PROPERTY CASUALTY
PRACTICE TEST EXAM
PREP NATIONAL CORE 100
QUESTIONS COMPLETE
Question 1: A homeowner wants broad protection on the dwelling against direct
physical loss unless a cause is excluded, while personal property remains covered for named perils. Which homeowners form best �ts this request?
Choices:
1) HO-2
2) HO-3
3) HO-4
4) HO-8
Correct Answer: HO-3
Explanation: The HO-3 Special Form generally covers the dwelling and other structures on an open-peril basis while personal property is covered for named perils, subject to policy exclusions and conditions.Page 1
Question 2: A tenant rents an apartment and wants coverage for personal
property, loss of use, and personal liability but does not need building coverage.Which homeowners form is designed for this exposure?
Choices:
1) HO-3
2) HO-4
3) HO-6
4) HO-8
Correct Answer: HO-4
Explanation: The HO-4 Tenants Form is designed for renters. It primarily covers the insured's personal property, loss of use, and personal liability rather than the building itself.
Question 3: A condominium unit owner needs coverage for personal property,
personal liability, and portions of the unit for which the owner is responsible under the condominium documents. Which form is most appropriate?
Choices:
1) HO-2
2) HO-4
3) HO-6
4) HO-8
Correct Answer: HO-6
Explanation: The HO-6 Unit-Owners Form is designed for condominium and cooperative unit owners and can cover personal property plus building items for which the unit owner is responsible.Page 2
Question 4: An older historic house has a replacement cost far above its market
value, making full replacement with modern equivalent construction impractical.Which homeowners form is speci�cally intended for this type of situation?
Choices:
1) HO-3
2) HO-5
3) HO-6
4) HO-8
Correct Answer: HO-8
Explanation: The HO-8 Modi�ed Coverage Form is intended for certain older homes when replacement cost coverage may be impractical or disproportionately high compared with market value.
Question 5: Which dwelling policy form provides the narrowest standard named-
peril protection of the three common dwelling forms?
Choices:
1) DP-1
2) DP-2
3) DP-3
4) HO-3
Correct Answer: DP-1
Explanation: DP-1 is the Basic Form and provides the narrowest standard named-peril coverage among DP-1, DP-2, and DP-3. Broader causes of loss may be available by endorsement.Page 3