COLORADO INSURANCE
PRODUCER LICENSING
PERSONAL LINES
PRACTICE EXAM
COMPLETE 113 QUESTIONS
Question 1: A tenant wants coverage for personal belongings and personal liability but does not need coverage on the building. Which homeowners form is designed for this exposure?
Choices:
1) HO-6
2) HO-4
3) HO-2
4) HO-3
Correct Answer: HO-4
Explanation: The HO-4 is the renters form. It covers a tenant's personal property and personal liability while the building itself is insured by the owner.Page 1
Question 2: Which homeowners form is most commonly used for an owner-occupied
one- or two-family dwelling and generally provides open-perils coverage on the dwelling with named-perils coverage on personal property?
Choices:
1) HO-5
2) HO-8
3) HO-2
4) HO-3
Correct Answer: HO-3
Explanation: The HO-3 is the special form. It generally provides open-perils coverage on the dwelling and named-perils coverage on personal property, subject to policy exclusions and limitations.
Question 3: A condominium unit owner wants coverage for personal property, loss
assessments, liability, and certain building items within the unit. Which form is most appropriate?
Choices:
1) HO-5
2) HO-6
3) DP-3
4) HO-4
Correct Answer: HO-6
Explanation: The HO-6 is designed for condominium unit owners and provides coverage for personal property, liability, loss assessment, and speci�ed portions of the unit that are the insured's responsibility.Page 2
Question 4: Which homeowners form is intended primarily for older homes when
replacement cost may be substantially higher than market value and coverage is commonly written on a modi�ed basis?
Choices:
1) HO-5
2) HO-2
3) HO-8
4) HO-3
Correct Answer: HO-8
Explanation: The HO-8 modi�ed coverage form is commonly used for older homes whose replacement cost may be disproportionate to market value.
Question 5: Under dwelling forms, which form generally provides the broadest
property coverage by insuring the dwelling on an open-perils basis while personal property remains subject to named perils?
Choices:
1) DP-2
2) DP-1
3) HO-4
4) DP-3
Correct Answer: DP-3
Explanation: The DP-3 special form generally provides open-perils coverage on the dwelling and other structures, while personal property is generally covered for named perils.Page 3