Free Dwelling Policy Practice Questions
New Mexico Personal Lines exam (series 18-38) — 82 practice questions.
Subtopics: Dwelling policy, Vacancy, Fair rental value, Other structures, Purpose, No liability, DP-1 basic form, DP-3 special form, Coverage A, Coverage B, Coverage C, Coverage D, Coverage E, Coverage A eligibility, Loss settlement, Extended coverage perils, Vandalism endorsement, Other coverages debris removal, Improvements by tenant, Personal liability supplement, Excluded perils, DP-2 broad form, Coverage C optional, Automatic increase, Theft endorsement, Reasonable repairs, Trees shrubs and plants, Fire department service charge, Property removed, Worldwide personal property, Definition of insured, Coinsurance clause, DP-3 loss settlement, Collapse coverage, Seasonal dwelling, Other structures rented, Lightning peril, Glass coverage, Fair rental value vs ALE, Ordinance or law, DP-1 perils, DP-1 vehicles peril, Windstorm peril, DP-1 vandalism, Rental value and ALE, Civil authority, Tenant improvements, Coverage C location, Property not covered, Coverage A scope, Coverage B exclusions, DP-3 open perils exclusions, DP-3 Coverage C perils, DP-2 perils, DP-1 trees exclusion, Fire department charges, Collapse, Replacement cost settlement, Cancellation, Nonrenewal, Mortgagee notice, Other insurance, Earth movement, Water exclusion, Freezing, Eligibility, Guest property, Newly acquired residence, Intentional loss, Glass breakage, DP forms, Dwelling liability
Read the Dwelling Policy study guide
Sample questions & answers
1. A New Mexico dwelling (DP) policy differs from a homeowners policy mainly because it:
It is often used for rentals and lacks built-in liability coverage
The dwelling policy is designed for dwellings such as rentals and does not automatically include the broad homeowners liability and contents package.
2. A New Mexico dwelling left vacant beyond the period allowed by the policy may result in:
Restricted coverage for certain perils
Many policies reduce or suspend coverage for certain perils once a dwelling has been vacant beyond the stated period.
3. Under the ISO dwelling policy (DP-3), the coverage that pays a landlord the lost rent when a covered loss makes the rented part of the dwelling unfit for use is:
Coverage D - Fair Rental Value
Coverage D pays the fair rental value of the part of the described location rented to others when a covered loss makes it unfit for normal use.
4. Under the ISO DP-3, the other structures coverage allows the insured to use up to what percentage of the Coverage A limit for other structures?
10%
The DP-3 lets the insured use up to 10% of the Coverage A limit for loss to other structures; this is additional insurance.
Practice: Dwelling Policy
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.
