Alabama Personal Lines Insurance License Exam

The most commonly purchased Homeowners form, which covers the dwelling on an open-perils basis and personal property on a named-perils basis, is the:

1. AHO-8
2. BHO-3Correct
3. CHO-2
4. DHO-4

Why: The HO-3 (special form) is the most widely purchased Homeowners policy. It insures the dwelling and other structures on an open-perils basis while covering personal property on a named-perils basis. HO-2 covers both on named-perils, HO-4 is the renters form, and HO-8 is a modified form for older homes. The HO-5 comprehensive form extends open-perils coverage to personal property as well.

In the Personal Auto Policy, coverage for bodily injury and property damage the insured causes to others is provided under:

1. APart D – Coverage for Damage to Your Auto
2. BPart C – Uninsured Motorists
3. CPart B – Medical Payments
4. DPart A – Liability CoverageCorrect

Why: Part A (Liability Coverage) responds when the insured is legally responsible for bodily injury or property damage to others from the use of a covered auto, paying damages and providing a legal defense. Part B pays medical expenses for the insured and passengers, Part C covers injuries caused by uninsured or underinsured drivers, and Part D covers physical damage to the insured's own vehicle.