Free Dwelling Policy Concepts Practice Questions
North Carolina Property exam — 58 practice questions.
Subtopics: Dwelling policy use, DP-1 perils, DP-1 settlement, DP-2 settlement, DP-3 contents, Dwelling liability, DP-2 water discharge vacancy, Eligibility, DP-1 basic, DP-3 special, Coverage A, Coverage B, Coverage C, Fair rental value, Additional living expense, Theft not covered, No liability in base, Inflation guard, Dwelling under construction, Extended coverage perils, DP-2 broad form, Broad theft endorsement, Dwelling replacement cost settlement, Personal Liability Supplement medical payments, Vandalism and malicious mischief, Recovered property, Personal property loss settlement, Improvements and betterments, Personal property off-premises, Trees shrubs and plants, Internal explosion, Property not covered, Functional Replacement Cost endorsement, DP-2 burglar damage, DP-3 vs DP-2, DP Coverage E, Fair rental value calc, DP civil authority, DP money excluded, DP Coverage A materials, DP general exclusion, DP water backup, DP freezing, DP windstorm interior, DP smoke peril, DP-3 theft not covered, DP reasonable repairs, DP ordinance or law, DP-3 exclusions, DP Coverage C named perils, DP deductible, DP vacancy - glass, DP mortgagee rights, DP Coverage B, DP-2 replacement cost, DP volcanic eruption, Dwelling forms, Dwelling coverages
Read the Dwelling Policy Concepts study guide
Sample questions & answers
1. A dwelling fire policy is most often used for which property?
A rental house the owner does not live in
NCDOI notes dwelling policies are typically used for property that is not the owner's primary residence, such as rentals and vacation homes.
2. Without extended coverage, the DP-1 basic dwelling form typically covers:
Fire, lightning, and internal explosion
NCDOI lists fire, lightning, and internal explosion as the typical DP-1 perils, with extended coverage available.
3. Claims under a DP-1 basic dwelling policy are settled on what basis unless replacement cost is purchased?
Actual cash value
NCDOI states DP-1 claims are settled at actual cash value, though replacement cost may be available for added cost.
4. Compared with the DP-1, the DP-2 broad dwelling form typically settles building claims at:
Replacement cost
NCDOI notes that unlike the DP-1, the DP-2 typically settles claims on a replacement cost basis.
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.
