Free Dwelling Policy Concepts Practice Questions
South Dakota Property & Casualty exam — 39 practice questions.
Subtopics: Valued policy law, 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 South Dakota home insured for $250,000 burns to the ground in a fire that was not the insured's fault. The policy has been in force for two years with unchanged limits. Under the valued policy law, the insurer owes:
$250,000
SDCL 58-10-10 treats the amount of insurance as conclusively the true value and measure of damages for a total loss more than ninety days after issuance.
2. Under SDCL 58-10-10, a builders' risk policy covering property under construction that is destroyed by fire is settled:
At the actual value of the construction completed
SDCL 58-10-10(3) values builders' risk losses at the actual value of the portion of construction completed at the time of the loss.
3. 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.
4. 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.
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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.
