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Alabama Insurance Exam Prep CH 4
Questions with Detailed Verified Answers
(100% Correct Answers) /Already Graded
A+
Which of the following is not eligible for the Dwelling Program?
A
Dwelling has 4 apartment units
B
Dwelling includes a piano school
C
Dwelling is located on farm property
D
Dwelling has 5 roomers
Ans: C
Which of the following dwelling forms pays for losses to the dwelling on an
actual cash value basis?
A
DP-2 Broad Form
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B
DP-3 Special Form
C
DP-1 Basic Form
D
DP-4 Liability Form
Ans: C
Which of the following dwelling program forms covers the building on an open
peril basis?
A
DP-1 Basic Form
B
DP-4 Liability Form
C
DP-2 Broad Form
D
DP-3 Special Form
Ans: D
Coverage A – Dwelling
Coverage B – Other Structures
Coverage C – Personal Property
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Coverage D – Fair Rental Value
Coverage E – Additional Living Expenses
Ans: Tips
An attached carport is covered under which of the following coverages?
A
Coverage C – Personal Property
B
Coverage D – Fair Rental Value
C
Coverage A – Dwelling
D
Coverage B – Other Structures
Ans: C
The Coverage B limit of insurance is up to 10% of the Coverage A limit and is
automatically provided under each of the dwelling forms. In the case of a DP-1,
this limit does not increase the amount of insurance provided by Coverage A. The
DP-2 and DP-3 forms provide additional insurance.
Example
The Coverage A limit on an insured dwelling is $100,000. In a DP-1, a detached
garage would be covered for up to $10,000; however, the most the policy
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would pay for loss to both the dwelling and garage is $100,000. Under the DP-
2 and DP-3 forms, the garage would be covered for up to $10,000 and this
would be in addition to the $100,000 of coverage provided for the dwelling.
Neither Coverage A nor B insure damage caused by wind, hail, ice, snow, or
sleet damage to outdoor radio and television antennas and aerials, including
their lead-in-wiring.
Ans: Tips
All of the following is covered under Coverage B – Other Structures, except:
A
Storage building
B
Shed
C
Construction materials
D
Swimming pool
Ans: C
All of the following are types of property NOT covered under Coverage C –
Personal Property, except:
A
A dog
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B
Credit cards or fund transfer cards
C
Motor vehicles
D
Canoes
Ans: D (Up to $1000)
Which coverage pays for the loss of rents due to direct loss to the dwelling from
a covered peril?
A
Coverage B – Other Structures
B
Coverage D – Fair Rental Value
C
Coverage E – Additional Living Expense
D
Coverage C – Personal Property
Ans: B
(up to 20% of coverage A)
Property Removed
