1. Exam Prep
  2. North Dakota
  3. Property & Casualty
  4. Dwelling Policy Concepts

Free Dwelling Policy Concepts Practice Questions

North Dakota Property & Casualty exam — 16 practice questions.

Subtopics: 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, Dwelling under construction

Read the Dwelling Policy Concepts study guide

Sample questions & answers

1. 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.

2. 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.

3. 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.

4. The DP-1 (Basic Form) covers a limited list of named perils that begins with:

Fire, lightning, and internal explosion (with extended coverage optional)

The DP-1 base perils are fire, lightning, and internal explosion; other perils are added by the Extended Coverage and VMM options.

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Practice: Dwelling Policy Concepts

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

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 Pennsylvania Insurance Department and the exam administrator before relying on it.