South Dakota Property & Casualty Insurance License Exam

Which Homeowners form covers both the dwelling and personal property on an open-perils basis?

1. AHO-3 (Special form)
2. BHO-5 (Comprehensive form)Correct
3. CHO-2 (Broad form)
4. DHO-8 (Modified form)

Why: The HO-5 comprehensive form insures both the dwelling and personal property on an open-perils basis, the broadest coverage among standard forms. The HO-3 special form covers the dwelling on an open-perils basis but personal property only on a named-perils basis. HO-2 covers both on named-perils, and HO-8 is a modified form for older homes that pays on a repair-cost or actual cash value basis rather than full replacement.

In the Personal Auto Policy, which coverage part pays for bodily injury and property damage the insured causes to others?

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

Why: Part A (Liability Coverage) responds when the insured is legally responsible for bodily injury or property damage to others arising out of the use of a covered auto, paying damages and providing a 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.