal of the debris caused by an insured peril
D (This coverage pays the insured's reasonable expenses for the removal of debris of covered property if the property is damaged by an insured peril.)
106
The Basic (DP-1) Dwelling Form does not include which coverage?
A
Worldwide coverage on personal property with a limit up to 10% of Coverage C
B
Property removed to a newly acquired residence
C
Additional living expenses
D
Fair rental value
C (Coverage for Additional Living Expenses is only available under the DP-2 and DP-3 forms.)
107
Under the Broad Form Dwelling Policy (DP-2), which peril is not included for coverage without an endorsement?
A
Volcanic Eruption
B
Falling Objects
C
Damage to appliances by artificially generated electricity
D
Theft
D (Theft Coverage for the Broad Form Dwelling Policy (DP-2) is available only through attachment of the Limited Theft or the Broad Theft endorsements.)
108
Which of the following properties is ineligible to be insured under a Dwelling Policy?
A
Dwellings with any type of business in them
B
Mobile homes
C
Dwellings containing three apartment units
D
Farms
D (Dwellings located on farms are not eligible. Dwellings must be used principally for residential dwelling purposes and cannot have more than 4 dwelling units. Incidental business occupancies, such as schools, studios, and offices, are permitted if the primary use of the dwelling is as a personal residence.)
109
The DP-3 provides what coverage for damage to the insured's dwelling due to a power failure when lightning strikes a power transformer 2 miles away?
A
No coverage
B
10% of Coverage C
C
Coverage A amount
D
10% of Coverage A
A (Damage from power failure that takes place away from the insured premises is excluded under the Dwelling forms.)
110
Policyholder N insures his owner-occupied home under a dwelling property policy (DP-3) with a limit of $100,000. If the dwelling is damaged in a fire, what is the limit of insurance that will apply to Coverage E, Additional Living Expense?
A
$40,000
B
$50,000
C
$20,000
D
$10,000
C (The Coverage E is 20% of Coverage A.)
111
Which of the following coverages is not provided by the Personal Liability endorsement?
A
First aid expenses
B
Injury caused to a regular resident of the dwelling
C
Medical payments to others
D
Defense costs
B (Liability coverage applies to expenses incurred by residence employees, but not the named insured or regular residents of the named insured's household.)
112
The Limited Theft Coverage endorsement to the DP is used under which of the following circumstances?
A
The insured dwelling is owner-occupied
B
The insured dwelling is tenant-occupied
C
The dwelling has been vacant for more than 60 days
D
Coverage is desired for off-premises property
B (The Limited Theft Coverage endorsement may only be used if the dwelling is tenant occupied. Owner-occupied dwellings should use the Broad Theft endorsement.)
113
Which of the following perils would be covered under a Dwelling policy?
A
Water discharged by a plumbing failure
B
Water accumulating below the surface of the ground
C
Overflow of water from a sump pump
D
Water leakage in a driveway
A (Water damage is excluded if caused by surface water, tidal water, or leakage through a building, foundation, or other structure.)
114
Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy?
A
Replacement cost up to the Coverage A limit
B
Replacement cost up to the Coverage B limit
C
Actual cash value of the dwelling up to the Coverage A limit
D
Actual cash value of the dwelling up to the Coverage B limit
A (The dwelling is covered under Coverage A. Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to personal property are paid on an actual cash value basis.)
115
Under the Dwelling Broad Form, losses to an unattached garage are paid on which basis?
A
Agreed Value
B
Replacement Cost
C
Functional Replacement Cost
D
Actual Cash Value
B (The DP-2 provides for losses to the dwelling and other structures are paid on a replacement cost basis.)
116
Under the Basic Dwelling Form, losses are paid on which basis?
A
Market Value
B
Agreed Value
C
Actual Cash Value
D
Replacement Cost
C (The DP-1 pays on an actual cash value, rather than replacement cost basis.)
117
All of the following statements are correct regarding Coverage E, except:
A
Additional living expense coverage is available if the dwelling is uninhabitable
B
Coverage E is available under all Dwelling policy forms
C
Additional living expenses include the boarding of pets
D
Coverage applies to the extent of the insured's normal standard of living
B (Coverage E - Additional Living Expense is not included on the DP-1 form.)
118
Which is true regarding Dwelling policies?
A
Coverage B would cover an attached garage
B
Coverage C applies while insured property is located at the described location
C
Coverage C includes coverage for personal property of tenants and boarders
D
Coverage D is considered a direct loss coverage
B (Coverage C may be extended to cover property of guests and servants. Coverage D, Fair Rental Value, is an indirect coverage.)
119
Which of the following is true of a Dwelling Form?
A
The Special Form covers the building and other structures on an open perils basis
B
The Broad Form covers the cost to repair defective plumbing
C
The Basic Form covers the contents on an open perils basis
D
The Basic Form covers the contents against theft
A (The Basic Form does not offer open-peril coverage for contents. The Special Form does have open-peril coverage for the dwelling and structures.)
120
Special Form dwelling coverage:
A
Provides coverage against named perils
B
Provides coverage against scheduled risks
C
Includes coverage for catastrophic perils
D
Is limited by the named exclusions
D (The Special Form dwelling policy provides coverage for all perils except what's excluded. Catastrophic perils are named exclusions.)
121
All of the following perils are included under the Dwelling Broad Form, except:
A
Smoke damage from industrial operations
B
Volcanic Eruption
C
Burglary Damage
D
Falling Objects
A (Smoke damage is a covered peril of the Dwelling Broad Form. However, the description of the peril specifically excludes smoke from agricultural smudging or industrial operations.)
122
All of the following are true regarding Dwelling policy eligibility, except:
A
Some incidental business occupancies are permitted
B
Mobile homes are eligible if written on a DP-1
C
The dwelling must be used for seasonal or secondary purposes
D
Farm dwellings are not eligible
C (The dwelling must be used principally for residential dwelling purposes and MAY be occupied on a seasonal or secondary basis, but it is not required.)
123
Which of the following is false regarding the Broad Theft Endorsement under the Dwelling policy?
A
It may be added to any of the Dwelling forms
B
It includes vandalism resulting from theft
C
It applies only to owner-occupied structures
D
Only on-premises coverage is available
D (The Broad Form Theft endorsement is attached to owner-occupied Dwelling policies to provide theft coverage for the owner-occupant's Personal Property. On-premises and off-premises coverage is available.)
124
Which of the following is TRUE of the Dwelling Under Construction Endorsement of a Dwelling Policy?
A
The liability limit is a percentage of the finished building's value
B
The insured has up to 90 days to notify the company that the dwelling is occupied
C
The premium is a percentage of the Coverage A limit
D
The insurer does not need to be notified of building completion
A (The limit of insurance at any given time prior to completion is a percentage of the Coverage A limit that equals the proportion the actual value bears to the value on the date of completion. The insurer must be notified of completion so coverage may be adjusted.)
125
Which of the following perils is not covered under the Extended Coverage Endorsement to the DP-1?
A
Volcanic eruption
B
Weight of ice, snow or sleet
C
Smoke
D
Explosion
B (Weight of ice, snow or sleet is not part of the Extended Coverage perils.)
126
Coverage B of a dwelling policy will not apply to a detached garage if which of the following is being stored?
A
A helium tank used for the insured's business
B
A broken down farm tractor belonging to the tenant
C
A tenant's lawnmower with a full tank of gas
D
Ski equipment owned by the insured's 18 year old son
A (No coverage is provided for other structures used in whole or in part for commercial, manufacturing, or farming purposes unless the property is only being stored and is owned by the insured or tenant and does not contain gaseous or liquid fuel located other than a fuel tank. The helium tank is not allowed for coverage to apply.)
127
Which of the following properties is ineligible to be insured under a Dwelling Policy?
A
Mobile homes
B
Dwellings with any type of business in them
C
Farms
D
Dwellings containing three apartment units
C (Dwellings located on farms are not eligible. Dwellings must be used principally for residential dwelling purposes and cannot have more than 4 dwelling units. Incidental business occupancies, such as schools, studios, and offices, are permitted if the primary use of the dwelling is as a personal residence.)
128
Which is true regarding Dwelling policies?
A
Coverage B would cover an attached garage
B
Coverage D is considered a direct loss coverage
C
Coverage C includes coverage for personal property of tenants and boarders
D
Coverage C applies while insured property is located at the described location
C (Coverage C may be extended to cover property of guests and domestic employees. Coverage D – Fair Rental Value is an indirect coverage.)
129
Which of the following perils is not covered under the Dwelling Broad Form?
A
Smoke damage from industrial operations
B
Weight of ice and snow
C
Vehicle damage to the dwelling
D
Burglary damage
A (Smoke damage is a covered peril of the Dwelling Broad Form; however, the description of the peril specifically excludes smoke from agricultural smudging or industrial operations.)
130
Which of the following is true regarding Coverage A under the Dwelling Policy?
A
Coverage A includes a detached carport
B
Coverage for land is restricted to the land upon which the dwelling is sitting
C
The policy does not include coverage for wind loss of television antennas
D
Outdoor equipment is not covered
C (Wind loss of television antennas is so common the coverage is available only through attachment of an endorsement providing this coverage for an additional premium.)
131
# Choose the true statement about the Basic Dwelling Form.
A
The Basic Form automatically covers contents for theft
B
The Basic Form covers internal explosion
C
The Basic Form covers loss to trees, shrubs, and plants
D
The Basic Form covers contents on an open perils basis
B (The Basic Form is written on a named perils basis and does not cover theft, or loss to trees, shrubs, and plants.)
132
Coverage B of a dwelling policy will not apply to a detached garage if which of the following is being stored?
A
Ski equipment owned by the insured's 18 year old son
B
A tenant's lawnmower with a full tank of gas
C
A broken down farm tractor belonging to the tenant
D
A helium tank used for the insured's business
D (No coverage is provided for other structures used in whole or in part for commercial, manufacturing, or farming purposes unless the property is only being stored and is owned by the insured or tenant and does not contain gaseous or liquid fuel located other than a fuel tank. The helium tank is not allowed for coverage to apply.)
133
All of the following are true regarding the Broad Theft Endorsement on a Dwelling Policy, except:
A
It may be added to any of the Dwelling forms
B
It also includes vandalism resulting from theft
C
It applies only to owner-occupied structures
D
Only on-premises coverage is available
D (The Broad Theft Endorsement is attached to owner-occupied Dwelling policies to provide theft coverage for the owner-occupant's personal property. On-premises and off-premises coverage is available.)
134
Coverage D of the Dwelling Policy provides coverage for:
A
Other Structures
B
Trees, Shrubs, and Other Plants
C
Fair Rental Value
D
Additional Living Expenses
C (Loss of rental income is an indirect loss sustained by the insured when the dwelling is rendered uninhabitable by a direct loss. Coverage D provides protection for this indirect loss.)
135
All of the following are true of the Dwelling Policy Broad Form, except:
A
Losses to the dwelling are paid on a replacement cost basis
B
The Broad Form automatically covers incidental business occupancies
C
The dwelling and contents are covered for the Broad Form perils
D
The Broad Form covers dwellings located on farms
D (Dwellings located on farms are not eligible for the Dwelling Program.)
136
Which of the following would not be covered under Coverage B?
A
Grain silo
B
Swimming pool
C
Pole barn
D
Shed
A (No coverage is provided for other structures used for farming purposes.)
137
Which of the following property is not covered under Coverage A of a Dwelling Policy?
A
Materials for repairing the dwelling, located on the described location
B
Outdoor equipment on the location used to service the dwelling
C
The land on which the dwelling is located
D
Fire or lightning damage to outdoor television antennas
C (Land is not covered under the Dwelling program.)
138
Which of the following are eligible to be insured under a Dwelling Policy?
A
Dwellings with any type of business in them
B
Farms
C
Dwellings used for incidental business
D
Mobile homes on wheels
C (Farm property is not eligible, mobile homes must be permanently attached to the foundation, and only incidental business are covered if dwelling is primarily residential.)
139
Which statement is true regarding the Personal Liability Supplement to the Dwelling policy?
A
The supplement provides coverage for claim expenses
B
The supplement covers damage to the insured's personal autos
C
The Limit of Liability is the same as the Coverage A amount
D
The supplement covers professional services rendered by the insured
A (The liability supplement provides coverages for claim expenses, first aid expenses, and damage to the property of others. Limits of liability are provided under Coverage L and Coverage M, to whatever limits the insured wishes to be indemnified for. Professional services are excluded.)
140
All of the following perils are included under the Dwelling Broad Form, except:
A
Volcanic Eruption
B
Falling Objects
C
Smoke damage from industrial operations
D
Burglary Damage
C (Smoke damage is a covered peril of the Dwelling Broad Form. However, the description of the peril specifically excludes smoke from agricultural smudging or industrial operations.)
