72 QUESTIONS 7 OF 8

What are the five property coverages listed on the ISO DP-3 Declaration page?

• Dwelling, Other Structures, Personal Property, Fair Rental Value, Additional Living Expense

• Dwelling, Flood, Personal Property, Fair Rental Value, Windstorm

• Dwelling, Flood, Personal Property, Personal Injury, Windstorm

• Dwelling, Flood, Personal Property, Personal Injury, Fair Rental Value

Ordinance or Law coverage is typically given to what extent in an ISO homeowner insurance policy?

• 10% coverage limit provided by Coverage A - Dwelling

• 25% coverage limit provided by Coverage C - Personal Property

Loss of Use coverage on an ISO homeowner policy covers which of the following Perils?

• Hail, Fire, Lightning, Windstorm, Theft

• Hail, Flood, Lightning, Windstorm, Theft

• Smoke, Fire, Flood, Windstorm, Theft

• Fire, Mechanical Breakdown, Windstorm, Theft, Lighting

A real estate company has called you stating that they need help insuring their rental properties. The company wants the broadest and most inclusive ISO dwelling form. Which dwelling form should you offer to insure/protect their rental properties?

• Basic Form

• Broad Form

• Special Form

• Platinum Form

What valuation basis can be endorsed to the ISO HO-3 Homeowner policy to change the valuation basis for Personal Property to another valuation basis?

• Personal Property Replacement Cost Endorsement

• Stated Amount Endorsement

• Scheduled Personal Agreed Amount

• There are no other endorsements available. A different HO-3 policy would have to be offered.

Efficient proximate cause is most likely to apply this chain of events under the ISO HO-3 policy:

• Flood that leads to earth movement

• Wildfire that leads to earth movement

• Neglect that leads to intentional acts

• Power failure that leads to nuclear hazard

The ISO DP-3 is an Open Perils policy. Which six perils listed below are specifically excluded from the DP-3 policy?

• Ordinance, Earth movement, Intentional loss, Neglect, Power failure, Smoke

• Ordinance, Hail, War, Power failure, Neglect, Nuclear hazard

• Intentional loss, Windstorm, Neglect, Earth movement, Ordinance, War

• Neglect, Ordinance, Intentional loss, Power failure, War, Nuclear hazard

ISO Homeowner (HO-3) and ISO Dwelling (DP-3) policies offer two types of valuation of property claims for Coverage A - Dwelling and Coverage C - Personal Property. What are these two valuations called?

• Stated Amount and Agreed Scheduled Amount

• Replacement Cost and Actual Cash Value

• Actual Cash Value and Stated Amount

• Functional Replacement Cost and Actual Cash Value

Nate has a home business selling insurance. He has minimal client interaction at his home. The home is covered with a standard ISO homeowner policy. Of the following, which type of policy, if any, should he have in place to cover his home business?

• He should purchase additional coverage with his ISO homeowner policy endorsed to increase the business property coverage at the residence and off residence.

• He should purchase an ISO commercial business policy.

• He should purchase a commercial umbrella policy.

• Nate does not have to purchase additional coverage since the ISO homeowner policy is sufficient.

What is the amount of coverage provided under the ISO DP-3 Dwelling policy for a fire department service charge when the fire department from a neighboring city is called to protect property from a covered peril?

• 100

• 250

• 500

• 1000