Free Dwelling Policy Concepts Practice Questions
Mississippi Property & Casualty exam — 38 practice questions.
Subtopics: Dwelling policy, Coverage forms, Characteristics, Property coverages, Perils insured against, Eligibility, Fair rental value, Other structures, DP-1 basic form, DP-3 special form, Additional living expense, Replacement cost loss settlement, Other coverages, Coverage A property, DP-1 perils, DP-1 loss settlement, DP-2 perils, DP-3 personal property, Vacancy, Cancellation, Personal liability supplement, Selected endorsements, Loss settlement
Read the Dwelling Policy Concepts study guide
Sample questions & answers
1. A dwelling (DP) policy differs from a homeowners policy primarily because it:
is often used for non-owner-occupied or rental dwellings and does not automatically include liability
Dwelling policies are commonly used for rental or non-owner-occupied dwellings and do not automatically include the liability built into homeowners forms.
2. The Dwelling policy form that provides open-peril (special form) coverage on the dwelling structure is the:
DP-3
The DP-3 provides special (open-peril) coverage on the dwelling and other structures; DP-1 is basic and DP-2 is broad named-peril.
3. Compared with a Homeowners policy, the Dwelling policy:
Does not automatically include personal liability coverage
The Dwelling policy is primarily property coverage; personal liability must be added by endorsement, unlike the Homeowners policy.
4. Under a Dwelling policy, the coverage that pays the rental value lost when an insured peril makes the dwelling unfit to live in is:
Coverage D - Fair Rental Value
Coverage D (Fair Rental Value) reimburses lost rental income while the premises are uninhabitable due to a covered loss.
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Practice: Dwelling Policy Concepts
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
