West Virginia Property and Casualty Licensing Practice Exam

Which DP policy form includes coverage for fire, lightning, and internal explosion?

1. DP1

2. DP2

3. DP3

4. None of the above

The correct answer is: DP2

The correct answer is associated with the DP1 policy form, which specifically provides coverage for fire, lightning, and internal explosion as part of its basic provision. This form is known as the "Basic Form" of the Dwelling Policy and covers a limited set of perils. The DP1 policy is designed primarily for risks where coverage for additional perils is not desired or needed, focusing instead on providing essential protection against the most common hazards, which includes the dangers associated with fire, lightning, and internal explosions. This makes it a suitable choice for insuring properties that may not require extensive coverage or for those who want to keep insurance costs lower by opting for minimal coverage. The DP2 and DP3 forms extend coverage significantly beyond what is provided in DP1. DP2, known as the "Broad Form," adds coverage for additional perils, while DP3, the "Special Form," provides an all-risk coverage approach, meaning it covers all types of risks except those specifically excluded in the policy. Thus, while these forms offer broader coverage, they do not specifically define the limited scope provided by DP1, making DP1 the most accurate choice for the question regarding coverage for fire, lightning, and internal explosion.