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State Farm Fire Independent Policy Exam (Updated) 2024 Questions With Complete Solutions!!
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State Farm Fire Independent Policy Exam (Updated) 2024 Questions With Complete Solutions!!
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Name: Score:50 Multiple choice questions
Term 1 of 50
Bill Smith constructed an awning beside his detached garage, under which he stores his small
fishing boat. He screwed the framing of the awning to the fascia of the garage and supported the
other side with posts set in concrete. Since the awning has no foundation, it is not considered a
Coverage A item.
True or False
True
False
,Definition 2 of 50
The dwelling and other building structures
Our insured's residence premises suffered damage to floor coverings, baseboards, drywall
and personal property following exceptionally heavy rains that caused a nearby creek to
rise and water enter the home. While the insured's were out of their home due to the
flooding, looters stole lawn equipment from inside the detached garage. Under the HO-3
policy, what items would be covered?
Select the single best answer:
A. Stolen lawn equipment
B. Coverage A items damaged by rising water
C. Coverage B items damaged by rising water
D. Nothing is covered because of Section I - Losses Not Insured 2. c. (1)
If a picture falls from a wall and damages an expensive statue, under the HO-3 coverage
for the statue would:
Select the single best answer:
A. Apply under the falling object peril
B. Not apply, not an insured peril
C. Apply under the collapse peril
D. Not apply since it should have been insured under a personal articles policy
E. None of the above
Option ID under the HO-3 applies to:
Select the single best answer:
A. The dwelling and other building structures
B. All covered structures
C. The dwelling
D. The dwelling and all other structures
E. Both A and D
Sue Kojack is the named insured. Other residents in the household are:
Sue's 21 year old son, Louis
Tammy, Louis's wife
Matt, a 16 year foster child
, Mildred, a 38 year old friend who lost her job
Who would qualify as insureds under a HO-3 policy?
Select the single best answer:
A. Sue
B. Sue, Louis, Tammy, and Matt
C. Sue and Louis
D. Sue, Louis, and Tammy
E. Sue, Louis, Tammy, Matt, and Mildred
Term 3 of 50
An HO-3 policy is in force with coverage A limits of $75,000. The policy has a $1,000 deductible.
The house is totally destroyed by a tornado and the cost to replace the house is $75,550 plus
debris removal of $4,225 for a total claim of $79,775. All repairs have been completed. What is the
amount of your final settlement? Consider the deductible in your calculations.
Select the single best answer:
A. $79,775
B. $78,750
C. $78,775
D. $77,750
E. $74,000
0
B. $500.00 to replace the tree.
78750
680
, Term 4 of 50
The steps in applying the deductible on a HO-3 homeowners policy are:
1.)The deductible is first applied to the covered loss.
2.)Any coverage or special limits are then applied to the covered loss.
3.)The amount payable to the insured will be the greater of the amounts arrived at in steps 1 and 2.
True or False
True
False
Term 5 of 50
Select the false statement listed below: In the HO-3 policy, the ALE payments will be made only
for:
Select the single best answer:
The shortest time necessary to repair or replace the damaged property, but not to exceed
24 months.
If the insured does not rebuild, the time necessary for the insured to relocate in permanent
living quarters, but not to exceed 24 months.
ALE payments can run beyond the expiration of the policy.
ALE payments are limited to incurred costs for the shortest of three time frames as dictated
by the policy.
ALE payments will not exceed 20% of Coverage A limits.
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